Dairy Alternatives - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2017 - 2029

Dairy Alternatives - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2017 - 2029

The Dairy Alternatives Market size is estimated at USD 32.29 billion in 2024, and is expected to reach USD 53.60 billion by 2029, growing at a CAGR of 10.67% during the forecast period (2024-2029).

The sales through off trade channels particularly through supermarket/ hypermarket and online drove the segment

• By distribution channel, the global dairy alternatives market has been divided into two major segments: on-trade retailing and off-trade retailing. The off-trade channel plays a major role in the sales of dairy alternative products worldwide. Among off-trade channels, supermarkets and hypermarkets are the most popular.
• Supermarkets and hypermarkets are considered ideal options for customers to shop, allowing them to select products from dairy alternatives like milk, yogurt, and ice cream. Thus, this channel is considered the primary sales channel for dairy alternative products. They account for more than 60% of overall sales worldwide.
• The online channel is projected to be the fastest-growing distribution channel for dairy alternatives, and it is anticipated to grow by 5.59% during 2023-2024. The number of e-commerce, grocery, or food delivery platforms is increasing in the market. As part of strategic expansion, leading retailers team up with purely online retailers to launch their own online services. For example, Morrisons, Booths, and Co-op's own-label products are also sold online via Amazon Fresh. Asda, Tesco, Amazon Fresh, Sainsbury's, Waitrose, Iceland, Morrisons, Gorillas, and Weezy offer same-day online delivery.
• With the growing vegan population and lactose intolerant consumers, the demand from the on-trade segment, especially fast food restaurants and cafes, is expected to increase the demand for different dairy alternative products.

Explosive plant-based milk consumption led by Asia Pacific consumers is fueling the market growth

• Global consumption of dairy alternatives grew by 41.7% from 2019 to 2023. Dairy alternatives have become a part of daily diets across countries globally. North America and Asia-Pacific are expected to be the largest regions in terms of dairy alternatives consumption, with market volume shares of 35% and 34.1%, respectively, in 2023.
• The rise in the vegan population, in line with the rising awareness of plant-based nutrition, is driving the demand for dairy alternatives in the Asia-Pacific region. China, Japan, and South Korea exhibit significantly higher consumption of dairy alternatives compared to other Asian countries. In 2023, the three countries are expected to collectively hold a 79.77% share of the total consumption of dairy alternative products in the region.
• In 2021, around 67.8 thousand metric tons of soybeans were used to produce soy milk and soy milk-based products in Japan, resulting in the production of approximately 123 thousand kiloliters of soy milk. In Japan, beverages with the term "soy milk" refer to unprocessed soy milk that does not contain additional sugar, salt, or vegetable oils. The per capita consumption of dairy alternatives is estimated to reach 0.45 kg annually in 2029, up by 15.47% from 0.39 kg in 2023 in Japan.
• In North America, dairy alternatives sales by value are estimated to expand by 28% during 2024-2027, reaching USD 13715 million in 2027. Plant-based milk is significantly consumed across the region, with soy and almond milk being the most popular in key countries such as the United States, Canada, and Mexico. The United States has the highest production volume of almonds of any country worldwide, amounting to around 2,002,742 tons annually. Such factors are increasing the production of almond milk every year.

Global Dairy Alternatives Market Trends

The increasing vegan population, lactose intolerance, and growing awareness about the health and environmental benefits of dairy alternatives are driving the consumption of different types of dairy alternative products worldwide.

• The consumption of different types of dairy alternative products is increasing worldwide due to a significant increase in the vegan population, coupled with a growing lactose-intolerant population. Even vegan exhibitions/trade shows and music festivals are being conducted in different countries to promote a vegan lifestyle. For example, Australia has the third-highest percentage of vegans per capita globally. As of 2022, 2.5 million were vegans and vegetarians in the country.
• Plant-based milk is the largest consumed category among all dairy alternatives worldwide. Soy milk, almond milk, and oat milk were highly popular and collectively registered more than 70% share in the overall plant milk consumption in 2022. This was due to the increasing prevalence of milk allergies driving demand for plant-based milk worldwide. For example, soy milk is a rich source of vitamins, proteins, and potassium and has a lower calorie content than cow milk. Due to its high nutrient content, it is considered an ideal substitute for dairy products.
• There is a huge demand for non-dairy cheese varieties, such as plant-based cheese, especially sliced cheese, with great sales value in several countries. Spanish and German consumers reveal the highest readiness to eat plant-based cheese instead of conventional ones. For instance, German consumers prefer plant-based cream cheese (32%), sliced cheese (32%), and plant-based mozzarella (31%) available in supermarkets. With the growing demand for new plant-based dairy innovations, the consumption of dairy alternatives is anticipated to increase further during the forecast period.

Dairy Alternatives Industry Overview

The Dairy Alternatives Market is fragmented, with the top five companies occupying 22.52%. The major players in this market are Blue Diamond Growers, Danone SA, Hebei Yangyuan Zhihui Beverage Co. Ltd, Oatly Group AB and Saputo Inc. (sorted alphabetically).

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