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The dairy alternatives market size is estimated to grow by USD 18,494.25 million between 2022 and 2027. The market size is forecast to increase at a CAGR of 10.85%.
One of the key factors driving the market growth is the growing demand for organic dairy alternatives. 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, 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.
Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario. It also includes an in-depth analysis of drivers, market trends, and challenges.
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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 popularity for health and wellness trend 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 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.
The growing consumer awareness of health is fuelling the beverages-based dairy alternatives segment which, in turn, will increase the market growth. This segment comprises products based on non-dairy milk like soy milk, almond milk, rice milk, oat milk, coconut milk, hemp milk, and other plant-based milk (products include flavored milk, milkshakes, energy drinks, and fruit mixes). There is a growing popularity of along milk among consumers due to its unique taste and flavor and the substantial amount of minerals present in almond milk. Hence, factors such as health benefits as well as the increasing launch of new products are expected to fuel the growth of this segment during the forecast period.
The exotic and ethnic flavors offered by the food-based segment will increase the market growth during the forecast period. This segment comprises products such as spreads, cereal bars, fruit puree, yogurt, creamers, cheese, tofu, snacks, and desserts, made using non-dairy milk. There is an increase in demand for non-dairy products including cheese, creamers, spreads, and yogurt in countries such as the US, Japan, Western Europe, and China. The increasing preference for non-dairy cheese and yogurt due to its low-calorie content and free from saturated fat are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
The supermarkets and hypermarkets segment is estimated to witness significant growth during the forecast period. The supermarket segment offers a wide range of products which are organized into sections. There is an increasing preference for supermarkets among consumers due to their numerous advantages such as discounts on products as they buy goods directly from the producers for a lesser price, freedom of selection, a wide range of options, and additional offers such as combo offers and bulk offers over the products.
The supermarkets and hypermarkets segment was the largest segment and was valued at USD 6,306.86 million in 2017.
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Additionally, the wide range of alternatives including oat milk, rice milk, coconut milk, and almond milk is significantly contributing to the growth of the supermarket and hypermarket segment. Hence, such factors are expected to fuel the growth of the supermarkets and hypermarkets segment which in turn will drive the global market during the forecast period.
Moreover, the numerous benefits offered by the convenience stores segment will increase the market growth during the forecast period. Some of the main advantages offered by the convenience store segment include ease of accessibility, faster reach, and extremely buyer-friendly options such as exchange offers. There is an increasing preference for convenience stores among consumers due to easy parking, fast checkout, and being located in easy-access locations. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
APAC is estimated to contribute 36% to the growth of the global market during the forecast period.
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Technavio’s analysts have elaborately explained the regional market trends and analysis and drivers that shape the market during the forecast period. Some of the main countries that are significantly contributing to the growth of the dairy alternatives market in the APAC region include China, Australia, New Zealand, South Korea, Japan, Indonesia, the Philippines, and India. The main segment dominating the market in APAC is soy milk. There is an increasing popularity of soy milk in countries such as China, Japan, and Indonesia.
Additionally, products such as yogurt, cheese, and almonds have also gained traction among consumers in APAC. Some of the main market players in APAC include Danone SA, Kikkoman Corp., Vitasoy International, and Freedom Foods. Factors such as increasing disposable income in developing economies and the growing number of organized retail outlets like hypermarkets, supermarkets, convenience stores, and food specialist stores are driving market growth in the region during the market forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative market growth 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 global market, particularly prominent in the U.S., is experiencing rapid growth due to rising lactose intolerances and a growing consumer base seeking plant-based food and beverage products. Targeting demographics such as the elderly and health-conscious individuals, including those following ketogenic or vegan diets, these alternatives contain isoflavones and phytoestrogens, known to benefit heart health and potentially mitigate risks associated with breast cancer.
Amidst the COVID-19 pandemic, the market witnessed increased demand for nutritional foods and skin care products, with a focus on sustainability and corporate social responsibility. Companies engage in competitive benchmarking, offering certifications and adhering to environmental standards. Dairy alternatives span a wide range, from soymilk to cashew milk, and almond-based products, including cheese substitutes and flavored beverages, catering to diverse dietary needs and available through online stores.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and market research and growth opportunities from 2017 to 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.85% |
Market growth 2023-2027 |
USD 18,494.25 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
9.77 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 36% |
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., 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, Sanitarium, SunOpta Inc., Tate and Lyle Plc, and Vitasoy International Holdings Ltd. |
Market dynamics |
Parent market analysis, market analysis and report, 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 forecast period. |
Customization purview |
If our market analysis and Market forecasting 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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