Dairy Alternatives Market Size, Share, Trends & Growth | 2034

Dairy alternatives refer to plant-based products designed to replicate the taste and texture of traditional dairy products, including milk, cheese, yogurt, butter, and ice cream.

Business Feb 12, 2025 35 Add to Reading List

Dairy Alternatives Market Size, Share, Trends & Growth | 2034

Dairy Alternatives Market Outlook

According to the report by Expert Market Research (EMR), the global dairy alternatives market size achieved a value of USD 25.90 Billion in 2024. As consumer preferences continue to shift towards plant-based diets and growing awareness surrounding the environmental and health benefits of dairy alternatives, the market is expected to grow at a compound annual growth rate (CAGR) of 13.40% between 2025 and 2034, reaching a value of USD 91.08 Billion by 2034.

Dairy alternatives refer to plant-based products designed to replicate the taste and texture of traditional dairy products, including milk, cheese, yogurt, butter, and ice cream. These alternatives are derived from various plant sources such as soy, almond, oats, coconut, rice, and hemp. Dairy alternatives have gained significant traction due to changing dietary habits, health-conscious consumers, and concerns over animal welfare and the environmental impact of traditional dairy farming.

The demand for dairy alternatives is driven by several factors, including an increase in lactose intolerance, veganism, and plant-based diets, alongside growing concerns regarding the carbon footprint and sustainability of animal-based dairy production. As these trends continue to evolve, the market for dairy alternatives is expected to expand, with more consumers choosing plant-based options as a healthier, more sustainable alternative to traditional dairy products.

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Key Drivers of Growth in the Dairy Alternatives Market

Rise of Veganism and Plant-Based Diets: The global surge in veganism and plant-based eating has been one of the key factors behind the growth of the dairy alternatives market. As more consumers adopt plant-based lifestyles for ethical, environmental, and health reasons, there is an increasing demand for dairy alternatives that offer similar taste, texture, and nutritional profiles to their animal-based counterparts.

The rise in veganism is not limited to specific regions but is a global trend, especially in developed markets such as North America and Europe. The increasing availability of plant-based options in mainstream supermarkets, restaurants, and fast-food chains has made it easier for consumers to adopt plant-based diets. As veganism becomes more mainstream, dairy alternatives are seen as essential components in replacing traditional dairy products, leading to a growing market.

Health Benefits of Dairy Alternatives: Health-conscious consumers are increasingly turning to dairy alternatives due to the perceived health benefits they offer over traditional dairy products. Dairy alternatives are often lower in calories, cholesterol, and saturated fats, which are factors that contribute to rising concerns over cardiovascular diseases and obesity.

Many plant-based milk alternatives, such as almond, oat, and coconut milk, are fortified with essential nutrients like calcium, vitamin D, and B vitamins, making them comparable to cow’s milk in terms of nutritional value. Additionally, they are often easier to digest for individuals with lactose intolerance or milk allergies, further driving the demand for dairy alternatives.

The growing awareness about gut health and the importance of plant-based diets in maintaining digestive balance has further bolstered the appeal of dairy alternatives. Furthermore, products like plant-based yogurts and cheeses offer a healthier option for those seeking to reduce their consumption of dairy and embrace cleaner, plant-based options.

Environmental and Sustainability Concerns: Another significant factor driving the growth of the dairy alternatives market is increasing awareness about the environmental impact of animal agriculture. Traditional dairy farming is associated with significant greenhouse gas emissions, land use, water consumption, and other environmental issues, which have become a concern for eco-conscious consumers.

In contrast, plant-based dairy alternatives have a lower environmental footprint. For example, the production of almond milk, oat milk, and soy milk requires significantly less water and land compared to the dairy industry. As more people seek to reduce their environmental impact, the demand for plant-based dairy alternatives is expected to continue rising.

In addition, the growing interest in sustainability, coupled with initiatives and policies focused on reducing the carbon footprint of food production, has further pushed businesses to offer dairy alternatives. Brands are increasingly marketing their products as environmentally friendly, which appeals to consumers looking to make more sustainable food choices.

Technological Advancements in Product Innovation: Innovation and improvements in production technologies are playing a key role in the growth of the dairy alternatives market. Advances in plant-based protein extraction, fermentation, and processing techniques have made it possible to replicate the texture, taste, and nutritional profile of dairy products more effectively.

For instance, oat milk, a popular dairy alternative, has gained popularity due to its creamy texture and ability to closely mimic the mouthfeel of cow's milk. Similarly, advances in plant-based cheese and yogurt production are enabling companies to create products that resemble traditional dairy in terms of flavor and consistency.

In addition to product innovations, the growing availability of fortified dairy alternatives, which are enriched with vitamins and minerals, is enhancing the appeal of plant-based options as a viable substitute for dairy. These technological advancements are helping businesses cater to the diverse preferences of consumers while improving the nutritional offerings of dairy alternatives.

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Dairy Alternatives Market Segmentation

The market can be divided based on source, application, distribution channel, region.

Breakup by Source

Soy
Almond
Coconut
Rice
Oats
Hemp
Others

Breakup by Application

Milk
Ice Creams
Yogurt
Cheese
Creamers
Others

Breakup by Distribution Channel

Supermarkets/Hypermarkets
Convenience Stores
Health Stores
Online Retailers
Others

Breakup by Region

North America
Europe
Asia Pacific
Latin America
Middle East and Africa

Competitive Landscape

Some of the major players explored in the report by Expert Market Research are as follows:

Kerry Group Plc
Califia Farms LLC
The Döhler Group
Ripple Foods Inc.
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.
Eden Foods, Inc
Earth’s Own Food Company Inc.
Others

Challenges and Opportunities

Despite the rapid growth, the dairy alternatives market faces challenges related to taste and texture, particularly in cheese and yogurt alternatives. Some consumers may find the taste and mouthfeel of plant-based dairy products to be different from traditional dairy, which can limit adoption.

However, ongoing advancements in product innovation and the continuous improvement of manufacturing processes present opportunities for overcoming these challenges. Companies are investing in research and development to create dairy alternatives that closely resemble traditional dairy in terms of flavor, texture, and nutritional value.