Dairy Alternatives Market Report 2024 (Global Edition)

Global Dairy Alternatives Market Report 2024 Market Size Split by Type (Plain (Sweetened, Unsweetened), Flavored (Sweetened, Unsweetened)), by Application (Cheese, Creamers, Yogurt, Ice Creams, Milk, ...

Dairy Alternatives Market Report Description

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Competitive Landscape: Dairy Alternative market

Key players in the market are actively engaged in several strategic initiatives to maintain their market positions and capitalize on the growing consumer demand for plant-based products. These initiatives include product innovation, where companies are continuously developing new dairy alternative formulations to expand their product portfolios and cater to changing consumer preferences. Additionally, many major players are focusing on sustainability, sourcing high-quality plant ingredients, and adopting eco-friendly packaging practices to align with consumer concerns about environmental impact. Marketing efforts are geared towards highlighting the health benefits of dairy products, such as being lactose-free and low in saturated fats, to attract health-conscious consumers. Collaboration with foodservice chains and expanding distribution channels also plays a crucial role in their growth strategies, ensuring wider accessibility and market penetration.

Some of the key players in the global dairy alternatives market includes The Whitewave Foods Company, SunOpta, Hain Celestial, Pascual Group, Elden’s Fresh Foods & Media Solutions Corp., Healthy Brands Collective, Earth’s Own Food Company Inc., Blue Diamond Growers, Freedom Foods Group, Oatly AB, Stremick’s Heritage Foods, and Vitasoy Holdings Limited.

Recent Market Developments:

• February 2023 – Kagome USA, a leading global sauce producing company, launched sweet and savory vegan butter blends in the U.S. market.

(Source: https://kagomeusa.com/kagome-introduces-line-of-plant-based-butter-alternatives/)

• In October 2022, Plenish announced the launch of a new line of a plant-based products. The three-strong range of unsweetened enrich milk, almond, oat and soy is fortified with nutrients including iodine, omega-3, and vitamin D.

(Source: https://www.naturalproductsonline.co.uk/news/plenish-enriches-plant-based-offer-with-enriched-mlks/)

Top Companies Market Share in Dairy Alternatives Industry: (In no particular order of Rank)

• The Hain Celestial Group Inc.
• SunOpta Inc.
• Danone
• Oatly
• Vitasoy International Holdings Limited
• DAIYA FOODS INC.
• Melt Organic
• Living Harvest Foods Inc.
• Ripple Foods
• Earth’s Own Food Company Inc.
• ADM
• The Whitewave Foods Company
• Eden Foods Inc.
• Nutriops
• S.L.
• Freedom Foods Group Ltd.
• Blue Diamond Growers
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Which Region will dominate the Market in 2024, and Which Region is Expanding at the Fastest CAGR?

The Asia Pacific region has dominated the Dairy Alternative Market. In terms of value, Asia Pacific held XX% share of the global Dairy Alternative market. The Asia-Pacific region is witnessing an increasing demand for fortified nutritional food and beverage products due to busy lifestyles and rising disposable incomes. Within this trend, the adoption of dairy alternatives is expected to grow at a faster rate due to consumer preferences. The region's higher economic power is likely to boost the consumption of affordable and abundant soymilk. Food manufacturers are introducing various forms of soymilk to cater to the growing consumer interest in healthy beverages and pasteurized soymilk as dairy substitutes, offering unique flavour options. This focuses on the study of major countries in the region, including Japan, Australia, China, and India. Key market players in this area include Sanitarium Health & Wellbeing Company, Freedom Foods Group Ltd., Vitasoy International Holdings Limited, and Purebates. The dairy alternatives industry in the Asia-Pacific region is expanding, driven by changing consumer lifestyles. The dairy alternatives market in this region is currently undergoing significant changes due to urbanization, dietary diversification, and increased foreign direct investment in the food sector. Additionally, higher income levels, the rapid growth of the middle-class population, heightened consumer awareness of health and fitness, and the demand for nutritional and health-conscious products present promising growth opportunities in the region's food sector.

