GVR Report cover Dairy Alternatives Market Size, Share & Trends Report

Dairy Alternatives Market Size, Share & Trends Analysis Report By Source (Soy, Almond, Coconut, Rice, Oats), By Product (Milk, Yogurt, Cheese, Ice-cream, Creamers), By Distribution Channel, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-1-68038-070-5
  • Number of Pages: 165
  • Format: Electronic (PDF)

Report Overview

The global dairy alternatives market size was valued at USD 23.2 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 12.5% from 2022 to 2030. The market is gaining momentum and witnessing high demand owing to the shift in consumer eating patterns and changes in diet trends. The increasing occurrences of milk allergies and lactose intolerance cases are expected to drive the demand for dairy alternatives further over the forecast period. Numerous food and beverage products are thus making use of the product to appeal to the growing consumer base that is opting for plant-based and other dairy alternatives.

U.S. dairy alternatives market size, by source, 2020 - 2030 (USD Billion)

Soy milk is expected to gain popularity in the U.S. among the elderly and female consumer base as it contains isoflavones, which are said to reduce the risk of heart diseases and breast cancer. Soy also contains phytoestrogen, which functions similar to the female hormone estrogen. Drinking soy milk is popular as an alternative therapy among women to increase estrogen levels, which is further expected to drive the market.

Almond milk is becoming increasingly popular among youth that is health savvy and follow diets such as the ketogenic diet and vegan diet. Almond milk is a rich substitute for dairy due to its high lipids, fiber, and protein content, and is expected to witness a high adoption rate among consumers as well as end-user industries.

Consumers are also opting for dairy alternatives as a means to cut back on calories consumed as dairy products generally contain a high number of calories. Consumers looking to lose weight have been increasingly substituting cow or buffalo milk with soy or almond milk. This, in turn, is expected to aid the growth of the market as the fitness-savvy consumer base is increasing across the globe.

Initiatives are undertaken by manufacturers to offer novel flavors, better quality, and attractive packaging are expected to have a positive impact on the industry over the forecast period. These products can be fortified with vitamin D, calcium, and DHA, which improve their nutritional values. Increasing consumer knowledge about dairy alternative products is anticipated to fuel the market growth over the forecast period.

Consumer demand for nutritional values such as low calories, high proteins, and vitamins has witnessed substantial growth during the COVID-19 pandemic. Owing to this, a large consumer base across the globe has been shifting to dairy alternatives. Moreover, the popularity of the vegan diet has increased due to COVID-19 as consumers have been increasingly adopting plant-based food products, further boosting the sales of dairy alternatives across the globe.

Source Insights

Soy led the market and accounted for a revenue share of more than 35.0% in 2021. Almond is the second-largest source segment of the market. It is rich in Vitamin B, which helps raise the base metabolic rate of the body, enabling it to burn fats and calories more efficiently. Due to these nutritional benefits provided by almond milk, its demand is likely to contribute to the growth.

Soy milk is rich in nutrients and has a high protein content compared to other dairy alternatives, which is expected to drive the segment over the forecast period. Soy milk has been traditionally used in the Asia Pacific region for centuries and is a part of numerous recipes, which is expected to keep the product demand consistently stable over the forecast period. It is used for the purpose of lowering obesity and blood cholesterol levels and reducing the risk of several postmenopausal issues, along with improving cardiovascular health, which, in turn, has made it a preferred supplement.

Almond milk has essential minerals such as iron, magnesium, phosphorous, zinc, and copper that help in controlling blood pressure, improving blood oxygenation, and providing body protection against diseases. In addition, almond milk is rich in Vitamin E and manganese, making it a more powerful drink for improving skin quality and for protecting against cancer.

Increasing consumer preference for plant-based products and ease of raw material availability are the significant factors fueling the market growth. Moreover, the rising demand for rice milk among the consumers for manufacturing various food and beverage items such as ice creams, snacks, and beverages is expected to drive the demand for the product over the forecast period.

Rice milk is made with white or brown rice and is usually unsweetened, however, it has more carbohydrates and is therefore fortified with iron, vitamin D, and vitamin B12. The organic form of rice milk in the market is gaining momentum over the conventional products even though it is priced at a premium, which, in turn, is providing substantial growth to the market.

