by The dairy alternative market comprises non-dairy beverages and food products made from various plant-based sources such as almonds, coconut, rice, soy, and others. Some popular dairy alternatives include plant-based milks, cheese, yogurt, ice cream, and butter. These products are similar in function, texture, and flavor to dairy but are derived from plant sources. With the growing health and environment consciousness among consumers, the demand for dairy-free and vegan products is increasing steadily. In particular, consumption of plant-based milk as an alternative to dairy milk is witnessing strong growth driven by rising lactose intolerance, milk allergies, and vegan population. Almond milk is one of the fastest growing non-dairy beverages preferred for its mild flavor and nutritional properties. Soy milk and yogurt are well-established as popular dairy alternatives and are augmented by emerging products such as oat milk, cashew milk, and rice milk catering to different tastes.
The global dairy alternative market is estimated to be valued at US$ 27.0 billion in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Rising Vegan Population: One of the major drivers propelling the dairy alternative market growth is the rising vegan population worldwide. Veganism promotes avoiding animal products including dairy for health, ethical, and environmental benefits. Developed regions with high awareness about vegan diets such as North America and Europe have emerged as lucrative markets for dairy alternatives. However, the vegan trend is now spreading to other parts of the world as well, thus driving the formulation of more plant-based foods and beverages.
Consumer Health Consciousness: Another important factor fueling the dairy alternative market expansion is increasing health and wellness consciousness among individuals. People are becoming aware of the health risks associated with dairy, especially lactose intolerance and milk allergies. This has propelled the demand for nutrient-rich dairy-free options that are easily digestible. Products like almond milk, soy yogurt are being preferred by health-conscious consumers as they are low in calories, cholesterol-free and naturally dairy-free.
Segment Analysis
The global dairy alternative market is dominated by the plant based milk sub-segment. Plant based milk accounted for more than 60% share of the global dairy alternative market in 2024 due to rising vegan and lactose intolerant population globally. Soy milk, almond milk and coconut milk are the most popular plant based milk choices. Soy milk is the most consumed dairy alternative globally due to its low cost and high protein content.
PEST Analysis
- Political: The government policies supporting sustainable agriculture and plant based food products are promoting the growth of the dairy alternative market. Various government initiatives to promote vegan diets are positive for the market.
- Economic: Rising disposable incomes and growing health awareness are major economic drivers of the dairy alternative market. Customers are willing to pay premium prices for specialized vegan products.
- Social: Increasing cases of lactose intolerance, milk allergies and rising vegan population are the key social factors contributing to the market growth. Growing awareness about ethical treatment of animals is boosting the adoption of plant based dairy alternatives.
- Technological: Advancements in plant breeding and food processing technology have improved the taste and texture of dairy alternative beverages. New product launches with varied flavours and formats like greek yogurt, kefir etc. are expanding the market.
Key Takeaways
The global dairy alternative market is expected to witness high growth at a CAGR of 10% during the forecast period of 2023 to 2030. The global dairy alternative market is estimated to be valued at US$ 27.0 billion in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030.
Regional analysis related content comprises North America dominates the global dairy alternative market with US being the largest market. Factors such as established distribution channels, aggressive promotional activities and marketing campaigns by key players along with rising vegan and health conscious population driving high market growth. Asia Pacific is the fastest growing region on the back of improving living standards and changing dietary patterns in major countries like India and China.
Key players related content comprises Key players operating in the dairy alternative market are Danone North America Public Benefit Corporation (US), The Hain Celestial Group, Inc. (US), Blue Diamond Growers (US), SunOpta (Canada), Sanitarium (New Zealand). Danone being the global leader focusing to expand product portfolio through acquisitions and new product launches. The Hain Celestial Group strategizing to penetrate European market through partnerships.
