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The dairy alternatives market size is forecast to increase by USD 23 billion, at a CAGR of 12% between 2023 and 2028. The dairy alternatives market is experiencing significant growth due to several key drivers. The expansion of the organized retail sector is one such factor, as more consumers are shifting towards buying packaged dairy alternatives from supermarkets and hypermarkets. Additionally, the growing influence of online retailing is driving market growth, as consumers increasingly prefer the convenience of purchasing dairy alternatives online. However, the distribution challenges in the packaged food and beverages sector pose a significant hurdle for market growth. Ensuring the timely and efficient delivery of these products to retail outlets and consumers is crucial for market success. Overall, the dairy alternatives market is poised for strong growth, driven by these key market trends and challenges.
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The market research and growth report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The supermarkets and hypermarkets segment is estimated to witness significant growth during the forecast period. Dairy alternatives have gained significant popularity among health-conscious consumers, vegans, and individuals with lactose intolerance or food allergies. These plant-based milk substitutes, including soy milk, almond milk, oat milk, and others, offer nutritional value comparable to dairy products without the presence of lactose or animal derivatives. Supermarkets and hypermarkets cater to this growing demand by stocking a diverse range of dairy alternatives. The vegan population and those following dietary preferences such as flexitarianism increasingly seek sustainable and ethical food choices.
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The supermarkets and hypermarkets segment accounted for USD 6.79 billion in 2018. Allergens, such as soy, nuts, and cereals, are often sources of concern for health-conscious consumers, leading to a demand for allergen cross-contamination-free and fortified foods. Dairy alternatives, made from raw materials like legumes, nuts, and cereals, are free from animal hormones and are more sustainable than traditional dairy farming. The taste profiles of these plant-based milk substitutes have evolved significantly, with homogenization and thermal treatments ensuring a creamy consistency and smooth texture. Supermarkets provide a convenient shopping experience, with extended hours, ample parking space, and various payment options, making them a preferred destination for consumers seeking dairy alternatives. The increasing scarcity of raw materials due to the growing demand for these products necessitates innovation and the use of functional ingredients to maintain taste and nutritional value. Dairy alternatives are a healthy and sustainable alternative for individuals with dietary restrictions, offering a wide range of options that cater to various tastes and preferences.
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APAC is estimated to contribute 37% to the growth of the global market research and growth during the forecast period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The global market for dairy alternatives is experiencing significant growth due to shifting consumer eating patterns and diet trends. Animal husbandry practices and concerns over milk allergies have led many to explore non-dairy milk options, such as soy, almond milk, coconut milk, rice milk, oat milk, hemp milk, and cashew milk. These plant-based beverages cater to various dietary restrictions, including vegan, lactose-intolerant, and ketogenic populations.
The dairy alternatives market is witnessing significant growth due to increasing health consciousness and dietary preferences. With the rise of veganism and lactose intolerance, plant-based milk substitutes such as soy milk, almond milk, and oat milk have gained immense popularity. These alternatives offer nutritional value similar to dairy milk but cater to food allergies and allergen cross-contamination concerns. The vegan population and flexitarian diets are driving the demand for vegan milk. Homogenization and thermal treatments are common processes used to ensure consistency and longer shelf life. However, these processes may affect the nutritional value of the milk alternatives. Legumes, nuts, and cereals are the primary sources for these alternatives. Soy milk is rich in isoflavones, which have been linked to heart disease and breast cancer risk reduction. Almond milk and oat milk are popular choices for those following a ketogenic diet due to their low carbohydrate content. The market for non-dairy products is sustainable and aligns with animal welfare concerns. The health-conscious youth is a significant consumer base for these alternatives, making the dairy alternatives market a thriving and dynamic sector.
One of the key factors driving the market growth is the growing demand for organic dairy products. Organic alternatives are mainly manufactured from fruits, plants, and ingredients that are free of synthetic herbicides, fertilizers, and pesticides. Some of the main factors that influence the cultivation of organic fruits and vegetables, plants, and ingredients are biodiversity, ecological processes, and growth cycles that are adapted to local climatic conditions.
Moreover, many market players in the global market provide organic fruit, plant, and ingredient-based alternatives. Additionally, these market players provide complete product information to consumers on the packaging, such as the list of ingredients, as well as the sources of fruits and ingredients. Thus, such factors are positively impacting the market growth. Hence, it is expected to drive the market growth during the forecast period.
A key factor shaping the market growth is product premiumization. There is an increasing focus by several food and beverage manufacturers on niche products including dairy alternative foods and beverages, to increase their profit margin. As a result, several market players are adopting premiumization strategies to differentiate their product offerings in terms of pricing. Moreover, there is a growing preference for health and wellness food among consumers and they are willing to pay extra for low-calorie, low-fat food and beverages and non-dairy-based products. As a result, several market players are launching high-priced product lines in the diary alternatives segment. Thus, it is expected to positively impact the market. Therefore such factors are expected to drive market growth during the forecast period.
Cross-contamination is one of the key challenges hindering the market growth. As several manufacturers and market players purchase or source the ingredients, raw materials, and commodities from third-party suppliers, there is an increasing threat of cross-contamination in the industry. Additionally, contamination of raw materials and other ingredients in dairy alternative plant milk beverages can also be caused due to the improper handling of these products during the logistics.
Moreover, such contamination of food and beverages can impact the safety and quality of products, which can result in product recall, hampering the reputation of market players as well as the confidence in the diary alternative industry. Thus, it is negatively impacting the market, Hence, such factors are expected to hinder the market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, which forecasts to enhance their presence in the market report.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market growth analysis research report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market trends and analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Customer Landscape
The dairy alternatives market is witnessing significant growth due to increasing health consciousness and dietary preferences. With the rise of veganism and lactose intolerance, plant-based milk substitutes such as soy milk, almond milk, and oat milk have gained immense popularity. These dairy alternatives cater to health-conscious consumers looking for nutritional products that align with their dietary restrictions. Food allergies and allergen cross-contamination are major concerns for consumers, leading to an increase in demand for dairy alternatives that are free from common allergens. The vegan population and flexitarian diets are also driving the market growth. The raw materials used in producing dairy alternatives include legumes, nuts, and cereals. These raw materials are fortified with essential nutrients to enhance their nutritional value. However, raw material scarcity and the need for sustainable production methods pose challenges to the market. The taste profiles of dairy alternatives are being improved through homogenization and thermal treatments, making them a healthy and sustainable alternative to dairy products. Animal welfare and environmental concerns are also influencing consumers' choices, leading to a shift towards plant-based milk substitutes and non-dairy products. Functional ingredients are being added to dairy alternatives to enhance their nutritional value and taste. Greenhouse gas emissions and dietary restrictions are also influencing the market, with consumers preferring dairy alternatives that are free from hormones and other additives.
Industry Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12% |
Market growth 2024-2028 |
USD 23 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.4 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 37% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Archer Daniels Midland Co., Blue Diamond Growers, Borges Agricultural and Industrial Nuts SA, Califia Farms LLC, Campbell Soup Co., Danone SA, Dohler GmbH, Earths Own Food Co. Inc., Eden Foods Inc., GreenSpace Brands Inc., J M Huber Corp., Living Harvest Foods, MALK Organics, Mariani Nut Co., Oatly Group AB, Otsuka Holdings Co. Ltd., PANOS Brands LLC, PepsiCo Inc., Sanitarium, SunOpta Inc., Tate and Lyle PLC, and Vitasoy International Holdings Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecasting period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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