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The dairy alternative plant milk beverages market size is forecast to increase by USD 12.75 Billion at a CAGR of 8.8% between 2023 and 2028. The global market is witnessing growth due to the increasing demand for plant-based milk as an alternative to traditional dairy products. This trend is driven by the rising health consciousness among consumers and the growing number of lactose intolerant and vegan populations. Furthermore, frequent product innovation and the launch of new flavors and varieties are also fueling market growth. However, the market faces challenges such as the presence of allergens in plant-based sources like soy, almond, and coconut, which may limit its consumer base. To mitigate this challenge, companies are focusing on producing allergen-free plant-based milk beverages using alternative sources like rice, oat, and hemp. Overall, the market is expected to continue its growth trajectory due to these factors.
Dairy alternatives have gained significant popularity in recent years due to various health, ethical, and environmental concerns. These plant-based milk beverages cater to individuals with lactose intolerance, vegetarian and flexitarian diets, and those following veganism. Cholesterol concerns, personal health, animal welfare, and environmental issues are key drivers for the market's growth. Almond milk, one popular alternative, is free from cholesterol and suitable for those with nut allergies, but its production has high carbon and greenhouse gas emissions. Soy milk, another common alternative, is rich in proteins and can cause allergic reactions in some individuals due to soy lecithin and soybean oil.
Moreover, proactive measures are being taken to address food allergens and sensitivities, ensuring the production of safe and high-quality dairy alternatives. Despite these challenges, the market for dairy alternatives continues to expand, driven by the growing number of individuals seeking healthier and more sustainable options.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The offline segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth due to increasing health consciousness and dietary preferences. Consumers are increasingly turning to plant-based milk beverages as alternatives to dairy products for various reasons, including lactose intolerance, cholesterol concerns, and ethical considerations such as vegetarian and flexitarian diets, as well as veganism. These beverages offer solutions for individuals with food allergies or sensitivities to dairy, nuts, soy, or other common food allergens. Environmental concerns, such as carbon emissions and greenhouse gas emissions from animal agriculture, also contribute to the market's growth. Plant-based milk beverages, particularly those derived from almonds, rice, and other sources, offer nutritional value with essential nutrients like calcium, casein, proteins, and phytochemicals.
Moreover, isoflavones, found in soy milk, have been linked to heart disease prevention and breast cancer recurrence. The offline segment holds the largest market share due to consumers' preference for checking product quality and specifications before purchasing. Offline distribution channels include hypermarkets, supermarkets, convenience stores, and other discount stores. Vendors are expanding their product reach by collaborating with retailers to showcase innovative plant-based milk beverages. Supermarkets and hypermarkets offer a wide variety of products at discounted prices, making them the preferred retail segment for consumers. However, it's important to note that some plant-based milk beverages may contain additives like soy lecithin or soybean oil, which can trigger immune responses in sensitive individuals, causing hives or even anaphylaxis. Proactive measures should be taken to ensure the selection of suitable plant-based milk beverages based on individual health needs and preferences.
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The offline segment accounted for USD 15.78 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Plant milk beverages, a popular alternative to traditional dairy products, are increasingly gaining traction in online stores. These non-dairy options cater to various dietary preferences and intolerances, including lactose intolerance, veganism, and those seeking a healthier choice. Online retailers offer a wide array of plant milk beverages derived from sources such as soy, almond, oat, rice, and coconut. Consumers can easily access and purchase these beverages from the comfort of their homes, with options for quick delivery and subscription services. The convenience and accessibility of online stores have contributed significantly to the growth of the plant milk beverages market.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The demand for plant-based milk is the key driver of the market. The popularity of dairy alternatives can be attributed to several factors, including health concerns, ethical considerations, and environmental issues. Many individuals adopt vegetarian or flexitarian diets for personal health reasons, such as lactose intolerance or food allergies. Plant-based milk beverages, like almond milk and soy milk, provide a lactose-free and often allergen-friendly alternative to traditional dairy milk. Additionally, these beverages are typically lower in saturated fat and cholesterol, making them a preferred choice for those seeking to minimize their consumption of animal products. Beyond health benefits, ethical and environmental concerns have fueled the demand for plant-based milk.
Moreover, animal welfare and the environmental impact of animal agriculture, including carbon emissions and greenhouse gas production, have become significant concerns for many consumers. Plant-based milk production, on the other hand, has a smaller carbon footprint and uses fewer resources than dairy farming. Plant-based milk is also a viable option for individuals with nut allergies or sensitivities, as it is often made from sources like rice or oat. However, it is essential to note that some plant-based milk, such as soy milk, may contain food allergens like soy lecithin or soybean oil. Proactive measures, such as reading labels carefully and being aware of potential cross-contamination risks, can help mitigate these concerns.
