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Dairy Alternatives Market size worth above US$ 49 billion by 2028

  • Published Date: March 14, 2022

According to a new research report by Global Market Insights Inc., the Dairy Alternatives Market size is estimated to surpass USD 49 billion by 2028 due to the rising consumer awareness about healthy diet.

Further, rising disposable income and increasing cases of dairy-borne allergies across the world will support product penetration in the market. The market is segmented based on product, application, formulation, and sales channel. Furthermore, surging consumer awareness about greater health benefits of non-dairy products over traditional dairy products will augment the dairy alternatives market share.

Rising adoption of dairy-free and plant-based products and growing demand for dairy alternatives across end-use industries such as snacks, cheese, and beverages are driving the market growth. Governments of U.S., Russia, The UK have undertaken several awareness campaigns for promoting dairy free intake in everyday meals owing to its health benefits. In addition, Covid 19 pandemic also positively impacted the product demand as adoption of vegan food products has increased during the pandemic. Changing consumer perception about a dairy alternative to be a healthy option among others will drive the market demand.

The rapid increase in the usage of oat-based food products to drive dairy alternatives market

According to market insights reports, oat-based products are the fastest-growing product in the industry and are set to witness over 11% CAGR up to 2028 owing to its increasing usage in plant-based products. Oats are a good source of polyphenols and antioxidants having a higher percentage of carbohydrates. Demand for oats is increasing due to their high nutrition value and presence of dietary fibers. Also, oats possess several health benefits including anti-carcinogenic, high protein contents, and amino acid balance. Further, beverages and milk containing oats are heavily consumed owing to their ability to retain lower the cholesterol level which augmented the product demand.

Browse key industry insights spread across 705 pages with 1175 market data tables & 12 figures & charts from the report, “Dairy Alternatives Market By Product (Almond, Soy, Coconut, Oat, Rice, Hemp), By Application (Food {Cheese, Desserts, Snacks}, Beverages), By Formulation (Sweetened, Unsweetened), By Sales Channel (Mainstream Stores, Specialty Stores, Online Stores), Industry Analysis Report, Regional Outlook, Application Potential, Price Trend, Competitive Market Share & Forecast, 2022 – 2028” in detail along with the table of contents:

Increasing usage of dairy alternatives in food application to drive the market growth

Food application will witness dynamic growth with an expected market value of over USD 5 billion by 2028 and is forecast to grow at CAGR of 10% from 2022 to 2028 owing to surging adoption of dairy-free products. Increasing use of dairy-free food owing to its benefits such as low calorie and low sugar content will propel product demand in turn stimulating business growth.

Dairy substitute food products such as cheese, dessert, and snacks are widely used in food sector. Changing consumer preferences towards lactose-free and high nutritive value products is positively impacted the dairy alternative market value.

The rapid increase in sweetened products to drive the dairy alternatives market.

Sweetened dairy-free products to register a significant growth during the forecast period with expected market size of USD 21 billion up to 2028 and is forecast to grow at 10% CAGR from 2022 to 2028 owing to its wide application area. The growing demand from the infant and young populace requiring added sugar and improvements in taste and flavor will influence demand for product positively.

Sweet tasting soy, almond, rice, and oat milk can serve as effective alternatives for people with lactose intolerance and milk allergies. Further, wide application areas including desserts, yogurts, cheese, and milk products are fueling the product demand in turn propelling the market growth.

Rapidly increasing number of specialty stores to drive the dairy alternatives market

Specialty stores sales channels is expected to reach USD 5.5 billion by 2028 and is forecast to grow at 11.1% CAGR from 2022 to 2028 owing to the increasing demand for food & beverages. An increasing number of specialty stores in urban and rural area will help to drive the market growth.

Specialty stores are customized retail outlets that are dedicated to niche product categories. Specialty stores are having neat design, simple layouts, easy product displays, and provides convenient shopping formats for consumers. They stress on their expertise in stocking all available varieties of the specialty product at varied price ranges, which enable the customer to buy an exact product that meets their requirements. Specialty stores play a key role in promoting the products which are driving the market growth.

Increase in production and consumption of plant-based dairy substitutes to drive the market in the North America region

North America dairy alternatives market is expected to surpass USD 14 million by 2028. An increase in production and consumption of plant-based dairy-free products in North America owing to its health benefits is anticipated to propel the product demand. Also, changing dietary habits and lifestyles accounted for the increasing adult population with obesity and diabetes in the U.S. and Canada will increase product demand. Additionally, the willingness of consumers in the region to pay premium prices for healthy and nutritious products will offer a positive outlook for market growth.

Major players in the dairy alternatives industry include WhiteWave Foods, Blue Diamond Growers, SunOpta, Inc, So Delicious, Freedom Foods, Valsoia SpA, Pacific Foods, New Barn, Califia Farms, and MALK Organics. The key strategies observed among the industry participants include new product launches, acquisitions, and expansion.

Authors: Kunal Ahuja, Tushar Malkani