Dairy alternative products such as hemp milk, cashew milk, and coconut milk are also gaining popularity across the globe. Hemp milk strengthens the immune system, provides healthy skin, hair, and nails, and makes the heart strong. Furthermore, coconut milk makes the bones stronger, helps in the treatment of arthritis, and aids in weight loss. These health benefits of plant-based milk are likely to propel the demand for dairy alternatives across the globe.

Product Insights

Milk led the market and accounted for a revenue share of more than 65.0% in 2021. The increasing old age population has resulted in people preferring milk-based dairy alternatives in Europe. However, growing health concerns over soymilk, especially for breast cancer survivors, are likely to hamper the market growth.

In Europe, increasing demand for low-calorie content food, coupled with the rising popularity of plant-based nutritional products, is likely to augment the demand for the product over the forecast period. The milk product segment includes various new and innovative beverage options with dairy alternatives as a base ingredient. The manufacturers of beverages are introducing new products for higher market capitalization.

The increasing demand among consumers for a variety of beverage options has resulted in varied options of flavored beverages consisting of dairy alternatives. The flavored beverages also appeal to lactose-intolerant consumers who are looking for variety in milk-based dairy alternative beverages.

Growing demand for dairy alternatives-based cheese products such as soy and almond-based cream cheese, sour creams, and regular cheese is expected to propel the demand for dairy alternative products over the forecast period. Consumers who are lactose intolerant and have allergies to milk products are switching over to various cheeses made from almond and soy, which fuels the growth of the market.

Market penetration of dairy alternatives-based cheese products is likely to grow over the forecast period on account of the presence of companies like Galaxy Nutritional Foods, Tofutti, and Trader Joe’s that provide the famous dairy-free soy cream cheeses. In addition, Daiya Foods Inc. makes a variety of cheeses, which are nut, gluten, dairy, and soy-free, making them a great choice for those with allergies to these ingredients.

The shifting preference of consumers toward low-calorie soy and almond milk-based desserts is likely to propel market growth. Several flavoring and masking agents have been developed to make the desserts more palatable, increasing their appeal to the taste-conscious population. In addition, the price of such desserts is less as compared to its dairy substitutes, which is likely to increase the penetration of plant-based milk desserts across the globe.

Distribution Channel Insights

Supermarkets and hypermarkets led the market and accounted for a revenue share of over 40.0% in 2021. Supermarkets and hypermarkets are large-sized retail outlets, which usually offer multiple categories of retail products under one roof. Supermarkets are usually located near a residential area to be accessible to the customers. However, due to the unavailability of land near residential areas, most supermarkets and hypermarket chains are opening their new stores outside of the city.

Global dairy alternatives market share, by distribution channel, 2021 (%)

In developed regions, such as Europe and North America, the penetration of supermarkets and hypermarkets is higher than that in the developing regions. Besides, the presence of a large variety of this product in one place and ease of buying contributed to the dominance of supermarkets and hypermarkets in the market in 2021.

Convenience stores usually offer lower discounts in comparison to hypermarkets and supermarkets and online stores owing to their low-volume procurement from manufacturers or suppliers. Besides, convenience stores mainly focus on everyday items; thus, the availability of limited shelf sizes restricts them from keeping an extensive assortment of dairy alternatives products.

Owing to the limited availability of dairy alternatives brands in convenience stores, consumers mainly prefer other distribution channels, which, in turn, is expected to restrain the growth of this segment over the forecast period. However, convenience stores offer better traction for fresh milk as consumers usually prefer it for everyday use.

Regional Insights

Asia Pacific dominated the market and accounted for a revenue share of more than 40.0% in 2021. Expanding population and rising disposable incomes in emerging countries such as India, China, and Japan are expected to augment the demand for the product in the Asia Pacific region.

Increasing cases of lactose intolerance and the rising health issues associated with harmful additives used in dairy products are anticipated to boost the demand for non-dairy products such as soy milk, almond milk, rice milk, and other dairy alternatives in the region.

