Plant-based Dairy Market

Plant-based Dairy Market Outlook (2024 to 2034)

The global plant-based dairy market is forecasted to reach a valuation of US$ 14.7 billion in 2024 to US$ 36.69 billion by the end of 2034, according to an updated research report published by Fact.MR. Demand for plant-based dairy products is forecasted to increase at 9.6% CAGR between 2024 and 2034.

Increasing adoption of veganism is a key plant-based dairy market trend and this is estimated to boost sales of these products throughout the projection period. Some of the key factors that are driving the demand for plant-based dairy products are environmental concerns regarding dairy farming and production, increasing awareness regarding the benefits of a vegan plant-based diet, and rising availability of dairy alternatives in the global market.

Ethical concerns among people regarding the consumption of animal-based products and increasing focus on decreasing animal cruelty are other factors that are driving the adoption of plant-based diets and thus plant-based dairy product sales.

Key Market Growth Drivers

• Due to the internet and influencers, plant-based diets are gaining traction due to their advantages such as lowered cholesterol and a decreased risk of heart diseases.
• There is an increasing requirement for lactose-free alternatives as a large number of people are lactose intolerant. Because of this, the demand for plant-based dairy products increasing as they are beneficial for health.
• Consumers who are looking for sustainable food options are finding plant-based alternatives better compared to traditional dairy items as they are less harmful to the environment since they consume less energy, water, and land and emit less greenhouse gases.
• Growing concerns regarding animal welfare are driving up the adoption of vegan and vegetarian lifestyles which is contributing to the plant-based dairy market size expansion as they perfectly align with these ethical considerations.
• Innovations are ongoing in the market to increase the range of products such as milk, cheese, yogurt, ice creams, and others with improved taste, texture, and nutritional profiles.
• The availability of plant-based dairy products is increasing due to the growing number of supermarkets and online platforms globally, thereby contributing to demand growth.
• The increasing number of posts on plant-based diets by celebrities and social media influencers is driving popularity as well as market expansion.
• Demand for plant-based dairy products is rising as a preferred substitute due to the growing popularity of flexitarian diets, which allow people to cut less on animal products without completely committing to a vegetarian or vegan lifestyle.

Report Attribute	Detail
Plant-based Dairy Market Size (2024E)	US$ 14.7 Billion
Forecasted Market Value (2034F)	US$ 36.69 Billion
Global Market Growth Rate (2024 to 2034)	9.6% CAGR
East Asia Market Share (2024E)	24.5%
North America Market Value (2024E)	US$ 3.12 Billion
B2C Consumers Segment Value (2034F)	US$ 22.49 Billion
Plant-based Milk Segment Value (2034F)	US$ 9.86 Billion
Key Companies Profiled	Arla Foods; Daiya Foods Inc.; Danone S.A.; General Mills; Saputo; Chobani; Earth's Own Food Company Inc.; Unilever; Bel Group; Kraft Heinz; Sanitarium Health and Wellbeing Company; Axiom Foods Inc.; Nestle; Muller; Sahmyook Foods; Lactalis; Elmhurst 1925; 1.5 Degree; California Farms; NotCo; Planting Hope Company.

Why is the Consumption of Plant-based Dairy Products Gaining Traction Globally?

“Perfect Fit for People Suffering from Lactose Intolerance and Rising Interest in Veganism”

In the world, several people suffering from lactose intolerance which is boosting the need for plant-based dairy products continuously as they are naturally lactose-free. Lactose is the sugar that is used in conventional dairy products which is not digested by people with this illness and causes them discomfort and digestive problems. Almonds, soy, oats, and coconuts are some of the plant-based dairy substitutes that are inherently lactose-free, which makes them a great option for anyone trying to avoid unpleasant symptoms.

Other than this, manufacturers are continuously focusing on innovation in plant-based dairy products due to the rising number of individuals who are shifting their interest in veganism. Thereby, more manufacturers are expanding their portfolio with products such as plant-based milk, cheese, yogurt, and ice cream, with enhanced taste, texture, and nutritional profiles that closely mimic traditional dairy products.

What are Challenges Faced by Plant-based Dairy Product Manufacturers?

