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Dairy Alternatives Market By Formulation (Plain, Flavored), By Product Type (Almond Milk, Coconut Milk, Hemp Milk, Oat Milk, Rice Milk, Soy Milk), By Application (Food, Beverages) - Growth, Future Prospects And Competitive Analysis, 2017 – 2025

Dairy alternatives are plant-based products that do not contain milk but are enriched with minerals and vitamins similar to those found in dairy milk. Milk is rich in protein, carbohydrates, and calcium. Along with several uses in beverages, milk is also used in smoothies or poured on cereal. A plant-based dairy alternative is also made from soy, oats, rice, almonds, coconut, flax, and hemp. Various dairy alternative products are made with vitamin D and calcium to make them taste similar to dairy milk, whereas a few dairy alternative products may also contain vitamin B12. Soy milk, for example, is nutritionally equivalent to cow's milk. It is filled with vitamins A, vitamins D, and calcium. Soy milk is also helpful in reducing the risk of heart disease.

The global dairy alternatives market is expected to expand rapidly due to several factors, such as an increasing vegetarian population, nutritional benefits obtained from plant-based dairy alternative products, and the beverage industry's rapid expansion. The high cost of dairy alternatives, on the other hand, is likely to stifle market growth. Increasing demand in developing economies and changing lifestyles offer great opportunities for market growth.

People's growing preference for lactose-free food products such as cheese, snacks, and desserts is driving the global dairy alternatives market forward. The growing importance of nutritional values obtained from vitamins, high proteins, and low calories is likely to boost the market share. In addition, the change in consumer preference towards vegetarian diets owing to environmental protection is also a factor in the growth of the global dairy alternative market.

Growing consumer demand for non-lactose food products such as snacks, desserts, and cheese is foreseen to drive the demand for the alternative dairy market. Increasing consumer awareness of the nutritional value of products with low calories and a high concentration of vitamins and proteins is expected to drive dairy alternatives' long-term market growth. Moreover, changing consumer preference towards a vegetarian diet due to factors such as animal protection and environmental protection is expected to drive demand for dairy alternatives in the near future.

With a share of more than 55% of the global market in 2016, Asia Pacific is the dominant region for the dairy alternatives market by both value and volume, and it is also expected to be the largest market during the forecast period. A rise in disposable income, along with the increasing populations of India and China, is expected to drive the market for dairy alternatives in the Asia Pacific in the near future. Asia-Pacific is followed by North America and Europe. About 25% of the U.S. population and 75% of the world's population have low lactase levels. The rising number of people suffering from lactose intolerance and milk allergies and growing health awareness among consumers is driving the market for dairy alternatives in this region.

Major players in the global dairy alternatives market include Archer Daniels Midland Company, Blue Diamond Growers, CP Kelco, Daiya Foods Inc., Danone, Freedom Foods Group Ltd., Nutriops S.L., Sanitarium Health & Wellbeing Company, The Hain Celestial Group, Inc., and The Whitewave Foods Company.

Based on the formulation, the alternative dairy market is segmented as follows:

  • Plain
  • Flavored
  • Others

Flavored alternatives had the largest market share in the dairy alternatives market in 2016, and it is projected to continue to be the largest segment in the forecast period. The flavor is used to enhance the deliciousness of dairy alternatives like flavored dairy-free milk, yogurt, and frozen desserts and is easily available in the market to tailor changing consumer demand. Companies are launching new and innovative products to gain a consumer base and increase their market share. Manufacturers are providing varieties of flavored plant-based products to the market, such as vanilla, chocolate, mango, blueberry, peach, and strawberry.

Because of rising health concerns among consumers, the plain segment is gradually expanding in the alternative dairy market. Furthermore, consumers are becoming more aware of the high fat and lactose content of dairy products. Changing lifestyles and unhealthy dietary habits led to an increase in the diabetic population. Due to this, there is a change in dietary preferences, which in turn has further aided in the increase in the manufacturing of a number of different formulations to satisfy their needs.

