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NewsVP > Blog > Dairy Alternatives Market Analysis Size And Forecast Report 2024-2032
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Dairy Alternatives Market Analysis Size And Forecast Report 2024-2032

renubresearch
Last updated: 2024/12/14 at 3:42 PM
renubresearch
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Global Dairy Alternatives Market Analysis

The global dairy alternatives market has been experiencing robust growth, driven by a significant shift in consumer preferences towards plant-based products. Valued at USD 29.07 billion in 2023, the market is projected to reach USD 75.70 billion by 2032, growing at a CAGR of 11.22% from 2024 to 2032. As consumers increasingly turn to plant-based alternatives for health, environmental, and ethical reasons, the dairy alternatives market is expected to continue its rapid expansion.

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Request a free sample copy of the report: https://www.renub.com/dairy-alternatives-market-consumption-forecast-global-analysis-by-plant-based-milk-regions-companies-p.php

What Are Dairy Alternatives?

Dairy alternatives are plant-based products designed to replace traditional dairy foods and beverages. These alternatives are made from a variety of plants, including soy, almonds, rice, oats, and coconuts. Popular dairy alternatives include plant-based milks (soy, almond, oat), yogurts, cheeses, and butter substitutes. These products are typically lactose-free, cholesterol-free, and lower in fat than their dairy counterparts, making them popular among health-conscious consumers, individuals with lactose intolerance, and those following plant-based or vegan diets.

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As these alternatives are often rich in essential nutrients, including vitamins and minerals such as calcium and vitamin D, they are seen as healthier and more sustainable options.

Key Market Drivers

1. Increasing Lactose Intolerance and Milk Allergies

Lactose intolerance is a significant driver of the dairy alternatives market. According to the National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK), 68% of the global population is affected by lactose malabsorption, making dairy alternatives an essential solution for those with this condition. Additionally, the rise in milk protein allergies (affecting 2%–6% of people globally, according to the UN FAO) further propels demand for plant-based dairy substitutes.

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As awareness of lactose intolerance and milk allergies grows, consumers are increasingly seeking lactose-free, dairy-free alternatives that provide the same nutritional benefits, such as calcium, without the digestive discomfort associated with cow’s milk.

2. Rise of Veganism and Plant-Based Diets

The growing popularity of veganism and plant-based diets has been a key factor in the expansion of the dairy alternatives market. A rising number of consumers are adopting plant-based lifestyles for reasons such as health, sustainability, and animal welfare. According to the World Animal Foundation, around 88 million people worldwide identify as vegans, contributing to the increasing demand for plant-based food products, including dairy alternatives.

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Moreover, plant-based diets are often viewed as a healthier alternative to traditional diets, offering benefits such as lower cholesterol and fat content. This has driven the adoption of dairy substitutes, especially among flexitarians (those who reduce but don’t completely eliminate animal products from their diets).

3. Health and Sustainability Trends

Consumers are becoming more health-conscious, seeking products that are low in fat, sugar, and artificial additives. Plant-based milk, for example, often offers lower fat content compared to cow’s milk and is often fortified with vitamins and minerals. Additionally, dairy alternatives are increasingly marketed as environmentally friendly options, as plant-based foods generally have a smaller carbon footprint than dairy products. This growing emphasis on sustainability has further fueled demand for dairy substitutes, particularly among eco-conscious consumers.

4. Innovation and Product Diversification

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As consumer preferences evolve, leading companies are introducing new dairy alternatives and expanding their product offerings. Innovations in flavors, textures, and nutritional fortification have helped increase the appeal of dairy substitutes to a wider audience. For instance, companies are launching new plant-based milks enriched with pea protein, chia, and hemp to cater to different consumer needs. In February 2024, Califia Farms launched its new product, Califia Farms Complete, a nutritionally enriched blend of pea, fava bean, and chickpea protein with 50% less sugar, designed to have a similar nutritional profile to dairy milk.

Regional Insights

North America Dairy Alternatives Market

The North American dairy alternatives market is growing rapidly, driven by consumer demand for healthier and more sustainable products. The U.S. is at the forefront of this shift, with increasing awareness of lactose intolerance, veganism, and environmental issues. In August 2023, Chobani launched a pumpkin-flavored oat milk, illustrating the growing trend of flavor innovations in the plant-based dairy sector. Additionally, product fortifications with essential vitamins and minerals like calcium and vitamin D are helping to increase the appeal of dairy alternatives to health-conscious consumers.

