Global Dairy Alternatives Market by Distribution Channel (Supermarket & Hypermarkets, Online Retail), by Source (Almond, Soy), by Product (Ice Cream, Milk) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global dairy alternatives market was worth USD 20.50 Billion in 2020. It is projected to grow at a compound annual rate of 12.5% between 2021 and 2028. Due to changes in diet and consumer habits, the market is growing rapidly and seeing a strong demand. Over the forecast period, the market will be driven by increasing numbers of lactose intolerance and milk allergies. Many food and beverage products use dairy alternatives to appeal the increasing number of people who are choosing plant-based or other dairy alternatives. Soy milk will be a popular choice for elderly and female consumers in the United States because it is rich in isoflavones which are believed to lower the risk of breast cancer and heart disease. The phytoestrogen in soy works similarly to estrogen, and is also found in the female hormone estrogen. Soy milk is a popular alternative therapy for women looking to boost estrogen levels. This market is expected to grow further.

Youth who are health-conscious and adhere to vegan and ketogenic diets are increasingly turning to almond milk. Because of its high lipids and fiber, almond milk can be used as a substitute for dairy. It is expected to see high adoption by consumers and end-user industries. Almond milk is good for the skin, kidneys, and heart. As a preventative measure against related diseases, almond milk is becoming more popular.

Consumers are looking for alternatives to sugary milk products as they don't have the additional calories. Dairy alternatives are being sought by consumers to reduce calories, as they contain high amounts of calories. People who are trying to lose weight have started substituting soy and almond milk for cow or buffalo milk. As more people are becoming fitness-savvy, this will help to increase the market.

The product is in high demand due to concerns about hormones, pesticides and antibiotics. Consumption of any residues of these substances is considered to be dangerous, particularly for pregnant women. Human hormones found in dairy products can cause and initiate breast, prostate and endometrial cancer. Dairy alternatives are a safer option than dairy products because they are natural from source and are extracted naturally. Market growth is expected to continue to rise due to the superior benefits of dairy alternatives.

Source Insights

Soy accounted for over 35.0% of global revenue in 2020, and led the market. Soy milk is high in nutrients and contains a higher protein level than other dairy options. This segment is expected to grow over the forecast period. Over the centuries, soy milk has been a staple in Asia Pacific. It is also a component of many recipes. This will ensure that the demand for the product is stable throughout the forecast period. It can be used to lower obesity and blood cholesterol. It is also known to reduce the risk of many postmenopausal conditions, as well as improving cardiovascular health. This makes it a popular supplement.

In 2020, almond milk accounted for the second largest share. Almond milk is high in vitamin B. This helps increase the body's basal metabolic rate, allowing it to burn more calories and fats. This nutritional benefit will likely drive the segment's growth.

Almond milk contains essential minerals like iron, magnesium and phosphorous. These minerals help to lower blood pressure and improve blood oxygenation. They also protect the body from diseases. Almond milk is also rich in vitamin E, manganese and other nutrients that can be used to improve skin quality and protect against cancer.

The market is driven by a growing consumer preference for plant-based products and easy availability of raw materials. The market will be driven by rising demand for rice milk for various food and beverage products, including ice cream, snacks, and beverages over the forecast period.

Rice milk can be made from white or brown rice. It is often unsweetened and contains more carbohydrates. However, iron, vitamin D and vitamin B12 are added to it. Even though the price is higher, the organic rice milk is steadily gaining ground over the traditional product. Due to moderately high production overheads and the willingness of consumers to pay more for organic products, as they see them as free of preservatives, the high price of organic rice milk is due. This will also be a major driver for the source demand.

Product Insights

The market's largest segment, the milk-based dairy alternative product segment, accounted for more than 67.0% of total revenue in 2020. People prefer milk-based alternatives to other dairy products in Europe due to the increasing number of people over 65. The market growth will be slowed by growing concerns about soymilk, particularly for breast cancer survivors. The demand for this product is expected to rise in Europe over the next eight year due to the increasing demand for low-calorie foods and the growing popularity of plant-based nutrition products.

There are many innovative options for milk products that use dairy alternatives as their base ingredient. For higher market capitalization, beverage manufacturers are constantly introducing new products. There are many options for flavored beverages that contain dairy alternatives due to the increasing demand from consumers for diverse beverage options. Flavored beverages are also appealing to those who are lactose intolerant and want to try different milk-based dairy alternatives.

Over the forecast period, the rising demand for dairy alternatives-based cheese products such as almond- and soy-based cream cheeses and regular cheese is expected to drive the market for these products. The market is driven by consumers who are lactose-intolerant or have allergies to milk products. They are switching to cheeses made with almond and soy.

The market penetration of dairy alternatives-based cheese products will increase over the forecast period due to the presence of companies such as Galaxy Nutritional Foods and Tofutti that offer the popular dairy-free soy cream cheddar cheeses. Daiya Foods Inc. also makes a range of cheeses that are dairy-, nut-, gluten-, and soy free, making them an excellent choice for people with allergies.

