Plant-based Dairy Market Research Report By Product Type (Plant-Based Milk, Plant-Based Yogurt, Plant-Based Cheese, Plant-Based Butter, Plant-Based Ice Cream), By Base Ingredient (Soy, Almond, Cashew, Coconut, Oat, Rice), By Distribution Channel (Supermarkets and Hypermarkets, Online Retailers, Health Food Stores, Independent Grocers, Foodservice), By Application (Beverages, Dairy Products, Bakery Products, Confectionery Products, Vegan Cuisine) and By Regional (North America, Europe, South America, Asia-Pacific, Middle East and Africa) - F

Global Plant-based Dairy Market Overview

Plant-based Dairy Market Size was estimated at 30.24 (USD Billion) in 2022. The Plant-based Dairy Industry is expected to grow from 33.08(USD Billion) in 2023 to 74.2 (USD Billion) by 2032. The Plant-based Dairy Market CAGR (growth rate) is expected to be around 9.39% during the forecast period (2024 - 2032).

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Key Plant-based Dairy Market Trends Highlighted

The plant-based dairy market exhibits several significant market trendsKey market drivers include rising veganism and flexitarian diets, growing health consciousness among consumers, and environmental concerns. Opportunities lie in expanding distribution channels, product innovation, and targeting specific consumer segments, such as lactose-intolerant individuals.Recent trends reveal a surge in demand for plant-based cheese and yogurt, driven by advancements in taste and texture. Additionally, there is a growing interest in fortified plant-based dairy products that cater to specific nutritional needs, such as those targeting calcium and protein intake. The market is also witnessing increased collaborations between plant-based dairy manufacturers and food service providers, aiming to expand distribution channels and reach a wider consumer base.

plant-based Dairy Market Drivers

Rising Demand for Plant-Based Alternatives

One of the trends that have been affecting the dairy market is the demand for more plant-based alternatives. A lot of people are adopting vegan and flexitarian diets, and, as a result, the popularity of plant-based dairy products is increasing. This can be attributed to the fact that more people these days are trying to make healthier food choices and implement sustainable food consumption practices. Thus, more individuals these days understand the health and environmental benefits of consuming plant-based alternatives, which include lower cholesterol levels and risk of heart disease, as well as a smaller carbon footprint.Plant-based milk, such as almond milk, soy milk, and oat milk, are becoming more popular among consumers. Another factor that potentially influences the dairy market is the expansion of the vegan food industry. As more people decide to switch to a vegan diet, they also seek vegan alternatives to their favorite dairy foods.

Technological Advancements and Innovation

Growing usage of technological advancements is one of the major factors expected to boost the  plant-based Dairy Market Industry. To grow and achieve market leading position, companies currently focus on plant-based ingredients. The introduction of new plant-based ingredients and formulations is the key to the loop of product development occurring in the plant-based dairy market. For example, Naya Foods, Inc. offers dairy alternatives such as plant-based cheese and butter using pea protein and sunflower oil.This factor is expected to have a significant impact in the near future. Increased availability of plant-based products in various formats such as yogurt, ice cream, and spread is higher.

Government Support and Regulations

The plant-based Dairy Market Industry is growing thanks to a favorable environment created by government initiatives and regulations. Most of the governments realize the importance of the healthier and more sustainable diets. The development of a plant-based dairy food business is supported by this idea. For example, the European Union set goals for the member states to lower meat consumption and increase the consumption of plant-based dairy food.Governments also help farmers and manufacturers by providing them with financial support.