Europe Dairy Alternatives Market

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Europe is experiencing significant growth in dairy alternatives, particularly in countries like the UK, Germany, and the Netherlands, where plant-based diets are gaining traction. In Germany, the market is expanding rapidly due to increasing consumer awareness about health and sustainability. In November 2022, Oatly Group AB launched a new range of oat-based yogurt flavors, including strawberry, blueberry, and Greek-style, catering to the growing demand for plant-based yogurt alternatives.

The rising popularity of vegan and flexitarian diets across Europe is driving the demand for plant-based milk and dairy products. With environmental sustainability becoming a more prominent concern for European consumers, dairy alternatives are seen as a viable solution to reduce the ecological impact of traditional dairy farming.

Asia-Pacific Dairy Alternatives Market

The Asia-Pacific region, with its long history of plant-based diets, is one of the largest consumers of dairy alternatives. Countries like China, India, and Japan are major markets for dairy substitutes, driven by a high percentage of vegetarian and vegan populations. In India, for example, 13% of the population follows a vegan diet, which significantly contributes to the demand for plant-based milk like soy, almond, and coconut milk. The growth of the dairy alternatives market in India is also supported by increasing urbanization, rising health awareness, and a growing preference for sustainable food options.

In August 2024, Indian startup 1.5 Degree introduced a new range of plant-based frozen desserts and beverages, responding to the rising demand for dairy alternatives in India. The market in Asia-Pacific is expected to continue expanding, with government policies encouraging plant-based food production and consumption.

Key Players in the Global Dairy Alternatives Market

Several leading companies dominate the global dairy alternatives market, continually innovating to meet changing consumer demands. These companies include:

  • Danone S.A.
  • Oatly Group AB
  • Blue Diamond Growers Inc.
  • Vitasoy International Holdings Limited
  • The Hain Celestial Group Inc.
  • Archer-Daniels-Midland Company
  • SunOpta Inc.
  • Noumi Limited

These companies are constantly introducing new dairy alternatives and expanding their product lines to include a wide range of plant-based milk, yogurts, cheeses, and other dairy-free items. Their marketing strategies often highlight the health benefits, sustainability, and ethical advantages of plant-based alternatives.

Recent Developments in the Dairy Alternatives Market

  • Feb 2024: Califia Farms launched a new plant-based milk called Califia Farms Complete, enriched with pea, fava bean, and chickpea protein, offering 50% less sugar compared to traditional dairy milk.
  • Jan 2024: Plenish launched a campaign featuring their entire product range, including plant-based milk and other dairy alternatives, under the tagline “It’s all good.”
  • Jan 2024: Oatly introduced Super Basic Oatmilk and Unsweetened Oatmilk in the U.S. market to cater to growing consumer demand for low-sugar alternatives.
  • Feb 2023: Kagome USA introduced savory and sweet vegan butter blends, expanding its product portfolio in the dairy alternatives sector.
  • June 2022: Strive Nutrition Corp. partnered with Perfect Day to introduce a range of innovative dairy substitutes made with vegan whey protein.

Related Report :

Peru Organic Food Market

Kenya Organic Food Market

Spain Organic Food Market

About the Company:

Renub Research is a Market Research and Consulting Company. We have more than 15 years of experience especially in international Business-to-Business Researches, Surveys and Consulting. We provide a wide range of business research solutions that helps companies in making better business decisions. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses. Our wide clientele comprises major players in Healthcare, Travel and Tourism, Food Beverages, Power Energy, Information Technology, Telecom Internet, Chemical, Logistics Automotive, Consumer Goods Retail, Building, and Construction, Agriculture. Our core team is comprised of experienced people holding graduate, postgraduate, and Ph.D. degrees in Finance, Marketing, Human Resource, Bio-Technology, Medicine, Information Technology, Environmental Science, and many more.

Media Contact:

Company Name: Renub Research

Contact Person: Rajat Gupta, Marketing Manager

Phone No: +91-120-421-9822 (IND) | +1-478-202-3244 (USA)

Email: mailto:rajat@renub.com

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