Dairy Alternatives Market to 2028 | Size, Share and Demand

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Dairy Alternatives Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Source (Soy, Almond, Coconut, Oats, and Others), Product Type (Milk, Ice Cream, Yogurt, Cheese, and Others), and Distribution Channel (Supermarkets & Hypermarkets, Convenience Stores, Online Retail, and Others)

Publication Month: May 2022 | Report Code: TIPRE00004533 | No. of Pages: 196 | Category: Food and Beverages | Status: Published

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.

Dairy alternatives are made from plant sources such as soy, coconut, almond, pea, and cashews. These plant milk resemble the texture and flavor of dairy milk and have lesser calories, fats, and sugar than conventional dairy milk. Cheese, butter, ice creams, and yogurt, among other products, can be made using plant-based milk. The rising vegan population drives the dairy alternatives market growth, especially across European countries and Asia Pacific countries.

In 2020, Asia Pacific held the largest share of the global dairy alternatives market, and the Middle East & Africa is estimated to register the fastest CAGR during the forecast period. A surging number of health-conscious consumers and the rising veganism trend are a few factors that contribute to the demand for dairy alternatives in the region. Dairy alternatives contain low-fat, low-calorie, and low-cholesterol content, appealing to health-conscious, vegan, and lactose-intolerant customers. According to the Lancet Gastroenterol Hepatol report, lactose intolerance is widespread in most of Asia, ranging from 58% in Pakistan to 100% in South Korea. People with lactose intolerance are recommended to avoid dairy consumption and switch to plant-based dairy products. This factor is significantly driving the growth of the dairy alternatives market across Asia Pacific.


Strategic Insights

Report Coverage - Dairy Alternatives Market
Report CoverageDetails
Market Size Value inUS$ 28,181.76 million in 2022
Market Size Value byUS$ 51,656.58 million by 2028
Growth rateCAGR of 10.6% from 2022 to 2028.
Forecast Period2022-2028
Base Year2022
No. of Pages196
No. of Tables88
No. of Charts & Figures85
Historical data availableYes
Segments coveredSource, Product Type, and Distribution Channel
Regional scopeNorth America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country scopeUS, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Report coverageRevenue forecast, company ranking, competitive landscape, growth factors, and trends
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Impact of COVID-19 Pandemic on Dairy Alternatives Market

The food & beverages sector faced unexpected challenges due to the COVID-19 pandemic. Various restrictions imposed by governments, such as lockdowns, production shutdowns, travel bans, and border restrictions, disrupted the global supply chains in 2020. This led to a shortage of raw materials and labor, which hampered the production of various small-scale and large-scale food and beverage manufacturers. However, the health and wellness trends evolved dramatically due to the COVID-19 pandemic, as people became more concerned about their health and immunity, which created a massive demand for plant-based products. Health and wellness are the key motivators for adopting alternative or plant-based proteins, which boosted the growth of the dairy alternatives market. Further, in 2021, manufacturers were permitted to operate at full capacity, which helped them overcome the demand and supply gap. This factor is projected to offer the dairy alternatives market players ample opportunities during the forecast period. Thus, the COVID-19 pandemic had a mixed impat on the dairy alternatives market and in long run, it is projected to open significant opportunities.


Dairy Alternatives Market Breakdown, by Region

Dairy Alternatives Market Breakdown, by Region

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Market Insights

Product Innovation to Open Lucrative Opportunities in the Dairy Alternatives Market

Dairy alternatives manufacturers are making significant investments in product innovation to appeal to many 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. For instance, in February 2021, Hasla Foods launched zero sugar oat milk yogurt in 24 oz (ounce) family size. The product contains only 90 calories per serving and has no added sugar. In June 2021, the same company expanded its retail footprint by making its products available across 160 National Grocers by Vitamin Cottage stores in the US. Such strategies are expected to provide lucrative opportunities in the dairy alternatives market over the forecast period.

