Dairy Alternatives Market is estimated to surpass USD 37.5 billion by 2025; according to a new research report by Global Market Insights, Inc.
The growing demand for dairy-free products across various end-use industries such as cheese, desserts, snacks, and beverages are steering the industry growth. Increasing intake of dairy alternatives by vegan population coupled with rise in patients suffering from lactose intolerance, milk allergies, and calorie concerns will bolster the product adoption in beverage applications.
The beverage segment dominates the industry and anticipated to reach around USD 33 billion in 2025. Dairy alternative products that are derived from soy and almond cater to a wide range of beverage applications. The use of dairy free products enhances the texture and creaminess of flavored milk, shakes, and smoothies which increases the desirability quotient of beverages, thereby increasing product demand.
Manufacturers are focusing on the adoption of sustainable practices such as optimizing their network with farmers, energy & waste management, and the utilization of industry by-products as raw materials. They are also developing products in line with stringent regulations of governing bodies, thereby aiding product growth over the forecast timeline.
Coconut is expected to witness a significant growth at over 10% up to 2025. Coconut milk is commonly used dairy milk substitute having a creamy texture with a relatively high amount of fat content. It offers benefits such as increased levels of HDL cholesterol in the body, efficient weight management, and protection from cardiovascular diseases. These factors are expected to fuel the segment demand over the forthcoming years.
The unsweetened segment constitutes a major share in the dairy alternatives industry. The segment does not contain added sugar or sweetening agents, which typically accounts for half of the calorie contents found in cow’s milk. Increasing intake of this light-tasting substitute by diabetic patients for maintaining a healthy diet will be a key factor driving the segment growth.
Online stores emerged as the fastest growing distribution channel. The online services sector has gained momentum in both developed and developing countries owing to cost-effectiveness and faster accessibility. The increasing popularity of online sales channels is creating potential opportunities for segment growth over the forecast timeframe.
North America dairy alternatives market accounts for over 25% share and expected to witness significant gains over the forecast timeline. The escalating number of patients with allergies and nutritional deficiency will result in dairy alternative products demand across the region. Changing eating habits and lifestyle owing to rising adult population suffering from obesity and diabetes in the U.S. and Canada will further drive the plant-based rice and almond milk products demand.
The global dairy alternatives market is highly competitive owing to the presence of a few dominating companies including Whitewave Foods, Hain Celestial Group, Inc., Blue Diamond Growers, SunOpta Inc., New Barn. Other prominent players in the industry include Triballat Noyal, Califia Farms, Valsoia S.p.A, Freedom Foods, and Pacific Foods. Strategic initiatives such as new product launches, geographical expansions, R&D investments, and mergers & acquisitions help the industry participants explore the untapped business potential. Industry players resort to supply chain agreements with dealers and distributors to ensure efficient flow of products.