Booming Consumer Health and Wellness Emphasis
The growing focus on health and wellness among the global citizenry is driving the market for dairy substitutes. The consumer is also looking for healthier foods, and plant-based alternatives tend to be viewed as better because they have less saturated fat, no cholesterol, and are lactose-free. The Centers for Disease Control & Prevention (CDC) reported around 63% of Americans seek to cut back on their intake of cholesterol, triggering a significant 17% growth in sales of plant-based milk. This transition aligns with a broader consumer trend toward foods that support proactive health management.
Increasing Incidence of Lactose Intolerance and Allergies
Much of the world's population has lactose intolerance, an inability to digest lactose, the sugar in dairy milk effectively. This broad physiological restriction creates a direct demand for dairy-free substitutes. For instance, an estimate puts around 7 million Canadians, or 19% of the population, as lactose intolerant, with populations in specific ethnic groups showing higher percentages. Similarly, the National Institutes of Health states that 36% of Americans suffer from lactose malabsorption, with 75-90% among African Americans and 80-90% among Asian Americans. Such widespread intolerances render dairy substitutes essential for comfortable & socially acceptable consumption.
Fortification and Functional Product Innovation
The dairy alternative segment presents a significant opportunity for fortification and the development of functional products. Manufacturers enrich nutritional profiles by fortifying with Vitamin D, B12, and calcium to replicate or even exceed the nutritional content of traditional dairy. This appeals to health-oriented consumers seeking comprehensive dietary solutions. Companies that add prebiotics or probiotics to dairy substitute yogurts or drinks can capitalize on the rising trend for gut health offerings. These innovations drive distinction and appeal to shoppers seeking targeted health benefits beyond simple dairy replication.
Broadening Food Service and Retail Channel Coverage
As demand for plant-based foods increases, restaurants, cafes, and food service institutions are increasingly adding dairy-free options to their menus. This opens up new market opportunities for penetration, especially for retail products such as oat milk in specialty coffee establishments. In retailing, increased shelf space in mass grocery stores, combined with the explosive growth of online shopping platforms, makes it easier and more convenient for consumers. The e-commerce market, for instance, is also expected to see a significant increase, reaching a global valuation that enables broader product accessibility.
The following Key Market Indicators present a comprehensive overview of the social and economic landscape of the selected region, offering critical insights into market-specific trends and developments. These indicators, combined with data from government statistics, industry associations, and corporate sources, form the analytical foundation of NextGen Intelligence Stats' market models.
| Aspects | Details |
Base Year
|
2024 |
Historic Data
|
2021-2023 |
Forecast Period
|
2025-2035 |
Regions & Countries Covered
|
North America (United States, Canada), Europe (Germany, France, Italy, United Kingdom, Spain, Rest of Europe) Asia Pacific (China, Japan, South Korea, India, Rest of Asia Pacific) Latin America (Brazil, Argentina, Rest of Latin Americ |
Companies Profiles
|
Chobani, LLC |
Segmentation Level Customization
|
|
Company Level Customization
|
|
Country level Data Customization
|
Segmental volume analysis Pricing Analysis of Product Company Market Share |
October 2024: Oatly AB released new fortified oat milk bars in a number of European markets, specifically for coffee experts. The new barista editions are formulated to foam incredibly well and have a neutral flavor profile, making them more convenient to use in cafes and intended to extend Oatly's footprint in the food service industry in countries such as Germany and the UK.
September 2024: Danone S.A. introduced a range of new plant-based yogurts under its Alpro brand, featuring a novel combination of oats and coconuts. The move will further diversify their range of dairy-free yogurts, appealing to shoppers seeking different textures and flavor profiles beyond the usual soy or almond bases, now available in leading European supermarkets.
May 2024: Daiya Foods made a major commitment to research and development, investing $5 million in developing the melt-and-stretch characteristics of its plant-based cheese products. The investment, designed to enhance consumer experience, centers around developing next-generation formulations that more closely replicate traditional dairy cheese.
January 2024: SunOpta completed the expansion of its plant-based beverage manufacturing plant in Minnesota, USA, expanding its capacity for co-manufacturing oat and almond milk. This investment is a multi-million-dollar one aimed at fulfilling the growing demand from its brand partners and fueling the overall growth of the North American plant-based beverage market.
The dairy alternative market is characterized by a rapidly changing and increasingly competitive environment, with veteran food and drink conglomerates and innovative, niche plant-based manufacturers vying for market share. Major players, such as Danone S.A. and The Hain Celestial Group, utilize their extensive distribution channels and established brands to offer a diverse range of dairy-free products, including milks, yogurts, and creamers. The competitive tactics include ongoing product innovation, flavor, and texture development to attract a wider customer base, strategic alliances, and strong marketing efforts touting health and environmental benefits. Companies are also investing in increasing production capacity and streamlining supply chains to keep pace with the rapidly growing global demand for such products.
• Chobani, LLC
• Danone S.A.
• Hain Celestial
• Daiya Foods
• Eden Foods
• Nutriops, SL
• Earth’s Own
• SunOpta
• Others
The global Dairy Alternative market size accounted for USD 32.87 billion in 2024 and it is expected to reach around USD 136.6 billion by 2035.
The global Dairy Alternative market is poised to grow at a CAGR of 12.4% from 2025 to 2035.
Asia-Pacific held largest share accounting for approximately 36.8% of the revenues in 2024
Booming Consumer Health and Wellness Emphasis, Increasing Incidence of Lactose Intolerance and Allergies, Fortification and Functional Product Innovation, Broadening Food Service and Retail Channel Coverage.
