North America Dairy Alternative Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

North America Dairy Alternative Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The North American dairy alternatives market is expected to witness a CAGR of 15.4% during the forecast period (2022 - 2027).

The coronavirus pandemic has resulted in a sudden increase in plant-based substitutes in United States. For Instance, Kroger, with nearly 2,800 supermarket stores across United States, said that tofu sales jumped nearly 9% between mid-March and the end of May 2020.

Countries like United States and Canada are observing growth in the demand for dairy alternatives mainly due to increased disposable income, lifestyle changes, and eating patterns. The rise in popularity of organic plant-based milk due to a growing number of health-conscious consumers and paleo diet trends encourage dairy alternative producers to expand in the region. Furthermore, growing environmental concerns further drive the demand for dairy alternative products in the market.

One of the major restraining factors in the growth of the dairy alternatives market is allergies associated with plant-based sources such as soy and almonds.

Key Market TrendsDairy-Free/Lactose-Free Products On The Rise

The major factor driving consumers to choose dairy-free food is a shift in awareness towards dairy-free and its functionality. The major reasons customers are looking for dairy substitutes are lactose intolerance, sustainability, and veganism. The most preferred dairy-free products are milk, yogurts, frozen desserts, sour cream, and others. Millennials, in particular, are a potential audience for probiotic plant-based yogurts as they are interested in probiotic foods and beverages, plant-based options, and snacking. Manufacturers are focused on developing dairy-free yogurts that are healthy and plant-based with clean labels, taste, and interesting flavor profiles. In 2021, Mexican food tech company, Heartbest Foods, announced that its plant-based milks would be available nationwide across Mexico. The company produces a range of vegan milk, cheese, and creams, including unique drinks such as pea and amaranth.

United States To Dominate the North American Market

US consumers opt for dairy alternatives due to lactose intolerance, dairy sensitivity, or allergy. Soy and almond milk are the preferred milk alternatives in United States. The rise in the popularity of organic milk is due to a growing number of health-conscious consumers. The paleo diet trend also encourages dairy alternative producers to expand. Higher demand for soy desserts has been observed, resulting from increased indulgence and demand for on-the-go snacks. There has been a significant increase in the sales of chocolate-based soy desserts as they are 100% plant-based, lactose-free, and free from artificial colors and preservatives.

Competitive Landscape

North America's dairy alternative products market is highly fragmented, with various small and medium-sized companies and a few big players, resulting in stiff competition. The market has the presence of few family-owned private companies operating in distinct categories, and their presence is limited to fewer countries across the region. Dean Foods, Daiya Foods Inc., Earth Own Food Company Inc., Blue Diamond Growers Inc., Sunopta Inc., Archer Daniels Midland Company, Nutriops S.L., and Sanitarium Health & Wellbeing Company are some of the major companies engaged in the manufacturing and distribution of dairy alternatives across the region.

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