July 21, 2024

The Growing Vegan and Lactose Intolerant Population is Driving the Global Dairy Alternative Market

The dairy alternative market consists of plant-based milk such as soy milk, almond milk, coconut milk, and rice milk. These products are a healthier option for people with lactose intolerance, vegans, and health-conscious consumers trying to reduce their dairy intake. Plant-based milks provide similar nutritional value to cow’s milk such as calcium, protein and vitamins while being free from cholesterol and hormones. New innovations in flavor varieties and consistency have made dairy alternatives a popular substitute.

The global dairy alternative market is estimated to be valued at US$ 27.0 Bn 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 key trends:

One of the major trends in the dairy alternative market is the rise of oat milk. Recent years have seen exponential growth in the popularity of oat milk due to its creamy texture and mild flavor that is similar to dairy milk. Studies have also shown oat milk is easier to digest than other non-dairy options making it appealing to people with digestive issues. Leading brands have launched extensive oat milk lines with varieties like barista edition, extra creamy, and flavors. The growing health and environmentally conscious consumer has also fueled demand for plant-based products.

Porter’s Analysis

  • Threat of new entrants: The threat of new entrants is moderate as the dairy alternative market requires significant investment and large production facilities to achieve economies of scale.
  • Bargaining power of buyers: The bargaining power of buyers is high as dairy alternative products are available across various formats and brands giving consumers multiple options to choose from.
  • Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials required for dairy alternative production such as almonds, soy, oats etc. have few substitute sources.
  • Threat of new substitutes: The threat of new substitutes is high as various new plant-based beverages and products are regularly introduced by startups as well as major food companies.
  • Competitive rivalry: The competitive rivalry is high among major players as they compete on the basis of product range, innovation, marketing, and pricing.

Key Takeaways

The global dairy alternative market is expected to witness high growth. The global dairy alternative market is estimated to be valued at US$ 27.0 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030.

Regional analysis related content comprises Regional analysis related content: Asia Pacific accounts for the largest share in the dairy alternative market owing to increasing lactose intolerance and shift towards veganism in countries like India and China.

Key players related content comprises Key players related content:
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 North America and Blue Diamond Growers have wide product portfolio and larger market share.