The European Dairy Alternative Market is anticipated to grow at the fastest CAGR from 2023 to 2032. Europe is expected to expand at the highest CAGR Europe is expected to grow significantly over the forecast period. The market for dairy substitutes is anticipated to rise due to rising consumer demand for plant-based foods with high nutritional values. Milk allergies and health issues are linked to the toxic ingredients added to dairy products, which is expected to increase demand for dairy alternatives like soymilk, almond milk, and rice milk. In place of dairy beverages, dairy alternative-based beverages are frequently consumed. The creation of new products, such as soya juice blends and fresh soy beverages, is a focus for manufacturers. The growing demand for healthy meals and beverages in the region is predicted to lead to an expansion of the dairy alternatives industry in Europe.

The current report Scope analyzes Dairy Alternatives Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Netherlands, Switzerland, Belgium)
• Asia-Pacific (China, Japan, Korea, India, Australia, Philippines, Singapore, Malaysia, Thailand, Indonesia, Rest of APAC)
• South America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East and Africa (Saudi Arabia, Turkey, Nigeria, UAE, Egypt, South Africa, GCC Countries, Rest of MEA)

The above graph is for illustrative purposes only.

Dairy Alternatives Market Analysis

How is the Types Segment Performing in the Dairy Alternative Market?

Based on Type, the Plain segment dominates the global Dairy Alternative market in the year 2023. Based on type, the market is divided into plain (sweetened and unsweetened) and flavoured (sweetened and unsweetened).

The plain formulation segment holds the largest share in the alternatives market, reflecting consumer's preference for unflavoured, versatile options that can be used in various culinary applications. Products, such as plain almond milk, soy milk, and oat milk are favored for their neutrality, making them suitable as a milk substitute in coffee, baking, or cooking. This segment caters to health-conscious individuals who seek a dairy-free alternative without added sugars or flavorings, allowing them to customize the taste to their liking.

On the other hand, the flavored formulation segment has been gaining traction as consumers look for more indulgent and convenient options. Offering a range of tastes like vanilla, chocolate, and strawberry, these flavored alternatives appeal to the consumers desiring a sweeter, tastier experience, combining the benefits of alternative dairy with diverse, appealing flavors that cater to a broader palate.

• Plain (Sweetened , Unsweetened)
• Flavored (Sweetened, Unsweetened)

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Dairy Alternatives Industry. Request a Free Sample PDF!

Which application segment holds the largest revenue share of the Dairy Alternative Market?

Based on Application,  the Milk segment dominated the global Dairy Alternative market. Based on Application, the global Dairy Alternative market is segmented into cheese, creamers, yogurt, ice creams, milk, and others.

Milk substitutes, such as almond milk, soy milk, oat milk, and coconut milk, represent the largest segment in the market. These products serve as versatile dairy milk replacements, used in a wide range of applications, including beverages, baking, and cooking. They are favored by consumers seeking lactose-free, plant-based, and often fortified alternatives with vitamins and minerals. The segment's growth is fueled by health-conscious consumers and those with dietary restrictions, contributing significantly to the overall market size on a global level.

On the contrary, cheese alternatives are experiencing higher popularity, especially among vegans and those with dairy allergies. These dairy-free options replicate traditional cheese in various forms, like slices, shreds, and gourmet spreads. This diversification caters to cheese enthusiasts seeking plant-based options without compromising on taste or variety, mirroring traditional cheese experiences.

Besides this, dairy-free creamers have become increasingly favored, particularly in enhancing coffee and tea. Crafted from bases like almond, soy, or oat, these creamers add a creamy texture and a hint of flavor. Their rise in popularity underscores a growing preference for plant-based additives in everyday beverages, combining health consciousness with indulgent tastes.

• Cheese
• Creamers
• Yogurt
• Ice Creams
• Milk
• Others

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Dairy Alternatives Source Segment Analysis

Based on the source,  the Soy-based segment dominated the global Dairy Alternative market. Based on the source, the global Dairy Alternative market is segmented into almond, soy, oats, hemp, coconut, rice, and others.

