Italy Dairy Alternatives Market (2025 - 2033) Size, Share & Trends Analysis Report By Source (Soy, Almond, Coconut, Rice, Oats), By Product (Milk, Yogurt, Cheese, Ice-cream), By Distribution Channel, And Segment Forecasts

Italy Dairy Alternatives Market Summary

The Italy dairy alternatives market size was estimated at USD 484.1 million in 2024 and is projected to reach 1,171.2 million by 2033, growing at a CAGR of 10.3% from 2025 to 2033. This growth is mainly driven by rising health and environmental awareness among consumers.

More Italians, especially younger people in cities, are choosing plant-based products, such as milk, yogurt, cream, and cheese, due to concerns about lactose intolerance, high cholesterol, and a growing interest in vegan and flexitarian diets. According to the World Population Review's 2025 report, 3% of Italy's population now follows a vegan lifestyle, placing the country 9th globally. This shift plays a key role in the increasing demand for dairy alternatives. In Italy, strong environmental and sustainability concerns increasingly shape consumer purchasing decisions. For instance, a report published by Sesamers in 2023 highlighted that 66% of Italians prioritize sustainability when buying food.

This growing concern for health and the environment influences how Italians shop, leading more people to choose dairy-free products. At the same time, the market is benefiting from constant innovation and a broader range of options. Local brands are introducing more plant-based milks, such as the popular almond milk, the quickly rising oat milk, and plant-based yogurt and cheese. These factors, combined with increasing health awareness and a strong focus on sustainability, are expected to drive steady and robust growth in Italy’s dairy alternatives market.

Consumer Insights

The consumer landscape for dairy alternatives in Italy is evolving rapidly, driven by increasing health awareness, dietary restrictions, and lifestyle changes. Many consumers opting for plant-based dairy alternatives, particularly women and younger adults, are health conscious. This demographic group is more open to adopting alternative food choices that align with their wellness, sustainability, and ethical consumption values.

Urban residents and consumers with higher education and income levels are at the forefront of this shift. These individuals tend to be more informed about nutrition, have easier access to specialty products, and are willing to pay a premium for quality, organic, or certified products such as vegan, lactose-free, gluten-free, or non-GMO options.

Consumer Demographic

Italian consumers strongly prefer familiar products such as plant-based milk, yogurt, and kefir, which significantly contribute to the growth of the dairy alternatives market. With a strong inclination toward traditional food experiences, consumers are more likely to adopt dairy alternatives that closely replicate the taste and texture of conventional dairy products. Although supermarkets remain the primary retail channel, there is increasing traction for online platforms and health-focused stores, particularly among younger, digitally engaged consumers. Transparent and reliable product labeling is critical, as consumers are increasingly avoiding items containing artificial additives, preservatives, or genetically modified ingredients. In addition, a broader consumer shift toward sustainability and ethical purchasing behavior is expected to increase the demand for plant-based alternatives made with locally sourced or Italian-grown ingredients.

Source Insights

Soy dominated the Italy dairy alternatives industry and accounted for a share of 36.9% in 2024, owing to its high-quality protein content and natural cholesterol-free profile. Soy is also popular among consumers with lactose intolerance or plant-based diets. Moreover, the country's large soy production and imports increase demand for soy-sourced dairy alternative products. According to the U.S. Soybean Export Council (USSEC) report 2024, Italy is a major producer of soybeans in Europe, growing 1 million metric ton (MMT) annually. In Italy, soybean meal consumption is around 3.5 MMT. Around half of this soybean meal is produced in local crushing plants: one in Ravena (Bunge) and two in the north Venezia area( Cereal Docs)

The almond segment is expected to grow at the fastest CAGR of 11.5% from 2025 to 2033. Almond milk's appealing taste profile, versatility in various culinary applications, and its perceived health benefits, particularly its lower calorie content compared to other plant-based milks, are expected to increase its consumption over the coming years. Its natural richness in vitamins and minerals and its suitability for those with lactose intolerance or specific dietary preferences, make it a highly attractive choice. In addition, almond-based beverages are enjoying a surge in popularity across the country, offering a light taste and creamy texture well-suited to coffee, breakfast cereals, and smoothies.

