April 14, 2024

Dairy Alternative Market Witnessing High Growth Owing to Rising Health Conscious Consumers

Dairy alternative products are plant-based substitutes for dairy products such as milk, yogurt, ice cream, cheese and butter. Some of the common plant sources used for dairy alternatives include soy, almonds, coconuts, rice and oats. These products provide similar functionality as dairy products and are considered suitable alternatives for consumers who have dairy intolerances, are vegan or are health conscious. The global dairy alternative market is estimated to be valued at US$ 27.0 Bn in 2024 and is expected to exhibit a CAGR of 10.% over the forecast period 2023 to 2030.

Key Takeaways

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).

The global dairy alternative market is expected to witness substantial growth owing to increasing prevalence of lactose intolerance, veganism and dairy allergies. Rising health consciousness is also driving more consumers to opt for plant-based milk products.

Key players in the dairy alternatives sector are actively pursuing global expansion opportunities by investing in production facilities across Asia Pacific, South America, Middle East and Africa. Countries like China, India, Brazil and UAE offer lucrative potential due to growing population of health conscious consumers.

Market drivers

The dairy alternative market is witnessing strong growth owing to rising number of health conscious consumers. People are increasingly becoming aware about the various health benefits associated with plant-based dairy alternatives such as lower fat content, cholesterol-free nature and ease of digestion. Conditions like diabetes, obesity and heart diseases are quite prevalent globally, motivating more consumers to shift towards dairy substitutes. Manufacturers are also innovating with new product varieties, flavors and packaging formats which has made alternative milks more appealing. The market is further strengthened by robust marketing campaigns by key brands and increasing availability of alternative dairy products across both online and offline retail channels.

PEST Analysis

  • Political: The dairy alternative market is influenced by regulations around food labeling and allergen labeling requirements. Product labeling plays an important role for consumers in making informed purchasing decisions.
  • Economic: Rising disposable incomes and growing health consciousness are driving demand for plant-based dairy alternatives. However, fluctuations in raw material prices can impact profit margins for companies in this industry.
  • Social: Changing consumer preferences towards vegan and organic food products present new opportunities. Growing awareness about environmental sustainability and animal welfare also promotes the adoption of dairy alternatives.
  • Technological: Advancements in food processing technology help manufacturers replicate the sensory properties of dairy and introduce new product formats. Innovation in flavor development expands the taste portfolio to appeal to different consumer segments.

Geographical regions with high market concentration

North America accounts for the largest share of the global dairy alternative market in terms of value. The US dominates the regional market owing to rising Vegan population and product awareness campaigns by key players.

Fastest growing region

The Asia Pacific region is poised to grow at the fastest rate during the forecast period. Rising health concerns and shifting preference towards plant-based products drive demand in countries like China and India. Availability of affordable local brands further accelerates adoption in the region.

The dairy alternative market has been witnessing significant growth on the backdrop of mounting health and environmental concerns related to dairy products. Key players focus on fortifying products and expanding distribution networks to strengthen their foothold. While consolidation persists in the industry, innovation in ingredients and flavors aims to appeal to myriad consumer preferences.