Chobani, LLC, Danone S.A., Hain Celestial, Daiya Foods, Eden Foods, Nutriops, SL, Earth’s Own, SunOpta and Others.
Dairy Alternative Market Analysis By Source
By source, the market is segmented as soy, almond, rice, coconut, oats, and others. The soy is the biggest segment in the dairy alternative market accounting for a share of 36.2%. This is largely a result of its established history and broad popularity as a milk substitute, particularly in Asian markets, where soy-based foods are a conventional part of the diet. Its suitability for use in a great many applications, high protein content, and relatively lower price than some other options have helped maintain its top spot. Almond is the fastest-growing segment in the market for dairy alternatives, fueled by its pleasing flavor, reduced calories content compared to soy, and consideration as a healthy and natural substitute. Almond milk has also gained considerable momentum, particularly in the Western world, with many consumers adopting it as a regular staple due to its neutral taste and versatility in applications ranging from drinks to cooking.
Dairy Alternative Market Analysis By Product
Based on product, the market is segmented into milk, yogurt, cheese, ice cream, creamer, and others. Dairy alternative milk occupies the largest share of the dairy alternative market accounted for a share of 65.4%. Its dominance is derived from its ability to act as a direct replacement for conventional dairy milk in daily use, such as in beverages, cereals, and the culinary arts. The prevalence of lactose intolerance, the growing popularity of veganism and vegetarianism, and the increasing awareness of consumers of the health and environmental benefits of plant-based products are key drivers. Dairy alternative yogurt is expected to be the fastest-growing segment in the dairy alternative market by product. This swift growth is largely driven by increasing consumer interest in probiotic-infused, gut-friendly alternatives, combined with the ongoing development of appealing flavors and textures that closely replicate the taste & texture of conventional dairy yogurts. Dairy-free versions for breakfast, snacks, and desserts are becoming increasingly attractive to consumers, driving demand for creamy, fermented, plant-based foods.
Dairy Alternative Market Analysis By Distribution Channel
By distribution channels, the market is segmented into hypermarkets/ supermarkets, convenience stores, mass grocery retailers, specialty stores, and online retail. Hypermarkets/supermarkets are the largest segment in the global dairy alternative market accounting around 38.6% of the global revenue in 2024. Hypermarkets/supermarkets are large retail outlets that stock a wide range of dairy alternative products, offering consumers ample options within a single destination. Being widely available, offering a convenient shopping experience, and hosting regular promotional events make them the primary point of purchase for most consumers. Online retail is the fastest-growing segment in the dairy alternative market by distribution channel. This is due to the expanding penetration of the internet and smartphones, as well as the convenience of doorstep delivery. Customers are increasingly turning to online sources for their grocery essentials, including dairy alternatives, due to the convenience of access, competitive rates, and the ability to find a wider variety of specialty products.
Dairy Alternative Market Analysis By Nature 25-7721
By nature, the market is segmented into organic and conventional. Conventional dairy products make up the largest segment of the dairy alternative market by nature. This is largely attributed to their generally lower price point, which increases their affordability to a larger consumer base. Traditional products often enjoy economies of scale in production and extensive supply chains, which support their profitability and widespread availability. Their long history of presence in the marketplace and popularity with consumers also endear them to a leading position. Organic is the fastest-growing segment of the dairy alternative market by nature. This growth stems from growing consumer concerns about health and environmental sustainability. Consumers are actively seeking products that are free from pesticides, genetically modified organisms (GMOs), and artificial additives. The credibility of organic goods as healthier and eco-friendlier strongly appeals to an increasingly large consumer base that is willing to pay extra for such qualities.
1.1. Introduction
1.2. Report Description & Objective
1.3. Years Considered For Study
1.4. Assumption And Limitation
2.1. Data Collection
2.2. Primary Research & Secondary Research
2.3. Bottom-Up Approach & Top-Down Approach
2.4. Market Analysis & Size Estimation
2.5. Quality Check & Final Review
3.1. Report Scope
3.2. Executive Summary
4.1. Top Trends To Watch
4.2. Top Strategies Followed By Key Players
4.3. Top Investment Pockets
4.4. Strategic Recommendations
5.1. Market Definition
5.2. Market Drivers
5.3. Market Restraints & Challenges
5.4. Market Opportunities
6.1. Porter’s Five Forces’ Analysis
6.2. Value Chain Analysis / Supply Chain Analysis
6.3. PESTLE Analysis
6.4. Regulatory Landscape
6.5. Pricing Analysis
6.6. Go to Market Strategy
7.1. Global Dairy Alternative Market, By Source
7.2. Global Dairy Alternative Market Attractiveness, By Source
7.2.1. Soy
7.2.2. Almond
7.2.3. Rice
7.2.4. Coconut
7.2.5. Oats
7.2.6. Others
8.1. Global Dairy Alternative Market, By Product
8.2. Global Dairy Alternative Market Attractiveness, By Product
8.2.1. Milk
8.2.2. Yogurt
8.2.3. Cheese
8.2.4. Ice Cream
8.2.5. Creamer
8.2.6. Others
Data Collection
Primary Research & Secondary Research
Bottom-Up Approach & Top-Down Approach
Market Analysis & Size Estimation
Quality Check & Final Review
By Source
• Soy
• Almond
• Rice
• Coconut
• Oats
• Others
By Product
• Milk
• Yogurt
• Cheese
• Ice Cream
• Creamer
• Others
By Nature
• Organic
• Conventional
By Distribution Channel
• Hypermarkets/ Supermarkets
• Convenience Stores
• Mass Grocery Retailers
• Specialty Stores
• Online Retail
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