Dublin, Nov. 21, 2023 (GLOBE NEWSWIRE) -- The "Dairy Alternatives Market by Source (Soy, Almond, Coconut, Oats, Hemp), Application (Milk, Yogurt, Ice Creams, Cheese, Creamers), Distribution Channel (Retail, Online Stores, Foodservice), Formulation and Region - Global Forecast to 2028" report has been added to ResearchAndMarkets.com's offering.
The global market for dairy alternatives is estimated to be valued at USD 27.0 Billion in 2023 and is projected to reach USD 43.6 Billion by 2028, at a CAGR of 10.1%
This report provides valuable information to market leaders and newcomers alike, offering approximate revenue figures for both the overall dairy alternatives market and its subsegments.
Stakeholders can benefit from this report by gaining a deeper understanding of the competitive landscape, enabling them to devise more effective business strategies and go-to-market plans. Furthermore, it offers insights into the market's dynamics, including key drivers, constraints, challenges, and opportunities.
The increasing focus on health and changing consumer preferences have driven the demand for dairy alternative products. Strategies like segmentation and diversification can help boost sales of these products, targeting health-conscious consumers, vegetarians, flexitarians, and vegans. Positioning the product effectively within the dairy alternatives category and through the right sales channels is crucial.
Promotional strategies have played a pivotal role in amplifying growth prospects within this market. Brands that strategically position themselves within the dairy alternatives category, like almond milk producers, have gained popularity and witnessed substantial growth.
The surge in health consciousness and lifestyle changes have propelled the dairy alternatives market forward. Additionally, the commitment of plant-based beverage manufacturers to introduce innovative flavors, extend product shelf life, and enhance nutritional profiles bodes well for the market's projected growth. However, challenges include high production costs and limited availability of raw materials.
North America is expected to grow at a CAGR of 9.0% during the forecast period, reaching a value of USD 9.0 billion in the dairy alternatives market by 2028.
The health benefits of dairy alternatives and their widespread use in food and beverage products are driving growth in the North American dairy alternatives market.
According to the Dietary Guidelines for Americans (2020-2025), 65% of young children, 34% of adolescents, and 20% of adult Americans consume milk as a beverage. Dairy consumption in the form of cheese on items like pizzas, sandwiches, and pasta dishes is also common. However, the same source reports that around 74% of adults are overweight, with 35% being prediabetic. Cases of lactose intolerance and milk allergies are on the rise, leading to a recommendation for the consumption of low-fat and fortified soy dairy alternatives to maintain a healthy nutritional balance.
These factors, coupled with growing health awareness among consumers, are driving the dairy alternatives market in North America. Key players in the North American dairy alternatives market include The WhiteWave Foods Company (US), Archer Daniels Midland Company (US), The Hain Celestial Group, Inc. (US), Blue Diamond Growers (US), and SunOpta Inc. (Canada).
The flavored sub-segment in the formulation segment is estimated to grow at a CAGR of 10.4% during the forecast period.
The market offers a variety of flavored and sweetened dairy alternatives, including options like dairy-free yogurt, milk, and frozen desserts, in response to evolving consumer preferences and as a means for manufacturers to diversify their product offerings. The addition of flavor enhances the taste appeal of dairy alternatives such as soy, rice, and oat milk.
Furthermore, blended versions of flavored and sweetened products are in high demand. Among the available flavored plant-based products, vanilla and chocolate are the most prevalent, followed by flavors like peach, strawberry, blueberry, and mango. Companies have introduced fruit-flavored products to broaden their consumer base and expand their market presence.
For instance, Dream Frozen Yogurt by The Hain Celestial Group (US) is a notable example of a flavored and sweetened dairy alternative product. To achieve creamier textures, many product launches incorporate ingredients such as coconuts or blends like coconut and oat, along with other plant-based alternatives.
Rich dessert flavors such as hazelnut fudge brownies or blood orange mimosas can enhance non-dairy yogurts, yogurt beverages, ice cream, and frozen treats. Dairy-free flavors improve the taste and texture of alternatives. Added at the start of production, they neutralize bases, mask flavors, and add mouthfeel. Flavored, unsweetened, dairy-free options are popular due to health-consciousness and wide flavor range. Suitable for diabetics.
