Dairy Alternative Market Size, Growth, Share, Statistics Report, By Source (Soy, Almond, Coconut, Rice, Oats, Hemp And Others), By Application (Milk, Yogurt, Ice-cream, Cheese, Creamers And Others), By Distribution Channel, By Region And Segment Forecast, 2023-2032

Market Overview

The dairy alternative market size was valued at USD 24.9 Billion in 2022 and is expected to arrive at a market size of USD 89.7 Billion by 2032 with a CAGR of 13.8%. The rising incidences of lactose malabsorption and milk allergy and various benefits of plant based milk substitutes are major factors contributing to market growth.

Dairy Alternatives are substitute for dairy products which do not contain lactose, casein or other milk contents. Plant based alternative milk such as soy milk, nut milk, hemp milk and others have also become popular as a milk alternative for consumers following a vegan diet.

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The rising awareness regarding the importance of good health among the populace is an essential factor leading to market growth. There are various health benefits associated with the consumption of dairy alternatives. These products have no hormone content and are low in fats and calorie content. For instance, according to the American Society of Nutrition, a cup of milk (250ml) contains 37% to 75% more fat and 11 grams more sugars than its plant-based alternatives. Some alternatives like soy milk and hemp milk are nutritionally balanced and offer most of the benefits of dairy milk.

Furthermore, the rising prevalence of lactose intolerance and milk allergies among the population is another factor boosting the market growth. According to The National Institute of Diabetes & Digestive & Kidney Diseases, at least 36% of the U.S. population suffer from lactose intolerance. Lactose intolerance is a condition in which the consumption of foods containing lactose leads to digestive symptoms such as diarrhea, bloating and other problems. Patients with Crohn’s disease can also face lactose intolerance and foods such as milk, cheese or butter can lead to disease flare up as they contain lactose. According to Crohn’s & Colitis Foundation, one in 100 person in the U.S. is suffering from Crohn’s disease.

Additionally, environmental sustainability is also boosting the market growth. Plant-based dairy alternatives play a crucial role in preserving the environment. Dairy cattle requires land for grazing which increases deforestation. Furthermore, the greenhouse gas emissions, freshwater usage and eutrophication metrics for dairy milk are also higher when compared with plant-based milk. Thus, there is a rising trend of switching to plant based alternatives to reduce carbon footprints and contribute to the improvement of the environment.

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The high price of dairy alternatives is a major factor restraining market growth. Various dairy alternatives such as almond milk, oat milk, pea milk and vanilla soy milk cost more to manufacture. Furthermore, the government across various parts of the world subsidizes dairy industry which leads to lower prices of dairy milk and products than their counterparts. Thus factors like expensive ingredients, extensive supply chain and significant promotional expenses are factor leading to low adoption of dairy alternatives.

Additionally, the amount of protein in most of the dairy alternative is low as compared to dairy milk. Many of the plant based milk such as flax milk, coconut milk, rice milk and almond milk contain low percentage of protein as compared to cow’s milk. Furthermore, some dairy substitutes have low content of other micro and macro nutrients when compared to dairy milk which can lead to nutrient deficiencies in the consumers. Such factors are affecting the dairy alternative adoption and hindering the market expansion.

The dairy alternative market is segmented by source, application, distribution channel, and region.

Source Overview

Based on the source, the market is further segmented into soy, almond, coconut, rice, oats, hemp and others. Soy based milk segment held the largest market share in 2022. Soy milk is made from soybeans and may or may not be fortified with vitamins or minerals. It also contains 8g of proteins per 244 gm of milk which is comparable to cow’s milk. Consumers who are allergic to dairy milk or lactose intolerant, may not be able to intake their daily recommended level of calcium leading to calcium deficiencies. Fortified soy milk contains 300 to 450 gm of calcium which is useful to reach the daily calcium needs.

Almond milk segment is anticipated to show a significant growth during the forecast period. Almond milk is low in calorie and protein content compared to dairy milk which makes it a better choice for consumer who are allergic to milk proteins. Additionally, the fat in almond milk is unsaturated which is good for health as it reduces the risk of heart diseases. Also, almond milk is a source of various nutrients and vitamins such as Vitamin A, Vitamin D, Vitamin E and potassium making it a healthier choice. Due to these benefits, there is an increasing trend of adopting almond milk.

Distribution Channel Overview

Based on the distribution channel, the market is segmented into supermarkets & hypermarkets, convenience stores, online retail and others. The supermarkets & hypermarkets segment held the largest market share in 2022. The high visibility of product in supermarkets & hypermarkets and various advertisement & promotional offers provided by the store encourages consumers to purchase the plant based dairy alternatives.

