Dairy Alternatives Market Report 2026

The dairy alternatives market size has grown strongly in recent years. It will grow from $16.54 billion in 2025 to $17.87 billion in 2026 at a compound annual growth rate (CAGR) of 8%. The growth in the historic period can be attributed to increasing lactose intolerance awareness, growth of vegan and flexitarian diets, rising availability of plant-based ingredients, expansion of health-focused food retailing, early innovation in dairy-free formulations.

The dairy alternatives market size is expected to see strong growth in the next few years. It will grow to $24.46 billion in 2030 at a compound annual growth rate (CAGR) of 8.2%. The growth in the forecast period can be attributed to increasing demand for functional plant-based nutrition, expansion of global plant-based food adoption, rising investments in alternative dairy startups, growing focus on low-allergen products, advancements in processing technologies for plant proteins. Major trends in the forecast period include expansion of plant-based dairy product portfolios, rising demand for clean-label and fortified alternatives, advancements in taste and texture replication, growth of oat and almond-based innovations, enhanced focus on sustainable packaging.

The growing health and wellness consciousness among consumers is expected to drive the growth of the dairy alternatives market in the coming years. Health and wellness consciousness refers to the extent to which individuals are aware of their health and how their daily choices impact overall well-being. Dairy alternatives support this trend by offering a range of options that cater to various dietary needs and preferences. The rising demand for dairy alternatives reflects increasing awareness of the health benefits of plant-based diets and the desire for more sustainable food choices. For instance, in June 2024, the International Food Information Council (IFIC), a U.S.-based non-profit organization, reported that 54% of Americans followed a specific diet or eating pattern over the past year. Interest in increasing protein intake rose from 59% in 2022 to 67% in 2023, reaching 71% in 2024. Therefore, growing health and wellness consciousness is propelling the dairy alternatives market.

Major players in the dairy alternative market are introducing innovative products such as NOT M’LK to cater to consumers with dietary restrictions. NOT M'LK is a plant-based milk alternative derived from oats. For example, in October 2023, Velike, an organic oat drink producer based in Germany, unveiled NOT M'LK - a vegan milk that is dairy-free, gluten-free, nut-free, and suitable for individuals who are lactose intolerant or adhere to a plant-based diet. The oats used in NOT M'LK are sourced exclusively from farms in the Black Forest and other regions of Baden-Württemberg, supporting the local economy and contributing to a lower carbon footprint.

In August 2024, Califia Farms, a U.S.-based company known for its plant-based beverages, including dairy alternatives such as milks, creamers, and coffees, acquired Uproot Inc. for an undisclosed amount. Through this acquisition, Califia Farms aims to strengthen its foothold in the food service sector by improving access to sustainable plant-based milk options via innovative self-serve dispensers. Uproot Inc. specializes in producing sustainable dairy alternatives, with a primary focus on plant-based products.

Major companies operating in the dairy alternatives market are Danone S.A., Blue Diamond Growers, The Hain Celestial Group Inc., Oatly Group AB, Vitasoy International Holdings, SunOpta Inc., Unilever PLC, Freedom Foods Group Limited, Nestlé S.A., Daiya Foods Inc., Life Health Foods Private Limited, Rakyan Beverages Private Limited, Sahmyook Foods, Bonsoy, Hebei Yangyuan Zhihui Beverage Co., Yinglu, Dali Foods, Lulu, Follow Your Heart, Sanitarium Health and Wellbeing Company, Axiom Foods Inc., Conagra Brands, Earth’s Own Food Company Inc., Agrana, Efko Group, Albalact, Organic Valley, Alpro, Arla, Soyfresh, Koita, Soy Afric Limited, Eden Foods Inc.

Asia-Pacific was the largest region in the dairy alternatives market in 2025. Western Europe was the second-largest region in the global dairy alternatives market. The regions covered in the dairy alternatives market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the dairy alternatives market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The dairy alternatives market consists of sales of soy milk, rice milk, oat milk, coconut milk, and flaxseed milk, cheese substitutes comprise soft cheese and hard cheese, butter alternatives such as nut butter, coconut butter, vegetable oil blends, cultured vegan butter, and other dairy alternatives. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.