Dairy Alternatives Market Definition And Segments
Dairy alternatives are foods that are used as substitutes for dairy products. These products are extracted from plants including cereals (rice, oats), legumes (soy), seeds (hemp, flax), nuts (peanuts, almond), and other grains (teff, quinoa).
The main product types are non-dairy milk, butter, cheese, yogurts, ice cream, and other product types. Butter is a yellow-to-white solid emulsion of fat globules, water, and inorganic salts and is produced by churning the cream from cows' milk. The various sources of dairy alternatives are almond, soy, oats, hemp, coconut, rice, and other product types. The dairy alternatives are distributed through supermarkets, health food stores, pharmacies, convenience stores, online stores, and other product types.
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
The dairy alternatives market size has grown rapidly in recent years. It will grow from $13.87 billion in 2023 to $15.26 billion in 2024 at a compound annual growth rate (CAGR) of 10.0%. The growth in the historic period can be attributed to global population growth, rise in disposable income, growing number of health-conscious consumers, shift towards vegan eating and low interest rate environment.
The dairy alternatives market size is expected to see strong growth in the next few years. It will grow to $21.34 billion in 2028 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period can be attributed to the influence of digital media marketing and social media, government initiatives towards milk alternatives, increase in lactose intolerance, rising penetration of organized retail and improvement in cold chains. Major trends in the forecast period include offering new and innovative products, focus on investing in R&D labs, invest in modern separation technologies, consider planning and implementing marketing campaigns, expanding product portfolio to dairy-free alternative products with other milk-alternative producers.
Rising Cases Of Lactose Intolerance And Milk Allergies Drive The Dairy Alternatives Market
Increasing cases of lactose intolerance and milk allergies are projected to contribute to the dairy alternatives market's growth. Lactose intolerance or congenital lactase deficiency is a situation wherein the small intestine is incapable of making the enzyme lactase to break down or digest lactose, moving undigested lactose to the large intestine, causing symptoms such as diarrhea, gas, and bloating. According to the Cleveland Clinic, more than 30 million people in America are lactose intolerant. This scenario is likely to generate higher demand for dairy alternatives, which in turn, is anticipated to boost the market's revenue over the forecast period.
Elevating Health And Wellness Fueling The Dairy Alternatives Market's Growth
Rising health and wellness consciousness among consumers is expected to propel the growth of the dairy alternatives market going forward. Health and wellness consciousness refers to the degree to which individuals care about their health and are aware of how their daily choices affect their overall health. Dairy alternatives help promote health and wellness consciousness by providing consumers with a range of options that meet their dietary needs and preferences. The growing demand for dairy alternatives is a reflection of the increasing awareness of the health benefits of plant-based diets and the desire for more sustainable food choices. For instance, in October 2022, a poll by Nutrisystem Inc., a US-based wellness and fitness service provider found that over 70% of Americans are more conscious of their physical health post the COVID pandemic. Therefore, rising health and wellness consciousness among consumers is driving the growth of the dairy alternatives market.
Major companies operating in the dairy alternatives market report are 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., Hershey Private Limited, 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, Almustaqbal-Santa Corperation, Bartech International LLC, Synergs General Trading Fzc, Soy Africa Limited, Panos Brands LLC, Eden Foods Inc.
Consumer Awareness Challenges In The Dairy Alternatives Market
A lack of awareness among consumers about the nutritional benefits of dairy alternative products is expected to hinder the growth of the market. Many dairy consumers feel that dairy substitutes are lower in nutritional content than cow’s milk and other dairy products. According to a Cargill study, about 90% of households in America consume dairy products as a part of their daily diets, whereas only 4% of the population consumes only non-dairy products. Therefore, the lack of awareness among the populace about the nutritional benefits of dairy alternatives is expected to hinder the growth of the market over the next few years.
Not M'Lk Expands Choices For Consumers With Dietary Restrictions
Major companies operating in the dairy alternative market are developing innovative products such as NOT M’LK to meet the needs of consumers with dietary restrictions. NOT M'LK is a plant-based milk alternative made from oats. For instance, in October 2023, Velike, a Germany-based organic oat drink producer launched NOT M'LK, a dairy-free, gluten-free, and nut-free vegan milk that is suitable for people who are lactose intolerant or who choose to follow a plant-based diet. NOT M'LK is made from oats sourced exclusively from farms in the Black Forest and other regions of Baden-Württemberg. The use of locally sourced oats also supports the local economy and reduces the carbon footprint of the product.
Fostering Future Innovations By Unveiling Little Steps Plantygrow In The Dairy Alternative Market
New product innovation is the trend in the dairy alternative market. In June 2022, Nestlé S.A, a Swtizerland-based multinational food, and drink processing conglomerate corporation, announced the launch of Little Steps Plantygrow, a plant-based growing-up drink for toddlers from one to three years of age. According to Nestlé S.A, it contains iron, vitamins A, C, B2, B12, and iodine, no additional carbohydrate, and enhanced with omega3 and 6 for the overall development of toddlers.
Canadian Dairy Giant Saputo Expands Into Plant-Based Market With Acquisition Of UK’s Bute Island Foods
In May 2021, Saputo Inc., a Canada-based dairy company acquired Bute Island Foods for an undisclosed amount. Through this acquisition, Saputo Inc. aims to strengthen its product portfolio in plant-based dairy alternatives and to gain a competitive advantage in the market. Bute Island Foods is a UK-based cheese producer.
Asia-Pacific was the largest region in the dairy alternatives market in 2023. 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
The countries covered in the dairy alternatives market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain
The dairy alternatives market consists of sales of soy milk, rice milk, oat milk, coconut milk, and flaxseed milk, cheese substitutes comprise soft cheese and hard cheese, butter alternatives such as nut butter, coconut butter, vegetable oil blends, cultured vegan butter, and other dairy alternatives. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The dairy alternatives research report is one of a series of new reports from The Business Research Company that provides dairy alternatives statistics, including dairy alternatives industry global market size, regional shares, competitors with dairy alternatives share, detailed dairy alternatives segments, market trends and opportunities, and any further data you may need to thrive in the dairy alternatives industry. This dairy alternatives research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.