Dairy Alternative Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Source (Soy, Almond, Oat, Coconut, Rice, Others), By Application (Milk, Ice Cream, Yogurt, Cheese, Others), By Formulation (Flavored, Plain), By Distribution Channel (Online, Offline (Supermarkets, Convenience Stores, Others)), And By Geography - Forecasts From 2022 To 2027

Published:  Aug 2022 Report Code: KSI061613427 Pages: 120

The global dairy alternative market is expected to grow at a CAGR of 4.07% over the forecast period to reach a total market size of US$246.850 billion by 2027, increasing from US$186.660 billion in 2020. Growing consumer preference for a vegan diet coupled with the rising cases of lactose intolerance is expected to drive the growth of the market during the forecast period. However, the availability of substitutes coupled with the volatility of raw materials is anticipated to restrain the growth of the market in the coming years.

Growing Environmental Concern

The estimated global variation pertaining to 1 litre of milk production with regards to greenhouse gas (GHG) emissions is between 2 and 4 kgs of carbon dioxide equivalents (CO2eq). With regards to terrestrial acidification, 1 litre of milk production amounts to more than 30 grammes of sulphur dioxide equivalents (g SO2eq) and leads to eutrophication to the tune of 20 grammes of phosphate (g SO2eq). Besides the health concerns, consumers today are aware of the environmental impact of dairy products and are proactively adopting plant-based alternatives to milk like soy, oat, and almond, among others milk. Aside from actively communicating environmental credentials, market participants are increasingly participating in the plant-based foods sector. For example, in 2018, certain players in the Canadian plant-based food industry, namely Daiya Foods, Danone, Earth’s Own Foods, GreenSpace Brands, Hain Celestial, Lightlife Foods, Pinnacle Foods, Ripple Foods, and The Field Roast Company, have formed Plant-Based Foods of Canada to sensitize all the stakeholders about the benefits of plant-based foods and align regulatory regimes so as to make plant-based alternatives accessible to all.

The growing prevalence of vegan diet

The growing popularity of vegan diets is a significant factor in the rapid adoption of non-dairy milk alternatives. One such alternative is soy milk.  One such alternative is soymilk. Presently consumers are proactively moving away from bovine milk towards soymilk, mainly due to milk protein allergies, lactose intolerance, cultural influences, etc. One out of two European and American consumers prefer to consume plant-based milk independently or alongside cow’s milk, whereas in LATAM and in the Asia Pacific regions it's two-thirds of the total consumers who share the aforesaid preference. This has enabled beverage processors and marketers to capitalize on the growing consumer preference for soy milk and increase their portfolio of lactose-free milk brands. Further, countries, where consumers are mostly lactose-tolerant, are turning towards soy milk, as well.

By Source

By source, oats are expected to grow at an exponential rate during the forecast period on account of the increasing prevalence of lactose intolerance. Hence, consuming oat milk provides an alternative for individuals suffering from lactose intolerance, which is considered lactose-free without compromising the nutritional benefits. Lactose-intolerance present in infants is due to congenital lactase deficiency, also known as congenital Anastasia, a disorder, caused by mutations in the LCT gene. In addition, the soy form of the source is holding a significant share as soy-based milk is the only plant-based alternative that contains an equal amount of protein as that of cow’s milk, i.e., 3 grammes per ml (approx.). Moreover, it is also known to have a preventive effect against osteoporosis and cancer because of a component known as isoflavones.

By Application

By application, the market is segmented on the basis of milk, ice cream, yogurt, and cheese, among others. Milk is expected to hold a dominant share of the market and is also expected to grow at a significant rate during the forecast period. Factors such as growing health concerns related to lactose intolerance and the hectic lifestyle of the working population are driving the market for milk applications. In addition, companies today are diversifying their beverage offerings with products containing soy, almond, oat, rice, and coconut with new investments and product launches in various parts of the world. The market is expected to witness substantial growth in the coming years.

North America holds a significant share of the market

By geography, the dairy alternative market is segmented as North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. The dairy alternative market in North America is estimated to hold a significant share in 2019 and is anticipated to grow rapidly on account of an increase in the popularity of plant-based milk. Simultaneously, alternative kinds of milk's ability to offer functional health benefits and growing investment by the manufacturers to curate products specially designed for lactose intolerant populations is also supplementing its growth in the United States and Europe, while the Asia Pacific is also expected to provide good growth opportunities during the forecast period.

Key Developments in the Market

  • In February 2022, Jude, a leading sustainable ice cream brand, launched a new flavour of plant-based ice cream for Mother's day. The new strawberry-flavoured ice cream was made available exclusively via the brand's gift shop in its unique gift packaging, comprising six ice cream tubes, a recipe book, and the brand's tote bag. 
  • In July 2021, Yoplait's yogurt brand, Petitis Filous, forayed into the lucrative plant-based market with the launch of diary-free almond-based yogurt. Certified with a vegan trademark, the product is available in raspberry flavour and was made available throughout Tesco stores in the UK.  
  • In May 2021, Switzerland-based food giant Nestle announced the launch of its new line of plant-based milk beverages, Wunda. The new offering is developed from France and Belgium's yellow peas and is rich in protein, fibre, calcium, and vitamins, and low in fat. Wunda comprises three flavours, original, chocolate, and unsweetened, to attract a wider range of audiences. The new products were launched across Europe, directly competing with leading plant-based milk brands like Oatly and Alpro. 
  • In February 2019, Quaker Oats, a Pepsico-owned Company, launched Oat Beverage. Danone’s Silk brand also introduced an oat-based beverage, Oat Yeah. Such products are gaining popularity with rising health awareness.