“High Production Cost and Consumers Concern Regarding Taste & Texture”

In comparison with conventional dairy products, the production costs of plant-based ones are mostly higher. The reason behind this is because of the use of high-quality ingredients such as cashews, almonds, or certain plant-based proteins along with advanced processing methods needed to produce flavors and sensations that are similar to those of dairy. All these components raise the overall cost of production and because of this, the end price of products is also high. These high costs are mostly a big turnoff for consumers who are price-conscious which is restraining plant-based dairy market growth.

Even with the progress made in plant-based dairy manufacturing methods, taste, and texture are still the key obstacles to adoption. Various consumers think they do not have an overall mouthfeel, as rich, and creamy as regular dairy does. Because of this opinion of consumers, sales growth is getting hampered.

Country-wise Insights

East Asia is estimated to account for 24.5% of the global plant-based dairy market share in 2024. The market is expanding in the region due to a growing range of products and increasing availability of plant-based dairy products in supermarkets and hypermarkets. Also, a growing vegan population, increasing health consciousness, rising demand for organic and plant-based food products, and growing availability of non-dairy milk and other dairy alternatives are further contributing to market growth in East Asia.

Why is the Demand for Plant-based Dairy Products Rising in the United States?

“Growing Popularity of Veganism, Flexitarian Diets, and Vegetarianism”

Attribute	United States
Market Value (2024E)	US$ 2.34 Billion
Growth Rate (2024 to 2034)	10.3% CAGR
Projected Value (2034F)	US$ 6.26 Billion

The demand for plant-based dairy products is increasing in the United States as a result of the rising popularity of vegetarianism, flexitarian diets, and veganism. The popularity of these products increasing as they are considered more ethical and also hold various health advantages. Dairy alternatives made from plants, such as almond milk, soy yogurt, and coconut-based cheeses, are ideal for following these dietary guidelines because they have comparable tastes and textures without containing any animal products. Plant-based dairy products are becoming more popular as several people follow these diets.

Why are Plant-based Dairy Product Suppliers Lining Up in Japan?

“Celebrity & Influencers’ Endorsements Driving Demand of Plant-Based Products”

Attribute	Japan
Market Value (2024E)	US$ 731.6 Million
Growth Rate (2024 to 2034)	11% CAGR
Projected Value (2034F)	US$ 2.07 Billion

Sales of plant-based dairy products increasing in Japan are mostly driven by media influence and celebrity endorsements. Popular figures and influential individuals who support plant-based diets are helping to spread information about the advantages of plant-based dairy products. Another factor that is attracting more people is media coverage that highlights their benefits for the environment, health, and ethics. Thus, the favorable advice and increasing spread of information on plant-based dairy products are contributing to their popularity in Japan.

Category-wise Insights

Based on nature, the market is segmented into organic and conventional. Demand for organic plant-based dairy goods is high in comparison with conventional as they are considered healthier and eco-friendly. Also, they are mostly free from artificial additives, and because of this reason large portion of people prefer organic dairy products.

Why is Demand for Plant-Based Dairy Products High from B2C Consumers?

“Rising Interest of People in Veganism Driving Up Segment Growth”

Attribute	B2C Consumers
Segment Value (2024E)	US$ 9.24 Billion
Growth Rate (2024 to 2034)	9.3% CAGR
Projected Value (2034F)	US$ 22.49 Billion

Sales of plant-based dairy products are high from B2C compared to B2B end users. Individual consumers are generally more interested in experimenting with new cuisine trends. Also, the increasing interest of people in veganism makes this segment a leader. People who are lactose intolerant or want products without animal cruelty are choosing plant-based dairy products. Marketing activities by companies and rising availability in retail channels are further driving the demand growth for plant-based dairy products.

However, with high prices, consumer preferences, and worries about taste and texture in recipes, B2B consumers such as restaurants or food producers are taking more time to adopt plant-based dairy replacements.

Why is Plant-based Milk Gaining Popularity All Over the World?

“Extensive Consumption of Plant-based Milk Products in Regular Diets”

Attribute	Plant-based Milk
Segment Value (2024E)	US$ 3.81 Billion
Growth Rate (2024 to 2034)	9.1% CAGR
Projected Value (2034F)	US$ 9.86 Billion

Plant-based milk products are gaining popularity compared to others as they are widely consumed in dairy life and are a mainstay in various diets. It is a simple and easy choice for people trying to cut back on their intake of animal products. Plant-based milk is similar to conventional one and its use is increasing in baking, cooking, cereal, and coffee. Also, plant-based milk products have been available in the market for a long period compared to several other options, giving them more opportunities to gain traction.

