Plant-Based Dairy Market Report, By Product Type (Plant-Based Milk, Plant-Based Yogurt, Plant-Based Cheese, Plant-Based Butter, Plant-Based Ice Cream), By Source (Soy, Almond, Coconut, Oat, Cashew), Packaging Type (Cartons, Bottles, Tubs, Pouches, Cups), By End-Use Application (Retail, Foodservice, Institutional, Others) and Regions 2024-2032

Market Overview:

"The global plant-based dairy market size reached US$ 13.2 billion in 2023. Looking forward, Reports and Insights expects the market to reach US$ 28.1 billion in 2032, exhibiting a growth rate (CAGR) of 9.2% during 2024-2032."

Plant-based dairy products offer consumers dairy alternatives derived from plant sources such as soy, almond, coconut, and oats. These products cater to variety of dietary preferences and needs, including lactose intolerance, veganism, and environmental concerns. Plant-based dairy solutions provide range of options, such as plant-based milk (e.g., almond milk, soy milk), yogurts, cheese alternatives, and ice cream. These mimic the taste and texture of conventional dairy while offering benefits such as reduced environmental impact, lower cholesterol, and lower carbon footprint. The market revenue continues to grow with innovative offerings, including dairy-free creamers, butters, and even plant-based versions of conventional dairy favorites such as Greek yogurt and cottage cheese.

The global plant-based dairy market is registering steady revenue growth, driven by increasing consumer demand for sustainable and healthier alternatives to conventional dairy products. Consumption of plant-based milk, yogurt, cheese, and ice cream continues to rise as people adopt vegan, lactose-free, and environmentally conscious diets, and drive market revenue growth. The market is witnessing advancements in product formulations, with an emphasis on improving taste and texture to closely mimic dairy. Initiatives promoting plant-based diets for health and environmental benefits further support revenue growth of the global market. The advantages of reduced cholesterol, lower carbon footprint, and ethical considerations are attracting consumers. In-depth analysis and insights into this dynamic market reveal its promising future.

Plant-Based Dairy Market Report Overview:

The global plant based dairy market research report provides comprehensive insights into driving factors, restraints, opportunities, and trends, with provision of in-depth supporting information, data, and statistics and actionable insights. 

Though covered and provided extensively across the report, the data and information format are simple, yet dynamic in order to ensure ease of reading and understanding, as well as presenting and maximizing leverage and use. 

Revenues and market share are provided in detail for previous years in order to showcase the evidence upon which our estimations and forecasts are based. 

Revenue growth rates and differences, as well as comparisons and relatable data are provided to further support all findings. Data points are provided for each year – from historical to end of forecast period – and this format is followed for each segment region and respective countries, as well as sub-segments and others. 

Vital details of major companies in the market are provided in the company profile section of the report. Cover includes financials, recent developments, research & development, strategies, product launches, agreements, expansion, mergers & acquisitions, and others.  

The global plant based dairy market research report is segmented on basis of product type, source, distribution channel, packaging type, end-use application, and regions and countries. Regional segmentation includes North America (United States and Canada); Europe (Germany, United Kingdom, France, Italy, Spain, Russia, Poland, BENELUX, NORDIC, and Rest of Europe); Asia Pacific (China, India, Japan, South Korea, ASEAN, Australia & New Zealand, & Rest of Asia Pacific); Latin America (Brazil, Mexico, Argentina, & Rest of Latin America); Middle East & Africa (Saudi Arabia, South Africa, United Arab Emirates, Egypt, Israel, and Rest of Middle East & Africa).

Plant-Based Dairy Market Trends and Drivers:

Growing Health and Environmental Consciousness: A key factor driving the remarkable revenue growth of the global plant-based dairy market is the steadily increasing awareness among consumers about the health benefits of plant-based diets and concerns regarding the environmental impact of conventional animal agriculture. As individuals become more health-conscious and environmentally responsible, they are increasingly turning to plant-based dairy alternatives as way to align dietary choices with values. This shift in consumer preferences is significantly contributing to the expansion of the market.

