The dairy alternative market is estimated to be valued at USD 23,082 million in 2024. The demand for dairy alternatives is projected to rise at a CAGR of 7.3% from 2024 to 2034. The market is expected to reach a valuation of USD 46,832.6 million by 2034.
Key Market Highlights
| Attributes | Details |
|---|---|
| Dairy Alternative Market Size, 2024 | USD 23,082 million |
| Anticipated Market Value, 2034 | USD 46,832.6 million |
| Value-based CAGR (2024 to 2034) | 7.3% |
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Emergence of Vegan Lifestyle and Adoption of Nutrient-rich Diet
The market's growth is fueled by evolving consumer preferences and lifestyle choices. There is a rising adoption of plant-based diets, leading to an increase in demand for dairy alternatives.
Several people are highly inclined toward consuming food products rich in proteins, minerals, and vitamins, which is driving the market further. For example, almond milk's vitamin E and manganese content are high, which helps improve skin quality and protect against cancer.
Rising Awareness about Lactose Intolerance Facilitates a Shift Toward Dairy Alternatives
The rise in the number of people allergic to dairy products and the growing awareness of lactose intolerance and problems related to the condition bolstered growth in the dairy alternative market. Patients are shifting toward lactose-free food and beverages to alleviate their condition. The preference for dairy counterparts is also rising due to animal welfare and sustainability concerns.
Limited Availability of Raw Materials
The production of dairy alternatives largely depends on the cultivation of crops such as soy, almond, and rice. Shortage of these raw materials due to seasonal and climatic variations acts as a restraint in the market. Besides, rising industrialization and urbanization are leading to deforestation, resulting in less space for agricultural production. This is also expected to pose a threat to the growth of the market, limiting the availability of raw materials.
Allergies Pertaining to Soy and Nuts
The prevalence of food allergies and sensitivities related to soy and nuts is one of the major aspects that restrict market expansion. Nuts and soy are majorly used for the production of dairy alternatives. They are potential allergens causing severe reactions like fever and rashes in people who are susceptible to soy and nuts, and thus, restrict the market’s expansion.
Supply Chain Disruptions
As the market for dairy alternatives is highly dependent on the agriculture sector, cultivation and transportation of the produce are crucial for the market’s growth. Disruptions in the supply chain due to improper management at different stages of transit can inhibit the progress of the market.
The dairy alternative market was valued at USD 21,200 million in 2023. The demand for dairy alternatives grew at a CAGR of 7.0% from 2019 to 2023. The pandemic resulted in the slower growth of the market due to supply chain disruptions and lockdown restrictions. As the restrictions were eased, the market demand increased. This is attributed to the growing health awareness and the rising adoption of plant-based food products.
| Historical Market Value, 2023 | USD 21,200 million |
|---|---|
| Historical CAGR (2019 to 2023) | 7.0% |
People increasingly prefer nutrient-rich diets, incorporating dairy alternatives such as soy milk, almond milk, etc., in their daily routines. The rising trend of veganism and the growing awareness of lactose intolerance is also expected to stimulate sales of dairy alternatives over the forecast period. All these factors are anticipated to boost the market.
| Expected Market Value, 2034 | USD 46,832.6 million |
|---|---|
| CAGR (2024 to 2034) | 7.3% |
The market is expected to register a CAGR of 7.3% over the forecast period and reach a value of USD 46,832.6 million by 2034.
| Countries | CAGR (2024 to 2034) |
|---|---|
| United States | 4.3% |
| China | 3.5% |
| Germany | 8.8% |
| India | 6.8% |
| United Kingdom | 4.9% |
The United States dairy alternative market is predicted to rise at a CAGR of 4.3% over the forecast period. The factors driving product sales are as follows:
The United Kingdom dairy alternative market is projected to grow at a CAGR of 4.9% through 2034.
The market for dairy substitutes in Germany is expected to register a CAGR of 8.8% over the forecast period. The factors responsible for this growth are as follows:
The market in India is expected to rise at a 6.8% CAGR through 2034.
The Chinese dairy alternative market is projected to expand at a CAGR of 3.5% over the forecast period.
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| Top Source | Soy |
|---|---|
| Market Share in 2024 | 48.2% |
Based on the source, the market is segmented into soy, almond, rice, coconut, oats, and others. The soy segment is estimated to hold a significant share of 48.2% of the market. The demand for soy milk is higher due to the following reasons:
| Top Distribution Channel | B2C |
|---|---|
| Market Share in 2024 | 90.8% |
Based on the distribution channel, the B2C segment is estimated to lead the market with a share of 90.8%, fueling sales of dairy alternatives.
The dairy alternative market is known for its key players competing to gain a larger share of profit. Manufacturers are focusing more on innovation and substitutes of milk-based products, which is promoting the market to expand.
New players can easily enter the market as the processes involved in dairy alternative production do not require complex technologies. Key players can capitalize on this aspect to increase their market position. This is expected to enhance market competition during the forecast period.
Notable Developments
| Attribute | Details |
|---|---|
| Market Size (2024) | USD 23,082 million |
| Market Value (2034) | USD 46,832.6 million |
| Market Analysis | USD million for Value |
| Key Region Covered | North America; Latin America; Europe; Asia Pacific; Middle East & Africa (MEA); Others |
| Key Segments | By Source, By Product Type, By Nature, By Distribution Channel, By Region |
| Key Companies Profiled | 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; CP Kelco; Organic Valley Family of Farms; Others |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The dairy alternative market is estimated to be worth USD 23,082 million in 2024.
The market is expected to reach a valuation of USD 46,832.6 million by 2034.
The market is projected to rise at a CAGR of 7.3% through 2034.
The soy segment is estimated to hold a leading share of 48.2% of the market by source type.
The demand for dairy alternatives is rapidly rising in Germany at a CAGR of 8.8% through 2034.
| Market Size (2024E) | USD 13,874.30 million |
|---|---|
| Market Valuation (2034F) | USD 23,983.50 million |
| Value-based CAGR (2024 to 2034) | 5.6% |
| Market Size Value in 2022 | USD 691.7 Million |
|---|---|
| Market Forecast Value in 2032 | USD 966.4 Million |
| CAGR (2022 to 2032) | 3.4% |
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