The global dairy alternatives market size was estimated at USD 10.23 billion in 2016, growing at a CAGR of 16.6% over the forecast period. High demand for dairy alternatives for manufacturing medical food for lactose intolerance ailments, owing to its lactose-free nature, is expected to propel the industry growth.
The nutritional benefits offered by dairy alternative products such as low cholesterol content, high protein content, and the incorporation of the same in daily food products by manufacturers is expected to benefit the market. Rising number of allergies associated with non-vegan foods and the resultant changing dietary preferences of consumers, is anticipated to propel the demand for the product over the forecast period.
Soy milk has been a key product segment for dairy alternatives market in the U.S. The country was the largest producer for soybean and produced over 100 million tons of soybean in 2016. Abundant raw material availability and technology know how in manufacturing soymilk is expected to have a positive impact on the industry growth over the forecast period.
Manufacturers in the industry make their products available to customers by means of e-retailers, supermarkets, health food stores, and convenience stores. The variety of options in dairy alternative formulations such as plain, flavored, unsweetened, and sweetened, coupled with their easy availability is expected to benefit the industry over the forecast period.
Major players in the industry such as Archer Daniels Midland Company, CP Kelco, and The Whitewave Foods Company, are actively investing in R&D activities to improvise the taste and nutritional value of their product offerings. High competition from these major players and fluctuating raw material prices is anticipated to alleviate the threat of new entrants.
The soy milk product segment accounted for 40.5% of the market share in 2016. Soy milk assists in the prevention of heart diseases and breast cancer, owing to presence of beneficial isoflavones in it. This factor has led to its high popularity among women, and has thus caused it to emerge as the highest consumed non-dairy product.
Almond milk is anticipated to be the fastest growing product segment and is expected to ascend at an estimated CAGR of 17.8% over the forecast period. The high growth rate of the segment is attributed to its increasing popularity owing to its high energy content, lipids, fiber, and protein content. The relatively better texture and taste of almond milk as compared to its counterparts is expected to benefit the segment growth.
Plain formulation segment accounted for USD 5.39 billion in 2016, and is expected to progress at an estimated CAGR of 15.4% over the forecast period. Growing demand for the product in food & beverage applications for plain unsweetened desserts and snacks is expected to propel segment growth over the forecast period.
Flavored formulation is anticipated to be the fastest growing segment over the forecast period and is anticipated to ascend as an estimated CAGR of over 17.9%. The rising demand for flavored formulation for manufacturing lactose-free yoghurts and desserts coupled with the availability of novel flavors is expected to drive growth over the forecast period.
Beverage is anticipated to emerge as the fastest growing application segment over the forecast period, ascending at an estimated CAGR of 16.3%. Growing demand for various nut based flavored milk products such as walnut, cashew, and almond, is expected to benefit the market growth over the forecast period.
Food application segment is anticipated to witness a steady growth rate on account of the increasing consumption of dairy alternative based snacks, desserts and cheese. The demand for lactose-free cheese is expected to be driven by the increasing consumption of fast foods and changing dietary preferences of consumers especially in emerging economies such as China, India and Brazil.
Asia Pacific has dominated the dairy alternatives industry in terms of revenue in 2016, and accounted for over 49.7% of the market share in the same year. Rising consumer awareness regarding the dairy alternative products, changing consumer dietary habits coupled with rising disposable income is expected to have a positive impact on the industry growth.
Europe dairy alternatives market is expected to progress at an estimated CAGR of 13.7% over the forecast period. Increasing consumer demand for cholesterol free and plant-derived food products, coupled with rising demand for lactose-free yogurt and ice-creams is expected to propel the regional industry growth.
The market is characterized by the presence of major industry participants focusing on R&D to come up with improvised texture and taste of their dairy alternative product offerings. The industry is pooled by numerous manufacturers and raw material suppliers, which has thus caused the market to be highly competitive.
Major participants in the industry are also focusing on increasing their production capacities, in order to cater to the rising demand. For instance, in 2015, Vitasoy International Holdings Limited, a major player opened a plant in Wuhan, China. The new facility has helped the company to accelerate development in plant-based beverages to meet demand for healthy lifestyle.
This report forecasts revenue and volume growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2013 to 2024. For the purpose of this study, Grand View Research has segmented the global dairy alternatives market on the basis of product, formulation, application, and region.
Product Outlook (Volume, Kilotons; Revenue, USD Million; 2013 - 2024)
Formulation Outlook (Volume, Kilotons; Revenue, USD Million; 2013 - 2024)
Application Outlook (Volume, Kilotons; Revenue, USD Million; 2013 - 2024)
Regional Outlook (Volume, Kilotons; Revenue, USD Million; 2013 - 2024)
The Middle East & Africa
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