Dairy Alternatives Market to Grow by USD 23 Billion from 2024-2028, Boosted by Organized Retail Growth and AI's Impact on Market Trends - Technavio

NEW YORK, Oct. 17, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape - The Global Dairy Alternatives Market size is estimated to grow by USD 23 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 12%  during the forecast period. growth of organized retail sector is driving market growth, with a trend towards growing influence of online retailing. However, distribution challenges in packaged food and beverages sector  poses a challenge - Key market players include Archer Daniels Midland Co., Blue Diamond Growers, Borges Agricultural and Industrial Nuts SA, Califia Farms LLC, Campbell Soup Co., Danone SA, Dohler GmbH, Earths Own Food Co. Inc., Eden Foods Inc., GreenSpace Brands Inc., J M Huber Corp., Living Harvest Foods, MALK Organics, Mariani Nut Co., Oatly Group AB, Otsuka Holdings Co. Ltd., PANOS Brands LLC, PepsiCo Inc., Sanitarium, SunOpta Inc., Tate and Lyle PLC, and Vitasoy International Holdings Ltd..

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Market Driver

The global dairy alternatives market has experienced notable growth due to the increasing popularity of e-commerce platforms. Online shopping enables customers to access a wide range of regional and international dairy alternative brands, offering various flavors and ingredients. The rise in the number of e-commerce vendors, driven by the widespread use of smartphones, significantly contributes to this trend. Major retailers like Amazon and eBay offer dairy alternatives on their platforms. Online shopping provides benefits such as personalized assistance, product comparisons, and convenience. Customers can easily compare dairy alternatives based on their content and calorie count. The convenience of online shopping, with its easy payment process and time savings, has encouraged vendors to target the Internet-savvy customer segment. This business model helps vendors reduce operating costs and overheads, making it a significant contributor to the growth of the dairy alternatives market. 

The Dairy Alternatives market is on the rise as more consumers shift towards plant-based diets and dietary restrictions. Non-dairy milk options like Oat Milk, Soy Milk, Almond Milk, Hemp Milk, and Cashew Milk are popular choices for those with lactose intolerance or milk allergies. Vegan ice cream, cheese, and yogurt are also trending, with non-dairy yogurt offering probiotics for gut health. Online stores make it easy for consumers to access these alternatives, catering to health-conscious youth, vegans, and those following ketogenic or vegan diets. Isoflavones in Soy Milk and Phytoestrogen in plant-based milks are linked to heart disease and breast cancer risk reduction. Consumer eating patterns and diet trends continue to drive the demand for nutritional, allergen-free, and flavorful non-dairy beverages. Nutritional standards ensure these alternatives provide similar nutritional benefits to their dairy counterparts. Dietary restrictions, including lactose intolerance and allergies, fuel the growth of this market. 

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 Market Challenges

• Retail stores, including supermarkets, large discount and convenience chains, have emerged as significant distribution channels for dairy alternatives and packaged food and beverage manufacturers. However, this partnership comes with challenges. Manufacturers face pressure to maintain competitive prices and margins due to retailers' lower profit margins. Retailers demand frequent, smaller product deliveries to minimize warehousing costs. To prevent revenue decline due to insufficient inventory, order fulfillment rate is a crucial factor for retailers when forming relationships with manufacturers. Manufacturers may lose business to competitors if they fail to supply enough goods for promotional initiatives and peak demand. Consumers' shifting distribution preferences towards convenience stores necessitate a balance between price and volume for manufacturers. These distribution challenges may hinder the growth of the global dairy alternatives market during the forecast period.
• The Dairy Alternatives market is experiencing significant growth due to increasing health consciousness, veganism, and lactose intolerance. Plant-based milk substitutes like Soy Milk, Almond Milk, and Oat Milk are popular choices for those with dietary restrictions or food allergies. However, challenges include allergen cross-contamination and nutritional value, which can vary greatly between brands. As the vegan population grows and dietary preferences shift towards flexitarianism, the demand for non-dairy products continues to rise. Raw materials, such as legumes, nuts, and cereals, face raw material scarcity and price volatility. Health-conscious consumers seek fortified foods and functional ingredients, while taste profiles and sustainability are also important considerations. Homogenization and thermal treatments are common processing methods, but can impact nutritional value and taste. Animal welfare and environmental concerns, including greenhouse gas emissions and hormones in animal husbandry, are driving demand for sustainable dairy alternatives. Food allergens, such as soy, nuts, and coconut, can pose challenges for manufacturers, requiring strict production protocols to prevent cross-contamination. Innovation in the Dairy Alternatives market includes new plant-based milk substitutes, such as rice milk and legume-based alternatives, and the use of functional ingredients to enhance nutritional value and taste. The market is expected to continue growing, driven by increasing consumer demand and technological advancements.

