Plant-Based Dairy Alternatives Market size, By Product type, By Source, By Distribution channel, Growth forecast, 2025 – 2034

Plant-Based Dairy Alternatives Market Size

The global plant-based dairy alternatives market was valued at USD 34.1 billion in 2024 and is expected to grow from USD 38.1 billion in 2025 to USD 106.4 billion in 2034, at a CAGR of 12.1% according to latest report published by Global Market Insights Inc.

• Continuous growth at the plant-based dairy segment incentivizes more retailers to offer the products. Compared to 2020, global plant-based retail sales revenue increased by 50 percent in 2023. As the main source of revenue for the plant-based dairy segment, milk alternatives account for 66% of sales. Primarily fueled by the decline of soy and rice milk, oat milk captured a substantial market share expanding from a marginal commodity in 2018 to a double-digit figure in 2023.
   
• Although alternatives to cheese and yogurt are smaller in market share, they have relative growth rates in the segment with double-digit growth rates in the compound annual growth rate since 2020. This was made possible by more responsive coconut oil-starch systems that provide the melt, stretch, and tang that consumers demand.  The growth of the segment has come with increased investments. Legacy dairy companies are modernizing their plants to process oats, peas, and almonds after starting up companies. The introduction of school-lunch guidelines in some regions that allow oat beverages and new national nutrition plans that incentivize the use of plant proteins are a testimony to government efforts to stimulate demand.
   
• Three factors will guide the future of the market: price equilibrium, clarity in regulations, and accountability of carbon prices. Harper and Karp have argued that the unpredictability of climate-altered almond and sunflower harvests will drive fava and hemp formulators in the US and Canada. With lower-nutritional-value products, brands may find value in marketing fava beans and hemp, avoiding overpriced alternates. Recent changes in European regulations allow brands to market products as nutrition comparable to cow's milk, which may drive demand. With mandatory Scope-3 emissions disclosures in the EU and California, retailers have begun incorporating low-carbon, private-label alt-milks into their inventory. These factors combined will more than sustain its strong double-digit growth, even as the category matures.
   

Plant-Based Dairy Alternatives Market Trends

• Rapid Mainstream Adoption: What was once a niche market is now firmly mainstream. Plant-based dairy sales have increased rapidly in few years, growing 50% larger in 2023 compared to 2020. Oat milk, non-existent five years ago, now rivals soy in popularity. The increased consumption of dairy alternatives points to health and sustainability consumption trends among a growing number of consumers.
   
• Innovation in Taste and Texture: Consumer expectations around functionality have certainly driven innovation around plant-based cheese and yogurt. Early incarnations of plant-based cheese were criticized for their poor textural qualities, However, newer formulations involving coconut-oil-starch matrices that replicate melt, stretch, and tang have been successful. Brands like Miyoko’s and Violife have uplifted expectations and standards, causing consistent 20% growth in these subcategories, particularly in Western markets.
   
• Strategic Industry Investment: Strategic investment is evident from both established food corporations and new entrants to the market. Danone and Nestlé have switched production lines to manage oats and peas and over USD 3 billion in venture capital is directed towards alt-dairy brands and new methods of protein extraction. This new funding targets methods that neutralize off-flavors and increase protein content to yield smoother, more palatable products.
   
• Policies and Signals to Become More Planet Friendly: Policies enacted by governments paired with the acceleration of adoptions prompted by the climate crisis are planted seeds for adoption. Canada’s new school nutrition policies allow for the inclusion of oat beverages, and China’s national nutrition plan encourages the consumption of plant protein.
   

Plant-Based Dairy Alternatives Market Analysis

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Based on product type, the market is segmented into Plant-based milk, plant-based yogurt, plant-based cheese, plant-based ice cream & frozen dessert, plant-based butter & spreads, creamers, others. The plant-based milk segment was valued at USD 21 billion in 2024 and is anticipated to expand with 12.1% CAGR during 2025 to 2034.
 

• For now, oat-derived beverages and products are the most widely marketed and produced plant-derived beverages. They are marketed for versatility, positive sustainability, and superior taste compared to other oat products. Yogurt and cheese substitutes have rapidly changing markets, and brands are investing in Research and Development regarding the taste and texture of these products. Companies within these markets are starting to include fava, hemp, and coconut among their core ingredients, and diversifying their ranges beyond just soy and almond.
   
• Substitutes for frozen desserts and spreadable butter are on the rise, and so are creamers that are marketed as dairy-free. Dairy-free ice cream substitutes are marketed as having rich flavors, and consumer interest in allergen-free products is also increasing. Dairy-free creamers are used for plant-based products in large coffee chains, and convenience and eco-conscious branding are two crucial factors in the maturing sector. There is an increasing interest in eco-conscious, full-menu convenience.
   

Based on source, the market is soy, almond, oat, coconut, hemp, mixed / blended bases, novel proteins. The soy segment was valued at USD 9.3 billion in 2024 and is anticipated to expand to 11% of CAGR during 2025 to 2034.
 

