The global dairy alternatives market was valued at approximately USD 29.18 billion in 2023 and is projected to experience significant growth, with an anticipated compound annual growth rate (CAGR) of 12.6% from 2024 to 2030. This market is gaining considerable momentum and witnessing heightened demand, primarily driven by shifting consumer eating patterns and evolving dietary trends. One of the key factors contributing to this shift is the increasing prevalence of milk allergies and lactose intolerance, which are expected to further fuel the demand for dairy alternatives in the upcoming years. According to the World Health Organization, over 60% of the global population experiences some degree of milk allergy. In the United States alone, more than 30 million adults are lactose intolerant. Primary lactose intolerance appears to have a genetic basis, with significant variation in prevalence among different populations: approximately 95% of Asians, 60-80% of African Americans and Ashkenazi Jews, 80-100% of American Indians, and 50-80% of Hispanics exhibit some level of lactose intolerance. In contrast, people of northern European descent have the lowest rates, with only about 2% affected. As a result, many food and beverage manufacturers are increasingly incorporating these alternatives into their products to cater to the growing demographic of consumers opting for plant-based and non-dairy substitutes.
Almond milk, in particular, has surged in popularity among health-conscious individuals adhering to ketogenic and vegan diets. Renowned for its high lipid, fiber, and protein content, almond milk serves as a nutritious and appealing dairy substitute. Its expected adoption by both consumers and various industries indicates a promising trajectory for this alternative. For example, in May 2023, Rude Health, a U.K.-based brand specializing in dairy-free products and breakfast cereals, launched organic almond milk that is free from added sugars, further enhancing its appeal to health-oriented consumers
Gather more insights about the market drivers, restrains and growth of the Dairy Alternatives Market
Product Segmentation Insights
In terms of product segmentation, the milk category holds the largest revenue share within the dairy alternatives market as of 2023. Beverage manufacturers are continually innovating by introducing new products designed to capture a larger market share. The growing consumer demand for diverse beverage options has led to an increase in flavored beverages made from dairy alternatives. These options cater specifically to lactose-intolerant individuals who seek variety in their milk substitutes.
A notable development in this segment occurred in June 2023, when Marks and Spencer (MS) launched a dairy-free milk substitute packaged in cartons that closely resemble traditional containers of cow's milk. These oat-based beverages are part of MS's vegan Plant Kitchen collection and are available in both semi-skimmed and whole versions, mirroring the choices offered with conventional dairy milk. Priced at approximately USD 2.50 per liter, these products are fortified with essential nutrients, including calcium, iodine, vitamin D, and vitamin B12, aligning with the nutritional preferences of health-conscious consumers. Additionally, there is a growing preference for milk-based dairy alternatives among Europe’s aging population, although health concerns regarding soymilk—particularly for breast cancer survivors—may pose challenges to market growth.
In the realm of non-dairy yogurt, these products have emerged as an excellent source of probiotics for both vegan consumers and those who are lactose intolerant. Many yogurt brands are entering the non-dairy yogurt segment by launching plant-based alternatives made from ingredients such as soy, almond, and coconut. The increasing number of product launches and new entrants into the market is expected to significantly bolster the growth of dairy alternative yogurts globally. For instance, in July 2023, the German dairy brand Müller introduced vegan yogurt and rice puddings in the U.K., illustrating the expanding options available to consumers seeking dairy-free alternatives.
Order a free sample PDF of the Market Intelligence Study, published by Grand View Research.
