Dairy Alternatives Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The global dairy alternatives market reached a value of nearly USD 25.90 Billion in 2024. The market is assessed to grow at a CAGR of 13.40% during the forecast period of 2025-2034 to attain a value of around USD 91.08 Billion by 2034. The market is being driven by the growing health consciousness, the increasing trend of sustainability, product and flavour innovations, technological advancements, the rising prevalence of lactose intolerance, and the surging trend of healthy indulgence.

Global Dairy Alternatives Market Growth

With the dairy industry facing challenges like fluctuating prices, climate change, labour shortages, and evolving consumer demands, the demand for dairy alternatives made from coconut, soy, almond, and nuts, among others, is increasing. The high prevalence of lactose intolerance and the surging vegan population are also boosting the dairy alternatives market revenue. Reportedly, lactose intolerance is most prevalent in East Asian communities, with 70%-100% affected by this allergy.

The rising trend of healthy indulgence is surging the use of dairy alternatives in snack foods, ice cream, and frozen yoghurt, among others. Moreover, the growing availability of dairy alternatives in different distribution channels like supermarkets, health stores, and online channels is aiding the dairy alternatives demand growth.

With customers increasingly demanding products with improved nutrition and taste, key players are incorporating solutions such as Bifidobacterium longum CECT7347 heat-treated postbiotic (HT-ES1) that can withstand harsh processing conditions like pasteurisation and high heat into dairy alternatives to improve their nutrition and flavour profiles. In the forecast period, the rising exploration of technologies such as 3D printing to create customised dairy alternatives, especially yoghurt and cheese, is anticipated to bolster the market development.

Key Trends and Recent Developments

Increasing health concerns; growing focus on sustainability; product and flavour innovations; and technological advancements are favouring the dairy alternatives market expansion.

May 2024

MALK Organics unveiled its first line of plant-based creamers featuring a clean-label formulation free from oils, gums, and fillers. The dairy-free offerings are derived from ingredients like gluten-free oats, organic almonds, filtered water, baking soda, soluble tapioca fibre, and organic coconut sugar. The creamers are available in caramel almond, vanilla almond, and lightly sweetened oat varieties.

May 2024

Lactalis Canada announced the launch of its new plant-based brand Enjoy!, its unsweetened, nutritious, plant-based, and high-protein beverages. Enjoy! Complements the company’s wide-ranging portfolio of 20 consumer brands while expanding its plant-based offering to Canadian consumers.

April 2024

Singapore-based Yeo Hiap Seng introduced Yeo’s Immuno Soy Milk, which is fortified with zinc and Vitamin C to support the immune system of the body. The new beverage, high in protein and calcium, is marketed as a healthy and lactose-free alternative to conventional breakfast drinks.

February 2024

Califia Farms® announced the launch of Califia Farms Complete, a creamy plant milk with nine essential nutrients and eight grams of protein. The plant milk is made from a blend of chickpea, pea, and fava bean protein and contains half the sugar of dairy milk. It is available in a 40-ounce, refrigerated format and is free from the nine major allergens.

Rising health concerns

The growing health consciousness and increasing awareness regarding the health risks associated with dairy such as lactose intolerance are driving the demand for dairy alternatives. Alternative milk beverages are low in saturated fats and cholesterol and are rich in essential nutrients such as minerals, vitamins, and antioxidants.

Increasing focus on sustainability

Sustainability has emerged as a key driver in influencing consumers’ choices, and dairy products are no exception. Traditional dairy production is associated with significant environmental impacts, including excessive land use and excessive greenhouse gas emissions. Hence, eco-conscious consumers, particularly millennials and Gen Z, are shifting to milk alternatives as they have a lower carbon and water footprint and require fewer resources.

Flavour and product innovations

The development of dairy alternatives with innovative flavour profiles such as coconut, vanilla, chocolate, and matcha is driving the market. In addition, key players are utilising new sources like hemp, macadamia, pea, and cashew for creating dairy alternatives with improved flavour and nutrition profiles, further driving the market.

Technological advancements

Advancements in technologies such as cell-based methodologies, computational biology, and precision fermentation aimed at enhancing the texture, flavour, and functionality of plant-based products are revolutionising the dairy alternatives market landscape. Improvements in extraction and processing technologies are also leading to the production of more homogenous and smoother dairy alternatives that mimic the consistency of their dairy-based counterparts, favouring the market expansion.

