The global dairy alternatives market is expected to witness a robust growth rate of more than 10% during the forecast period. Dairy alternatives are food & beverage products that are similar to certain types of dairy-based products in terms of texture and flavor, as well as the nutritional benefits they offer. They are lactose-free and are used to replace dairy-based products. Increasing consumption of dairy alternatives by people with lactose intolerance and milk allergies along with the shifting consumer preference toward plant-based food products due to environmental concerns are some of the key drivers for the global dairy alternatives market. Lactose intolerance is very common in adults. According to the National Institute of Health (NIH), about 30 million American adults have some degree of lactose intolerance by age 20. The high number of people with lactose intolerance significantly generates demand for dairy alternative products such as soy milk, rice milk, coconut milk, and others, which in turn, drives the growth of the global dairy alternatives market. However, fluctuating prices of raw materials and the high cost of dairy alternatives are some of the key restraints that tend to hamper the growth of the global dairy alternatives market.
Almond milk is preferred over soy milk due to health-related concerns
On the basis of source, the market is segmented into Soy, Almond, Oats, Rice, Coconut, and Others (Hemp, Cashew, etc.). Soy and almond milk are preferred choices by the majority of consumers. The growth rate of almond milk is comparatively more than soy milk as consumers prefer almond milk over soy milk due to allergies and other health-related concerns associated with soy milk. In addition, these products are also well branded and marketed in an appealing manner targeting the younger audience. Moreover, the range of origin plants has expanded in tandem with rising consumer interest.
Asia Pacific is the dominating region in the dairy alternative market
Geographically, the global dairy alternatives market is segmented into North America, Latin America, Western Europe, Eastern Europe, Asia Pacific, and Middle East & Africa. Asia Pacific is dominating the global dairy alternatives market and is expected to maintain this trend over the forecast period. The significant presence of health-conscious consumers and wide product availability across the economies of the region is helping the market to grow. Increasing consumer awareness about health and fitness, further leads to an increase in the consumption of dairy food & beverage alternatives like soy & almond milk, thus augmenting the regional market growth. In developed regions like North America and Europe, the market is expected to grow significantly on account of the rising demand for healthy food products coupled with the substantial increase in the vegan population. Moreover, Latin America and Middle East & Africa are expected to observe considerable growth on the back of changing lifestyles of customers and rising incomes.
Market Structure and Competitive Landscape
The global dairy alternatives market is fragmented in nature with various players operating in the market. some of the prominent players that contribute significantly to the global dairy alternatives market include ADM, Daiya Foods Inc., Freedom Foods Group Ltd., OATLY AB, CP Kelco U.S Inc., Vitasoy International Holdings Limited, WhiteWave Foods Company, Blue Diamond Growers, SunOpta Inc., Earth’s Own Food Inc., Living Harvest Foods Inc., Cargill Inc., The Hain Celestial Group Inc., Eden Foods Inc., Valsoia S.p.A, and others. These players adopt various strategies in order to reinforce their market share and gain a competitive edge over other competitors in the market. Mergers and Acquisition, Partnerships and collaborations are some of the strategies followed by industry players. Some of the key developments in the global dairy alternatives market include,
- In October 2021, Hershey India has expanded its portfolio of plant-based drink brand Sofit in India with the launch of Sofit Almond drink.
- In May 2021, Saputo acquired Bute Island Foods Ltd. based in the UK. With this acquisition, the company aimed to accelerate its growth in the dairy alternatives market.
Key Market Segmentation
RationalStat has segmented the global dairy alternatives market on the basis of source, product type, formulation, sales channel, and region.
- By Source
- Others (Hemp, Cashew, etc.)
- By Product Type
- Ice Cream
- Others (Creamers etc.)
- By Formulation
- By Sales Channel
- Supermarkets and Hypermarkets
- Convenience Stores
- Specialty Stores
- By Region
- North America
- Latin America
- Rest of Latin America
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- South Korea
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of the Middle East & Africa
- North America
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecast, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs, and company documents
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for dairy products manufacturers, government organizations, food & beverage companies, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption pattern, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The global dairy alternatives market is expected to grow at a CAGR of over 10% during the forecast period 2022-2028.
Asia Pacific is dominating the global dairy alternatives market in 2021.
The global dairy alternatives market was estimated at US$ 23 billion in 2021.
Increasing consumption of dairy alternatives by lactose intolerant people.
Major companies operating in the global dairy alternatives market include ADM, Daiya Foods Inc., Nutriops, S.L., Freedom Foods Group Ltd., OATLY AB, CP Kelco U.S Inc, Vitasoy International Holdings Limited etc.