[Research Report] The dairy alternatives market is projected to reach US$ 51,656.58 million by 2028 from US$ 28,181.76 million in 2022; it is expected to grow at a CAGR of 10.6% from 2022 to 2028.
Market Insights and Analyst View
Dairy alternatives such as milk, yogurt, ice cream, cheese, and butter are made from soymilk, pea milk, almond milk, and coconut milk. Soymilk is more affordable than other plant milk, and it provides a similar amount of protein as whole milk. Consumers are highly inclined toward plant-based or vegan-friendly products due to increasing health concerns and increasing awareness of animal welfare. Plant-based dairy products such as cheese, milk, and yogurt are generally perceived to be healthier than conventional ones and excellent replacement for dairy products obtained from animal sources due to the low fat and high protein content. Moreover, dairy farming is negatively impacting overall environment leading to climate change. This factor is also influencing the dairy alternatives market growth.
Growth Drivers and Challenges
Due to an increasing number of health-conscious consumers and the trend of plant-based diets, the demand for plant-based milk is tremendously increasing the region. Moreover, rising concerns related to the carbon emissions by the conventional dairy industry is also boosting the demand for dary alternatives. According to the “Plant-Based Food Association”, retail sales of plant-based food products in the US increased by 11% in 2019, compared to that in 2018, accounting for the market value of US$ 4.5 billion. The high nutritional value of plant-based dairy products, such as plant-based milk, cheese, and yogurt, has fuelled their demand across different regions in the last few years, especially among young adults. Moreover, the dairy alternatives market is significantly growing due to product innovation by manufacturers which pioneered the production of these products. For instance, In January 2022, Daiya launched its cream cheese flavor, roasted garlic, and herbs to its recently reformulated plant-based cream cheese line. The launch of such products is expected to boost the dairy alternatives market growth over the forecast period.
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Dairy Alternatives Market: Strategic Insights
Market Size Value in US$ 28,181.76 million in 2022 Market Size Value by US$ 51,656.58 million by 2028 Growth rate CAGR of 10.6% from 2022 to 2028. Forecast Period 2022-2028 Base Year 2022
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Dairy Alternatives Market: Strategic Insights
| Market Size Value in | US$ 28,181.76 million in 2022 |
| Market Size Value by | US$ 51,656.58 million by 2028 |
| Growth rate | CAGR of 10.6% from 2022 to 2028. |
| Forecast Period | 2022-2028 |
| Base Year | 2022 |
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Report Segmentation and Scope
The “Global Dairy Alternatives Market” is segmented based on source, product type, distribution channel, and geography. Based on source, the dairy alternatives market is segmented into soy, almond, coconut, oats, and others. Based on product type, the dairy alternatives market is segmented into milk, ice cream, yogurt, cheese, and others. Based on distribution channel, the dairy alternatives market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others. The dairy alternatives market based on geography is segmented into North America (US, Canada, and Mexico), Europe (Germany, France, Italy, UK, Russia, and Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America)
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Segmental Analysis
Based on product type, the dairy alternatives market is segmented into milk, ice cream, yogurt, cheese, and others. In 2021, the milk segment held the largest share in the dairy alternatives market. Plant-based milk from sources such as soy, almonds, coconuts, and oats are the best alternative for dairy milk and other animal-based milk present in the market. Also, these products are excellent lactose free alternatives for conventional dairy milk. Increasing lactose-intolerant population is one of the major factors to drive the growth of the plant-based milk segment. Moreover, people who are allergic to milk are also recommended to consume plant-based milk. Furthermore, with the increasing vegan population worldwide, the demand for plant-based milk is rising, which is driving the market growth.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Regional Analysis:
Based on geography, the dairy alternatives market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The dairy alternatives market size for Asia Pacific accounted for US$ 13,053.48 Million in 2021. North America is a second major contributor holding more than 22% share in the global dairy alternatives market. Middle East & Africa also one of the key markets for dairy alternatives growing at a CAGR of ~ 11%. Plant-based dairy products are becoming widely popular in the region, with the growing consumer preference for a healthy diet due to the rising cases of lactose-intolerant people. Several local companies have adopted consuming plant-based diet trend. For instance, in 2022, Freakin Healthy, the UAE-based snack company, expanded its better-for-you product range with the launch of a new plant-based cheese spread. The launch of the cheese spread, which is available in four flavors, marks its decision to expand the customer base and product portfolio under the clean and ready-to-eat category. Moreover, exposure to westernized diet trends is driving the dairy alternatives market growth in the Middle East & Africa.
Industry Developments and Future Opportunities:
Various initiatives taken by the key players operating in the dairy alternatives market are listed below:
- In April 2021, SunOpta opened a new headquarters in Eden Prairie, signaling a new chapter for the company as it completes its turnaround effort. The company, currently based in Edina, will double its space that will include both offices and a research & development (R&D) center.
- In November 2021, Blue Diamond Growers, the world’s leading almond marketer and processor, expanded its selection of Almond Breeze products with the launch of Almond Breeze Extra Creamy Almond milk.
- In July 2021, Danone S.A. launched a new Silk NextMilk and So Delicious WonderMilk. These products are developed to help close the gap between traditional dairy drinkers and plant-based beverage consumers.
