by The dairy alternative market has been growing rapidly over the past few years owing to the rising demand for vegan and plant-based foods. Dairy alternative products such as milk, yogurt, cheese and butter made from soy, almond, coconut, rice and oats offer several health benefits like being low in saturated fat and cholesterol. They are rich in vitamins, minerals, antioxidants and fiber which make them suitable options for people with lactose intolerance or following a vegan diet. The availability of these products in various flavors, formats and innovative packaging has made them appealing to health-conscious consumers. 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). These leading players are investing heavily in new product development and brand promotion activities to cater to the growing demand.
The demand for dairy alternative products is growing tremendously across regions driven by the rising vegan population, shifting preference towards plant-based diets and increasing cases of lactose intolerance. Plant-based milk accounts for over 60% of total dairy alternative sales globally. Almond milk is the most popular non-dairy milk choice.
Globally North America dominates the dairy alternative market owing to busy lifestyles, health awareness and flexible regulatory framework for new product launches. However, Asia Pacific is emerging as a highly lucrative region with countries like India and China witnessing exponential growth in sales of dairy alternatives in recent years. Latin America and Middle East regions also offer lucrative business opportunities.
Market Key Trends
One of the major trends driving the dairy alternative market is the personalized nutrition movement. Leading companies are focusing on customized formulation, packaging and flavors for different target segments like kids, adults and athletes. They are launching single-source calcium enriched products as well as blended offerings containing multiple plant-based milks for improved nutrition. Sustainability is another buzzword with many brands promoting low environmental footprint packaging solutions to attract eco-conscious consumers.
Porter’s Analysis
Threat of new entrants: The threat of new entrants into the dairy alternative market is moderate as there are high capital requirements and well established brands. However, options for differentiation exist.
Bargaining power of buyers: The bargaining power of buyers is high given the availability of various dairy alternative options and moderate switching costs for buyers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as the raw materials for dairy alternatives such as plant-based milks come from few suppliers globally. However, alternatives exist.
Threat of new substitutes: Threat of new substitutes is moderate to high as consumers are willing to switch to various plant-based options such as oat, soy, almond or coconut milks.
Competitive rivalry: The competitive rivalry in the dairy alternative market is high owing to presence of major global and regional brands.
Geographical Regions
North America is currently the largest market for dairy alternatives, accounting for over 40% of the global market share value in 2023. The presence of major brands and companies, growing vegan and health-conscious population, and rising lactose intolerance are major factors concentrating the market in North America.
Asia Pacific is projected to be the fastest growing regional market for dairy alternatives between 2023-2030, anticipated to expand at a CAGR of over 12%. Factors such as growing health awareness, rising disposable incomes, and expanding retail infrastructure are expected to drive stronger adoption of plant-based options in the region, especially in China, India and countries in Southeast Asia.
“*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it”