North America is one of the major markets for dairy alternatives as a variety of dairy alternatives such as ice cream and yogurt are consumed on a large scale. Flavored milk accounts for over two-thirds of milk products sold in North American schools. Increasing consumer demand for sweetened flavored soy and almond milk is expected to be a key factor driving the industry.

Milk-based dairy alternatives are used for manufacturing various food items and desserts, which is expected to drive the industry over the forecast period in the North American region. Despite dairy alternatives-based ice cream witnessing moderate demand in North America as compared to milk-based ice cream, the growth of this product category is expected to be much higher over the forecast period.

The European market for dairy alternatives is expected to witness substantial growth over the forecast period owing to the rising demand for healthy foods and beverages in the region. Dairy alternative-based beverages are often consumed as alternatives to dairy beverages. Manufacturers operating in the region are focusing on new product development, which includes soy juice mixes and fresh soy drinks.

Key Companies & Market Share Insights

The market is highly competitive. It comprises prominent and well-established players that have collectively captured a large share in 2021. These manufacturers have a firm foothold in the market with capabilities that can cater to the local as well as international markets. Moreover, these players have a broad clientele base within as well as outside the country.

New product development in the food & beverages industry and the creation of alternatives for milk-based products are expected to remain key success factors for the industry participants over the next few years. For instance, the brand sofit by Hershey Trust Company is customized to appeal to Indian customers and is available in Kesar Pista flavor. Similar variations are observed across the companies that are developing products for further market penetration.

Most dairy alternative manufacturers are vertically integrated through established processes in the end-user phase-in value chain. Therefore, many manufacturers of dairy alternatives are manufacturing food products containing dairy alternatives as well as beverages that utilize alternatives such as almond milk or soy milk.

As the processes involved in the manufacturing of dairy alternatives do not require highly complex technology, it has become easier for new entrants to penetrate the industry. This, in turn, has made the market highly competitive with moderate to high rivalry among competitors who are seeking to capitalize on the growing opportunities in dairy alternatives in the forecast period. Some prominent players in the global dairy alternatives market include:

  • ADM

  • The Whitewave Foods Company

  • The Hain Celestial Group, Inc.

  • Daiya Foods Inc.

  • Eden Foods, Inc.

  • Nutriops, S.L.

  • Earth’s Own Food Company

  • SunOpta Inc.

  • Freedom Foods Group Ltd.

  • OATLY AB

  • Blue Diamond Growers

  • CP Kelco

  • Vitasoy International Holdings Limited

  • Organic Valley Family of Farms

  • Living Harvest Foods Inc.

Dairy Alternatives Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 26.0 billion

Revenue forecast in 2030

USD 66.9 billion

Growth Rate

CAGR of 12.5% from 2022 to 2030

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million/billion and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Source, product, distribution channel, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Canada; Mexico; Germany; U.K.; France; Italy; Spain; China; Japan; India; Australia; Brazil; South Africa

Key companies profiled

ADM; The Whitewave Foods Company; The Hain Celestial Group, Inc.; Daiya Foods Inc.; Eden Foods, Inc.; Nutriops, S.L.; Earth’s Own Food Company; SunOpta Inc.; Freedom Foods Group Ltd.; OATLY AB; Blue Diamond Growers; CP Kelco; Vitasoy International Holdings Limited; Organic Valley Family of Farms; Living Harvest Foods Inc.

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels. It provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global dairy alternatives market report based on source, product, distribution channel, and region:

  • Source Outlook (Revenue, USD Million, 2017 - 2030)

    • Soy

    • Almond

    • Coconut

    • Rice

    • Oats

    • Others

  • Product Outlook (Revenue, USD Million, 2017 - 2030)

    • Milk

    • Yogurt

    • Cheese

    • Ice-cream

    • Creamers

    • Others

  • Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Online Retail

    • Others

  • Regional Outlook (Revenue, USD Million, 2017 - 2030)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

      • Italy

      • Spain

    • Asia Pacific

      • China

      • Japan

      • India

      • Australia

    • Central & South America (CSA)

      • Brazil

    • Middle East & Africa (MEA)

      • South Africa

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