Product Insights

The milk segment dominated the market and accounted for the largest revenue share of 66.0% in 2024. Italian consumers increasingly opt for plant-based milks due to rising health consciousness and a general desire for nutritious options. Moreover, milk is the primary source for all other products such as yogurt, cheese, ice cream, and creamer, which shows a higher consumption of milk for the production of other products. Various advantages of plant-based milk, such as environmental benefits, low fat, and low calories, are shifting consumer preference from traditional to plant-based milk.

The ice-cream segment is expected to record the fastest CAGR from 2025 to 2033. Increasing popularity of dairy-free desserts, particularly ice creams made from soy, rice, almond, and coconut, is expected to significantly contribute to the market growth. Rising vegan population and companies shifting their focus toward launching vegan ice creams are also expected to contribute to the growth of this segment. For instance, in February 2023, Valsoia launched Italian vegan gelato in different flavors. This product line includes Cocoa Swirl, Roasted Almond Cones, and vegan ice cream sandwiches. Similarly, in May 2025, Prodotti Rubicone, an Italian gelato and pastry company, launched two acai-based ingredients: acai concentrated paste and soft powder used in gelato preparation. The increasing availability of a wide range of options in the plant-based ice cream segment is expected to fuel the segment's growth over the coming years.  

Distribution Channel Insights

The supermarket & hypermarkets segment held the largest revenue share of 39.8% in 2024. Italy's large-scale retailers, particularly supermarkets and hypermarkets, play a central role in the distribution and growth of the dairy alternatives market. Moreover, the increasing number of supermarkets and hypermarkets in the country drives the development of the market, as it improves the availability and accessibility of the products. For instance, in December 2024, Aldi opened three new stores, Calolziocorte (LC), Lentate sul Seveso (MB), and Vignola (MO), to strengthen its presence in northern Italy .

The online retail segment is projected to record the fastest CAGR from 2025 to 2033.  Increased internet usage and consumers' desire for 24/7 shopping convenience drive sales through this channel. Another key factor is easy access to a broader range of brands beyond what local stores offer. Furthermore, the ability to easily compare prices, read customer reviews, find special discounts, and use convenient payment methods directly enhances consumer preference for online shopping. This digital shift ensures a wider availability and a more tailored shopping experience, boosting the demand for dairy alternatives across Italy.

Key Companies & Market Share Insights

Some of the key companies operating in Italy dairy alternatives industry include Valsoia, Condorelli, OraSì , and Granarolo S.p.A.

• Condorelli is a high-quality, plant-based almond drinks company made from almonds. Their key products include unsweetened almond milk and flavored variants like almond‑pistachio milk. They are all vegan, gluten-free, and lactose-free, and suitable for drinking, cooking, and making coffee.

Recent Developments

• In June 2025, Valsoia launched four plant-based dairy free treats, including stracciatella, pistachio, lemon cake, and fruit cups, in Malta.

• In May 2025, Dreamfarm launched plant-based mozzarella cheese at the Tuttofood fair in Milan. This cheese is made with a clean-label recipe and designed for cold appetizers and summer salads.

• In October 2024, Dreamfarm launched plant-based ricotta cheese. This is made from almonds and cashews and designed to offer authentic flavor and creamy texture.

• In September 2024, Ferrero launched plant-based Nutella. This spread is vegan certified and offers a delicious new choice for consumers. 

Italy Dairy Alternatives Market Report Scope

Italy Dairy Alternatives Market Report Segmentation

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the Italy dairy alternatives market report based on source, product, and distribution channel:

• Source Outlook (Revenue, USD Million, 2021 - 2033)

  • Soy

  • Almond

  • Coconut

  • Rice

  • Oats

  • Others

• Product Outlook (Revenue, USD Million, 2021 - 2033)

  • Milk

  • Yogurt

  • Cheese

  • Ice-cream

  • Creamer

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2021 - 2033)

  • Supermarket & Hypermarkets

  • Convenience Stores

  • Online retail

  • Others