Dairy Alternatives Market Size, Share, Growth Drivers, Industry Overview, Opportunities, Key Segments, Top Companies, and Revenue Forecast (2023-2028)

Dairy Alternatives Market by Source (Soy, Almond, Coconut, Oats, Hemp), Application (Milk, Yogurt, Ice Creams, Cheese, Creamers), Distribution Channel (Retail, Online Stores, Foodservice), Formulation and Region - Global Forecast to 2028
The [https://www.marketsandmarkets.com/ResearchInsight/size-and-share-of-dairy-alternative-market.asp] is estimated at USD 27.0 billion in 2023 and is projected to reach USD 43.6 billion by 2028, at a CAGR of 10.1% from 2023 to 2028. Plant-based beverages have emerged as the favored substitutes for dairy products, experiencing a surge in popularity as people increasingly opt for dairy-free diets. This shift is primarily driven by the rising occurrences of lactose intolerance, milk allergies, and a growing preference for vegan and health-conscious lifestyles. Notably, plain and unsweetened versions of these dairy alternatives are particularly prevalent among consumers seeking low-calorie and low-fat options.

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Elevated health concerns and evolving consumer perceptions have ignited a greater demand for dairy alternatives. Boosting sales in this market can be achieved through strategic marketing approaches like diversification and segmentation. The goal is to generate heightened interest among health-conscious individuals, vegetarians, flexitarians, and vegans. The key lies in positioning the product effectively within the right sales channels.

Effective utilization of promotional strategies has significantly expanded growth opportunities within this sector. Almond milk producers, for instance, have achieved remarkable popularity and growth by positioning their brands adeptly in the realm of dairy alternatives. The dairy alternatives market continues to flourish thanks to increasing health awareness and lifestyle modifications. Furthermore, ongoing efforts by plant-based beverage manufacturers to introduce innovative flavors, extend shelf life, and enhance nutritional profiles are expected to drive market growth in the years ahead. Nevertheless, challenges such as high production costs and raw material shortages remain as constraints in this market.

Dairy Alternatives Market Drivers [https://www.globenewswire.com/en/news-release/2024/03/04/2839599/0/en/Dairy-Alternatives-Market-Report-Size-Share-Trends-and-Challenges.html]: Consumers are increasingly showing a preference for vegan food options

The expansion of the dairy alternatives market is largely fueled by the global trend towards vegetarian and flexitarian diets. These dietary shifts have gained traction due to increasing awareness about animal welfare, environmental sustainability, and personal health. Veganism, characterized by the exclusion of animal-derived products including dairy, has become a popular lifestyle choice. Growing global condemnation of animal cruelty has further heightened the demand for dairy substitutes. Many consumers now prefer plant-based options like soy milk, almond milk, and rice milk over traditional dairy products.

In major economies such as the United States and the United Kingdom, the vegan population has surged. Consumers in these developed nations favor plant-based milk for its health benefits, energy provision, weight management support, and flavor enhancement. According to The Vegan Society, reducing meat and dairy consumption is essential for mitigating environmental impact, particularly concerning carbon emissions. The livestock industry is estimated to contribute around 18% of total greenhouse gas emissions, with farmed animals responsible for nearly 80% of emissions within the agricultural sector. This environmental awareness has driven many to choose dairy alternatives.

Dairy Alternatives Market Opportunities [https://www.prnewswire.com/news-releases/dairy-alternatives-market-worth-43-6-billion-by-2028--exclusive-report-by-marketsandmarkets-301947997.html]: Changes in lifestyles of consumers

As the global population continues to grow, the strain on already limited resources is increasing. Rising energy prices and higher raw material costs directly impact food prices, disproportionately affecting individuals with lower incomes. This pressure on the food supply is exacerbated by water scarcity, particularly in regions like Africa and Northern Asia. Conversely, the Asia-Pacific region benefits from cost advantages in production and processing. The combination of high demand and cost-effective production presents a significant opportunity for dairy alternative suppliers and manufacturers targeting this market.

As lifestyles evolve rapidly, there is a growing shift towards nutritious and healthier food choices. The distinction between fast food and unhealthy junk food is expected to become clearer as consumers increasingly seek convenient yet health-conscious options. This presents a notable opportunity for suppliers and manufacturers to focus on naturally high-nutritional-value products. The key factors driving the demand for dairy alternatives in these economies include:

Rapid urbanization

Increased disposable income

Food and beverage manufacturers are focusing on these markets due to:

Growing demand for vegan food products

Changing consumer lifestyles, favoring convenience foods

Abundance of raw materials

Availability of inexpensive labor

Low tariff duties

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Almond source is estimated to dominate the by source segment in the dairy alternatives market.

Almond-based products are gaining significant traction in the dairy alternatives market, driven by their numerous benefits. This growth can be attributed to almond milk's rich nutritional profile, the abundant supply of raw materials, and its rising popularity among consumers.

According to USDA data, a cup (262 grams) of almond milk contains just 39 calories, 1 gram of protein, and 2.5 grams of fat. Its distinct nutty flavor makes it a great option for vegans, those with lactose intolerance, and individuals allergic to soy. Additionally, almond milk is cholesterol-free and low in saturated fat, making it an appealing choice for health-conscious consumers. It comes in a range of varieties, from plain sweetened to plain unsweetened, and flavored sweetened to flavored unsweetened.

