Global non-dairy yogurt market to reach US$13.75B by 2034, Future Market Insights

GLOBAL – The global non-dairy yogurt market is rapidly growing, with a valuation projected to reach US$8.01 billion in 2024 and exceed US$13.75 billion by 2034, according to a Future Market Insights report.

According to the report, this expansion, driven by a compound annual growth rate (CAGR) of 5.6%, is primarily fueled by the rising demand for plant-based alternatives as vegan and vegetarian diets continue to gain popularity.

The increasing health consciousness among consumers is a significant driver behind this shift, as more people turn toward plant-based diets and seek alternatives to traditional dairy products.

Non-dairy yogurts, made from almond, coconut, soy, and oat ingredients, cater to the growing market of lactose-intolerant individuals, vegans, and health-conscious consumers.

Health benefits and innovation driving growth

The rise in awareness around lactose intolerance and dairy allergies further propels the non-dairy yogurt industry.

These products are lauded for their suitability for those with dietary restrictions and their nutritional benefits.

Non-dairy yogurts are often enriched with probiotics and vitamins that support gut health and overall well-being.

In addition to their health benefits, flavor innovation plays a crucial role in the industry’s expansion.

Brands offer diverse flavors, from traditional fruit varieties to more adventurous choices like salted caramel and matcha green tea, catering to evolving consumer preferences. This focus on variety and taste has helped non-dairy yogurt appeal to a broader audience.

The clean label movement has also significantly influenced consumer choices. Shoppers increasingly seek transparency in their products, gravitating toward non-dairy yogurts made from natural ingredients without artificial additives or preservatives.

Manufacturers have responded by incorporating functional ingredients, such as plant-based proteins, prebiotics, and superfoods, to enhance the nutritional profile of their products.

“Non-dairy yogurt is not just a trend; it represents a fundamental shift in consumer eating habits,” says Nandini Roy Choudhury, Client Partner at Future Market Insights.

“The diverse range of flavors and nutritional benefits offered by plant-based yogurts positions them as a staple in modern diets.”

Regional growth and market projections

Globally, the non-dairy yogurt market is experiencing varied growth rates. In the U.S., the market is expected to grow at a CAGR of 4.8%, driven by increasing health awareness and a wide array of product offerings.

In India, the market is set to expand even faster, with a projected CAGR of 6.8%, fueled by rising disposable incomes and growing health consciousness.

China also has a robust growth rate of 6.5%, with government initiatives promoting plant-based food production and local manufacturers tailoring products to meet consumer preferences.

Meanwhile, Japan’s non-dairy yogurt industry is projected to grow at a CAGR of 5.8%, focusing on innovative products that offer additional health benefits.

In Europe, Germany’s market is anticipated to grow at a CAGR of 5%, as consumers increasingly prioritize quality and sustainability in their non-dairy yogurt choices.

Competitive landscape and industry developments

The non-dairy yogurt industry is highly competitive, with established players, startups, and private-label brands all vying for market share.

Companies are adopting acquisitions and partnerships to expand into new markets and diversify their product portfolios.

Continuous innovation in flavors, textures, and nutritional content is essential to staying relevant in the marketplace.

Moreover, ethical considerations are increasingly influencing consumer choices. Many consumers, particularly those who follow a vegan lifestyle, seek products that are not only cruelty-free but also sustainably and ethically sourced.

Manufacturers are responding by adopting eco-friendly packaging solutions and sourcing ingredients that align with these values.

Recent industry developments reflect this shift.

In 2023, The Hain Celestial Group Inc. revamped its strategy under its “Hain Reimagined” plan, focusing on core brands like Dream, which offers a range of non-dairy products made from almond, oat, coconut, and rice milk.

Danone SA also expanded its offerings by introducing Silk Kids Almondmilk Yogurt Alternative and So Delicious Dairy Free 0g Added Sugar Yogurt Alternative.

Meanwhile, Nestlé SA strengthened its presence in the non-dairy yogurt segment with products like Good Karma Flaxmilk Yogurt and Häagen-Dazs Non-Dairy Frozen Yogurt, alongside its acquisition of plant-based food maker Sweet Earth Foods.

As the global non-dairy yogurt market continues to evolve, the focus remains on innovation, health benefits, and sustainability.

Manufacturers are striving to meet the growing demand for plant-based alternatives that fit seamlessly into modern, health-conscious lifestyles.

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