Comparing plant-based milk to other dairy substitutes such as cheese or yogurt, which need various changes in cooking techniques and taste preferences, more consumers find plant-based milk to be easier to include in their diets. Consumers particularly vegans prefer plant-based milk to meet their nutritional requirements and taste preferences, subsequently contributing to the easy availability of several options, such as soy, almond, oats, coconut, etc.

Competitive Landscape

Key players in the plant-based dairy market are focusing on improving texture, taste, nutritional profile, and various other features. Latest innovations such as formulations, new exciting flavors, and functional ingredients are attracting more consumers to try them. Several companies are raising capital and increasing their investments in the research and development of new technologies to maximize their growth potential.

• In August 2024, Elmhurst 1925, a company well-known for producing superior plant-based dairy products, launched TerraMeatTM Plant-Based Chick'n. This ground-breaking plant-based chicken substitute, which has an incredibly clean ingredient list and excellent protein delivery, confirms Elmhurst's dedication to being the industry leader in terms of ease of use and nutritional value for plant-based foods.
• In August 2024, an inventive start-up called 1.5 Degree introduced a large selection of plant-based frozen sweets and drinks. The company decided to develop a wide range of plant-based dairy products after realizing there was a growing market for dairy substitutes. Oat milk, soy milk, cold coffee, flavor-infused milkshakes, and gelato in unusual flavors including paan, strawberry, Biscoff, and mocha almond fudge are some of these goods. The company's main goal is to offer tasty, nutritious, and lactose-free products.
• In February 2024, California Farms, a well-known premium plant-based beverage brand, recently unveiled the introduction of Califia Farms Complete, a delightfully creamy plant milk that contains half the sugar of dairy milk along with eight grams of protein, all nine essential amino acids, and nine vital minerals. Califia Farms Complete gives customers the ideal approach to satisfy their dietary needs, all from plant sources because it is made from a unique blend of pea, chickpea, and fava bean protein.
• In December 2022, NotCo, a food technology company, announced that it had raised US$ 70 billion in a Series D1 funding round. The funding is expected to be used to promote innovation from other CPG brands through the use of NotCo’s patented AI technology called Giuseppe to accelerate development in the plant-based product industry.
• In November 2022, the Planting Hope Company, a start-up founded in 2020 that develops and launches innovative plant-based beverages, announced the launch of Hope and Sesame’s Sesame Milk for Canadian consumers. The product was made available in several grocery stores and on Amazon’s Canada website as well.
• In July 2022, Danone, a French food company, announced the launch of the world’s first dairy and plant blend baby formula. The company launched this product in response to parents’ demand for flexitarian and vegetarian options for their toddlers.

Fact.MR provides detailed information about the price points of key manufacturers of plant-based dairy products positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Plant-based Dairy Market Research

• By Product :

  • Milk (By Protein Source)
    • Almonds
    • Cashews
    • Coconuts
    • Hazelnuts
    • Oats
    • Rice
    • Soy
    • Flax
    • Hemp
    • Macadamia
    • Peanuts
    • Pistachios
    • Quinoa
    • Sesame
  • Frozen Desserts (By Protein Source)
    • Avocados
    • Oats
    • Cashews
    • Soy
    • Almonds
    • Coconuts
  • Yogurt (By Protein Source)
    • Oats
    • Cashews
    • Soy
    • Almonds
    • Coconuts
  • Cheese (By Form)
    • Blocks & Wedges
    • Creams, Sauces, & Spreads
    • Shredded & Crated
    • Sliced
  • Creamers
    • Soy
    • Coconuts
    • Almonds
  • Butter
    • Sticks
    • Spread

• By Nature :

  • Organic
  • Conventional

• By End Use :

  • B2B Consumers
    • Bakery & Confectionery
    • Snacks & Savouries
    • Ready Meals
    • HoReCa
    • Other Food Products
  • B2C Consumers
    • Households
    • HoReCa

• By Sales Channel :

  • Retail
    • Hypermarkets & Supermarkets
    • Convenience Stores
    • Independent Grocery Stores
    • Specialty Stores
    • Online Retailers
  • Direct

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa