Dairy alternatives market set to soar to US$79.55B by 2032

GLOBAL – The global dairy alternatives market is on track for remarkable growth, with a new report projecting its value to reach US$79.55 billion by 2032. 

According to a report by Coherent Market Insights, this surge is driven by rising consumer demand for plant-based products, fueled by health concerns, environmental awareness, and shifting dietary preferences. 

The report highlights that the market, valued at US$28.55 billion in 2024, is expected to grow at a compound annual growth rate (CAGR) of 13.7% over the next eight years.

In addition, it noted that more people are turning to dairy alternatives like almond milk, oat milk, and soy-based products due to lactose intolerance and a growing interest in vegan lifestyles. 

Analysts note that the market’s expansion is also supported by innovations from major companies such as Whitewave Foods Company, SunOpta, and Hain Celestial, which are introducing new flavors and fortified options to attract customers. 

A report by openPR.com states that this growth reflects a broader trend of consumers seeking sustainable and ethical food choices, with plant-based milk production requiring less water and land compared to traditional dairy farming.

Industry experts are optimistic about the future. 

“We’re seeing a shift in how people view food, and dairy alternatives are at the heart of that change,” said Sarah Thompson, a market analyst at Coherent Market Insights. 

She pointed out that younger generations, particularly millennials and Gen Z, are driving demand as they prioritize health and sustainability. 

The report also indicates that North America and Europe are leading the market, though Asia-Pacific is emerging as a key growth area due to rising disposable incomes and urbanization.

Environmental benefits are a major factor in this shift. Dairy alternatives produce fewer greenhouse gas emissions than conventional dairy, appealing to eco-conscious consumers.

Additionally, the market is benefiting from increased availability in supermarkets and online platforms, making these products more accessible than ever.

 A report by Persistence Market Research supports this, noting that the North American plant-based milk market alone is expected to hit US$33.1 billion by 2031.

However, challenges remain, including competition from traditional dairy and concerns over the nutritional content of some alternatives. 

Despite this, the outlook remains strong. “This is just the beginning for dairy alternatives,” said Michael Lee, a food industry consultant. 

He emphasized that ongoing research and development will likely address these hurdles, ensuring continued growth.

As the market evolves, companies are expected to focus on affordability and taste to maintain momentum. 

With consumer interest showing no signs of slowing, the dairy alternatives sector is poised to reshape the global food industry by 2032.