COVID-19 Insights

COVID-19 had a significant impact on the global dairy alternatives market. The growing health awareness amid the pandemic has resulted in an increased demand for dairy-free alternatives among consumers. However, at the same time, the mandated lockdown and social distancing measures deployed by the government had a significant impact on the production levels and supply chain of the market.

Dairy Alternative Market Scope:

Report Metric Details
 Market Size Value in 2020  US$186.660 billion
 Market Size Value in 2027  US$246.850 billion
 Growth Rate  CAGR of 4.07% from 2020 to 2027
 Base Year  2020
 Forecast Period  2022–2027
 Forecast Unit (Value)  USD Billion
 Segments Covered  Source, Application, Formulation, Distribution Channel, And Geography
 Regions Covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies Covered Pacific Foods, Califia Farms, Danone, SunOpta, PureHarvest, Eden Foods Inc., Hain Celestial, Blue Diamond Growers
 Customization Scope  Free report customization with purchase

 

Key Market Segmentation:

  • By Source
    • Soy
    • Almond
    • Oat
    • Coconut
    • Rice
    • Others
  • By Application
    • Milk
    • Ice cream
    • Yogurt
    • Cheese
    • Others
  • By Formulation
    • Flavored
    • Plain
  • By Distribution Channel
    • Online
    • Offline
      • Supermarkets
      • Convenience Stores
      • Others
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • UK
      • Germany
      • France
      • Spain
      • Others
    • Middle East and Africa
      • UAE
      • Saudi Arabia
      • Others
    • Asia Pacific
      • Japan
      • China
      • India
      • South Korea
      • Thailand
      • Taiwan
      • Indonesia
      • Others

Frequently Asked Questions (FAQs)

Q1. What will be the dairy alternative market size by 2027?
A1. The global dairy alternative market is expected to reach a total market size of US$39.991 billion in 2027. 


Q2. What are the growth prospects for the dairy alternative market?
A2. Dairy Alternative Market is expected to grow at a CAGR of 14.17% during the forecast period. 


Q3. What is the size of the global dairy alternative market?
A3. The global dairy alternative market was valued at US$18.057 billion in 2020. 


Q4. Which region holds the largest market share in the dairy alternative market?
A4. North America is estimated to hold a significant share of the dairy alternative market on account of an increase in the popularity of plant-based milk. 


Q5. What factors are anticipated to drive the dairy alternative market growth?
A5. Growing consumer preference for a vegan diet coupled with the rising cases of lactose intolerance is expected to drive the dairy alternative market growth.

1. Introduction
1.1. Market Overview
1.2. COVID-19 Impact
1.3. Market Definition
1.4. Market Segmentation

2. Research Methodology
2.1. Research Data
2.2. Assumptions

3. Executive Summary
3.1. Research Highlights

4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis

5. Dairy Alternative Market Analysis, By Source
5.1. Introduction
5.2. Soy
5.3. Almond
5.4. Oat
5.5. Coconut
5.6. Rice
5.7. Others

6. Dairy Alternative Market Analysis, By Application
6.1. Introduction
6.2. Milk
6.3. Ice cream
6.4. Yogurt
6.5. Cheese
6.6. Others

7. Dairy Alternative Market Analysis, By Formulation
7.1. Introduction
7.2. Flavored
7.3. Plain

8. Dairy Alternative Market Analysis, By Distribution Channel
8.1. Introduction
8.2. Online
8.3. Offline
8.3.1. Supermarkets
8.3.2. Convenience Stores
8.3.3. Others

9. Dairy Alternative Market Analysis, By Geography
9.1. Introduction
9.2. North America  
9.2.1. United States  
9.2.2. Canada   
9.2.3. Mexico  
9.3. South America  
9.3.1. Brazil  
9.3.2. Argentina  
9.3.3. Others
9.4. Europe  
9.4.1. UK  
9.4.2. Germany  
9.4.3. France  
9.4.4. Spain   
9.4.5. Others
9.5. Middle East and Africa  
9.5.1. UAE
9.5.2. Saudi Arabia
9.5.3. Others 
9.6. Asia Pacific  
9.6.1. Japan  
9.6.2. China   
9.6.3. India  
9.6.4. South Korea
9.6.5. Thailand
9.6.6. Taiwan
9.6.7. Indonesia 
9.6.8. Others

10. Competitive Environment and Analysis
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrativeness
10.3. Mergers, Acquisitions, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix

11. Company Profiles 
11.1. Pacific Foods
11.2. Califia Farms
11.3. Danone
11.4. SunOpta
11.5. PureHarvest
11.6. Eden Foods Inc.
11.7. Hain Celestial 
11.8. Blue Diamond Growers

Pacific Foods

Califia Farms

Danone

SunOpta

PureHarvest

Eden Foods Inc.

Hain Celestial

Blue Diamond Growers

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