Global Dairy Alternatives Market Trends

With the growing trend of health and wellness, there is a rising demand for dairy alternatives fortified with omega-3 fatty acids, calcium, protein, and Vitamin D, among others. Dairy-free yoghurt with added flavouring, fruits, and live cultures is also witnessing a surge in popularity among health-conscious customers.

Advancements in flavour and texture formulations are expected to drive the development of dairy-free ice creams and frozen desserts made from ingredients like oats, soy, coconut, and almond, among others. In August 2024, innovative start-up 1.5 Degree introduced a wide range of plant-based frozen desserts and beverages, including flavoured milkshakes, cold coffee, gelato, and oat milk, amid the rising demand for dairy alternatives.

Global Dairy Alternatives Industry Segmentation

The report titled “Global Dairy Alternatives Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Source

• Soy
• Almond
• Coconut
• Rice
• Oats
• Hemp
• Others

Market Breakup by Formulation

• Plain
• Flavoured

Market Breakup by Application

• Milk
• Ice Creams
• Yogurt
• Cheese
• Creamers
• Others

Market Breakup by Distribution Channel

• Supermarkets/Hypermarkets
• Convenience Stores
• Health Stores
• Online Retailers
• Others

Market Breakup by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Global Dairy Alternatives Market Share

As per the dairy alternatives market analysis, Europe is witnessing a high demand for dairy alternatives, driven by the increasing health concerns regarding the consumption of saturated fat. The rising awareness regarding animal cruelty and animal rights issues and the growing perception that plant-based foods are healthier than animal-based food products are further driving the regional market growth.

Meanwhile, in North American countries such as the United States, consumers prefer alternatives over traditional options due to health reasons like allergies or lactose intolerance. While older shoppers in the United States prefer alternatives to dairy due to health concerns like calories and cholesterol, younger consumers are looking to avoid milk products due to environmental and animal rights issues.

Conversely, the dairy alternatives market growth in the Asia-Pacific is being fuelled by the high prevalence of lactose intolerance among the East Asian population, product innovations such as matcha-flavoured dairy alternatives, and the increasing demand for dairy-free snacks such as protein bars.

Competitive Landscape

Key dairy alternatives market players are fortifying dairy alternatives with added nutrients like omega-3 fatty acids, vitamin D, B12, and calcium to appeal to health-conscious consumers. Dairy alternatives companies are also focusing on sourcing ingredients sustainably and utilise recyclable and plant-based packaging amid the rising trend of sustainability.

Kerry Group Plc

Kerry Group Plc, headquartered in Ireland and established in 1972, is a prominent company that offers food, beverage, pharmaceutical, and biotechnology solutions. It also provides various plant-based dairy beverages while addressing flavour, texture, and stability challenges. The company is a pioneer in tackling global health challenges by reducing excessive salt and sugar consumption, eliminating harmful compounds in foods, and enhancing fibre intake.

The Döhler Group

The Döhler Group, headquartered in Darmstadt, Germany, is a leading producer, marketer, and provider of technology-driven natural ingredients, integrated solutions, and ingredient systems for the global beverage, food, and nutrition markets. Established in 1838, the company’s comprehensive product portfolio of natural ingredients ranges from natural colours, natural flavours, natural health ingredients, and plant-based ingredients.

Ripple Foods Inc.

Ripple Foods Inc., based in California, United States, and founded in 2014, is a leading plant-based dairy alternative company. The company harnesses the power of yellow peas to make sustainable and plant-based milk and other dairy alternatives. Its CO2 output is 80% lower than dairy and lower than almond milk, coconut and cashew milk.

Eden Foods, Inc

Eden Foods, Inc, founded in 1968, is a prominent natural food company and a leading provider of traditional, organic, and purifying food. Headquartered in Michigan, United States, the company tracks the environmental impact of its food upstream from suppliers, through company operations, and downstream, monitoring its social and environmental impacts.

Other key players in the dairy alternatives market include Califia Farms LLC, Nestle S.A, Kite Hill, Elmhurst Milked Direct LLC, Pacific Foods of Oregon, LLC, SunOpta, Inc., Daiya Foods Inc., The Archer-Daniels-Midland Company, Danone S.A. (SILK), The Hain Celestial Group, Inc., and Earth's Own Food Company Inc., among others.