The global dairy alternatives market was valued at USD 29.18 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 12.6% from 2024 to 2030. The market is experiencing significant growth, driven by evolving consumer dietary patterns, increased awareness of food allergies, and rising cases of lactose intolerance. According to the World Health Organization, over 60% of the global population has some level of milk allergy, while approximately 30 million adults in the United States alone are lactose intolerant. Research suggests that genetic predispositions play a role in primary lactose intolerance, with higher intolerance rates among specific ethnic groups: about 95% of Asians, 60-80% of African Americans and Ashkenazi Jews, 80-100% of American Indians, and 50-80% of Hispanics. In contrast, northern European populations have the lowest prevalence, around 2%. This widespread lactose intolerance has fueled the demand for plant-based and other non-dairy substitutes in both the food and beverage sectors.

Among the dairy alternatives, almond milk has gained significant traction, especially among health-conscious consumers following ketogenic and vegan diets. Almond milk’s nutritional profile, including high levels of lipids, fiber, and protein, makes it a popular dairy substitute for individuals and industries alike. In May 2023, Rude Health, a U.K.-based brand known for its dairy-free products and breakfast cereals, launched an organic almond milk product without added sugars, catering to the growing demand for healthier dairy alternatives.

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

Regional Insights

North America:
North America represents a major market for dairy alternatives, with high consumption of items like dairy-free ice cream and yogurt. In North American schools, flavored milk accounts for more than two-thirds of milk products sold, while demand for sweetened flavored soy and almond milk is on the rise. The prevalence of lactose intolerance is notably higher among the Asian-American and Hispanic populations, which is anticipated to drive regional demand for dairy alternatives. Additionally, heightened consumer awareness of healthy lifestyles, coupled with the increasing popularity of lactose-free products such as cheese, yogurt, and ice cream, is projected to fuel market growth.

In the U.S., dairy alternatives are increasingly used in various food items and desserts, contributing to industry expansion. Although dairy-alternative-based ice cream currently has moderate demand compared to milk-based ice cream, the growth rate of this segment is expected to surpass that of traditional dairy-based products over the forecast period. According to the Dairy Farmers of America, the rise in soy, oat, nut, and other milk substitutes in grocery stores and coffee shops across the country has contributed to a decline in milk sales, resulting in a $1.45 decrease in average milk prices.

Europe:
Europe's dairy alternatives market is expected to grow considerably as consumers seek healthier foods and beverages. Non-dairy beverages are increasingly replacing traditional dairy drinks, with more than 20% of German consumers expressing a willingness to pay a premium for dairy-free ice creams. This growing consumer interest has driven a notable increase in the launch of dairy-alternative products, particularly as lactose intolerance becomes more widely recognized. Manufacturers in Europe are focusing on developing innovative dairy substitutes, including soy-based juice blends and fresh soy beverages. The decline in dairy consumption among children and the popularity of flavored dairy-free beverages are expected to attract younger consumers in the coming years. Key players in the European market, such as Mercadona S.A., Dr. Schär España SL, and Danone S.A., offer extensive lactose-free and gluten-free product lines aimed at serving lactose-intolerant customers.

Asia Pacific:
Asia Pacific held the largest share of the global dairy alternatives market in 2023, largely due to high lactose intolerance rates. Data from China’s CDC shows that over 90% of Asians have lactose deficiencies, which has driven strong demand for dairy alternatives. Additionally, vegan labeling claims on food packaging in the region have surged by 440% in recent years, reflecting a growing interest in plant-based options. The onset of the COVID-19 pandemic further boosted demand for plant-based dairy alternatives, as these products generally have a longer shelf life and higher nutritional content compared to cow’s milk, making them a practical choice for consumers in uncertain times.

The dairy alternatives market continues to expand, with key players capitalizing on region-specific consumer preferences, health trends, and demographic factors, positioning the sector for sustained growth over the coming years.

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Key Companies Market Share Insights

The dairy alternatives market is highly competitive, with major players holding substantial shares as of 2023. These established manufacturers have developed robust brand recognition and distribution channels, allowing them to effectively serve both domestic and international markets. Their extensive clientele spans across countries, strengthening their market presence and enabling them to cater to varying consumer preferences globally.

In the coming years, one of the key strategies for growth among industry players is expected to be continuous product innovation within food and beverage segments, specifically focusing on creating milk-based alternatives that cater to diverse taste preferences and dietary requirements. For example, Hershey Trust Company’s brand, Sofit, offers products tailored for the Indian market, including a Kesar Pista flavor to cater to local tastes. Similar approaches are being seen across the industry, with companies launching regionally customized dairy-free products to increase market penetration.

Key Dairy Alternatives Companies:

The following are the leading companies in the dairy alternatives market. These companies collectively hold the largest market share and dictate industry trends.

• 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
• Vitasoy International Holdings Limited
• Organic Valley Family of Farms
• Living Harvest Foods Inc.

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