Plant-based Dairy Market Segment Insights

Plant-based Dairy Market Product Type Insights

The plant-based dairy market consists of different products, and the most remarkable one is Plant-Based Milk. Its popularity can be easily explained by the increasing demand for alternatives to cow milk. Technically, this concept is quite broad and may describe almond milk, peanut milk, oat milk, soy milk, and much more. Their high demand is closely associated with the healthy diet trend, but it is not the only reason. Along with this, the expanding popularity of vegan and flexitarian diets also increased the demand for such products.While there is no disputing the fact that cow milk contains more protein than alternatives like almond, soy, oat, or pea, and more vitamins and minerals rival nut and oat milk, the alternatives are still very popular. Another remarkable product type is Plant-Based Yogurt, which is growing in demand due to the  popularity of probiotics and increasing cases of immunologic conditions related to milk intolerance; yet another product type is Plant-Based Cheese which hold a significant market share.This product type ensures the fulfillment of the demand for cheese that can substitute traditional dairy cheese but is completely vegan. 

The most recent advances in its production technology led to the development of a range of new products that taste and melt like conventional cheese. Plant-Based Butter and Plant-Based Ice Cream are new and promising product categories. The former is healthier than traditional butter as it contains fewer saturated fats and cholesterol. The latter is usually lower in calories than a traditional product type, so it is popular with the target audience.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

plant-based Dairy Market Base Ingredient Insights

The plant-based Dairy Market is segmented by base ingredient into soy, almond, cashew, coconut, oat, and rice. Soy is expected to be the largest market segment by the end of 2023 by size, reaching a market value of 15.67 billion USD, according to Anticipate Market Research. This is due to the fact that soy is versatile and has a high protein content. Furthermore, it is already used in many meat and dairy imitations, such as tofu, non-dairy yogurts, and non-dairy cheese. Almond is expected to be the second largest segment by size, reaching a market value of 8.9 billion USD in 2023.The popularity of almond milk continues to grow, as does the popularity of other dairy imitations made from almonds. Cashews, coconut, oats, and rice are also gaining popularity. Overall, the market for plant-based dairy is expected to grow significantly in the coming years. This is due to the growing awareness of the high levels of cholesterol and unhealthy fats in traditional dairy and the harm the dairy industry does to the environment.

plant-based Dairy Market Distribution Channel Insights

The Plant-based Dairy Market is segmented based on distribution channels into supermarkets and hypermarkets, online retailers, health food stores, independent grocers, and food service. Supermarkets and hypermarkets are expected to account for the largest share of the market in 2023, owing to the wide variety of plant-based dairy products they offer and their convenient locations. Online retailers are expected to grow at the fastest CAGR during the forecast period due to the increasing popularity of online shopping and the growing number of consumers who prefer to purchase plant-based dairy products online.Health food stores are expected to account for a significant share of the market, as they offer a wide range of plant-based dairy products and cater to the needs of health-conscious consumers. Independent grocers are expected to hold a small share of the market, but they are expected to grow at a steady rate during the forecast period. Food service is expected to account for a small share of the market, but it is expected to grow at a moderate rate during the forecast period as more restaurants and food service establishments offer plant-based dairy products.

Plant-based Dairy Market Application Insights

The Application segment of the Plant-based Dairy Market is expected to witness substantial growth in the coming years, driven by the rising popularity of plant-based diets and the increasing demand for dairy alternatives. Among the various applications, the Beverages segment is projected to hold a significant market share, with revenue expected to reach USD 18.2 billion by 2024. This growth is attributed to the growing consumer preference for plant-based milk, yogurt drinks, and other beverages that offer health benefits and are lactose-free.The Dairy Products segment is also anticipated to experience steady growth, with a focus on plant-based cheese, butter, and ice cream. Bakery Products and Confectionery Products are other notable applications, catering to the demand for vegan baked goods and desserts. Notably, the Vegan Cuisine segment is gaining traction as more consumers adopt a fully plant-based lifestyle, leading to the development of innovative plant-based dairy products tailored to this dietary preference.

