How Has The Dairy Alternatives Market Size Evolved In Recent Years?
The dairy alternatives market has seen considerable growth due to a variety of factors.
• In recent years, the market size for dairy alternatives has experienced robust growth. It is projected to expand from $15.23 billion in 2024 to reach $16.75 billion in 2025, indicating a compound annual growth rate (CAGR) of 10.0%.
The historical growth of this market can be credited to factors such as the increase in global population, rise in disposable income, a growing number of health-aware consumers, a shift towards vegan diet, and the prevalence of a low interest rate climate.
What Is The Forecast For The Dairy Alternatives Market By 2029?
The dairy alternatives market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for a robust expansion in the dairy alternatives market in the upcoming years. The market is projected to swell up to $23.25 billion in 2029, with a compound annual growth rate (CAGR) of 8.5%.
Factors such as the impact of digital media advertising and social networking platforms, government-led initiatives promoting milk substitutes, increased incidence of lactose intolerance, the rise of organized retail, and developments in cold storage contribute to the predicted growth. Key trends for the forecast period encompass the introduction of fresh and innovative products, concentration on R&D labs investment, investment in modern separation technologies, effective planning and execution of marketing strategies, and the broadening of product range to include dairy-free alternatives in collaboration with other milk-alternative producers.
What Are the Critical Driver Fuelling the Dairy Alternatives Market's Growth?
An anticipated rise in the dairy alternatives market is being driven by the growing instances of lactose intolerance and milk allergies. Lactose intolerance or congenital lactase deficiency is a condition characterized by the small intestine's inability to produce the enzyme lactase needed to digest or break down lactose, resulting in undigested lactose traveling to the large intestine and inducing symptoms such as gas, diarrhea, and bloating. Based on data from the Cleveland Clinic, over 30 million individuals in the United States suffer from lactose intolerance. This situation is expected to create an increased demand for dairy alternatives, thereby expected to enhance the market's revenue throughout the predicted phase.
How Is The Globa Dairy Alternatives Market Divided Into Key Segments?
The dairy alternatives market covered in this report is segmented –
1) By Product Type: Non-Dairy Milk, Butter, Cheese, Yogurts, Ice Cream, Others
2) By Source: Almond, Soy, Oats, Hemp, Coconut, Rice, Other Sources
3) By Distribution Channel: Supermarkets, Health Food Stores, Pharmacies, Convenience Stores, Online Stores, Other Distribution Channels
Subsegments:
1) By Non-Dairy Milk: Almond Milk, Soy Milk, Oat Milk, Coconut Milk, Rice Milk, Cashew Milk, Hemp Milk, Pea Protein Milk
2) By Butter: Vegan Butter, Coconut Oil-Based Spreads, Olive Oil-Based Spreads, Almond Butter
3) By Cheese: Vegan Cheese Slices, Shredded Vegan Cheese, Cream Cheese Alternatives, Cheese Spreads
4) By Yogurts: Almond Milk Yogurt, Coconut Milk Yogurt, Soy Milk Yogurt, Cashew Milk Yogurt, Oat Milk Yogurt
5) By Ice Cream: Almond Milk Ice Cream, Coconut Milk Ice Cream, Soy Milk Ice Cream, Oat Milk Ice Cream, Cashew Milk Ice Cream
6) By Others: Dairy-Free Creamers, Dairy-Free Sour Cream, Dairy-Free Whipped Toppings, Other Specialty Products
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What Trends Are Reshaping The Dairy Alternatives Market?
Leading dairy alternative market enterprises, such as Velike, are introducing inventive products like NOT M’LK to cater to individuals with specific dietary requirements. NOT M'LK, a plant-derived substitute for milk, is primarily oat-based. Back in October 2023, Velike, an organic oat beverage manufacturer based in Germany, unveiled NOT M'LK - a vegan milk that is dairy-free, gluten-free, and nut-free, intended for lactose-intolerant individuals or those who prefer plant-based diets. The oats used to produce NOT M'LK are solely procured from farms in the Black Forest and other areas in Baden-Württemberg, bolstering the local economy and minimizing the product’s carbon footprint.
Who Are the Key Players in the Dairy Alternatives Market?
Major companies operating in the dairy alternatives market include:
• Danone S.A.
• Blue Diamond Growers
• The Hain Celestial Group. Inc.
• Oatly Group AB
• Vitasoy International Holdings
• SunOpta Inc.
• Unilever PLC
• Freedom Foods Group Limited
• Nestlé S.A.
• Daiya Foods Inc.
• Life Health Foods Private Limited
• Rakyan Beverages Private Limited
• Dabur Ltd
• Sahmyook Foods
• Bonsoy
• Hebei Yangyuan Zhihui Beverage Co. (Yang yuan walnut milk)
• Coconut palm
• Yinglu (peanut milk)
• Dali foods (soy milk)
• Lulu (almond milk)
• Follow Your Heart
• Sanitarium Health and Wellbeing Company
• Axiom Foods. Inc.
• Conagra Brands
• Earth’s Own Food Company. Inc.
• Agrana
• Efko Group
• Jogurty Magda
• Albalact
• First Choice Ingredients
• Organic Valley
• Zahini
• Archer Daniels Midland Company
• Nutriops S. L.
• Alpro
• Arla
• Soyfresh
• Koita
• Diamond River General Trading Llc
• Bartech International Llc
• Synergs General Trading Fzc
• Soy Afric Limited
• Panos Brands Llc
• Eden Foods Inc.
What are the Regional Insights into the Dairy Alternatives Market?
Asia-Pacific was the largest region in the dairy alternatives market in 2024. Western Europe was the second-largest region in the global dairy alternatives market. The regions covered in the dairy alternatives market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