Source Insights

Based on source, the dairy alternatives market is categorized into soy, almond, coconut, oats, and others. The soy segment held the largest share in the market; however, the almond segment is emerging as a prominent segment. Almond offers a nutty flavor, and can be consumed by vegans, lactose-intolerant individuals, and consumers who are allergic to soymilk. Almond-based products are rich in lipids, dietary fibers, and protein, driving their popularity among consumers. Moreover, almond is also rich in vitamin B, which increases the body's basal metabolic rate, enabling it to burn fats and calories more efficiently. Increasing demand for almonds-based dairy alternatives due to these nutritional benefits contributes to segment growth.

Product Type Insights

Based on product, the dairy alternatives market is segmented into milk, ice cream, yogurt, cheese, and others. The milk segment held the largest share of the market; however, the yogurt segment is projected to register the highest CAGR during the forecast period. Vegan yogurt is a creamy and healthy food that helps vegans and lactose intolerants fulfill their nutritional requirements without being dependent on dairy products. It is enriched with the nutrients such as vitamins, minerals, amino acids, and vital lipids, which help reduce inflammation and boost metabolism. Vegan yogurt is currently in high demand due to the rising trend of veganism and easy availability of yogurt in various flavors such as vanilla, strawberry, raspberry, mixed berry, and others.

Dairy Alternatives Market, by Product Type – 2021 and 2028

Dairy Alternatives Market, by Product Type – 2021 and 2028

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Distribution Channel Insights

Based on distribution channel, the dairy alternatives market is segmented into supermarkets & hypermarkets, convenience stores, online retail, and others. The supermarkets & hypermarkets segment accounted for the largest market share in 2020. Supermarkets and hypermarkets are large retail establishments that offer a wide range of groceries, foodstuffs, beverages, and other household goods. Products from various brands are available at reasonable prices in these stores, allowing shoppers to find the right product quickly. Moreover, these stores offer attractive discounts, multiple payment options, and a pleasant customer experience. Manufacturers of dairy alternatives usually prefer to sell their products through supermarkets and hypermarkets owing to the high footfall received by these stores.

The major players operating in the dairy alternatives market include 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..These companies mainly focus on product innovation to expand their customer reach and meet emerging market trends.

Report Spotlights

  • Progressive industry trends in the dairy alternatives market to help companies develop effective long-term strategies
  • Business growth strategies adopted by the dairy alternatives market players in the developed and developing countries
  • Quantitative analysis of the market from 2020 to 2028
  • Estimation of global demand for dairy alternatives
  • Porter’s Five Forces analysis to illustrate the efficacy of buyers and suppliers in the dairy alternatives market
  • Recent developments to understand the competitive market scenario
  • Market trends and outlook, as well as factors driving and restraining the growth of the dairy alternatives market
  • Assistance in the decision-making process by highlighting market strategies that underpin commercial interest
  • Size of the dairy alternatives market at various nodes
  • Detailed overview and segmentation of the market, as well as the dairy alternatives industry dynamics
  • Size of the dairy alternatives market in various regions with promising growth opportunities

Frequently Asked Questions

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 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 List of Companies - Dairy Alternatives Market
  1. SunOpta
  2. Blue Diamond Growers
  3. Nestle SA
  4. Danone S.A.
  5. Oatly Inc.
  6. Califia Frams, LLC
  7. Valsoia S.p.A.
  8. Lactasoy co. th
  9. Sanitarium
  10. Valio Ltd.
  • Highlights key business priorities in order to assist companies to realign their business strategies.
  • The key findings and recommendations highlight crucial progressive industry trends in the global dairy alternatives market, thereby allowing players to develop effective long-term strategies.
  • Develop/modify business expansion plans by using substantial growth offering developed and emerging markets.
  • Scrutinize in-depth the market trends and outlook coupled with the factors driving the market, as well as those hindering it.
  • Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to products, segmentation, and industry verticals.
TIPRE00004533
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