Product Innovation and Improved Taste Profiles: A pivotal trend in the plant-based dairy sector is the ongoing innovation in product formulations. Manufacturers are consistently working on enhancing the taste, texture, and nutritional profiles of plant-based dairy products. These efforts are paying off as they result in the creation of plant-based dairy items that not only meet but often exceed consumer expectations in terms of sensory appeal. The positive reception of these improved products is driving force behind the revenue growth of the market.

Rising Vegan and Lactose-Intolerant Populations: The global increase in the number of individuals adopting vegan lifestyles and those who are lactose intolerant is major market driver. Plant-based dairy provides convenient and nutritious alternative for these significant consumer segments. This expanding customer base is contributing significantly to the upward trajectory of revenue in the plant-based dairy market.

Expanding Retail Availability: Another critical factor boosting revenue growth of the plant-based dairy market is the widespread availability of these products in mainstream retail outlets. The strategic placement of plant-based dairy items alongside conventional dairy offerings on store shelves makes it more convenient for consumers to explore and embrace plant-based options. Increased accessibility of these products is key driver of sales and revenue.

Strategic Partnerships and Acquisitions: Major players in the food industry are recognizing the potential of the plant-based dairy market and are entering the arena through strategic partnerships and acquisitions of established plant-based brands. This influx of resources, expertise, and expansive distribution networks is further supporting market revenue growth, enabling companies to reach broader audience and drive revenue.

Government Support and Sustainable Initiatives: Government initiatives promoting sustainable agriculture and advocating for reduced meat and dairy consumption due to environmental concerns are closely aligning with prevailing market trends. This governmental support is encouraging the broader adoption of plant-based dairy products. As sustainability and environmental considerations increasingly influence consumer choices, these initiatives positively impact the market's revenue trajectory.

What factors are restraining the growth of plant-based dairy market?

Competitive Pricing of Traditional Dairy: The affordability of conventional dairy products can hamper the growth of plant-based dairy. Price-conscious consumers may choose conventional options, affecting the market's revenue potential.

Product Imitation Challenges: Some plant-based dairy alternatives struggle to replicate the exact taste and texture of conventional dairy, potentially dissuading consumers who seek close match.

Nutritional Variability: Variability in the nutritional profiles of plant-based dairy products can be restraint. Consumers may be concerned about getting the same essential nutrients found in conventional dairy, impacting product adoption.

Allergen Sensitivities: Allergens present in some plant-based ingredients (e.g., nuts, soy) can limit market revenue growth, as individuals with allergies may avoid these alternatives.

Limited Shelf Life: Certain plant-based dairy products may have shorter shelf lives compared to conventional counterparts, leading to concerns about product freshness and quality, affecting consumer confidence.

Supply Chain Disruptions: Disruptions in the supply chain, including fluctuations in the availability and cost of plant-based ingredients, can impact production and pricing, thereby affecting market dynamics and revenue growth.

What are the opportunities for leading plant-based dairy manufacturers?

Diverse Product Portfolio: Solutions providers can diversify product offerings by developing a wide range of plant-based dairy alternatives, including milk, yogurt, cheese, butter, and ice cream. Meeting the diverse preferences of consumers allows for multiple revenue streams in the plant-based dairy market.

Customization and Branding: Offering customization options and private labeling services to food companies looking to enter the plant-based dairy sector can be lucrative opportunity. Solutions providers can help brands create unique products that cater to specific consumer segments and enhance brand identity.

Ingredient Supply: Providing stable and sustainable supply chain of plant-based ingredients such as soy, almond, coconut, and oats to food manufacturers is significant opportunity. Reliable ingredient sourcing ensures smooth production and is vital for the success of plant-based dairy products.

Packaging Solutions: Developing eco-friendly and sustainable packaging solutions tailored for plant-based dairy products is in high demand. As environmental consciousness grows, solutions providers can offer innovative packaging options, creating new revenue stream while supporting sustainability goals.

Research and Development Services: Investing in research and development to improve the taste, texture, and nutritional profiles of plant-based dairy products is crucial. Solutions providers can offer R&D services to food companies seeking to enhance the quality of plant-based offerings, generating revenue through consultation and product development.

Export and Global Expansion: Exploring opportunities for export and expanding into emerging markets where plant-based diets are gaining popularity can be lucrative avenue. Solutions providers can help manufacturers navigate international regulations, adapt products to local tastes, and facilitate market entry, generating revenue through market revenue growth services.