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This dairy alternatives market report extensively covers market segmentation by  

1. Distribution Channel
• 1.1 Supermarkets and hypermarkets
• 1.2 Convenience stores
• 1.3 Online retail
• 1.4 Others
2. Product 
• 2.1 Beverages-based dairy alternatives
• 2.2 Food-based dairy alternatives
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Supermarkets and hypermarkets-  Supermarkets and hypermarkets offer several advantages to consumers, including discounted prices from direct purchases, a vast selection of options, and additional deals. The increasing popularity of dairy alternatives such as oat milk, rice milk, coconut milk, and almond milk has led buyers to prefer these retail outlets. Supermarkets provide a convenient shopping experience with ample parking, extended hours, and various payment methods. Additionally, the availability of fresh produce, bakery items, and ready-to-eat meals further enhances their appeal. The integration of online shopping platforms and home delivery services adds to the convenience, contributing significantly to the growth of the global dairy alternatives market during the forecast period.

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Research Analysis

Dairy alternatives have gained significant popularity in recent years due to health, ethical, and dietary reasons. These plant-based milk substitutes offer a healthy alternative for those with lactose intolerance, food allergies, or dietary preferences, including vegans and flexitarians. Soy milk, almond milk, oat milk, and other non-dairy products derived from legumes, nuts, and cereals are commonly used. Homogenization and thermal treatments are used to ensure consistency and shelf life. Dairy alternatives are free from animal products and offer nutritional value, including essential nutrients like calcium, protein, and vitamins. They are also sustainable and contribute to animal welfare. Isoflavones in soy milk have been linked to a reduced risk of heart disease and breast cancer. Health-conscious consumers, especially the vegan population and the health-conscious youth, are driving the demand for these products. Milk allergies are a concern for some consumers, and dairy alternatives offer a solution. Consumer eating patterns and diet trends, such as veganism, lactose intolerance, and the ketogenic diet, are also contributing to the growth of the dairy alternatives market.

Market Research Overview

Dairy alternatives have gained significant popularity in recent years due to health, ethical, and dietary reasons. These plant-based milk substitutes offer a healthy and sustainable alternative to traditional dairy products for those with lactose intolerance, food allergies, or veganism. Soy milk, almond milk, oat milk, and other non-dairy milks derived from legumes, nuts, and cereals are rich in essential nutrients, including calcium, protein, and vitamins. The vegan population and dietary preferences, including flexitarian diets, are driving the demand for these dairy alternatives. Food allergens, such as soy, nuts, and dairy, pose a challenge in ensuring nutritional value and preventing allergen cross-contamination. Homogenization and thermal treatments are used to improve taste profiles and texture. Raw material scarcity and sustainability concerns are also factors influencing the dairy alternatives market. Functional ingredients, such as isoflavones, probiotics, and phytoestrogens, are added to fortified foods to enhance nutritional benefits and reduce the risk of health issues like heart disease and breast cancer. Consumer eating patterns and diet trends, such as ketogenic and vegan diets, continue to shape the market for dairy alternatives. Non-dairy beverages, including vegan ice cream, cheese, and yogurt, are also gaining popularity, with online stores offering a wide range of options. The market for dairy alternatives is expected to grow as more people adopt dietary restrictions and seek sustainable, animal-welfare-friendly, and healthy food choices.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Distribution Channel
• Supermarkets And Hypermarkets
• Convenience Stores
• Online Retail
• Others
• Product
• Beverages-based Dairy Alternatives
• Food-based Dairy Alternatives
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio