Dairy Alternative Market Size, Share, Trends, Growth and Forecast 2032

Dairy Alternative Market Insights

According to a report from Zion Market Research, the global Dairy Alternative Market was valued at USD 29.19 Billion in 2023 and is projected to hit USD 68.82 Billion by 2032, with a compound annual growth rate (CAGR) of 10% during the forecast period 2024-2032.

This report explores market strengths, weakness, opportunities, and threats. It also provides valuable insights into the market's growth drivers, challenges, and the future prospects that may emerge in the Dairy Alternative industry over the next decade.

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Dairy alternatives are foods and beverages that can replace dairy products. These products are made with plant-based milk that resembles dairy milk in texture and taste, and contains fewer calories, fat, and sugar than regular milk. Plant-based milk is derived from plant sources such as soybeans, coconuts, almonds, peas, and cashews. Soy milk, rice milk, and almond milk are some of the most popular alternatives to milk worldwide. Cheese, butter, ice cream, and yogurt, among other products, can be made from plant-based milk.

Globally, the health benefits of dairy alternatives have led to their widespread adoption in many applications. In addition, the functional properties presented by dairy-free products contribute to improved texture, resistance to fatigue, stress, aging and many other problems. The market is on the rise and is in high demand due to changing consumer eating habits and changing food trends. Increasing cases of milk allergy and lactose intolerance are expected to drive demand for milk alternatives during the forecast period. Dairy alternatives are considered healthy due to the presence of several essential vitamins and minerals. They're also low in fat, cholesterol, and lactose-free. Therefore, these food products are especially suitable for consumers with lactose intolerance. As a result, many food and beverage products use dairy alternatives to attract a growing number of customers who opt for plant-based alternatives and dairy alternatives. 

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Dairy alternative is a plant based milk and used as major substitute of milk. It is processed through cereals (oats, rice, wheat, and barley), nuts, and seeds. It contains low cholesterol and low fat content than milk products. Dairy alternative do not contain lactose that have a therapeutic or medical advantages particularly for the lactose intolerant population.

The report covers forecast and analysis for the dairy alternative market on a global and regional level. The study provides historic data of 2023 along with a forecast from 2024 to 2032 based on revenue (USD Million). The report also offers detailed competitive landscape of the global dairy alternative market. It includes company market share analysis, product portfolio of the major industry participants. The report provides market opportunities for the upcoming years.

Dairy alternative products have various health benefits. Growing vegetarian population and increase health awareness mainly drives the dairy alternative market. Strong support from the government and associations is also expected to offer growth prospects for dairy alternative market. However, absence of proteins, cross contamination of raw materials and high cost associated with dairy alternatives may hamper the dairy alternative market. Nevertheless, lactose intolerance, new marketing techniques and awareness programs regarding dairy alternatives may create various opportunities for this market.

In terms of segmentation, the dairy alternative market has been segmented on the basis of product which includes almond milk, oat milk, rice milk, soya milk and others. The soya milk segment is expected to acquire the largest market share of global market in the coming years. The demand for almond milk is also increasing extensively due to various health advantages and high content of calcium and vitamin. On the basis of formulations market is divided into plain-sweetened, plain-unsweetened, flavored-sweetened, flavored-unsweetened, and others. 

Source Insights

Based on source, the market is segmented into almond, soy, coconut, oat and others. Soybean segment holds the largest market share; however, the almond segment is becoming an important segment. Almonds have a nutty flavor and can be consumed by vegans, consumers with lactose intolerance and those allergic to soy milk. Almond products are rich in fat, fiber and protein, which explain their popularity among consumers. 

In addition, almonds are also rich in B vitamins, which increase the body's basal metabolic rate, allowing it to burn fat and calories more efficiently. Growing demand for almond milk alternatives due to these nutritional benefits is contributing to the growth of the segment. Soy milk is expected to gain popularity in the United States among older consumers and women because it contains isoflavones, which are believed to reduce the risk of heart disease and breast cancer. Soy also contains phytoestrogens, which act similarly to estrogen, a female hormone. Drinking soy milk is popular as an alternative therapy among women to increase estrogen levels, which is expected to drive the market further. Almond milk is becoming increasingly popular among health-conscious young people who follow diets, such as the ketogenic and vegan diets. Almond milk is a rich substitute for dairy products due to its high fat, fiber and protein content, and is expected to be adopted by consumers widely. Additionally, almond milk helps regulate blood pressure and provides additional benefits for the skin, kidneys, and heart. It is increasingly being consumed in food as a means of preventing related diseases.

Dairy Alternative Market: Report Scope

The dairy alternative market has been encountering constant development and would keep up the same trend in the near future. Geographically, the market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The Asia-Pacific dairy alternatives market is predicted to grow at the highest CAGR in the forecast period. Rising health awareness, increasing cases of lactose intolerance and milk allergy in this region would fuel the market growth.

There are some major players in the dairy alternative market such as -

• Blue Diamond Growers
• Earth's Own Food Company
• Panos Brands LLC
• Eden Foods Inc
• The Bridge S.R.L
• Whitewave Foods Company
• Associated British Foods
• BASF SE among others.

Global Dairy Alternative Market: Product Segment Analysis

• Almond milk
• Oat milk
• Rice milk
• Soya milk
• Others

Global Dairy Alternative Market: Formulations Segment Analysis

• Plain sweetened
• Plain unsweetened
• Flavored sweetened
• Flavored unsweetened
• Others 

Global Dairy Alternative Market: Region Segment Analysis

• North America
  • U.S.
• Europe
  • UK
  • France
  • Germany
• Asia Pacific
  • China
  • Japan
  • India
• Latin America
  • Brazil
• Middle East & Africa