Dairy Alternatives Market Is Expected To Exhibit CAGR 12.6% From 2024 To 2030

Dairy Alternatives Industry Overview

The global dairy alternatives market size was valued at USD 29.18 billion in 2023 and is anticipated to grow at a CAGR of 12.6% from 2024 to 2030.

The market is gaining momentum and witnessing high demand due to changing consumer eating patterns and diet trends. Rising cases of milk allergies and lactose intolerance are expected to increase demand for dairy alternatives in the coming years. Over 60% of the world's population has some level of milk allergy, according to the World Health Organization. More than 30 million American adults are lactose intolerant. Primary lactose intolerance seems to have a genetic component, with high intolerance levels in specific populations: About 95% of Asians, 60-80% of African Americans and Ashkenazi Jews, 80-100% of American Indians, and 50-80% of Hispanics.

Lactose intolerance is least common among people of northern European origin, with a prevalence of only about 2%. Many food and beverage products are using these alternatives to appeal to the growing number of consumers choosing plant-based and other dairy substitutes.

Gather more insights about the market drivers, restrains and growth of the Dairy Alternatives Market

Soy milk is gaining popularity among elderly and female consumers in the U.S. due to its isoflavones, which may reduce heart disease and breast cancer risk. Soy contains phytoestrogen, which acts like estrogen. Women use soy milk as an alternative therapy to increase estrogen levels, likely driving market growth.A wide range of manufacturers are planning on expanding their product portfolios to maintain their dominance in the dairy alternatives industry. For instance, in February 2023, Milo introduced "Milo Soy," marking its entry into this category. This innovative offering blends the advantages of soybeans with malt derived from barley, resulting in a unique beverage.

Almond milk is becoming popular among health-conscious youth following ketogenic and vegan diets. Due to its high lipids, fiber, and protein content, it's a nutritious dairy substitute. It's expected to see high adoption by consumers and industries.Also, in May 2023, Rude Health, a U.K.-based brand specializing in dairy-free alternatives and breakfast cereals, introduced organic almond milk, which does not have any added sugars.

Consumer demand for low-calorie, high-protein, vitamin-rich foods has grown during the COVID-19 pandemic. This has led many global consumers to switch to dairy alternatives. The pandemic has also increased the popularity of the vegan diet as more people adopt plant-based foods, boosting dairy alternative sales worldwide.

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• The global rice syrup market size was estimated at USD 2.09 billion in 2023 and is expected to grow at a CAGR of 5.1% from 2024 to 2030. 
• The global protein bar market size was estimated at USD 14.18 billion in 2023 and is expected to grow at a CAGR of 5.7% from 2024 to 2030.

Dairy Alternatives Market Segmentation

Grand View Research has segmented the global dairy alternatives market based on source, distribution channel, product, and region: 

Source Outlook (Revenue in USD Million, 2018 - 2030)

• Soy
• Almond
• Coconut
• Rice
• Oats
• Others

Product Outlook (Revenue, USD Million, 2018 - 2030)

• Milk
• Yogurt
• Cheese
• Ice cream
• Creamer
• Others

Distribution Channel Outlook (Revenue, USD Million; 2018 - 2030)

• Supermarket & Hypermarkets
• Convenience Stores
• Online retail
• Others

Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
• Central & South America
  • Brazil
• Middle East & Africa
  • South Africa

Key Companies profiled:

• ADM
• The Whitewave Foods Company
• The Hain Celestial Group, Inc.
• Daiya Foods Inc.
• Eden Foods, Inc.
• Nutriops, S.L.
• Earth’s Own Food Company
• SunOpta Inc.
• Freedom Foods Group Ltd.
• OATLY AB
• Blue Diamond Growers
• CP Kelco

Key Dairy Alternatives Company Insights

The market is highly competitive, with prominent, well-established players holding a large share in 2023. These manufacturers have a strong market presence and can serve local and international markets. They have a broad clientele base within and outside their countries.

Key success factors for industry participants in the coming years are expected to be new product development in food & beverages and the creation of alternatives to milk-based products. For example, Hershey Trust Company's brand Sofit is customized for Indian customers, offering a Kesar Pista flavor. Similar variations exist across companies developing products for increased market penetration.

Most dairy alternative manufacturers are vertically integrated through established processes in the end-user phase of the value chain. Many manufacturers produce food products containing dairy alternatives and beverages using alternatives like almond or soy milk.

Recent Developments

• In July 2023, Ripple Foods introduced Ripple Kids Unsweetened Original Milk, a sugar-free alternative to their Kids Original Milk. The updated formulation delivers 8 grams of plant-based pea protein, a 50 mg dosage of omega-3 fatty acids, prebiotics, choline, and a higher calcium content per serving than conventional milk. This offering caters to individuals in search of a hassle-free dairy-free alternative devoid of added sugars.
• In June 2023, Oatly Inc. introduced plant-based cream cheese in the U.S. The plant-based cream cheese is available in two flavors: Chive & Onion and Plain Cream Cheese. This innovative offering from Oatly captures the tangy and savory taste of conventional cream cheese without using any dairy ingredients.
• In February 2023, Blue Diamond announced that it is capitalizing on the growing demand for plant-based foods with the launch of three campaigns for three products—Snack Almonds, Almond Breeze almond milk, and Almond Flour. The move signifies an increased investment to showcase the benefits of almonds in new ways. The Snack Almonds campaign highlights the diverse snacking possibilities with catchy jingles and varied package sizes. The Almond Breeze campaign emphasizes almond milk's versatility and taste. These ads will air on linear TV, social media, and online platforms.

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