As more consumers seek healthier options, almond milk's natural lactose-free and low-fat profile aligns well with their preferences. Its suitability for those with dietary restrictions, such as vegetarianism or lactose intolerance, has boosted its popularity as a dairy-free alternative. Almond milk also benefits from increased environmental awareness, as it has a lower carbon footprint and requires less water to produce compared to traditional dairy. Its pleasant taste and versatility in cooking further enhance its appeal, making it a top choice in the dairy substitute industry and fostering innovation and variety in product offerings.

The Asia Pacific market is projected to dominate the dairy alternatives market.

The Asia-Pacific region is experiencing a surge in demand for fortified nutritional food and beverage products, driven by fast-paced lifestyles and increasing disposable incomes. As part of this trend, dairy alternatives are anticipated to see particularly rapid growth due to shifting consumer preferences. With the region's growing economic power, the consumption of affordable and widely available soymilk is expected to rise. Food manufacturers are responding to the heightened interest in healthy beverages by offering a variety of soymilk options, including pasteurized varieties and unique flavor profiles.

This analysis covers key countries in the region, such as Japan, Australia, China, and India. Prominent market players include Sanitarium Health & Wellbeing Company, Freedom Foods Group Ltd., Vitasoy International Holdings Limited, and Purebates. The dairy alternatives sector in Asia-Pacific is expanding significantly, fueled by urbanization, dietary diversification, and increased foreign direct investment in the food industry. Additionally, rising income levels, a growing middle class, increased health and fitness awareness, and the demand for nutritious products are creating promising growth opportunities within the region's food sector.

[https://www.marketsandmarkets.com/ResearchInsight/dairy-alternative-plant-milk-beverages-market.asp]

Danone North America Public Benefit Corporation (US), The Hain Celestial Group, Inc. (US), Blue Diamond Growers (US), SunOpta (Canada), Sanitarium (New Zealand) are among the key players in the global dairy alternatives market. Companies are adopting various strategies to boost their revenues and market presence. These strategies include the introduction of new services, forging partnerships, and expanding their laboratory facilities. In the dairy alternatives market, companies are employing key tactics such as: geographical expansion: expanding into emerging economies to capitalize on their growth potential, strategic Acquisitions: acquiring companies strategically along the supply chain to establish a stronger market position, new service launches: introducing new services, driven by extensive research and development (R&D) efforts. These initiatives are geared towards enhancing company performance and market influence.

Danone North America Public Benefit Corporation (US)

Danone North America Public Benefit Corporation is involved in manufacturing and marketing fresh dairy products, baby nutrition, medical nutrition, and beverages. The company operates through three business segments, namely, plant-based food & beverages, coffee creamers & beverages, and premium dairy. It offers dairy alternative products such as soymilk, almond milk, and coconut milk under the Silk, Alpro, and So Delicious brands under its plant-based food & beverages business segment. The company sells its products under the brands-Horizon, Silk, So Delicious, Alpro, Earthbound Farm, Vega, Wallaby Organic, and International Delight. It has a presence in North America, Latin America, Africa & the Middle East, Western & Central Europe, and Asia Pacific. It operates through its subsidiaries, such as Danone Dnipro (Ukraine), Danone India (India), Danone China (China), Danone SpA. (Italy), and Danone Hayat (Turkey).

The Hain Celestial Group, Inc. (US)

The Hain Celestial Group, Inc. is involved in the manufacture, distribution, marketing, and sales of natural & organic food and personal care products under different brand names. The company offers products under the categories: turbocharge brands, targeted investment brands, fuel brands, and simplify brands.

The Turbocharge brands are made up of snacks as well as plant-based meat and non-dairy beverages. The Targeted Investment brands are made up of tea, baby, yogurt, and personal care products. Fuel brands are made up of premium pantry brands with scale in categories such as soup, cooking oils, and nut butter. Fuel and Simplify brands include Spectrum culinary oils, vinegars & condiments, Spectrum Essentials nutritional oils & supplements, MaraNatha nut butter, Imagine broths, soups & gravies, Hain Pure Foods condiments, Health Valley cereal bars & soups, and Hollywood oils. It has a broad portfolio of dairy-free products offered through its line of grocery products. It offers dairy alternative products under the brands Joya, Lima, Natumi, and MaraNatha.

Dairy Alternatives Industry News [https://www.marketsandmarketsblog.com/dairy-alternatives-market-will-hit-big-revenues-in-future.html]:

1. In June 2023, Oatly Group AB (Sweden) launches introduced a vegan cream cheese that is now available nationwide in the US. This oat-based cream cheese innovation comes in two flavors: Plain and Chive & Onion.

2. In November 2021, Blue Diamond introduced Almond Breeze Extra Creamy Almond milk. This product was made from almond oil made from quality California- grown Blue Diamond almonds to give the product an extra creamy texture. This launch I would help the company to attract more customers.

3. In April 2021, SunOpta announced the acquisition of the Dream and WestSoy plant-based beverage brands from The Hain Celestial Group, Inc. The acquired brands helped the company expand its product portfolio, further accelerating growth in this business.

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