Distribution Channel Insights

Hypermarkets and supermarkets dominated the market, accounting for over 40.0% of global revenue in 2020. Hypermarkets and supermarkets are large retail outlets that offer multiple types of retail products under one roof. In order to make it easy for customers to find them, supermarkets are often located close to residential areas. Due to limited land availability, many hypermarket and supermarket chains have moved their stores out of the city.

The penetration of hypermarkets and supermarkets in developed countries like North America and Europe is much higher than it is in developing regions. In 2020, hypermarkets and supermarkets were able to grow because of the availability of many dairy options and the ease of purchasing.

Due to the low volume of suppliers or manufacturers they procure, convenience stores often offer lower discounts than hypermarkets and online shops. Convenience stores are primarily focused on everyday products, so they don't have a large selection of dairy alternatives.

Due to limited availability of alternative brands of dairy products in convenience stores, most consumers prefer other distribution channels. This will limit the growth of this market over the forecast period. Convenience stores are more likely to sell fresh milk because consumers prefer it for daily use.

Regional Insights

Asia Pacific was the dominant market, accounting for over 44.0% of global revenue in 2020. The Asia Pacific region is expected to see an increase in demand due to the growing population and increasing disposable incomes in emerging nations like India, China, and Japan. The demand for non-dairy products such as soy, almond, rice, and other dairy alternatives is expected to rise due to increasing cases of lactose intolerance.

North America is a major market for dairy alternatives. A variety of dairy products such as yogurt and ice cream are widely consumed in this country. Over two-thirds (63%) of all milk products sold in North American schools are made from flavor milk. The dairy alternatives market is expected to grow because of the rising demand for almond and sweetened flavored milk. The industry will be driven by milk-based dairy options, which are used in various food products and desserts.

Although dairy alternatives-based Ice Cream is not as popular in North America than milk-based Ice Cream, it is expected that this product category will see a much greater growth over the forecast period. Accordingly, the demand for dairy alternative ice creams is expected to rise significantly during the forecast period.

Over the forecast period, the market will be driven by the growing demand for plant-based products that have high nutritional value. Demand for dairy alternatives such as soymilk and almond milk will rise due to increasing milk allergies and health issues related to harmful additives in dairy products.

Due to rising demand in Europe for healthy foods and beverages, the European market will experience growth. Dairy-alternative beverages are frequently used as an alternative to milk beverages. Manufacturers are now focusing on product innovation, including soy juice mix and fresh soy drinks.

Market Share Insights & Key Companies

Over the next few years, the key success factor of the industry players will be new product development in the food & beverage industry to create milk-based alternatives. The brand Sofit by Hershey Trust Company, for instance, is tailored to Indian customers and comes in Kesar Pista flavour. Companies that develop products for further market penetration often have similar variations.

Many dairy alternative manufacturers are vertically integrated using established processes at the end-user stage of the value chain. Many dairy alternative manufacturers are producing dairy alternatives. They also produce dairy alternatives-containing beverages, as well as food products that use almond milk or soymilk. It is now easier for new entrants into the dairy alternative manufacturing industry because the process involved in making them does not require complex technology. This has resulted in a highly competitive market with moderate to high competition among those who want to profit from the increasing opportunities for dairy alternatives over the forecast period. The following are some of the major players in the global market for dairy alternatives:

• The Hain Celestial Group, Inc.

• SunOpta Inc.

• Danone

• Oatly

• Vitasoy International Holdings Limited

• DAIYA FOODS INC.

• Melt Organic

• Living Harvest Foods Inc.

• Ripple Foods

• Earth's Own Food Company Inc.

• ADM

• Whitewave Foods Company

• Eden Foods, Inc.

• Nutriops, S.L.

• Freedom Foods Group Ltd.

• Blue Diamond Growers

• CP Kelco

• Organic Valley Family of Farms

Up Market Research published a new report titled “Dairy Alternatives Market research report which is segmented by Distribution Channel (Supermarket & Hypermarkets, Online Retail), by Source (Almond, Soy), by Product (Ice Cream, Milk), By Players/Companies Ripple Foods, Eden Foods Inc, Earth’s Own Food Company Inc, Nutriops SL, Freedom Foods Group Ltd, Vitasoy International Holdings Limited, CP Kelco, SunOpta Inc, Danone, ADM, DAIYA FOODS INC, The Whitewave Foods Company, Organic Valley Family of Farms, Melt Organic, The Hain Celestial Group Inc, Living Harvest Foods Inc, Oatly, Blue Diamond Growers”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Dairy Alternatives Market Report Segments:

The market is segmented by Distribution Channel (Supermarket & Hypermarkets, Online Retail), by Source (Almond, Soy), by Product (Ice Cream, Milk).

Dairy Alternatives Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Dairy Alternatives Market

Overview of the regional outlook of the Dairy Alternatives Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Dairy Alternatives Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Dairy Alternatives Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Supermarket & Hypermarkets

                2. Online Retail

                1. Almond

                2. Soy

                1. Ice Cream

                2. Milk

9. Market scenario by region, sub-region, and country.
10. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
11. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
12. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Dairy Alternatives Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
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Reasons to Purchase the Dairy Alternatives Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.