Dairy Alternative Market Size, Share, Opportunities, 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 2025 To 2030

Dairy Alternative Market Size:

The Dairy Alternative Market is expected to grow from USD 25.631 billion in 2025 to USD 37.934 billion in 2030, at a CAGR of 8.16%.

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.

Dairy Alternative Market Growth Drivers:

• 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, 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.

Dairy Alternative Market Segmentation Analysis:

• 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.

Dairy Alternative Market Geographical Outlook:

• 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 Market Segmentation:

• By Source
  • Soy
  • Almond
  • Oat
  • Coconut
  • Pea
  • Rice
  • Others
• By Application
  • Milk
  • Ice cream
  • Yogurt
  • Cheese
  • Creamers
  • Butter and Spreads
  • Others
• By Formulation
  • Flavored
  • Plain
• By Distribution Channel
  • Online
  • Offline
    • Supermarkets
    • Convenience Stores
    • Others
• By Functionality
  • High-Protein
  • Low-fat
  • Sugar-free
  • Organic
  • GMO-free
• 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

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1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. TECHNOLOGICAL OUTLOOK

5. DAIRY ALTERNATIVE MARKET BY SOURCE

5.1. Introduction

5.2. Soy

5.3. Almond

5.4. Oat

5.5. Coconut

5.6. Pea

5.7. Rice

5.8. Others

6. DAIRY ALTERNATIVE MARKET BY APPLICATION

6.1. Introduction

6.2. Milk

6.3. Ice Cream

6.4. Yogurt

6.5. Cheese

6.6. Creamers

6.7. Butter and Spreads

6.8. Others

7. DAIRY ALTERNATIVE MARKET BY FORMULATION

7.1. Introduction

7.2. Flavored

7.3. Plain

8. DAIRY ALTERNATIVE MARKET BY DISTRIBUTION CHANNEL

8.1. Introduction

8.2. Online

8.3. Offline

8.3.1. Supermarkets & Hypermarkets

8.3.2. Convenience Stores

8.3.3. Others

9. DAIRY ALTERNATIVE MARKET BY FUNCTIONALITY

9.1. Introduction

9.2. High-Protein

9.3. Low-fat

9.4. Sugar-free

9.5. Organic

9.6. GMO-free

10. DAIRY ALTERNATIVE MARKET BY GEOGRAPHY

10.1. Introduction

10.2. North America

10.2.1. USA

10.2.2. Canada

10.2.3. Mexico

10.3. South America

10.3.1. Brazil

10.3.2. Argentina

10.3.3. Others

10.4. Europe

10.4.1. Germany

10.4.2. France

10.4.3. United Kingdom

10.4.4. Spain

10.4.5. Others

10.5. Middle East and Africa

10.5.1. Saudi Arabia

10.5.2. UAE

10.5.3. Others

10.6. Asia Pacific

10.6.1. China

10.6.2. India

10.6.3. Japan

10.6.4. South Korea

10.6.5. Indonesia

10.6.6. Thailand

10.6.7. Others

11. COMPETITIVE ENVIRONMENT AND ANALYSIS

11.1. Major Players and Strategy Analysis

11.2. Market Share Analysis

11.3. Mergers, Acquisitions, Agreements, and Collaborations

11.4. Competitive Dashboard

12. COMPANY PROFILES

12.1. Pacific Foods

12.2. Califia Farms LLC

12.3. Danone S.A.

12.4. SunOpta Inc.

12.5. PureHarvest

12.6. Eden Foods Inc.

12.7. The Hain Celestial Group, Inc.

12.8. Blue Diamond Growers

12.9. Oatly Group AB

12.10. Nestle SA

12.11. Valsoia SpA

12.12. Lactasoy Co, Ltd.

13. APPENDIX

13.1. Currency

13.2. Assumptions

13.3. Base and Forecast Years Timeline

13.4. Key Benefits for the Stakeholders

13.5. Research Methodology

13.6. Abbreviations

Pacific Foods

Califia Farms LLC

Danone S.A.

SunOpta Inc.

PureHarvest

Eden Foods Inc.

The Hain Celestial Group, Inc.

Blue Diamond Growers

Oatly Group AB

Nestle SA

Valsoia SpA

Lactasoy Co, Ltd.