The dairy alternatives market is divided into the following segments based on product type:

  • Almond Milk
  • Coconut Milk
  • Hemp Milk
  • ALMOND MILK
  • Rice Milk
  • Soy Milk
  • Others

Soy milk was the dominant segment of the dairy alternatives market in 2016, and it is expected to be the dominant segment in the forecast period. Leading dairy alternative manufacturers to have a huge selection of soy milk products with an excess variety, such as formulations, blends, flavors, and fat content. Consumers are becoming more aware and concerned about the health benefits associated with soy-based products, which, coupled with their easy availability, is one of the major factors driving the growth of the soy milk market. Soy milk contains essential amino acids, as well as protein, fiber, potassium, lactose, cholesterol-free, and vitamin B, all of which are necessary minerals for human growth. Almond milk is another lucrative market for dairy alternatives. Almond milk is the most common dairy alternative, containing similar benefits as dairy products, such as texture and flavor, and also having skin nutritional benefits. It is the most widely accepted dairy alternative product because it has several health benefits, including being lactose-free, strengthening bones, aiding in weight management, and aiding in digestion. The demand for premium brands and high-quality alternative dairy products is increasing. Due to this, the manufacturers are focused on developing new and premium products to satisfy the changing consumer demand, which in turn will boost the growth of the almond milk segment.

Based on the application segment, the alternative dairy market is segmented as follows:

  • Food
  • Cheese
  • Creamer
  • Yogurt
  • Pudding
  • Ice Cream
  • Others
  • Beverages
  • Milk
  • Sauces and dressings
  • Others

Beverages are the fastest-growing segment in the alternative dairy market by application. Milkshakes, energy drinks, fruit mixed drinks, and other dairy-free beverages made from coconut, almond, and soy are the most commonly available. Milk applications have the largest share in beverages, and there are various types of plant-based milk products available in the market. Plant-based beverages like soy milk have the largest market share in the dairy alternative beverage segment. Subsequently, almond milk is getting more popular due to its several health benefits, as it contains large amounts of vitamins, minerals, and calcium. Rice milk is mostly consumed by people suffering from intolerances to lactose, nuts, soy, and so on. Rice milk is estimated to grow at a CAGR of more than 8% during 2017–2025. There are various products available on the market from new sources, such as peas, flaxseed, and quinoa. Moreover, manufacturers are developing and launching mixed-flavor dairy alternative products to satisfy the growing consumer demand.

In the food segment, cheese and creams are expected to grow at the fastest rate in the near future as they lower the level of saturated fat in the body. Yogurts made from dairy alternative sources such as coconut, soy, and almond are gradually being consumed at a higher rate owing to their high nutritional value. The yogurt segment is expected to grow at a CAGR of more than 14% during 2017–2025.

For the purpose of this study, the global market for dairy alternatives is categorized into the following geographies and sub-geographies:

  • North America (U.S. and Canada)
  • Europe (France, Germany, Spain, Italy, the U.K., and the rest of Europe)
  • Asia Pacific (China, India, and the Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and the Rest of Latin America)
  • Middle East and Africa Saudi Arabia, as well as the remainder of the Middle East and Africa

The Asia Pacific region was the dominant market for dairy alternatives in 2016 due to the increasing health concerns, growing population, and rise in disposable income, which are a few factors contributing to the market's growth in Asia Pacific. Due to their large populations, countries such as India and China are becoming the most prominent markets for the growth of dairy alternatives. The second-largest region in the dairy alternatives market is Asia-Pacific, followed by North America. In 2016, the U.S. held the largest market share of alternative dairy products. Soy milk, almond milk, and coconut milk are the most commonly consumed dairy alternatives in the U.S. Almond milk sales are expected to increase by 46% during the forecast period, while coconut milk sales are expected to increase by 35%.

Europe is another lucrative region for the growth of the alternative dairy market. In Europe, manufacturers are focusing on developing new products, such as those with fruit flavours, on gaining consumer confidence and increase their market share. European sales of dairy alternatives are projected to grow at a rate of 20% due to innovative products and extensively changing consumer demand for healthy beverages. Germany is the fastest-growing country for the alternative dairy market in Europe, as private label companies are offering dairy alternatives at discount stores under their own private labels.

Frequently Asked Questions: 

The market for Dairy Alternatives is expected to reach US$ 17.81 Bn in 2025.

The Dairy Alternatives market is expected to see significant CAGR growth over the coming years, at 10%.

The report is forecasted from 2017-2025.

The base year of this report is 2016.

Competitive Dashboard,Archer Daniels Midland Company,Blue Diamond Growers,CP Kelco,Daiya Foods Inc. are some of the major players in the global market

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Godaddy
Published Date:  Nov 2017
Category:  Food & Beverage
Report ID:   58841
Report Format:   PDF
Pages:   120
Rating:    4.7 (70)
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