by Dairy alternatives are plant-based foods and beverages that mimic the functionality of dairy products and are often preferred by vegans and lactose-intolerant consumers. Some of the common dairy alternative products include plant milk such as soy milk, almond milk, coconut milk, oat milk, rice milk; yogurt, butter, and cheese. These products are made from plant-based sources including soy, almonds, coconuts, oats, and rice. Consumers are shifting their preferences towards dairy alternative products due to concerns over lactose intolerance, bovine growth hormone, antibiotics, cholesterol and saturated fats in dairy products. Growing veganism and increasing awareness about health and nutrition are some key factors driving the demand for dairy alternative products.
The global dairy alternative market is estimated to be valued at US$ 27.0 billion in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, according to a new report published by Coherent Market Insights.
Market Dynamics:
Growing vegan demand is expected to drive the dairy alternative market over the forecast period. One key driver is the increasing health and environment consciousness among consumers. People are adopting veganism and flexitarian diets due to concerns over animal welfare and sustainability issues related to dairy farming including greenhouse gas emissions and land and water usage. Additionally, growing lactose intolerance among the global population is boosting sales of lactose-free and vegan dairy alternatives. According to the National Institutes of Health, around 68% of the global human population has a reduced ability to digest lactose after infancy. Dairy alternatives satisfy the nutritional needs of vegan, lactose-intolerant and health-conscious consumers and support their diet preferences. The availability of innovative dairy alternative products in different flavors and formats is also fueling the demand.
Segment Analysis
The dairy alternative market is dominated by the almond milk sub-segment, which accounts for over 30% share of the global market. Almond milk is gaining wide popularity among consumers as a plant-based dairy alternative due to its neutral taste and similarity to dairy milk in texture and usage. The low-cholesterol and nutritious nature of almond milk is further driving its demand. Soy milk is another major sub-segment, however, its growth is limiting due to perceived higher content of GMOs in soy. The oat milk sub-segment is emerging strongly and witnessing the fastest growth in the recent years, driven by rising awareness about its nutritional benefits.
PEST Analysis
- Political: The dairy alternative market is witnessing support from various government policies promoting plant-based foods and veganism. Several countries have unveiled regulatory guidelines to promote labeling of vegan and vegetarian foods.
- Economic: The growth of the global economy and rising disposable incomes in developing countries is driving greater experimentation with alternative food options. Health and wellness trends are also positively impacting the market size.
- Social: Changing dietary preferences toward vegan, vegetarian, flexitarian, and organic foods are a key factor propelling the dairy alternative market growth. Rising cases of lactose intolerance and milk allergies are boosting the adoption of plant-based milk variants.
- Technological: New product launches with varied textures and flavors catering to regional tastes are expanding the appeal of dairy alternative beverages. Recent innovations in extraction and processing technologies are helping companies offer superior and sustainable plant-based dairy alternatives.
Key Takeaways
The global dairy alternative market is expected to witness high growth over the forecast period. North Aamerica currently holds the dominant share assisted by growing vegan and vegetarian population. Asia Pacific is emerging as the fastest growing regional market with countries like China, India and Japan among the major contributors to demand.
Regional analysis:
North America, led by the US, will continue dominating the global dairy alternatives market driven by changing lifestyles and increasing health awareness among population. Asia Pacific is emerging as the fastest growing regional market, with countries like China, India, Japan, Indonesia and Australia posting double digit market expansion.
Key players:
Key players operating in the dairy alternative market include Danone North America Public Benefit Corporation, The Hain Celestial Group, Blue Diamond Growers, SunOpta, and Sanitarium. These companies enjoy strong brand recognition and are investing in new product launches catering to evolving tastes. They are also focusing on strategic acquisitions to strengthen product portfolio and global distribution network.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
