Australia Non-Dairy Milk Market Report and Forecast 2025-2034

According to this report, the Australia non-dairy milk market size reached around USD 351.28 million in 2024. Aided by the rising demand for plant-based beverages and the expansion of product variety, including oat, almond, and coconut milk options, the market is projected to grow at a CAGR of 9.1% between 2025 and 2034, reaching a value of nearly USD 820.50 million by 2034.

The Australia non-dairy milk market growth is being driven by the increasing demand for plant-based alternatives to traditional dairy products. This shift is largely attributed to changing consumer preferences, with more individuals adopting plant-based diets for health, environmental, and ethical reasons. Non-dairy milk, made from various plant sources such as almonds, soy, oats, and rice, has gained popularity as a versatile, dairy-free option that caters to a wide range of dietary needs and preferences. The growing awareness of the environmental impact of dairy farming, as well as concerns about lactose intolerance and dairy allergies, has further contributed to the rise in demand for non-dairy milk in Australia.

One of the primary factors fuelling the Australia non-dairy milk market expansion is the increasing awareness of the health benefits associated with plant-based diets. Non-dairy milks, such as almond, soy, oat, and coconut milk, offer lower levels of saturated fat and cholesterol compared to traditional dairy milk. They are also rich in essential nutrients such as vitamins, minerals, and antioxidants, which are beneficial for heart health, bone health, and overall well-being. With growing concerns about the negative health impacts of consuming too much animal-based dairy, many Australians are opting for non-dairy milk as a healthier alternative. This trend is especially prevalent among health-conscious consumers, including those following vegan, vegetarian, or flexitarian diets.

The increasing prevalence of lactose intolerance is another significant driver aiding the Australia non-dairy milk market development. According to research, a large portion of the Australian population experiences some form of lactose intolerance, which makes consuming dairy products uncomfortable. For these individuals, non-dairy milk offers a viable alternative that provides the same versatility as traditional milk but without the digestive discomfort. Non-dairy milks, such as soy, almond, and oat milk, have become increasingly popular in households and foodservice establishments that cater to individuals with lactose intolerance. As awareness of lactose intolerance grows, more consumers are turning to plant-based milk options to avoid the discomfort associated with dairy consumption.

The rise of veganism and the growing demand for plant-based products have also played a key role in shaping the Australia non-dairy milk market dynamics. As more Australians adopt vegan and plant-based diets, the demand for dairy alternatives, including non-dairy milk, has surged. Veganism is no longer seen as a niche lifestyle but rather a mainstream movement, with more people embracing plant-based eating for reasons related to animal welfare, the environment, and personal health. This cultural shift has led to an increase in the availability of non-dairy milk options in supermarkets, cafes, and restaurants, making it easier for consumers to access a wide variety of plant-based beverages.

In addition to health and ethical considerations, environmental concerns are also boosting the Australia non-dairy milk market revenue. The environmental impact of dairy farming, particularly in terms of greenhouse gas emissions, water consumption, and land use, has led many consumers to seek more sustainable alternatives. Plant-based milk, especially oat and almond milk, is seen as a more environmentally friendly option compared to cow's milk.

The production of non-dairy milk requires fewer resources and has a lower carbon footprint, which appeals to eco-conscious consumers who want to reduce their environmental impact. This growing concern for sustainability has encouraged more Australians to choose non-dairy milk as part of their efforts to live a more environmentally responsible lifestyle.

Technological advancements in the production and innovation of non-dairy milk have shaped the Australia non-dairy milk market dynamics. Manufacturers are constantly improving the taste, texture, and nutritional profile of plant-based milk to make them more appealing to a broader audience. Oat milk, for example, has gained significant traction in recent years due to its creamy texture and mild taste, making it a popular choice in coffee shops and cafes.

Similarly, soy milk and almond milk have become staples in Australian households, thanks to their versatility and availability in various forms, such as sweetened, unsweetened, flavoured, and fortified versions. These innovations have helped non-dairy milk become a mainstream product, readily available and widely accepted across different consumer segments.

The competitive landscape in the Australia non-dairy milk market is diverse, with both local and international brands vying for market share. Established dairy brands, such as Dairy Farmers and Pauls, have expanded their portfolios to include non-dairy milk options, recognising the growing demand for plant-based alternatives. Additionally, numerous startups and niche brands have emerged, focusing exclusively on plant-based products, further contributing to the market’s dynamism. These companies are leveraging consumer demand for innovative and sustainable products, offering a wide range of non-dairy milk options to meet the preferences of different consumers.

Despite the positive growth, the Australia non-dairy milk market faces challenges, including competition from other plant-based beverages and the relatively high cost of non-dairy milk compared to traditional dairy. While non-dairy milk offers various benefits, such as health and environmental advantages, the cost remains a barrier for some consumers, particularly in price-sensitive segments. Additionally, while the market has seen an influx of plant-based milk alternatives, other beverages like plant-based smoothies, juices, and teas are also gaining popularity, adding to the competitive landscape.

Looking ahead, the Australia non-dairy milk market is expected to continue its upward trajectory, driven by the growing demand for plant-based alternatives, increased consumer awareness of health and sustainability issues, and ongoing innovations in product offerings. As more Australians embrace plant-based diets and seek sustainable food options, the market will play an increasingly important role in the country’s food and beverage sector. The continued expansion of plant-based milk alternatives is poised to shape the future of the Australian dairy market, providing consumers with diverse options that align with their values and preferences.

Market Segmentation

The market can be divided based on type, end use, distribution channel, and region.

Market Breakup by Type

• Soy Milk
• Almond Milk
• Coconut Milk
• Cashew Milk
• Hazelnut Milk
• Oat Milk
• Hemp Milk
• Others

Market Breakup by End Use

• Yoghurt
• Ice Creams
• Milk
• Creamers
• Cheese
• Others

Market Breakup by Distribution Channel

• Hypermarkets/Supermarkets
• Convenience Stores
• Online Channels
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Western Australia
• Australian Capital Territory
• Others

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia non-dairy milk market.

Some of the major players explored in the report are as follows:

• Fortune Soy Manufacturer Pty Ltd.
• Q.S.F (Qld) Pty Ltd.
• Chobani Global Holdings, LLC
• Inside Out Nutrients Goods Pty Ltd.
• Califia Farms, LLC
• Australian Health and Nutrition Association Ltd.
• Noumi Trading Pty Ltd
• Others