Dairy Alternatives Market Size, Share Global Analysis Report, 2025 - 2034

Industry Insights

[221+ Pages Report] According to Facts & Factors, the global dairy alternatives market size was worth around USD 32.67 billion in 2024 and is predicted to grow to around USD 65.10 billion by 2034, with a compound annual growth rate (CAGR) of roughly 9% between 2025 and 2034.

Market Overview

Dairy alternatives refer to plant-based products that replace traditional dairy, provide the population with vegan diets for those with lactose intolerance, and address ethical issues. These alternatives are prepared with various plants like coconuts, almonds, rice, oats, and soy. They are mostly fortified with minerals, vitamins, and calcium to imitate the nutritional benefits of dairy.

The worldwide dairy alternatives market has been experiencing significant growth in recent years owing to the growing wellness trends, product and retail expansion advancements, and improved availability.

A significant portion of the global population is either sensitive to dairy products or is lactose intolerant, fueling the demand for lactose-free substitutes. Flexitarian and vegan diets are gaining popularity as individuals eliminate animal products for better health.

Moreover, constant innovations in textures, flavors, and product formulations have fueled the attraction toward dairy alternatives. Several plant-based alternatives are refreshed with vitamins, minerals, and protein, thus increasing their practicality compared to conventional dairy in the nutrition section.

Furthermore, dairy alternatives are gaining prominence in supermarkets, fast food, cafes, and more. Their visibility has increased their accessibility to a more extensive consumer base. The global market is also propelled by the growth of online shopping, which has fueled the accessibility of dairy alternatives globally.

However, the industry growth is restrained by texture, taste differences, and high price points. Despite key innovations in dairy alternatives, many consumers believe these alternatives lack the texture and taste of traditional dairy, mainly in the yogurt and cheese categories.

In addition, plant-based choices are costlier than usual due to premium ingredients and high production costs. Yet, the global market will progress flourishingly over the estimated period due to opportunistic factors like increasing health concerns and associations with leading food chains.

With the growing consciousness among consumers regarding numerous lifestyle diseases, plant-based substitutes that promote health have an expanding customer base, mainly among Gen Z and millennials.

Association with fast-food chains, such as Starbucks presenting oat milk or McDonald's presenting plant-based burgers, is a key opportunity for the industry's growth. Several food companies are actively integrating plant-based dairy alternatives into their menus to attract a wider population.

Key Insights:

• As per the analysis shared by our research analyst, the global dairy alternatives market is estimated to grow annually at a CAGR of around 9% over the forecast period (2025-2034)
• In terms of revenue, the global dairy alternatives market size was valued at around USD 32.67 billion in 2024 and is projected to reach USD 65.10 billion by 2034.
• The dairy alternatives market is projected to grow significantly owing to changing consumer choices, rising concerns regarding animal welfare, and increasing health consciousness among the majority population.
• Based on product type, the milk segment is expected to lead the market.
• Based on the source, the soy segment is projected to witness sizeable revenue over the forecast period.
• Based on distribution channel, the supermarkets & hypermarkets segment is expected to lead the market.
• Based on region, Asia Pacific is projected to dominate the global market during the estimated period, followed by the Middle East & Africa.

Growth Drivers

• Growing changes in consumer lifestyles drive the market growth

The global dairy alternatives market is witnessing substantial growth owing to convenience for individuals with hectic lifestyles and growing dietary preferences. With busy lifestyles, individuals prefer convenient dairy alternatives like pre-packaged plant-based cheese pieces, ready-to-drink beverages, and grab-and-go yogurts.

Also, with the rising popularity of gluten-free, paleo, and ketogenic options, plant-based options are witnessing ideal substitutes. This is mainly preferred by people seeking a strict diet.

In March 2024, a leading company in the industry, named Blue Diamond Growers, declared that it would grow its Almond and Oat milk portfolio, presenting single-serve sets, especially for the busy working population.

Nestlé, in 2024, extended its Plant-based Dairy Line with novel snack-sized plant-based yogurt choices. The company aims to cater to the growing demand for portable and healthy snacks.

Restraints

• Low awareness among consumers adversely impacts the market progress

Despite the rising popularity of dairy substitutes, customer awareness about these products is still low. Restricted education and awareness on plant-based substitutes' availability and benefits limit their demand and usage. This low awareness adds to the insufficient industry penetration. This results in comparatively lower sales volumes, adversely impacting the growth of the dairy alternatives industry.

Without efficient educational and marketing efforts, dairy alternatives may experience shortcomings in reaching a wider audience, thus affecting the market growth.

Opportunities

• Growth in the developing markets is expected to spur the market growth

Targeting the developing economies, especially in Latin America and the Asia Pacific, may fuel the dairy alternatives industry revenue and penetration.

In 2024, Asia Pacific dominated the global market and is projected to lead over the estimated period with a remarkable CAGR, spurred by the increasing spending power of consumers and growing urbanization.

Oxbow Brands introduced Vegan Drink Company in 2023 to satisfy the demands of the vegan and lactose-intolerant population in India. With this, the company aims to expand its food service and retail presence.

• Technological improvements in production to notably fuel the market growth

Spending on improved production technologies can majorly reduce costs and enhance quality. Using precision fermentation techniques may help produce dairy protein without needing cows. This will enhance the taste and texture of plant-based or dairy cheeses.

Adopting environmentally friendly production techniques may reduce the ecological footprint and attract sustainability-conscious customers.

DairyX’s expansion of yeast stresses the potential of generating casein proteins via precision fermentation. It provides an ecological alternative to the conventional production of dairy cheese, with regulatory acceptance projected by 2027.

Challenges

• Environmental and sustainability concerns limit the growth of the dairy alternatives market

Since dairy substitutes are mostly marked as more sustainable than conventional dairy, a few plant-based substitutes, mainly made of almonds, have their ecological issues, especially concerning pesticide application and water usage.

