Dairy Alternatives Market registered the revenue of USD $44.8 billion towards the end of 2027, at a CAGR of 10.4%. The global market was valued USD $27.3 billion in 2022. Dairy alternatives are used in food & beverages that are dairy-free or do not contain lactose. These food products are especially suitable for lactose-intolerant consumers. Globally, the health benefits of dairy alternatives have led to their large-scale adoption in numerous applications. Changing lifestyles, growing health awareness, increasing instances of lactose allergies, and growing application sectors are some factors driving the growth of the market.
The Europe region is the second-largest region in the dairy alternatives market in the forecast period.
The consumers in the European market are health-conscious and aware of animal welfare and environmental sustainability; they often check the ingredients on the products before purchasing. Thus, the demand for lactose-free and low-fat food has increased. Therefore, major players in the industry are focusing on acquisitions and diversifying their product portfolios to include plant-based dairy alternatives.
The dairy alternatives market report includes a study on the marketing and development strategies, along with the product portfolios of leading companies. It consists of profiles of leading companies, such as Danone North America Public Benefit Corporation (US), The Hain Celestial Group, Inc. (US), Freedom Foods Group Limited (Australia), Sanitarium (New Zealand), Blue Diamond Growers (US), and SunOpta (Canada).
Growth in lactose intolerance among people, a rise in health consciousness, and an increase in demand for convenient, healthy, low-calorie products from consumers are the main factors driving the demand for dairy-free desserts. Manufacturers have recognized this opportunity and invested in developing new products to tap the market. Various flavors of dairy-free ice creams are available in the market, such as Neapolitan, cookies and cream, mint choco chip, vanilla, chocolate, butter pecan, strawberry, caramel, and various others.
By source, the coconut segment is projected to grow at second highest CAGR in the dairy alternatives market during the forecast period
Based on source, the coconut segment is projected to account the largest market share in the dairy alternatives market. The grated white flesh of a ripe coconut is used to make coconut milk. To extract the high-fat coconut cream, the grated meat is first pressed, then soaked in hot water and filtered through cheesecloth in order to strain out the ‘milk”. This milk offers a creamy texture and a rich taste. Coconut milk is highly popular in Asian, South American, and Caribbean countries as an alternative to dairy.