Global dairy alternatives market to reach US$70.6B by 2031

GLOBAL – The global dairy alternatives market is experiencing significant growth, with its size projected to reach US$ 70.60 billion by 2031, up from US$ 30.13 billion in 2023. 

The market is expected to register a compound annual growth rate (CAGR) of 10.8% during the forecast period, according to a report by The Insight Partners. 

The growth is driven by increasing product launches and rising consumer demand for plant-based alternatives, particularly among individuals with lactose intolerance and those adopting vegan diets.

Dairy alternatives, including milk, yogurt, cheese, butter, and ice cream, are derived from sources such as soy, almonds, peas, and coconut. 

Soymilk, known for its affordability and high protein content, remains a preferred choice among consumers. 

Health concerns and heightened awareness of animal welfare are key factors influencing the shift toward plant-based products, which are widely perceived as healthier options. 

Additionally, the environmental impact of conventional dairy farming is contributing to the market expansion, as consumers seek sustainable alternatives.

The increasing prevalence of lactose intolerance is a major factor accelerating the demand for dairy alternatives. 

According to the National Institute of Diabetes and Digestive and Kidney Diseases, an estimated 68% of the global population experiences some degree of lactose intolerance, with significantly higher rates in Asia and Africa. 

Reports indicate that in East Asia, lactose intolerance affects 75–95% of the adult population, making countries such as China, Japan, South Korea, and Taiwan key markets for plant-based dairy products. 

A report by Food Allergy Research and Education also noted that 6.1 million Americans exhibited milk allergy symptoms in 2019. 

Given that lactose intolerance can cause digestive issues such as bloating and nausea, many consumers are turning to plant-based dairy options as a healthier and more digestible alternative.

Manufacturers are focusing on product innovation to meet evolving consumer preferences. 

The introduction of organic, non-GMO, gluten-free, and allergen-free options has positioned companies competitively within the market. 

Brands are also developing unsweetened and low-sugar alternatives to align with increasing demand for health-conscious products. 

“We are committed to expanding our plant-based offerings with nutritious and sustainable ingredients that cater to diverse dietary needs,” a spokesperson for a leading dairy alternatives company stated.

Companies are also experimenting with new sources for dairy alternatives, such as barley, hemp, chia seeds, bananas, and cashews. 

A report by The Insight Partners highlighted that Take Two Foods has developed nutrient-enriched barley milk using upcycled barley from beer brewing. 

Other companies, including Hasla Foods, have launched zero-sugar oat milk yogurt, demonstrating a commitment to reducing sugar content in plant-based products. 

A market analyst noted, “Innovations like these are shaping the future of dairy alternatives by providing consumers with healthier and more sustainable choices.”

With continued investments in research and development, the dairy alternatives market is expected to expand further, offering a wider range of plant-based options to meet the growing demand for sustainable and health-conscious dairy substitutes