However, the plant-based milk beverages offer a range of nutritional benefits, including calcium, proteins, and phytochemicals like isoflavones. These nutrients contribute to overall health and can help reduce the risk of conditions like heart disease and breast cancer recurrence. For example, almond milk contains heart-healthy monounsaturated fats, while soy milk is rich in isoflavones, which have been linked to reduced risk of breast cancer. In conclusion, the increasing awareness of health, ethical, and environmental concerns has led to a significant rise in the demand for plant-based milk beverages. These alternatives offer a lactose-free, often allergen-friendly, and more sustainable option for consumers, making them an attractive choice for those seeking to make informed dietary decisions.
The frequent product innovation and launch is the upcoming trend in the market. The dairy alternative plant-milk beverages market is experiencing significant growth due to increasing consumer preference for healthier and ethical food choices. This trend is driven by various factors, including lactose intolerance, cholesterol concerns, and ethical considerations such as vegetarian and flexitarian diets, veganism, and animal welfare. In response to this demand, vendors are introducing new product lines, with Danaone investing USD22M in October 2022 for the reformulation of 70% of its plant-based drinks portfolio. These alternatives cater to diverse dietary needs, such as nut allergies and soy allergies, which can cause immune responses ranging from hives to anaphylaxis. Plant-based milk beverages, including almond milk, rice milk, and soy milk, offer nutritional value, with calcium, casein, and proteins, as well as phytochemicals like isoflavones, which have been linked to heart disease and breast cancer recurrence prevention.
However, it is essential to note that some plant-based milk beverages, such as soy milk, may contain additives like soy lecithin and soybean oil, which can be potential food allergens. Vendors are taking proactive measures to address these concerns, such as labeling and providing alternative options. Additionally, environmental issues, including carbon emissions and greenhouse gas emissions, are also influencing consumer choices, making plant-based milk beverages an attractive alternative in cold climatic conditions.
Increasing allergies to plant-based sources is a key challenge affecting the market growth. The dairy alternatives market is witnessing significant growth due to increasing health consciousness and dietary preferences, including lactose intolerance, vegetarian, and flexitarian diets. Plant-based milk beverages, such as almond milk and soy milk, are gaining popularity for their health benefits and as alternatives to dairy products for individuals with animal welfare concerns or environmental issues. However, these alternatives are not without challenges. Allergies to food allergens like soy and tree nuts, such as almonds, can limit market expansion. Soy allergies are caused by the immune system's response to proteins like soy lecithin and soybean oil. While severe reactions are rare, they can be life-threatening for individuals with asthma or multiple food allergies.
However, the nut-based alternatives, such as almond milk, can also cause allergic reactions, including hives and anaphylaxis. Additionally, environmental concerns, such as high carbon emissions and greenhouse gas production, are associated with the production of soy-based alternatives like soy-based cheese and yogurt. Proactive measures, such as labeling and ingredient transparency, can help mitigate these challenges. These plant-based milk beverages also offer nutritional benefits, including calcium, casein, and isoflavones, which have been linked to heart disease and breast cancer recurrence prevention. Phytochemicals like genistein are also present in these alternatives and have additional health benefits. Despite these challenges, the market for dairy alternatives is expected to continue growing due to their health benefits and consumer preferences.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ALT. MILK: The company offers dairy alternative plant milk beverages such as ALT. MILK Pea Milk.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Dairy alternatives have gained significant popularity in recent years due to various health, ethical, and environmental concerns. These plant-based milk beverages cater to individuals with lactose intolerance, vegetarian and flexitarian diets, and those following veganism. Cholesterol concerns, food allergies, and sensitivities are major drivers for the shift towards dairy alternatives. Almond milk, for instance, is a popular choice for those with nut allergies, while soy milk is suitable for those with lactose intolerance, provided they do not have soy allergies or sensitivities to soybean oil or lecithin. Environmental issues, including carbon emissions and greenhouse gas emissions, have also contributed to the growth of the dairy alternative market.
Moreover, the plant-based milk beverages offer a more sustainable alternative to traditional dairy products. Personal health concerns, such as immune responses, hives, and anaphylaxis, have led consumers to take proactive measures and opt for dairy alternatives. Proteins, calcium, and essential nutrients like isoflavones, genistein, and phytochemicals are present in various dairy alternatives, making them a healthier option for those at risk of heart disease or breast cancer recurrence. Cold climatic conditions may affect the nutritional value of some plant-based milk beverages, but innovations in production and distribution have mitigated these concerns. Overall, the dairy alternative market continues to grow as consumers prioritize their health, ethical concerns, and environmental sustainability.
Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.8% |
Market growth 2024-2028 |
USD 12.75 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.49 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 49% |
Key countries |
China, US, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adisoy Foods and Beverages Pvt. Ltd., ALT. MILK, Arla Foods amba, Califia Farms LLC, Campbell Soup Co., Celebes Coconut Corp., Dairy Farmers of America Inc., DANA Dairy Group Ltd., Danone SA, Drupe Foods India Pvt. Ltd., Eden Foods Inc., Goodmylk, LEMONCONCENTRATE SLU, MALK Organics, Midas Soy Nutritions, Nestle SA, SAP Agrotech Pvt. Ltd., Soyfoods USA, SunOpta Inc., and The Hershey Co. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Source
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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