What’s Fueling the Global Boom in Dairy Alternatives?
In recent years, the global food industry has seen a marked shift in consumer preferences toward dairy alternatives. This trend highlights evolving attitudes regarding health, sustainability, and ethics. As individuals increasingly opt to reduce or eliminate dairy from their diets, the dairy alternatives market demand has surged. A key factor driving this growth is the heightened focus on health and wellness. Consumers are becoming more health-conscious and seeking products that align with their dietary needs and restrictions. Dairy alternatives such as almond, soy, and oat milk are often viewed as healthier options due to their lower saturated fat content and lack of cholesterol.
At a 10.1% CAGR, the global dairy alternatives market size is projected to reach US$ 43.6 billion by 2028 from a projected US$ 27.0 billion in 2023. The global market size was valued at US$ 24.6 billion in 2022.
Urban Growth and Higher Spending Power Drive Dairy-Free Market Expansion
With the global population rising, there is growing pressure on already limited resources. Escalating energy prices and increasing raw material costs are directly impacting food prices, which disproportionately affects individuals with lower incomes. This strain on the food supply is exacerbated by water scarcity, particularly in regions like Africa and Northern Asia. Conversely, the Asia Pacific region presents cost advantages in production and processing, creating a significant opportunity for dairy alternative suppliers and manufacturers due to the combination of high demand and cost-effective production.
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In response to rapidly changing lifestyles, consumers are increasingly seeking nutritious and healthier food options. The gap between fast food and unhealthy junk food is likely to widen as people actively pursue convenient yet health-conscious choices. For suppliers and manufacturers, identifying products with high nutritional value represents a substantial opportunity in the dairy alternatives industry.
Soy’s Dominance: Analysing the Dairy Alternatives Market Share
Soy-based dairy alternatives have emerged as one of the most effective and widely accepted substitutes for traditional dairy products, holding a substantial share of the dairy alternatives market. Their growing popularity is largely due to their impressive nutritional profile—rich in protein and calcium—making them especially suitable for individuals who are lactose intolerant. Unlike many dairy items, soy products are free from casein, a common allergen, further enhancing their appeal among health-conscious consumers.
Soy milk, one of the most prominent soy-based products, is available in a variety of flavors and formulations. It is typically made from whole soybeans or soy protein isolate, with the addition of thickeners and vegetable oils to improve texture and taste. Soy milk works particularly well in savory recipes, coffee, and cereal, serving as a versatile alternative to cow’s milk.
Asia-Pacific Dairy Alternatives: The Impact of Urban Growth, Dietary Shifts, and Investment
The Asia-Pacific region is experiencing a surge in demand for fortified nutritional food and beverages, driven by busy lifestyles and increasing disposable incomes. This trend is accelerating the adoption of dairy alternatives, particularly soymilk, due to evolving consumer preferences. The region’s economic growth is expected to further boost the consumption of affordable and plentiful soymilk. To meet the rising interest in healthy and pasteurized dairy substitutes, food manufacturers are diversifying their soymilk offerings with unique flavors.
This analysis focuses on key countries within the region, including Japan, Australia, China, and India. Major players such as Sanitarium Health & Wellbeing Company, Freedom Foods Group Ltd., Vitasoy International Holdings Limited, and Purebates are central to the expanding dairy alternatives market. The sector is evolving rapidly due to urbanization, dietary diversification, and increased foreign investment in the food industry. Additionally, rising income levels, a growing middle class, heightened health awareness, and the demand for nutritional products are creating significant growth opportunities in the Asia-Pacific dairy alternatives market.
New Innovations in Dairy Alternatives
- In June 2023, Oatly Group AB (Sweden) launched and introduced a vegan cream cheese that is now available nationwide in the US. This oat-based cream cheese innovation comes in two flavors: Plain and Chive & Onion.
- In April 2021, SunOpta announced the acquisition of the Dream and WestSoy plant-based beverage brands from The Hain Celestial Group, Inc. The acquired brands helped the company expand its product portfolio, further accelerating growth in this business.
Key Questions Answered in the Dairy Alternatives Market Report
- Market size snapshot: How big is the dairy alternative sector?
- What are dairy alternatives market trends?
- Is there Oceania (New Zealand and Australia) specific information (market size, players, growth rate) for the global dairy alternatives market?
Top Dairy Alternatives Manufacturers
- Danone North America Public Benefit Corporation (US)
- The Hain Celestial Group, Inc. (US)
- Blue Diamond Growers (US)
- Freedom Foods Group Limited (Australia)
- Valsoia S.p.A (Italy)
- SunOpta (Canada)
- Qatly Group AB (Sweden)
- Sanitarium (New Zealand)