Dairy Alternative Products Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Dairy Alternative Products Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The dairy alternatives market is projected to record a CAGR of 10.12% over the next five years.

Plant-based and vegan (non-dairy) products have more room to grow because there is more demand for them. This means that manufacturers invest more in the market.People around the world are switching from dairy products to plant-based and vegan dairy products for reasons like animal welfare, the environment, and health.Consumers love these products because they claim to be sustainable and work well.As people become more aware of how much dairy they eat, they are choosing plant-based and vegan products more often.Since animal products have a lot of cholesterol, which can make you more likely to get heart disease, cardiac disease, obesity, etc., there is a growing demand for plant-based foods. Vegan and non-dairy products have been found to have less cholesterol than animal products.

As an example, plant-based milks like coconut milk, oat milk, rice milk, soy milk, etc. are becoming more popular on the market and are being used more by people who can't have lactose. Manufacturers on the market have been putting out new products often to keep up with consumers' changing tastes. For instance, in September 2022, Global Food and Ingredients Ltd. launched plant-based milk under its Yofit brand as part of its expansion in the United States. Available in three flavors, it is a high-protein, chickpea-based milk free of chemical additives. Also, most consumers are seen switching from dairy to dairy-free products because they are constantly aware that dairy-free diets may help alleviate certain problems, including digestive distress, an inability to lose weight, acne, and irritable bowel syndrome. The higher availability of dairy alternative products and growing awareness regarding the benefits of dairy alternatives will continue to drive the market over the forecast period.

In the past 10 years, the number of vegans has been steadily growing. This is because more and more people are choosing plant protein over animal protein. This inclination toward a plant-based diet is associated with different factors, such as sustainability issues, health awareness, ethical or religious views, environmental and animal rights, and allergies, which, in turn, increase the demand for plant-based food products in the global market. According to the ProCon Organization, by 2021, 59% of people living in Canada will suffer from lactose intolerance. Since this condition cannot be cured but can be controlled, there has been an increase in demand for dairy-free or lactose-free foods and infant formula, which is expected to drive the market. With the increasing consciousness towards health, consumers are preferring healthy foods such as plant-based milk because it is lactose-free. This is also because lactose-free food can have several health benefits. Some of the major reasons are that it helps in weight reduction and lactose-free food products enable accurate digestion, thus strengthening an individual's gut. Moreover, due to the spread of several diseases worldwide, which can cause several health damages, consumers prefer lactose-free food products as they can reduce the effect of antimicrobials on the body. For example, soy milk is a highly consumed product among consumers because the milk is plant-based and contains no lactose. Soy milk also has several health benefits associated with it, is free from cholesterol, and has a low fat percentage. Dairy alternatives are essential in a vegan diet for providing balanced nutrients to compensate for the non-consumption of meat and dairy. This has led to increased consumer preference for products using dairy alternatives.

Asia-Pacific is the fastest-growing region for the dairy alternative market. The rising number of lactose intolerant people is fueling the demand for dairy alternatives in this region. According to the ProCon Organization, 98% of the population in Vietnam is lactose intolerant. The health and wellness trend in Asia-Pacific has brought the issue of food intolerances and allergies to the forefront of modern consumers' minds, boosting the consumption of dairy alternative products. Soy-based alternatives are widely preferred in this region, leading to the onset of companies like Vitasoy International Holding, which provides a wide portfolio of soy-based products.

People are starting to like products that are high in protein, low in calories, and don't have any artificial ingredients.This is driving the studied market's growth. Plant-based beverages provide vegetable or mixed proteins, catering to the rising need for a healthy lifestyle. Consumers of plant-based protein in Asia-Pacific have adopted a dairy-free diet to improve their health and well-being, as plant-based diets can not only help curb obesity, stroke, and heart disease, prevent a variety of cancers, reduce cholesterol, and ease arthritis pain, but also lower blood sugar, increase energy, and improve mental clarity.

As people become more health conscious, they are more likely to choose healthy foods like lactose-free plant-based milk. Some of the main reasons are that it helps people lose weight and that lactose-free foods help with digestion, which strengthens the gut. Soy milk, for example, is a popular product among consumers because it is a plant-based milk that contains no lactose, is cholesterol-free, and has a low fat percentage. Dairy alternatives are an important part of a vegan diet because they provide balanced nutrients to make up for not eating meat and dairy. This has led to increased consumer preference for products using dairy alternatives.

There are a lot of small and medium-sized companies and a few big players in the dairy alternative products market. This makes the market very competitive. On the market, there are many family-owned private companies that work in different categories. These companies are only in a few countries in the region. Key players in the market include Groupe Danone, Vitasoy International Holdings, Freedom Food Group Limited, Kikkoman Corporation, and Campbell Soup Company. Key players in the market are focusing on mergers and acquisitions to reach more customers and meet their needs in the dairy alternatives segment.

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