Covid-19 Impact:
The COVID-19 pandemic affected almost all industries in various countries. Lockdowns, travel restrictions, and business shutdowns in North America, Europe, Asia Pacific (APAC), South & Central America (SAM), and the Middle East & Africa (MEA) hampered the growth of several industries, including the food & beverages industry. During the initial phase of the COVID-19 pandemic, severe supply chain disruptions created a shortage of raw materials, leading to an increase in raw material prices. According to the Good Food Institute, the oat milk sales increased by 477%, and the sales of animal-based milk increased only by 32% during the week ending March 14, 2020. Oatly, an oat milk manufacturer, witnessed massive demand for their products in the US during the pandemic. However, as the manufacturing units remained shut, a production shortfall created a demand and supply gap. In 2021, various economies resumed operations as several governments announced relaxation in the previously imposed restrictions, which positively impacted the global marketplace. Moreover, manufacturers were permitted to operate at full capacity, which helped them overcome the demand and supply gap.
Competitive Landscape and Key Companies:
Some of the prominent players operating in the global dairy alternatives market include are SunOpta; Blue Diamond Growers; Nestle SA; Danone S.A.; Oatly Inc.; Califia Farms, LLC; Valsoia S.p.A.; Lactasoy co.th.; Sanitarium; and Valio Ltd. among others. These plant-based dairy companies are highly involved in plant capacity expansion and new product development to enhance their expertise and expand their product portfolio across different geographies. Moreover, these companies are also partnering with other players in the industry to cater to a wider customer base. Such initiatives are expected to provide strong growth potential to the key industry players operating in the dairy alternatives market.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Source, Product Type, and Distribution Channel
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The rising veganism is driving the dairy alternatives market. The vegan population has grown significantly over the past few years. People are increasingly switching to a vegan diet due to increased health and sustainability concerns. The livestock industry is one of the significant contributors to the total anthropogenic greenhouse gas emissions. health-conscious consumers rapidly substitute conventional, animal-based products with plant-based food. This factor is significantly boosting the dairy alternatives market. Also, there’s an increase prevalence of lactose intolerance. The prevalence of lactose intolerance or lactose malabsorption is high across Asia Pacific and Africa due to a lack of genetic mutation for digesting lactose. Thus, the increasing prevalence of lactose intolerance and milk allergies among consumers is driving the dairy alternatives market.
The major players operating in the global dairy alternatives market are SunOpta; Blue Diamond Growers; Nestle SA; Danone S.A.; Oatly Inc.; Califia Farms, LLC; Valsoia S.p.A.; Lactasoy co. th; Sanitarium; and Valio Ltd.
Dairy alternatives has a lucrative opportunity in the product innovation. Dairy alternatives manufacturers are making a significant investment in product innovation to appeal to a large group of consumers. Product innovation strategy offers a competitive edge to the players operating in the market, boosting their profitability. The manufacturers of dairy alternatives offer certified organic, non-GMO, gluten-free, clean-label, and allergen-free products to cater to the emerging customer requirements. Moreover, as consumers have become health-conscious, they prefer low-calorie and low-fat products. Therefore, manufacturers of plant-based dairy offer unsweetened and low-sugar products. Hence, product developments are further expected to provide potential growth opportunities to the manufacturers of dairy alternatives in the coming years.
Based on product type, milk segments have the largest revenue share. Plant-based milk from sources such as soy, almonds, coconuts, and oats are the best alternative for dairy milk and other animal-based milk present in the market. Due to its high nutritional values and increasing plant-based diet trend the population prefers milk alternatives the most. Increasing lactose intolerance among the population is one of the major factors to propel the market growth of plant-based milk. Further, the varieties include Barista Style Organic Oat, Barista Style Organic Coconut, Organic Soya, and Organic Rice. Such strategic developments by manufacturers further drive the milk segment’s growth in the forecast period.
Asia Pacific accounted for the largest share of the global dairy alternatives market. The dairy alternatives market in Asia Pacific is significantly growing due to changing lifestyles of consumers and an increase in consumption of clean label products. The dairy alternatives market in the region is undergoing a remarkable transformation due to increased urbanization, diet diversification, and the legalization of foreign direct investment in the food sector. Hence, manufacturers are adopting strategies for the development and expansion of their businesses. Further, a surge in health-conscious consumers in emerging countries and the rising trend of consuming plant-based products are a few factors that contribute to the demand for dairy alternatives in the Asia Pacific region.
Based on the distribution channel, online retail segment is projected to grow at the fastest CAGR over the forecast period. Online retail is one of the fastest-growing distribution channels owing to its convenience in terms of shopping and product delivery. Online retail stores offer a wide variety of products with heavy discounts; also, consumers can conveniently buy desirable products remotely. Home delivery service attracts a large group of customers to shop through an e-commerce platform. E-commerce websites offer detailed product information, along with user reviews, which help buyers compare products and make informed decisions. During the COVID-19 pandemic, online retail channels gained further popularity as they offered home delivery services.
The List of Companies - Dairy Alternatives Market
- SunOpta
- Blue Diamond Growers
- Nestle SA
- Danone S.A.
- Oatly Inc.
- Califia Frams, LLC
- Valsoia S.p.A.
- Lactasoy co. th
- Sanitarium
- Valio Ltd.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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