Dairy Alternative Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Source (Soy, Almond, Coconut, Rice, Oats, Others), By Application (Milk, Cheese, Yogurt, Ice Creams, Others), By Distribution Channel (Online, Offline), By Formulation (Plain, Flavoured), And By Geography - Forecasts From 2020 To 2025

Published:  Apr 2021 Report Code: KSI061613427 Pages: 120

The global dairy alternative market is expected to grow at a CAGR of 14.17% over the forecast period to reach a total market size of US$39.991 billion by 2025, increasing from US$18.057 billion in 2019. 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 raw material price volatility is anticipated to restrain the growth of the market in the coming years.

Growing Environmental Concern

The estimated global variation pertaining to 1 liter of milk production with regards to greenhouse gas (GHG) emissions is between 2 to 4 kgs of carbon dioxide equivalents (CO2eq). With regards to terrestrial acidification, 1 liter of milk production amounts to more than 30 grams of sulfur dioxide equivalents (g SO2eq) and leads to eutrophication to the tune of 20 grams 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 other milk. Apart from actively communicating the environmental credentials, players in the market are increasingly partaking 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 Canadian to sensitize all the stakeholders about the benefits of plant-based foods and align regulatory regimes so as to make plant-based alternative accessible to all.

Growing prevalence of vegan diet

The growing preference for the vegan diet is a substantial contributing factor toward the meteoric adoption of non-dairy milk alternatives. One such alternative is that of soymilk. Presently consumers are proactively moving away from bovine milk towards soymilk mainly due to milk protein allergy, 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 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, oat is expected to grow at an exponential rate during the forecast period on account of the growing 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 grams 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 in 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 application. 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 is holding a significant share in the market

By geography, the dairy alternative market is segmented as North America, South America, Europe, the Middle East and 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 population 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.

Competitive Insights

Prominent key market players in the global dairy alternative market include the White Wave Foods Company, Hain Celestial, Califia Farms, Pacific Foods, Danone, and Sunopta among others. At present, these companies are holding a significant share in the market and are adopting various growth strategies such as new product launches, M&A, and partnerships to expand their global footprint. For instance, Califia Farms known for its range of plant-based kinds of milk that are inclusive of but are not limited to coconut and almond milk raised a $50 million round of capital in the year 2018 led by Ambrosia Investments. Another Californian coconut milk-based brand called REBBL raised US$20 million in funding. Also, 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.

Major players in the dairy alternative market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last year. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the dairy alternative market.

Dairy Alternative Market Scope:

Report Metric Details
 Market size value in 2019  US$18.057 billion
 Market size value in 2025  US$39.991 billion
 Growth Rate  CAGR of 14.17% from 2019 to 2025
 Base year  2019
 Forecast period  2020–2025
 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.,   Sunopta, The Whitewave Foods Company, Hain Celestial, Blue Diamond Growers 
 Customization scope  Free report customization with purchase

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
    • Asia Pacific
      • Japan
      • China
      • India
      • Australia
      • Others

Frequently Asked Questions (FAQs)

Q1. What will be the global dairy alternative market size by 2025?
A1. The global dairy alternative market is expected to reach a total market size of US$39.991 billion in 2025. 


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 2019. 


Q4. Which region holds the largest market share in the global dairy alternative market?
A4. 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. 


Q5. How is the dairy alternative market segmented?
A5. The dairy alternative market is segmented based on source, application, formulation, distribution channel, and geography. 

1. Introduction
1.1. Market Definition
1.2. 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 (US$ Million)
9.2.1. North America Dairy alternative Market, By Source, 2019 to 2025 (US$ Million) 
9.2.2. North America Dairy alternative Market, By Application, 2019 to 2025 (US$ Million) 
9.2.3. North America Dairy alternative Market, By Formulation, 2019 to 2025 (US$ Million) 
9.2.4. North America Dairy alternative Market, By Distribution Channel, 2019 To 2025 (US$ Million) 
9.2.5. By Country
9.2.5.1. United States (US$ Million)
9.2.5.2. Canada (US$ Million) 
9.2.5.3. Mexico (US$ Million)
9.3. South America (US$ Million)
9.3.1. South America Dairy alternative Market, By Source, 2019 to 2025 (US$ Million) 
9.3.2. South America Dairy alternative Market, By Application, 2019 to 2025 (US$ Million) 
9.3.3. South America Dairy alternative Market, By Formulation, 2019 to 2025 (US$ Million) 
9.3.4. South America Dairy alternative Market, By Distribution Channel, 2019 To 2025 (US$ Million) 
9.3.5. By Country
9.3.5.1. Brazil (US$ Million)
9.3.5.2. Argentina (US$ Million)
9.3.5.3. Others
9.4. Europe (US$ Million)
9.4.1. Europe Dairy alternative Market, By Source, 2019 To 2025 (US$ Million)
9.4.2. Europe Dairy alternative Market, By Application, 2019 to 2025 (US$ Million) 
9.4.3. Europe Dairy alternative Market, By Formulation, 2019 to 2025 (US$ Million) 
9.4.4. Europe Dairy alternative Market, By Distribution Channel, 2019 To 2025 (US$ Million) 
9.4.5. By Country
9.4.5.1. UK (US$ Million)
9.4.5.2. Germany (US$ Million)
9.4.5.3. France (US$ Million)
9.4.5.4. Spain (US$ Million) 
9.4.5.5. Others
9.5. Middle East and Africa (US$ Million)
9.5.1. Middle East And Africa Dairy alternative Market, By Source, 2019 To 2025 (US$ Million)
9.5.2. Middle East and Africa Dairy alternative Market, By Application, 2019 to 2025 (US$ Million) 
9.5.3. Middle East and Africa Dairy alternative Market, By Formulation, 2019 to 2025 (US$ Million) 
9.5.4. Middle East And Africa Dairy alternative Market, By Distribution Channel, 2019 To 2025 (US$ Million)
9.6. Asia Pacific (US$ Million)
9.6.1. Asia Pacific Dairy alternative Market, By Source, 2019 To 2025 (US$ Million)
9.6.2. Asia Pacific Dairy alternative Market, By Application, 2019 to 2025 (US$ Million) 
9.6.3. Asia Pacific Dairy alternative Market, By Formulation, 2019 to 2025 (US$ Million) 
9.6.4. Asia Pacific Dairy alternative Market, By Distribution Channel, 2019 To 2025 (US$ Million)
9.6.5. By Country
9.6.5.1. Japan (US$ Million)
9.6.5.2. China (US$ Million) 
9.6.5.3. India (US$ Million)
9.6.5.4. Australia (US$ Million)
9.6.5.5. 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. Sunopta 
11.8. The Whitewave Foods Company 
11.9. Hain Celestial 
11.10. Blue Diamond Growers 

Pacific Foods

Califia Farms

Danone

SunOpta

PureHarvest

Eden Foods Inc.

Sunopta 

The Whitewave Foods Company 

Hain Celestial 

Blue Diamond Growers 

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