The global Dairy Alternative Market is estimated to be valued at US$26.01 billion in 2022 and is expected to exhibit a CAGR of 12.6% over the forecast period of 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The Dairy Alternative Market offers a variety of plant-based products that serve as alternatives to traditional dairy products such as milk, cheese, butter, and yogurt. These products are gaining popularity among health-conscious consumers due to their various advantages. Dairy alternatives are usually lactose-free, making them suitable for individuals with lactose intolerance. Additionally, they are often lower in calories and fat than dairy products, making them a preferred choice for those watching their weight. The increasing awareness about the health benefits associated with dairy alternatives is driving market growth.

Market Key Trends:

A key trend in the Dairy Alternative Market is the rising demand for plant-based milk alternatives. This trend is driven by the growing number of individuals adopting vegan or vegetarian lifestyles, as well as those who are lactose intolerant. Plant-based milk alternatives, such as almond milk, soy milk, and oat milk, offer similar nutritional profiles to dairy milk while providing a variety of flavors and textures. Moreover, these alternatives are often fortified with additional vitamins and minerals, further enhancing their appeal. The growing popularity of plant-based milk alternatives is expected to continue driving the growth of the Dairy Alternative Market in the coming years.

Porter’s Analysis:

• Threat of New Entrants: The dairy alternative market is expected to witness a moderate threat of new entrants. Although the market is attractive due to its high growth rate and increasing consumer demand for plant-based products, the presence of well-established key players and high brand loyalty pose barriers to entry for new companies.
• Bargaining Power of Buyers: The bargaining power of buyers in the dairy alternative market is relatively high. Consumers have a wide range of options to choose from, including various plant-based milk products and other dairy alternatives. This puts pressure on companies to differentiate their products and offer competitive pricing to attract and retain customers.
• Bargaining Power of Suppliers: The dairy alternative market is characterized by a moderate bargaining power of suppliers. Suppliers of raw materials such as nuts, grains, and soybeans have some leverage as they provide the essential ingredients for dairy alternative products. However, the availability of alternative suppliers and the ability of companies to vertically integrate their supply chains can mitigate this power.
• Threat of New Substitutes: The threat of new substitutes in the dairy alternative market is relatively low. While there may be some niche substitutes emerging in the future, dairy alternatives have become increasingly popular as a healthier and more sustainable alternative to traditional dairy products. This trend is expected to continue, reducing the likelihood of consumers switching back to dairy.
• Competitive Rivalry: The competitive rivalry in the dairy alternative market is high. The market is crowded with key players, each trying to gain a larger market share. This intense competition leads to aggressive marketing strategies, product innovation, and mergers and acquisitions to stay ahead in the market.

Key Takeaways:

The global Dairy Alternative Market Size is expected to witness high growth, exhibiting a CAGR of 12.6% over the forecast period of 2023-2030. This growth is primarily driven by the increasing consumer awareness regarding the health benefits associated with plant-based products and the rising demand for lactose-free and vegan food options.

From a regional perspective, North America is anticipated to be the fastest-growing and dominating region in the dairy alternative market. The region has a high adoption rate of plant-based diets, driven by factors such as health concerns, environmental sustainability, and animal welfare. The presence of key players and favorable government regulations further support the market growth in North America.

Key players operating in the dairy alternative market include The Whitewave Foods Company, SunOpta, Hain Celestial, Pascual Group, Elden’s Fresh Foods & Media Solutions Corp., Healthy Brands Collective, Earth’s Own Food Company Inc., Blue Diamond Growers, Freedom Foods Group, Oatly AB, Stremick’s Heritage Foods, and Vitasoy Holdings Limited. These companies focus on product innovation, strategic partnerships, and geographical expansion to strengthen their market position and gain a competitive edge.

In conclusion, the dairy alternative market is poised for substantial growth in the coming years, driven by factors such as increasing consumer awareness, changing dietary preferences, and advancements in technology. This presents significant opportunities for key players to capitalize on and expand their market presence.