According to the newest Global Dairy Alternative Market report, the market is expected to reach a value of $42.26 Billion by 2027, from $22.01 Billion in 2021.
This represents a compound annual growth rate of 11.49%.
“Most people worldwide are transitioning from dairy to dairy-free goods as they become more aware that dairy-free diets can help with various issues such as digestive pain, failure to lose weight, acne, and irritable bowel syndrome”, states the report. “Dairy substitutes have been more prevalent in both developed and developing markets worldwide. This is due to an increase in the number of allergic persons to dairy.”
Furthermore, “rising health consciousness and disposable income have boosted the expansion of the dairy substitutes industry.”
Moreover, the introduction of supplementary healthy ingredients by various market participants is one of the main reasons driving the market’s growth, states the report. However, “the primary limitations of this industry are fluctuating raw material prices and high costs.” On the contrary, “the dairy alternatives market is expected to develop due to increased vegan demand for dairy alternatives and the launch of new flavours and varieties of dairy alternatives.”
According to our analysis, the beverage category dominates the global market due to favorable demand dynamics, growing interest among the industry’s major players, and excellent development potential for vegan drinks. Further, soy milk’s widespread availability in the Asia Pacific market, notably in China, has been a clear leader in terms of beverage. Nonetheless, almond milk will outperform all other dairy alternatives in terms of growth. It is fast gaining appeal among consumers who avoid soy-based goods due to allergies or other health concerns.
However, food segments such as Ice Cream, Yogurt, Cheese, and Creamers are also showcasing their popularity among consumers across all age groups.
“Remarkably, the food sector is rapidly evolving in its product offerings and claims, namely, non-dairy, vegan, plant-based, and natural, are experiencing considerable consumer attention. Moreover, vegan food appeal has gone far beyond the vegan consumers, along with the compelling plant-based label claims projecting offerings such as healthy indulgence among consumers.”
The dairy alternatives industry is expanding at the quickest rate in Asia-Pacific, the report found. The growing number of lactose-intolerant people in this region is driving up the demand for dairy alternatives. In addition, the Asian-Pacific health and wellness trend has brought the issue of food intolerances and allergies to the forefront of modern consumers’ thoughts, increasing the demand for dairy substitutes.
Soy-based alternatives are generally accepted in this region, leading to the establishment of companies like Vitasoy International Holding, which offers a diverse range of soy-based products.
Furthermore, plant-based protein consumers in Asia-Pacific have adopted a dairy-free diet to improve their health and well-being. Plant-based diets can help prevent obesity, stroke, and heart disease, reduce cholesterol and arthritis pain, lower blood sugar, increase energy and improve mental clarity.
Key Players
The global dairy alternatives market is moderately consolidated, with Danone, Hain Group Celestial, SunOpta, Blue Diamond Growers Inc, Vitasoy International Holdings Limited, Oatly, Noumi Limited, and Kikkoman all having substantial presences.
These significant firms are also aggressively pursuing acquisitions and mergers to strengthen their positions and make a dramatic change to safeguard their future growth in a fall in dairy product appeal.
Furthermore, the competitive intensity of this industry is projected to increase in the coming years if globally renowned firms discover and offer nutritionally adequate and environmentally sound alternatives that are both affordable and acceptable. At the same time, they are continuously attempting to keep up with market trends in dairy alternatives to develop new goods.
Key Players
- Danone
- Hain Group Celestial
- SunOpta
- Blue Diamond Growers Inc
- Vitasoy International Holdings Limited
- Oatly
- Noumi Limited
- Kikkoman
The full report can be found by clicking here.
