Press release
Dairy Alternatives Market Research Insights with Upcoming Trends Segmentation Opportunities and Forecast to 2028
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 non-dairy, dairy-free, or plant-based dairy products, such as milk, ice cream, yogurt, cheese, butter, and cream. Dairy alternatives are manufactured using plant-based milk, such as soy milk, almond milk, coconut milk, and pea milk. Dairy alternatives are lactose-free and can be consumed by the lactose intolerant population. Moreover, dairy alternatives' calorie and fat content are less than conventional dairy milk, which makes them popular among calorie-conscious people and fitness enthusiasts. The rising health-consciousness among consumers and the increasing popularity of plant-based diets are the key factors driving the growth of the dairy alternatives market.
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Over the past few years, the veganism trend has been evolving at a faster pace. According to Veganuary (a non-profit organization that encourages individuals worldwide to go vegan for the whole month of January), in 2022, more than 620,000 people registered for the Veganuary campaign, and the registrations increased by 200% in the last three years. People are increasingly switching to a vegan diet owing to increasing health and sustainability concerns. The rising health consciousness among people due to the increasing prevalence of obesity, diabetes, and other diseases is compelling people to change their dietary habits. People generally perceive plant-based products to be healthier than conventional ones. This factor is significantly boosting the growth of the dairy alternatives market.
The key players operating in the global 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 are making significant investments in R&D to develop innovative products such as gluten-free, organic, clean-label, genetically modified organisms-free (GMO-free), allergen-free, and high-protein products, to expand dairy alternatives market size.
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Impact of COVID-19 Pandemic on Dairy Alternatives Market
The COVID-19 pandemic brought unprecedented challenges for many industries, including the food & beverages industry. Lockdowns, border restrictions, travel bans, plant shutdowns, and other government-led safety protocols disturbed the operations of manufacturing companies. The COVID-19 pandemic also created a shortfall in production due to raw material and labor shortages, which hampered the market shares of small-scale and large-scale food and beverage manufacturers across different geographies. However, due to a significant shift in consumer dietary preferences, the demand for dairy alternatives increased dramatically after the COVID-19 outbreak. Health and wellness trends evolved significantly during the pandemic, which benefitted the growth of the dairy alternatives market as consumers perceive plant-based dairy products to be healthier than conventional dairy products. However, due to the economic crisis caused by the COVID-19 outbreak and the premium prices of plant-based dairy products, the dairy alternatives market witnessed moderate growth.
Further, in 2021, as the governments announced a relaxation in restrictions and permitted manufacturers to operate at full capacity, the global marketplace witnessed significant growth. This factor also boosted the market as the supply chains improved and production volumes increased. The COVID-19 pandemic increased health awareness among consumers. They increasingly prefer plant-based food as they believe it offers enhanced health benefits. This factor is further driving the dairy alternatives market growth.
The report segments the dairy alternatives market as follows:
Based on source, the dairy alternatives market is segmented into soy, almond, coconut, oats, and others. Based on product type, the market is segmented into milk, ice cream, yogurt, cheese, and others. Based on distribution channel, the market is segmented into supermarkets & hypermarkets, convenience stores, online retail, and others. Based on geography, the market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM).
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