The online retail segment is expected to exhibit the fastest growth rate during the forecast period. The availability of a large number of brands and variants on the online platform is a major factor encouraging consumers to shift to e-commerce. Additionally, online platform offers a detailed description regarding the ingredients and the nutritional values of the products which help consumers choose the correct product according to their requirements.

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Competitive Landscape

Some of the prominent players include ADM, The Whitewave Foods Company, Danone S.A, The Hain Celestial Group, Inc., Daiya Foods Inc., DSM, Eden Foods, Inc., Nutriops, S.L., Blue Diamond Growers, Earth’s Own Food Company, SunOpta Inc., and Freedom Foods Group Ltd.

Dairy Alternative Market Key Players Revenue:

Market Leaders	Annual revenue 2022 (USD billion)	Net Profit 2022 (USD billion)	Products/brands
The Hain Celestial Group	1.89	0.07	Joya, Natumi
Danone S.A	29.14	1.01	Alpro, Silk
Blue Diamond Growers	1.6	0.95	Almond Breeze
Sunopta Inc	0.93	0.01	OatMilk, Almond Milk
Archer Daniels Midland Company	101.56	4.01	PurelyNature

Note: Product/service segment revenues are revenues generated as whole, by division/department/segment of a company under which the product/service has been classified.Major players are sorted in no particular order.

Key players of the market are adopting myriad strategies such as new product development, process optimization, mergers and acquisition to expansion their consumer business For instance, in May 2023, DSM announced a merger with Firmenich International to form a new company DSM-Firmenich. The acquisition aims to combine their food, beverage and taste business to cater to a larger consumer base.

Regional Overview

Asia Pacific region held the largest market share in 2022. The increased cases of lactose intolerance and milk protein allergy in this region is a major factor propelling market expansion. According to Dairy Australia, more than 60% of the Asian population is lactose intolerant or lactose malabsorption. Thus consumers are shifting to dairy alternative products which do not contain lactose.Young consumers in countries such as Japan, South Korea, Australia and China are increasing adopting the milk substitutes due its health benefits such as blood cholesterol control and weight management. Soy milk is the most popular dairy alternative in this region with pea, barley and hemp milk also gaining traction.

North America is expected to exhibit a substantial growth during the forecast period. The health and taste preference are driving the consumption of diary alternatives in this region. Almond milk and oat milk are more preferred types of dairy alternatives in this region. Additionally, the growing trend of sustainability is also augmenting market growth in this region as according to Oxford University dairy alternatives are better for environment.

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Dairy Alternative Market Report Snapshot

Report Title	Dairy Alternative Market
Market Size in 2022	USD 24.9 Billion
Market Size by 2032	USD 89.7 Billion
CAGR from 2023 to 2032	13.8%
Largest Market	Asia Pacific
Forecast Period	2023 to 2032
Historic Period	2021
Base Year	2022
Report Scope & Coverage	Market Size, Market Estimations, Competitor Analysis, Trends, and Growth Factors
By Source	Soy, Almond, Coconut, Rice, Oats, Hemp and Others
By Application	Milk, Yogurt, Ice-cream, Cheese, Creamers and Others
By Distribution Channel	Supermarkets & Hypermarkets, Convenience Stores, Online Retail and Others
Region	North America, Europe, Asia-Pacific, Latin America, and Middle-East & Africa.
Countries Covered	U.S., Canada, U.K., Germany, France, China, Japan, India, South Korea, Brazil, Mexico, UAE, Saudi Arabia, South Africa, among others.
Major Market Players	ADM, The Whitewave Foods Company, The Hain Celestial Group, Inc., Daiya Foods Inc., DSM, Eden Foods, Inc., Nutriops, S.L., Blue Diamond Growers, Earth’s Own Food Company, SunOpta Inc., and Freedom Foods Group Ltd.

 

Dairy Alternative Market Report Segmentation:

Dairy Alternative Market, By Source (2023-2032)

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

Dairy Alternative Market, By Application (2023-2032)

• Milk
• Yogurt
• Ice-cream
• Cheese
• Creamers
• Others

Dairy Alternative Market, By Distribution Channel (2023-2032)

• Supermarkets & Hypermarkets
• Convenience Stores
• Online Retail
• Others

Dairy Alternative Market, By Region (2023-2032)

• North America

• • U.S.
  • Canada

• Europe

• • U.K.
  • Germany
  • France
  • Rest of Europe

• Asia Pacific

• • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific

• Latin America

• • Brazil
  • Mexico
  • Rest of Latin America

• Middle East & Africa

• • UAE
  • Saudi Arabia
  • South Africa
  • Rest of Middle East & Africa