Soy-based alternatives hold the dominant position in the market, driven by their long-established presence and robust consumer acceptance. They are preferred by many due to their nutritional profile, similar texture to dairy milk, and versatility in various applications. Soy milk, yogurt, and tofu-based products continue to lead the way in this segment, appealing to both vegans and individuals with lactose intolerance. Additionally, they are a good source of isoflavones, compounds that have been linked to various health benefits, including a reduced risk of heart disease and osteoporosis. The low levels of saturated fat in soy products also contribute to their popularity among health-conscious consumers. Soy milk, which is available in a variety of flavors and types, offers consumers a wide range of options to choose from. It is typically derived from soybeans or soy protein isolate, with thickeners and vegetable oils often added to enhance taste and consistency. Soy milk finds its best application in savory dishes, coffee, and cereal, where it serves as a suitable replacement for cow's milk. For reference, a one-cup (240 ml) serving of unsweetened soy milk contains approximately 80-90 calories, 4-4.5 grams of fat, 7-9 grams of protein, and 4 grams of carbohydrates. In terms of nutrients, soy milk closely mirrors cow's milk with a similar protein content but only half the calories,

On the other hand, almond-based alternatives have gained popularity for their nutty flavor and nutritional benefits. They are often chosen for their lower calorie content and high vitamin E levels, making them a preferred choice among health-conscious consumers. Almond-based alternatives have gained popularity for their nutty flavor and nutritional benefits. They are often chosen for their lower calorie content and high vitamin E levels, making them a preferred choice among health-conscious consumers.

Moreover, oat-based alternatives are rapidly growing in popularity, appreciated for their creamy texture and mild taste. These alternatives are also rich in dietary fibers, particularly beta-glucans, known for their cholesterol-lowering effects. Oat-based products are a good source of vitamins B and iron, contributing to energy metabolism and overall health. The environmentally friendly aspect, combined with health benefits, positions oat-based alternatives as a top choice for eco-conscious and health-aware individuals.

• Almond
• Soy
• Oats
• Hemp
• Coconut
• Rice
• Others

Dairy Alternatives Nutrient Segment Analysis

Based on Nutrients, the Protein-based segment dominates the global Dairy Alternative market in the year 2023. Based on nutrients, the market is divided into protein, starch, vitamins, and others.

Protein-based alternatives stand out as the largest segment in the market, primarily driven by consumer's focus on health and fitness. These products are fortified with additional plant-based proteins, such as pea protein, soy protein, or almond protein, to provide a protein-rich alternative to traditional dairy products. They cater to individuals seeking a dairy-free source of protein for muscle recovery and overall nutrition. Protein-based alternatives are widely used in post-workout shakes, smoothies, and as a dairy milk substitute in various applications.

On the other hand, starch-based alternatives, such as those derived from tapioca or cornstarch, cater to a unique niche in the market. They offer a creamy and thick texture, ideal for dairy-free custards, puddings, and creamy soups. These alternatives are appreciated for their ability to mimic the mouthfeel of traditional dairy-based thickened products, making them a favored choice for culinary enthusiasts.

Furthermore, vitamin-enriched alternatives are designed to meet specific dietary needs by providing essential nutrients like calcium, vitamin D, and vitamin B12. Targeting vegans and those requiring fortified options, these products are crucial for bone health and overall well-being. They bridge the nutritional gap in diets lacking in these key vitamins and minerals.

• Protein
• Starch
• Vitamin
• Others

Dairy Alternatives Distribution Channel Segment Analysis

Based on the Distribution channel, the Supermarkets and hypermarkets segment dominates the global Dairy Alternative market in the year 2023. Based on the Distribution channel, the market is divided into supermarkets and hypermarkets, convenience stores, online stores, and others. 

Supermarkets and hypermarkets constitute the largest segment for the distribution of the alternatives. These retail giants offer a wide array of dairy alternative products, providing consumers with convenience and choice under one roof. This segment's dominance is attributed to the accessibility, diverse product selection, and the ability for consumers to physically inspect and compare a wide range of products. It's the go-to channel for consumers seeking familiar alternatives and exploring new options, making it a crucial battleground for market players.

On the other hand, convenience stores are increasingly pivotal in distributing dairy products, offering convenient, on-the-go options. They cater to time-pressed consumers with single-serve dairy alternative products, perfectly aligned with modern, fast-paced lifestyles. This channel's growth reflects changing preferences towards quick, accessible, and health-conscious choices in their daily food consumption among the consumers.

Furthermore, online stores and e-commerce platforms are experiencing marked growth in the dairy market. They offer unparalleled convenience, allowing customers to explore and purchase a wide range of dairy products from home. This shift represents a broader trend towards digital shopping, meeting the demands of tech-savvy consumers who value both variety and shopping comfort.

• Supermarkets and Hypermarkets
• Convenience Stores
• Online Stores
• Others

Author's Detail

Vinayak Bali

Senior Research Analyst at Cognitive Market Research

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