The plant-based Dairy Market is segmented on the basis of region into North America, Europe, APAC, South America, and MEA. Among these regions, North America is expected to dominate the market in 2023, with a market share of around 38.0%. The market in Europe is expected to follow North America, with a market share of around 29.0%. The market in APAC is expected to grow at the highest CAGR during the forecast period, with a CAGR of around 10.0%. The market in South America and MEA is expected to grow at a moderate pace during the forecast period.The growth of the Plant-based Dairy Market in these regions is attributed to the increasing awareness of the health benefits of plant-based dairy products, the growing vegan population, and the increasing availability of plant-based dairy products in retail stores.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Plant-based Dairy Market Key Players And Competitive Insights

Leading players in the plant-based dairy Market industry are employing varied strategies to gain a strong foothold in the market. Partnerships, acquisitions, mergers, and product launches are some of the strategies being adopted by the players in the plant-based dairy market. Key players in the plant-based dairy Market are constantly investing in R and innovations to offer something new to their clients. For example, in 2023, Oatly, one of the leading plant-based dairy Market players, launched its new ice creams in the European region in frozen grids of texture, scooping kind, Thaw-and-spoon, and varieties Tub. The new launch extended Oatly's product range and gave an entry to the new frozen desserts market. Likewise, the remaining key players in the plant-based-Dairy Market also focus on varieties of products that will cater to the needs of various consumers.As a leading player in the plant-based-Dairy Market industry, Danone is mainly focusing on acquisitions to capture the market and extend product range for its clients. For example, in 2017, Danone completed the acquisition of WhiteWave Foods, a famous organic food product company with a strong foothold in plant-based food products in the United States, such as Silk, Alpro, and So Delicious. The acquisition of WhiteWave Foods has extended the product range of the company and serves as an opportunity to expand globally. Danone has also invested in start-ups such as Forager Project to increase its product line. Another major player, Nestlé, focuses on organic growth and maintains its business through partnerships. Nestlé holds major shares in the plant-based dairy Market industry and focuses on consumers in the United States. The company has signed a partnership with Starbucks to supply its Plant-based dairy products in the latter's retail stores.

Key Companies in the Plant-based Dairy Market Include

• Califia Farms


• Bonsoy


• Kite Hill


• So Delicious Dairy Free


• Evol Foods


• Miyoko's Creamery


• Tyson Foods


• Ripple Foods


• Oatly


• Forager Project


• Beyond Meat


• Impossible Foods


• Nestlé


• Danone


• Daiya Foods

Plant-based Dairy Market Industry Developments

The plant-based dairy market is projected to reach USD 74.2 billion by 2032, exhibiting a CAGR of 9.39% during the forecast period (2024-2032). Rising veganism, increasing health consciousness, and growing demand for sustainable food products are driving market expansion. Major players are investing in product innovation and expanding their distribution channels to cater to the growing consumer base. Recent developments include the launch of new plant-based milk, yogurt, and cheese alternatives by leading brands like Oatly, Danone, and Miyoko's Creamery. The market is also witnessing strategic partnerships and acquisitions to strengthen market presence and gain access to new technologies. For instance, in 2023, The Kraft Heinz Company acquired a majority stake in plant-based cheese manufacturer Kite Hill.

Plant-based Dairy Market Segmentation Insights

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  Plant-based Dairy Market Product Type Outlook

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

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  Plant-based Dairy Market Base Ingredient Outlook

  
  
  
  
  • Soy
  
  
  • Almond
  
  
  • Cashew
  
  
  • Coconut
  
  
  • Oat
  
  
  • Rice
  
  
  
  

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  Plant-based Dairy Market Distribution Channel Outlook

  
  
  
  
  • Supermarkets and Hypermarkets
  
  
  • Online Retailers
  
  
  • Health Food Stores
  
  
  • Independent Grocers
  
  
  • Foodservice
  
  
  
  

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  Plant-based Dairy Market Application Outlook

  
  
  
  
  • Beverages
  
  
  • Dairy Products
  
  
  • Bakery Products
  
  
  • Confectionery Products
  
  
  • Vegan Cuisine
  
  
  
  

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  Plant-based Dairy Market Regional Outlook

  
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia-Pacific
  
  
  • Middle East and Africa