Plant-Based Dairy Market Analysis at Regional Level:

Regional analysis of the global plant-based dairy market reveals key regions and countries with significant potential. The global plant-based dairy market registers regional disparities in terms of revenue, demand, and consumer preferences driven by distinct developments. North America and Europe are prominent markets, with consumers increasingly preferring plant-based dairy due to health and environmental concerns. In the Asia-Pacific region, countries such as China and India are witnessing soaring demand supported by population growth, health-consciousness, and innovations in plant-based products. Latin America and the Middle East & Africa are emerging markets, with increasing acceptance of plant-based options. As consumer preferences continue to evolve, these regions hold immense potential for revenue growth and market revenue growth.

North America:

North America dominates the global plant-based dairy market, with a substantial market share. Consumers in the United States and Canada increasingly opt for plant-based dairy alternatives due to health consciousness, environmental concerns, and lactose intolerance. The region has strong revenue growth, driven by innovations, expanding product portfolios, and rising awareness. Government initiatives promoting sustainable agriculture further support the market.

Europe:

Europe follows closely, with robust revenue growth attributed to eco-conscious consumers in countries such as Germany and the UK. Plant-based dairy market share is expanding as Europe governments promote sustainability and health through dietary shifts. The industry is witnessing innovations, including plant-based cheeses and yogurts, catering to evolving consumer preferences.

Asia Pacific:

Asia Pacific represents a high-potential market, considerably in China and India, where population growth and dairy consumption are driving revenue growth. Consumers in these countries seek healthier and sustainable alternatives, supporting the plant-based dairy market forward. Industry growth is further supported by local product variations and governmental incentives for plant-based agriculture.

Latin America:

Latin America is emerging as promising market, with Brazil and Mexico demonstrating substantial potential. Increasing health awareness and dietary shifts towards plant-based options contribute to revenue growth. Developments include regional plant-based dairy brands, and governments are endorsing sustainable practices that align with market revenue growth.

Middle East & Africa:

The Middle East & Africa exhibit gradual acceptance of plant-based dairy, with consumer preferences shifting toward healthier choices. Revenue growth is steady, with developments such as localized plant-based offerings and collaborations between international and local players. Governments supporting sustainable agriculture and dietary diversity initiatives are aiding the market revenue growth.

Why is the US the largest market for plant-based dairy in North America region? 

The United States holds the distinction of being the largest market for plant-based dairy due to confluence of factors that have supported adoption of these alternatives. Increasing American population is embracing plant-based diets, driven by health-consciousness, concerns about animal welfare, and environmental sustainability. This shift in dietary preferences is significantly boosting demand for plant-based dairy products.

In addition, the United States has well-established dairy industry and robust consumer market for dairy products. As plant-based dairy options increasingly mimic the taste and texture of conventional dairy, these have found receptive audience among consumers looking for alternatives. The presence of various dairy companies and retailers actively investing in and promoting plant-based dairy options further solidifies the market's dominance.

Stringent regulations and labeling standards in the U.S. ensure that plant-based dairy products meet quality and safety criteria, which enhances consumer trust. This regulatory framework provides conducive environment for the growth of the plant-based dairy market.

Moreover, the U.S. is hub for food innovation, and this extends to plant-based dairy. Continuous research and development efforts have led to the creation of increasingly palatable and nutritionally balanced plant-based dairy products, further driving consumer adoption.

Which key trends drive the plant-based dairy market in Europe?

Various key trends are expected to drive plant-based dairy sales in Europe in the coming years. Sustainability remains a significant trend in the region, with consumers increasingly gravitating towards eco-friendly products. Plant-based dairy, often perceived as a more sustainable choice compared to conventional dairy, aligns perfectly with this trend.

In addition, rising awareness of health and wellness is supporting demand for plant-based dairy. Consumers in Europe are embracing plant-based options as they perceive these to be healthier, lower in cholesterol, and better for managing various dietary restrictions, such as lactose intolerance.

Moreover, product innovation plays pivotal role. Europe consumers are eager to explore diverse and high-quality plant-based dairy products. Manufacturers are responding with innovative offerings, including plant-based yogurts, cheeses, and milk alternatives, which cater to local tastes and preferences.

Furthermore, the influence of veganism and flexitarianism continues to grow across Europe. As more individuals embrace these lifestyles, they seek out plant-based dairy products as staple in diets, further boosting sales.

Partnerships and collaborations between plant-based dairy brands and conventional dairy companies are on rise. This convergence of the two sectors is expected to contribute to the accessibility and visibility of plant-based dairy products in Europe, expanding market reach and sales.

Why is investment in China and India key to growth of the Asia Pacific plant-based dairy market? 

Investing in China and India is pivotal to the growth of the global plant-based dairy market due to various reasons. These countries are home to substantial portion of the world's population, with rapidly increasing middle class that has been steadily increasing its consumption of dairy products. As awareness of health and environmental concerns rises, there is increasing preference for plant-based dairy alternatives in both China and India.

In addition, government initiatives and regulations in these countries are increasingly supporting adoption of plant-based diets and sustainable agricultural practices. India, for instance, has rich tradition of vegetarianism, and the Indian government is actively promoting the consumption of plant-based foods. In China, the government has also introduced policies to reduce meat consumption and encourage the development of plant-based alternatives.

Moreover, investing in production facilities and distribution networks in China and India can significantly reduce manufacturing costs. The cost-effectiveness of producing plant-based dairy products in these markets makes it economically viable for both local consumption and export, driving the global growth of plant-based dairy.

Furthermore, technological advancements and innovations in plant-based dairy production are flourishing in these regions. Local companies are developing unique products and flavors that cater to the preferences of Chinese and Indian consumers while contributing to the overall advancement of the global plant-based dairy market.

Which countries in Latin America will be at the forefront of growth for plant-based dairymanufacturers?

In Latin America, various countries present lucrative opportunities for plant-based dairy providers due to a combination of favorable factors. Brazil stands out as one of the most promising markets in the region. It has a substantial population, a strong dairy industry, and an increasing number of health-conscious consumers seeking plant-based alternatives. Moreover, the Brazilian government's support for sustainable agriculture and dietary diversity aligns well with the growth of plant-based dairy.

Mexico is another attractive market. It has a significant dairy industry, and consumers are increasingly adopting plant-based diets due to health considerations and environmental awareness. The proximity to the United States, where plant-based dairy has gained popularity, also positively influences the Mexican market.

Chile offers opportunities due to its strong economy and increasing demand for plant-based products. Chilean consumers are progressively adopting plant-based diets, driven by health consciousness and environmental concerns. The country's well-developed retail sector makes it accessible for plant-based dairy providers to reach broad consumer base.

Colombia and Argentina are also key markets in Latin America. These countries have sizeable dairy industries and are registering shift towards plant-based alternatives as consumers become more health-conscious and environmentally aware. Local dairy producers are increasingly incorporating plant-based products into portfolios, further boosting the market's potential.

What is the outlook on theplant-based dairy market in Middle East Africa?

The outlook for plant-based dairy providers in the Middle East and Africa (MEA) region is characterized by both opportunities and challenges. While the MEA region has conventionally been consumer of dairy products, there is gradual shift towards plant-based alternatives driven by factors such as health consciousness, lactose intolerance, and environmental concerns.

Opportunities in the MEA region include significant population base and increasing awareness of health and sustainability. Countries such as UAE, Saudi Arabia, and South Africa are registering an increase in demand for plant-based dairy products as consumers seek healthier and eco-friendly options. In addition, local companies are entering the plant-based market, creating opportunities for collaboration and market revenue growth.

However, there are challenges to overcome, including limited awareness and availability of plant-based dairy, preference for conventional dairy in some regions, and economic factors that may affect pricing and affordability. Furthermore, extreme temperatures and harsh climatic conditions in parts of the MEA region can impact the shelf life and quality of plant-based dairy products, necessitating innovative packaging and distribution solutions.

Leading Plant-Based Dairy Manufacturers & Competitive Landscape:

The competitive landscape of the global plant-based dairy market is evolving rapidly, characterized by intense competition among mix of established dairy companies, specialized plant-based dairy providers, and new entrants. The market revenue growth is driven by increasing consumer demand for healthier and sustainable dairy alternatives.

