Global Dairy Alternatives Market Outlook to 2028

Global Dairy Alternatives Market Overview

The Global Dairy Alternatives Market was valued at USD 29 billion in 2023. This market is primarily driven by increasing health consciousness among consumers, growing cases of lactose intolerance and milk allergies, and a shift towards vegan and plant-based diets. Additionally, environmental concerns regarding dairy production's impact and ethical considerations are further fueling the demand for dairy alternatives across the globe.

The major players in the global dairy alternatives market include Danone S.A., Blue Diamond Growers, Sun Opta Inc., The Hain Celestial Group, Inc., and Oatly Group AB. These companies are at the forefront of developing innovative plant-based products, focusing on diversifying their offerings to cater to a broad spectrum of consumer preferences and expanding their global footprint through strategic acquisitions and partnerships.

In 2023, Danone S.A. expanded its dairy alternatives portfolio by introducing new plant-based yogurt lines in Europe and North America, aimed at providing consumers with healthy, lactose-free options. This expansion is part of Danone's strategic focus on enhancing its Essential Dairy and Plant-based (EDP) business

North America dominated the global dairy alternatives market in 2023, driven by high consumer awareness, substantial investments in product innovation, and the presence of key market players. The growing demand for plant-based products and rising health concerns about dairy consumption continue to solidify North America's leading position in this market.

Global Dairy Alternatives Market Segmentation

The global dairy alternatives market is segmented by product type, source, distribution channel, application, and region.

By Region: The global dairy alternatives market is segmented into North America, Europe, Asia-Pacific (APAC), Middle East & Africa (MEA), and Latin America. In 2023, North America held the largest market share, supported by increasing demand for plant-based products and a high degree of consumer awareness about the health benefits of dairy alternatives.

By Product Type: The market is segmented into milk alternatives, cheese alternatives, yogurt alternatives, ice cream alternatives, and others. In 2023, milk alternatives held the highest market share, driven by the increasing popularity of products like almond milk, soy milk, and oat milk among health-conscious consumers and those with lactose intolerance.

By Source: The market is segmented into almond, soy, coconut, oat, rice, and others. In 2023, the almond segment held the largest market share due to the high nutritional value of almonds and the growing popularity of almond milk as a healthy dairy alternative among consumers.

Global Dairy Alternatives Market Competitive Landscape

Company

Establishment Year

Headquarters

Danone S.A.

1919

Paris, France

Blue Diamond Growers

1910

Sacramento, California, USA

Sun Opta Inc.

1973

Eden Prairie, Minnesota, USA

The Hain Celestial Group, Inc.

1993

Lake Success, New York, USA

Oatly Group AB

1994

Malm, Sweden

Blue Diamond Growers: In 2023, Blue Diamond Growers expanded its product line with the introduction of new almond-based yogurts and creamers in the U.S. market. This expansion is part of Blue Diamonds strategy to diversify its product offerings and cater to the increasing demand for plant-based alternatives beyond milk.

Oatly Group AB: In 2023, Oatly opened its first manufacturing plant in Asia, located in Singapore, to meet the growing demand for oat-based products in the region. This new facility aims to increase production capacity and reduce supply chain costs, allowing Oatly to better serve its expanding customer base in Asia-Pacific.

Global Dairy Alternatives Market Analysis

Global Dairy Alternatives Market Growth Drivers

Increasing Health Awareness and Dietary Shifts: Rising awareness about the health benefits of plant-based diets and the adverse effects of dairy consumption are significant growth drivers. In 2023, a global survey revealed that consumers have adopted plant-based diets to improve their health and reduce the risk of chronic diseases such as heart disease and diabetes.

Environmental and Ethical Considerations: Growing concerns about the environmental impact of dairy farming, including greenhouse gas emissions and land use, are driving consumers towards more sustainable alternatives. The Food and Agriculture Organization (FAO) reported in 2023 that dairy alternatives have a significantly lower carbon footprint compared to traditional dairy products, encouraging environmentally conscious consumers to make the switch.

Innovative Product Development: Continuous innovation and the introduction of new, versatile dairy alternative products are propelling market growth. In 2023, over 500 new dairy alternative products were launched globally, including innovative options such as pea milk, flaxseed milk, and quinoa milk, catering to a wide range of consumer preferences and dietary needs.

Global Dairy Alternatives Market Challenges

High Production Costs: The production of dairy alternatives often involves higher costs due to raw material prices and the need for specialized manufacturing processes. In 2023, raw material prices for almonds and oats increased by 15%, impacting the overall production costs and pricing of dairy alternative products, which can limit market accessibility for price-sensitive consumers.

Consumer Taste Preferences: Despite the growing demand, consumer acceptance of dairy alternatives can be limited due to taste and texture differences. In 2023, a consumer survey indicated that 30% of respondents were hesitant to switch to dairy alternatives because they preferred the taste and texture of traditional dairy products, highlighting the importance of product development and innovation in overcoming this challenge.

Global Dairy Alternatives Market Government Initiatives

EU Plant-Based Promotion Initiative: In 2023, the European Commission launched the EU Plant-Based Promotion Initiative, aiming to reduce dairy consumption and promote plant-based alternatives across member states. In 2024, the European Commission allocated 185.9 million to fund promotion activities for sustainable and high-quality EU agri-food products, including plant-based foods, in the EU and worldwide

India's National Nutrition Mission: In 2023, the Indian government included dairy alternatives in its National Nutrition Mission, promoting the consumption of plant-based products to improve nutrition and reduce the prevalence of lactose intolerance and dairy allergies. This initiative provides subsidies for local dairy alternative producers and supports educational programs to raise awareness about the benefits of plant-based diets.

Global Dairy Alternatives Market Future Market Outlook

The Global Dairy Alternatives Market is expected to grow substantially over the coming years, driven by increasing consumer demand for health-conscious and environmentally sustainable products, technological advancements in production processes, and expanding product portfolios by key market players.

Global Dairy Alternatives Market Future Market Trends

Advancements in Plant-Based Protein Technologies: By 2028, the market is expected to see significant advancements in plant-based protein extraction and formulation technologies. Innovations like precision fermentation and cell-based milk alternatives will enhance the nutritional content and taste of dairy alternatives, making them more appealing to a broader consumer base.

Expansion into Emerging Markets: The dairy alternatives market is projected to expand significantly into emerging markets such as India, Brazil, and South Africa by 2028. With rising disposable incomes, urbanization, and increasing awareness about the benefits of dairy alternatives, these regions present substantial growth opportunities for market players.
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