The dairy alternatives market distributed through online channels is projected to grow at the highest CAGR of 11.9% during the forecast period due to ease of ordering.
Numerous prominent players in the industry have embarked on the journey of offering their products for sale through online channels. This strategic move not only benefits consumers by simplifying the ordering process but also ensures convenient doorstep delivery.
Many comprehensive online platforms have transitioned to the digital realm, making it more hassle-free for consumers to make their purchases. Moreover, these virtual retailers present a diverse range of options for specific dairy-free food products, often at discounted rates in comparison to traditional brick-and-mortar retail, aimed at enticing a broader customer base.
The utilization of online services has witnessed a significant uptick in both developed and developing markets. This growth can be attributed to the swifter accessibility and cost-effectiveness that online shopping offers. Additionally, several online service providers go the extra mile by furnishing in-depth information about various gluten-free food product brands, empowering consumers to make informed choices.
Over the past decade, the surge in online shopping frequency has opened lucrative opportunities not only for established online giants but also for regional domestic e-retailers. Notable names in this domain include industry giants like Amazon, specialized platforms like Vegan Online, and health-conscious choices like Goodness Direct.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 289 |
| Forecast Period | 2023 - 2028 |
| Estimated Market Value (USD) in 2023 | $24 Billion |
| Forecasted Market Value (USD) by 2028 | $43.6 Billion |
| Compound Annual Growth Rate | 10.1% |
| Regions Covered | Global |
Premium Insights
- Rising Demand for Dairy Alternatives due to Increasing Cases of Lactose Intolerance
- Flavored Formulation and China to Account for Largest Segmental Shares in 2023
- Retail to Dominate Across Most Regions During Forecast Period
- China Dominated Dairy Alternatives Market in 2022
Case Study Analysis
- Danone North America Launched Dairy-Like Segment by Introducing Silk Nextmilk and So Delicious Wondermilk
- Blue Diamond Growers Partnered with Group Lala to Establish Network in Mexico
Market Dynamics
Macroeconomic Indicators
- Rise in Food Demand from Growing Population
- Increase in Soybean Production
Drivers
- Growth in Consumer Preference for Plant-based Diet
- Nutritional Benefits of Plant-Derived Dairy Substitutes
- Rise in Consumers Shift Toward Plant-based Nutrition
- Evolution in Dietary Lifestyles Toward Newer Trends
- Increase in Lactose Intolerance and Milk Allergy Cases
Restraints
- Volatile Prices of Raw Materials
- Allergy Concerns Among Consumers of Soy Products
Opportunities
- Emerging Markets for Premium Vegan Confections
- Effective Marketing Strategies and Correct Positioning of Dairy Alternatives
- Changes in Lifestyles and Prospects for Manufacturers in Emerging Economies
Challenges
- Limited Availability of Raw Materials
- Low Awareness Among Consumers
Industry Trends
Value Chain Analysis
- Sourcing
- Processing
- Manufacturing
- Packaging & Storage
- Distribution
- Sales Channel
Trade Analysis
- Almonds
- Soybeans
- Oats
- Rice
- Coconut
- Hemp
Technology Analysis
- Wet Processing Method for Producing Dairy Alternative Milk
- Dry Processing Method for Producing Dairy Alternative Milk
Company Profiles
Key Players
- Danone North America Public Benefit Corporation
- The Hain Celestial Group, Inc.
- Blue Diamond Growers
- Sunopta
- Freedom Foods Group Limited
- Valsoia S.P.A.
- Oatly Group Ab
- Sanitarium
- Eden Foods, Inc.
- Nutriops, S.L.
- Earth's Own
- Triballat Noyal
- Green Spot Co. Ltd.
- Hiland Dairy
- Elmhurst Milked Direct LLC
Startups/SMEs
- Ripple Foods
- Kite Hill
- Rude Health
- Califia Farms, LLC
- Panos Brands
- Pureharvest
- One Good
- Vly
- Miyoko's Creamery
- Daiya Foods Inc.
For more information about this report visit https://www.researchandmarkets.com/r/unnh76
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