Danone (Dairy Division): Danone is major player in both the conventional dairy and plant-based dairy sectors. Through its subsidiary, Danone North America, it owns popular brands such as Silk and So Delicious. Danone's extensive portfolio and global reach make it dominant force in the market.

Nestlé: Nestlé, global food and beverage giant, has been actively expanding its plant-based dairy offerings through brands such as Garden Gourmet and Wunda. Its vast resources and distribution network position it as key player in the market.

The Kraft Heinz Company: Kraft Heinz has ventured into the plant-based dairy market with products such as Planters NUT-rition and Classico Riserva sauces. Leveraging its brand recognition, the company has competitive presence.

These leading providers have established themselves through combination of product innovation, brand recognition, and strategic acquisitions. They are well-positioned to meet increasing demand for plant-based dairy products. In addition, new entrants and startups continue to enter the market, introducing novel ingredients and flavors, which further intensifies competition.

The competitive landscape of the plant-based dairy market is dynamic, with companies continuously seeking to differentiate themselves by offering broader range of products, enhancing taste and texture, and addressing sustainability concerns. As consumer preferences for plant-based alternatives continue to grow, the market is expected to register further expansion and innovation among both established and emerging players.

Company List:

• Danone (Dairy Division)
• Nestlé
• Kraft Heinz Company
• Oatly
• Califia Farms
• Daiya Foods (A Subsidiary of Otsuka Pharmaceutical)
• Blue Diamond Growers (Almond Breeze)
• Silk (A Danone North America Brand)
• So Delicious Dairy Free (A Danone North America Brand)
• Alpro (A Danone Company)
• Good Karma Foods
• Ripple Foods
• Earth's Own (Happy Planet)
• Forager Project
• Elmhurst 1925

Research Scope

Report Metric	Report Details
Market size available for the years	2021-2032
Base Year	2023
Forecast Period	2024-2032
Compound Annual Growth Rate (CAGR)	9.2%
Segment covered	Product Type, Source, Distribution Channel, Packaging Type, End-Use Application, and Region
Regions Covered	North America: The U.S.Canada Europe: Germany, The U.K., France, Spain, Italy, Russia, Poland, BENELUX, NORDIC, Rest of Europe Asia Pacific: China, India, Japan, Australia New Zealand, ASEAN, & Rest of Asia Pacific Latin America: Brazil, Mexico, Argentina, Rest of Latin America The Middle East Africa: Saudi Arabia, United Arab Emirates, South Africa, Egypt, Israel, and Rest of MEA
Fastest Growing Country in Europe	Germany
Largest Market	North America
Key Players	Danone (Dairy Division), Nestlé, Kraft Heinz Company, Oatly, Califia Farms, Daiya Foods (A Subsidiary of Otsuka Pharmaceutical), Blue Diamond Growers (Almond Breeze), Silk (A Danone North America Brand), So Delicious Dairy Free (A Danone North America Brand), Alpro (A Danone Company), Good Karma Foods, Ripple Foods, Earth's Own (Happy Planet), Forager Project, Elmhurst 1925

Market Segmentation:

By Product Type:

• Plant-Based Milk
• Plant-Based Yogurt
• Plant-Based Cheese
• Plant-Based Butter
• Plant-Based Ice Cream

By Source:

• Soy
• Almond
• Coconut
• Oat
• Cashew

By Distribution Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• Online Retail
• Specialty Stores
• Others

By Packaging Type:

• Cartons
• Bottles
• Tubs
• Pouches
• Cups

By End-Use Application:

• Retail
• Foodservice
• Institutional
• Others

Segmentation By Region:

North America:

• United States
• Canada

Asia Pacific:

• China
• India
• Japan
• Australia New Zealand
• Association of Southeast Asian Nations (ASEAN)
• Rest of Asia Pacific

Europe:

• Germany
• The U.K.
• France
• Spain
• Italy
• Russia
• Poland
• BENELUX (Belgium, the Netherlands, Luxembourg)
• NORDIC (Norway, Sweden, Finland, Denmark)
• Rest of Europe

Latin America:

• Brazil
• Mexico
• Argentina
• Rest of Latin America

The Middle East Africa:

• Saudi Arabia
• United Arab Emirates
• South Africa
• Egypt
• Israel
• Rest of MEA (Middle East Africa)