Almond milk, the leading dairy known to the majority population, has been disapproved due to the major water usage involved in almond husbandry.

Also, the primary source of almonds, California, witnesses water scarcity, which increases issues regarding the ecological sustainability of almond-derived milk.

Moreover, since oat and soy milk are regarded as more sustainable options, their extensive production may result in pesticide use and monocropping issues.

Report Scope

Segmentation Analysis

The global dairy alternatives market is segmented based on product, source, distribution channel, and region.

Based on product type, the industry is divided into milk, yogurt, cheese, ice cream, creamer, and others. The milk segment captured a significant market share due to growing vegan trends, an increasing health-conscious population, and rising environmental concerns.

The growing number of lactose-intolerant individuals globally is a prominent driver of segmental growth. Vegan milk, like almond and oat milk, is an ideal option.

Moreover, since plant-based substitutes are professed as healthy, several consumers, mainly Gen Z and millennials, are shifting to plant-based alternatives.

In addition, the dairy sector is a leading contributor to greenhouse gas emissions, resulting in several individuals choosing more ecological vegan milk substitutes.

On the other hand, the yogurt segment follows the milk segment in terms of growth. The growth of plant-based yogurt is attributed to the increasing health and wellness trends since yogurt is believed to be a prominent functional food high in probiotics.

Based on the source, the global dairy alternatives industry is segmented as soy, almond, coconut, rice, oats, and others. The soy segment dominates, mainly in the European and North American markets.

The key factors for the segmental growth include nutritional benefits, growing consumer education and awareness, and broader adoption. Soy milk is high in protein, making it the best alternative to cow milk for people seeking plant-based substitutes.

Also, growing awareness of the health benefits of soy, like its suitability for vegan consumers, low cholesterol, and more, has increased its popularity as the best choice. Soy milk has been accessible to people for decades, thus increasing its broad acceptance in both developing and developed markets.

However, the almond segment is the second-leading in the global market, fueled by the growing consumer demand for vegan, dairy-free, and lactose-free alternatives.

Based on distribution channel, the global market is segmented as supermarket & hypermarkets, convenience stores, online retail, and others. The supermarket & hypermarkets segment is anticipated to lead the market over the forecast period. The segmental growth is attributed to the broad range availability, convenience, and better brand recognition.

Supermarkets & hypermarkets offer a wider range of dairy substitutes in diverse categories like yogurt, milk, ice cream, creamers, and cheese. Individuals can find their preferred brands besides niche brands, such as Califia Farms, Silk, Alpro, and more. They are the highly preferred shopping destinations where people can buy their preferred products.

The leading players in the dairy substitutes sector associate with hypermarkets and supermarkets for bulk distribution, leveraging high foot traffic in such stores.

The online retail segment will also hold a remarkable share in the dairy alternatives market owing to the elevated demand from young consumers, who prefer online shopping from the comfort of their homes.

Regional Analysis

• Asia Pacific to witness significant growth over the forecast period

Asia Pacific held a substantial share of the global dairy alternatives market in 2024 and will continue to lead over the estimated period as well. This growth is attributed to the growing incidences of lactose intolerance, speedy industry growth, and high dominance in plant-based milk.

In Asia Pacific, nearly 70-100 percent of the individuals in East Asia are lactose intolerant, thus fueling the demand for vegan dairy alternatives. Nations like South Korea have experienced growth in veganism, with nearly 2.5 million vegans in the past years, adding to the rising consumption of dairy alternatives.

The regional market is anticipated to progress to $ 54.80 billion, a 9% CAGR. Non-dairy milk, particularly soy milk, captures 90% of the Asia Pacific market, with China leading the consumer base.

The Middle East & Africa region is progressing as the second-leading region in the global dairy alternatives market, owing to lifestyle and health factors, product availability, innovations, and extended shelf-life of food products.

Increasing awareness and education of health benefits concerning dairy alternatives, like reduced heart risk and lower cholesterol, is propelling consumer interest. The rising incidences of lactose intolerance among a larger population have resulted in the demand for lactose-free substitutes.

Furthermore, producers are launching a broad range of products with fortified nutrients, diverse flavors, and prolonged shelf life to satisfy changing consumer choices.

Also, the enhanced availability of dairy substitutes in urban environments, impacted by high purchasing power and universal food trends, adds to the industry growth.

Competitive Analysis

The global dairy alternatives market is led by players like:

• Oatly
• Silk (WhiteWave Foods)
• Alpro
• Califia Farms
• So Delicious Dairy Free
• Blue Diamond Growers
• Ripple Foods
• Elmhurst 1925
• Provamel
• Minor Figures
• Vitasoy
• Mooala
• Good Karma Foods
• The Coconut Collaborative
• Silk Tree

Key Market Trends

• Nutritional enhancements and corporate policy shifts:

Dairy alternatives are refreshed with vitamins, proteins, and minerals, increasing their nutrition compared to regular dairy milk. In addition, leading chains like Dunkin' and Starbucks have eliminated upcharges for plant-based milk. This makes them more accessible and affordable to a broader audience, increasing adoption.

• Dairy-free desserts and plant-based cheese:

Improvements in dairy-free ice cream and cheese are steadily growing, offering substitutes with enhanced nutritional profiles, texture, and taste. This caters to the expanding demand for vegan indulgence options.

The global dairy alternatives market is segmented as follows:

By Product Segment Analysis

• Milk
• Yogurt
• Cheese
• Ice Cream
• Creamer
• Others

By Source Segment Analysis

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

By Distribution Channel Segment Analysis

• Supermarket & Hypermarkets
• Convenience Stores
• Online Retail
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America