The 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. The growing trend of utilizing plant-based product content in a beverage for people suffering from milk allergy, lactose intolerance, and phenylketonuria will fuel the business growth. 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.
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.
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.
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.