• Oat-derived beverages have overtaken soy and almond in most markets. Almond is still popular, but its use is declining due to the increasing problems associated with its production, the copious amounts of water required. Soy is also declining and at far greater speed. This is due to western consumers’ concerns regarding its use as an allergen, as well as the elevated level of processing included in the marketed products, or the presence of GMO ingredients.
   
• While coconuts may not have strong taste and appeal for widespread acceptance, it continues to perform well in yogurts and cheeses because of its fat content and structure. New proteins like hemp and blended bases are becoming popular because of regional adaptability and nutritional superiority. There is a surge of novel protein innovations—like fava and chickpeas, and precision-fermented elements—with a focus on cleaner taste, multifunctionality and local sourcing to lower carbon and supply chain risk footprints.
   

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In distribution channel segment, the supermarkets/hypermarkets segment was valued at USD 14.7 billion in 2024 and is anticipated to expand to 11.1% of CAGR during 2025 to 2034, constituting 43.2% in overall market share.
 

• Distribution is dominated by supermarkets and hypermarkets, as they provide the greatest amount of shelving and visibility. Nonetheless, specialty and health-food shops are still serving as innovation incubators, with the first alt-dairy products of the revamped plant-based category rolling out. Competitive private-label plant-based offerings are now available as these products become mainstream. Convenience stores are also adding more plant-based products to their offerings.
   
• There is robust growth in online retailing, including subscription and bundled offerings in direct-to-consumer (DTC) channels. The food-service industry is also becoming more significant; coffee shops are popularizing drinks made with oat milk and vegan cheese is now used in some quick-service restaurants. There is also a growth of B2B ingredients as industrial clients look for customizable, allergen-free bases for protein shakes, desserts, and baked goods. This is for taste and/or sustainable reformulation purposes, and it is driven by the demand for sustenance.
   

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• In terms of total market value, North America is projected to increase from USD 13.3 billion in 2024 to USD 41.8 billion in 2034. This is due to a combination of consumer awareness, innovation, and retail penetration.
   

In 2024, the U.S. plant-based dairy alternatives market was valued at USD 11.2 billion and is anticipated to see a 12.1% CAGR from 2025 to 2034. U.S. brands leverage advanced R&D as well as clean-label trends. Dairy-alternatives segment growth is fueled by the presence of major brands with varied offerings and supportive regulatory structures.
 

• Europe is expected to increase from USD 10.5 billion in 2024 to USD 32.3 billion by 2034, due to heightened awareness regarding sustainability, widespread flexitarian eating patterns, and supportive labelling and advertising laws.
   
• Germany’s market was valued at USD 1.9 billion in 2024 and is projected to grow at an 11.7% CAGR from 2025 to 2034. Germany leads with eco- conscious consumers and high uptake of oat and almond-based alternatives in both retail and foodservice. Local players and supermarket chains foster private-label competition and consumer trial.
   
• When it comes to urban markets, customer preferences include items that are cleaner, more organic, and fortified with additional nutrients. The easing of regulatory frameworks regarding naming rights and nutritional claim comparisons has enhanced brand communication and improved marketing efficiencies within the EU.
   
• Asia Pacific ought to develop more quickly than the other parts of the world. The adjusted figure of USD 6.9 billion in 2024 is expected to grow to USD 22 billion in 2034. This is a result of swift urbanization, the rise in middle-class health awareness, and the rise in the number of lactose intolerant individuals.
   
• China is anticipated to have the largest market, currently valued at USD 3.1 billion in 2024 and which has an expected 12.3% CAGR growth from 2025 to 2034. China's Five-Year Nutrition Plan encourages the urban populace to utilize dairy substitutes more widely, especially oat and soy milk. Partnerships are being developed between foreign enterprises and local distributors to improve e-commerce and retail access to these products.
   
• Newly started investments in localized production using rice, fava, and pea proteins are aiding in cost reduction and compliance with national food security and sustainability goals.
   
• Expanding rapidly from USD 1.7 to 4.9 billion between 2024 and 2034, the Latin America’s market is driven by the lactose intolerant and vegan population as well as the improved accessibility of non-dairy products in retail stores. Brazil, with a market estimated at 0.5 billion dollars in 2024, is predicted to have an 11.3% CAGR growth from 2025 to 2034.
   
• Younger consumers in addition to urban influencers in Brazil are shifting to coconut and almond-based beverages and yogurts as dairy alternatives for wellness and lifestyle purposes. Improved supermarket access along with expanded DTC and online channels are making once-niche products more affordable and available in mid-tier cities across the region.
   
• MEA will grow from USD 1.7 billion in 2024 to USD 5.5 billion in 2034. This will be due to expansion of health trends, premiumization of natural products, and shifts in regional dietary habits.
   
• Saudi Arabia plant-based dairy alternatives market will grow from USD 612.3 million in 2024, with 12.2% CAGR growth through 2034 reaching USD 1.4 billion. Increase in demand for plant-based beverages and spreads in Saudi Arabia is due to high dairy intolerant population and government interest in healthy, shelf-stable alternatives.
   
