Asia Pacific Dairy Alternatives Market - Growth, Trends, and Forecasts (2023 - 2028)

Asia Pacific Dairy Alternatives Market - Growth, Trends, and Forecasts (2023 - 2028)

The Asia-Pacific Dairy Alternatives Market is projected to register a CAGR of 11.26% over the forecast period.

The market is primarily driven by changing consumer lifestyles, increasing health consciousness, and rising lactose intolerance or milk allergies among Asia-Pacific consumers. The availability of an abundance of raw materials for plant-based products and an agriculture production base to produce plant-based sources is fuelling the growth of the market. Dairy alternative products or plant-based products are perceived as healthy and Asian consumers are prioritizing their health, thus opting for healthy products like dairy alternatives. Moreover, the rising prevalence of lactose intolerance among the Asian population is the key factor supporting the growth of the market. For instance, in April 2021, according to Dairy Australia, around 2/3 population of Asia had lactose intolerance, as they have trouble absorbing lactose.

Furthermore, the influence of western culture or trends like veganism on Asian consumers is increasing their interest in plant-based or dairy alternative products, in turn promoting the sales of alternative dairy products. The growing acceptance of alternative dairy products in the region, along with increased awareness regarding the health benefits of the plant-based diet among consumers, is further augmenting the growth of the market. The manufacturers of dairy alternatives are actively engaged in introducing innovative dairy-free products to cater to the growing demand for dairy alternative products among consumers. For instance, in March 2022, Otsuka Pharmaceutical Co. Ltd launched Sugoi Hiyoko Milk, a whole chickpea beverage, and Sugoi Oat Milk, a whole oat beverage in Japan.

Health and wellness are the key reason for adopting dairy alternative products among Asian consumers. Dairy alternatives offer the advantages of low-fat, low-calorie, and low-cholesterol content, which appeals to health-conscious, vegan, and lactose-intolerant consumers.​ The rapidly changing lifestyle, change in eating patterns, and increased focus on healthy eating habits are increasing the popularity of plant-based food and beverages, in turn supporting the growth of the market. The easy availability of a variety of dairy alternatives, along with increasing acceptance of plant-based products among Asian consumers, is propelling the growth of the market. For instance, in June 2021, according to Vegconomist, 90% of Chinese consumers were aware of the availability of plant-based protein.

Furthermore, consumers are seeking convenient, functional, healthy, nutritious, and clean-label products, which is driving the sales of plant-based products in the country. Consumers prefer nutritious or fortified products, which is putting the spotlight on plant-based ingredients and driving innovation across a multitude of product categories at the retail and restaurant levels.

Vegetarian-friendly dairy alternatives are poised to pressurize the traditional dairy market in a heavily vegetarian country like India. Indian consumers are shifting toward a plant-based diet due to unique propositions like sustainability and health consumers. Millennials and Gen Z are incorporating sustainable and healthy products in their everyday life to lead a healthy lifestyle. Change in consumer purchasing behavior as consumers are paying attention to the source of ingredients, nutrient facts, ingredient lists, and other labels, thus boosting the demand for sustainable products like plant-based alternatives. The manufacturers of dairy alternatives capitalize on consumer interest to introduce innovative products in the market. For instance, in October 2022, Only Earth launched Almond Milk in India on online and offline channels, such as Amazon, Big Basket, Nature’s Basket, and others.

The Asia-Pacific dairy alternatives market is highly fragmented due to the presence of large international, regional, and domestic players. The major players in the market include Vitasoy International Holdings Ltd, Blue Diamond Growers, Danone SA, Sanitarium Health and Wellbeing Company, and Earth's Own Food Company. The market is highly competitive due to the increasing rivalry among existing players and emerging players for significant market share. The market players are introducing innovative products to cater to the growing demand for dairy alternatives or plant-based products among consumers. Furthermore, the emergence of new dairy alternative food and beverage startups in the Asia-Pacific region is creating stiff competition in the market. Product innovation in terms of innovative and new flavors remains the key strategy implemented by the players in the region. For instance, in November 2022, Jooma, a subsidiary of NOIX AG, introduced an almond milk concentrate named Call Me Almond Milk in China.

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