Opportunities for New Market Entrants in Dairy Alternatives Industry

The dairy alternatives industry refers to the industry that produces and sells products intended as substitutes for traditional dairy products like milk, cheese, yogurt, and butter. These alternatives are typically plant-based and cater to consumers who are lactose intolerant, have dairy allergies, or prefer vegan or vegetarian diets. The market has been growing due to increasing health awareness, dietary restrictions, and environmental concerns associated with traditional dairy production. Popular dairy alternatives include almond milk, soy milk, oat milk, coconut milk, and various nut-based cheeses and yogurts.

At a 10.1% CAGR, the global dairy alternatives market size is projected to reach US$ 43.6 billion by 2028 from a projected US$ 27.0 billion in 2023. The global market size was valued at US$ 24.6 billion in 2022. Consumers are becoming more health-conscious and seeking products that align with their dietary needs and restrictions. Dairy alternatives such as almond, soy, and oat milk are often viewed as healthier options due to their lower saturated fat content and lack of cholesterol. Additionally, many of these alternatives are fortified with essential vitamins and minerals, making them appealing for those aiming to maintain a balanced diet.

Asia Pacific's Dairy Alternatives Market

Due to busy lives and rising disposable incomes, the Asia-Pacific area is seeing a rise in demand for fortified nutritional food and beverage products. Because of customer preferences, the adoption of dairy substitutes is anticipated to increase more quickly within this trend. The use of cheap and plentiful soymilk is probably going to increase due to the region's increased economic dominance. To satisfy the growing consumer demand for healthier drinks and pasteurized soymilk as dairy alternatives, food manufacturers are launching a variety of soymilk varieties that give distinct flavor possibilities. This focuses on the analysis of significant nations in the area, such as China, India, Japan, and Australia.

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Sanitarium Health & Wellbeing Company, Vitasoy International Holdings Limited, Freedom Foods Group Ltd., and Purebates are important market players in this space. The Asia-Pacific region's dairy alternatives market is growing as a result of shifting customer preferences. Due to factors like rising foreign direct investment in the food sector, dietary diversity, and urbanization, the market for dairy alternatives is currently undergoing considerable changes in this region. Furthermore, there are encouraging growth prospects for the food industry in the region due to factors like rising income levels, the middle class's quick population expansion, increased consumer knowledge of fitness and health, and the desire for nutrient- and health-conscious products.

The Dairy Alternatives Market Growth Drivers

Rising Health Consciousness: There's a growing awareness of the health benefits associated with plant-based diets, including reduced cholesterol levels and lower risk of certain health conditions.
Product Innovation: Continuous innovation in plant-based technologies has led to a wider variety of dairy alternatives that closely mimic the taste and texture of traditional dairy products.
Environmental Concerns: Concerns about the environmental impact of traditional dairy farming, including greenhouse gas emissions and water usage, have prompted consumers to seek more sustainable options.
Availability and Accessibility: Dairy alternatives are now widely available in supermarkets, health food stores, and online, making them more accessible to consumers globally.
Health and Dietary Preferences: Many consumers are choosing dairy alternatives due to lactose intolerance, dairy allergies, or dietary preferences such as veganism or vegetarianism.
Corporate Initiatives: Many food companies and dairy producers have expanded their portfolios to include dairy alternatives, responding to shifting consumer preferences and market demand.

What’s New? The Latest Advances in Dairy Alternatives Industry

In June 2023, Oatly Group AB (Sweden) launched and introduced a vegan cream cheese that is now available nationwide in the US. This oat-based cream cheese innovation comes in two flavors: Plain and Chive & Onion.
In April 2021, SunOpta announced the acquisition of the Dream and WestSoy plant-based beverage brands from The Hain Celestial Group, Inc. The acquired brands helped the company expand its product portfolio, further accelerating growth in this business.

Top Dairy Alternatives Companies