• Growth will be in premium grocery and café chains in Riyadh and Jeddah, where younger demographics are driving social-media-fueled acceptance of meat and dairy alternatives.
   

Plant-Based Dairy Alternatives Market Share

• Danone S.a., Oatly Group Ab, Blue Diamond Growers, Califia Farms, and Hain Celestial Group accounted for market share of 24.5% of market share in 2024.
   
• Danone S.a. dominate plant based dairy with Silk and Alpro selling their milk, yogurt, and desserts. Its size and distribution strength give Europe and North America competitive advantage. Its strategic focus on the mainstream and premium market retail on almond and oat based products continues to strengthen dominance.
   
• Oatly Group Ab focuses on millennials and health oat milk market. Its sustainability messaging and barista skilled products offer oat milk and milk alternatives. Its strong brand and rapid retail and food service growth offer value in an aging market even as profitability remains out of reach. Its expanding products and brand distance moving to Asia are additional positives.
   
• Blue Diamond Growers, Califia Farms, and Hain Celestial Group compete for market share as the leaders in almond based beverages, premium plant creamers, and shelf-stable products. Each has cultivated niche strengths: Blue Diamond through affordability and reach; Califia through innovation and packaging appeal; and Hain Celestial by catering to health-conscious, value-seeking consumers with legacy brands Dream and WestSoy.
   

Plant-Based Dairy Alternatives Market Companies

major players operating in plant-based dairy alternatives industry include:

• Danone S.A.
• Oatly Group AB
• Blue Diamond Growers
• Califia Farms
• Hain Celestial Group

• Danone S.A.: With an 8.2% share of the alt-dairy market and owning the Alpro and Silk brands, Danone is the market leader. The company continues geographic and product expansion. New oat- and almond-dairy yogurts launched in Europe in 2023, and Danone expansion of Silk into Latin America seeks to bolster the company’s global positioning.
   
• Oatly Group AB: Oatly has a 5.5% share of the market but remains a category-defining leader in oat milk. Oatly pairs are independent brand-building for the oat milk category and café-situated partnerships to obtain ownership of retail channels. The company established strategic distribution deals in Asia with shelf-stable barista products in 2024 to expand outside of the saturated U.S. market.
   
• Blue Diamond Growers: With 4.5% of the market, Blue Diamond market with the Almond Breeze brand. The company offers consistent and quality products at market leading prices. New almond protein blends and flavored milk are offered as part of the value-added expansion. The company’s U.S. and Asia Pacific market retail partnerships remain strong.
   
• Califia Farms: With 3.6% of the market, Califia Farms prides itself on premium positioned almond and oat products. In 2024, the company branched out to offering plant-based proteins in convenience channels, convenience- channel plant proteins and market positioned protein shakes. The company’s branding, high quality health formulated products and strong U.S. health oriented consumer positioned and sustainable products are offered.
   
• Hain Celestial Group: Hain Celestial maintains its footprint through brands like WestSoy and Dream, accounting for 2.7% of market share. After consolidating its portfolio in 2024, the company focused on the promotion of its shelf-stable beverages and increased its penetration of e-commerce. Hain Celestial is now focused on high-margin SKUs and select international markets for future growth.
   

Plant-Based Dairy Alternatives Industry News

• In May 2024, Oatly began collaborating with JD.com, a top distributor in Asia, to increase availability of Oatly’s shelf-stable oat milk in China and Southeast Asia to meet rising urban demand and strengthen Oatly’s presence in the Asia-Pacific region.
   
• In August 2023, Danone reported a USD 50 million expenditure to refurbish its plant-based dairy production in France, particularly oat and almond base yogurts and drinks, in order to meet the growing European flexitarian and vegan consumer demand.
   
• In November 2022, Califia Farms began marketing a new line of plant-based smoothies and creamers aimed at health-conscious millennials. This new product line and pivot supported portfolio diversification helped the brand penetrate the competitive subsegment of functional beverages.
   

The plant-based dairy alternatives market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) & (Kilo Tons) from 2021 to 2034, for the following segments:

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Market, By Product type

• Plant-based milk
  • Shelf-stable
  • Refrigerated
• Plant-based yogurt
  • Spoonable
  • Drinkable
• Plant-based cheese
  • Block & wheel
  • Shredded & grated
  • Sliced
  • Cream-cheese & spreads
  • Food-service analogues
• Plant-based ice cream & frozen dessert
  • Pints & tubs
  • Novelties
• Plant-based butter & spreads
  • Stick / block
  • Soft-tub spreads
• Creamers
  • Refrigerated liquid
  • Shelf-stable liquid
  • Powdered
• Others

Market, By Source

• Soy
• Almond
• Oat
• Coconut
• Hemp
• Mixed / blended bases
• Novel proteins
  • Faba bean
  • Flaxseed
  • Quinoa
  • Other proteins

Market, By Distribution channel

• Supermarkets & hypermarkets
• Convenience & grocery stores
• Specialty & health-food stores
• Online retail / DTC
• Food-service
• Industrial / B2B ingredients

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of Middle East and Africa