Dairy Alternatives Market to Exhibit a CAGR of 13.79% from 2025 to 2032; Consumers’ Shifting Preference for Plant-based Alternatives Drives Market Growth

The global dairy alternatives market size was valued at USD 32.38 billion in 2024. The market is set to grow from USD 36.76 billion in 2025 to USD 90.78 billion by 2032, exhibiting a CAGR of 13.79% over the forecast period.

Fortune Business Insights™ presents this information in its report titled “Dairy Alternatives Market Size, Share & Industry Analysis, By Source (Soy, Almond, Coconut, Rice, Oats, and Others), By Product Type (Non-dairy Milk, Butter, Cheeses, Yogurts, Ice Cream, and Others), By Price Range (Low {Non-dairy Milk, Butter, Cheese, Yogurts, Ice Cream and Others} Medium {Non-dairy Milk, Butter, Cheese, Yogurts, Ice Cream and Others} and Premium {Non-dairy Milk, Butter, Cheese, Yogurts, Ice Cream and Others}), By Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Retail, and Others), and Regional Forecast, 2025-2032”.

The demand for non-dairy products, particularly plant-based milk substitutes, has increased in recent years. Vegan milk is created by suspending dissolved and disintegrated plant extracts in water. To enhance the suspension and stability of these plant-derived products, two main processing techniques are employed, which are homogenization and thermal treatment. Vegan milk gained popularity in the non-dairy sector as a healthy, sustainable, and animal-friendly alternative. It appeals to consumers globally and is made from sources such as legumes, nuts, and cereals. The growth of dietary trends such as veganism and flexitarianism has also boosted the demand for plant-based milk and related products.

Eclipse Food Launched a Non-Dairy Product to Strengthen Market Position

In May 2025, a plant-based dairy brand from California named Eclipse Food launched a new whole milk product. This non-dairy whole milk is created from isolated proteins derived from chickpeas and peas, imitating the dairy’s molecular structure.

Rising Number of Lactose Intolerance Consumers Drive Market Growth

The dairy alternatives market growth is mainly driven by a rise in lactose-intolerant consumers. There is a growing perception among consumers that lactose-free products are healthier alternatives to regular dairy. Lactose intolerance occurs due to the lack of an enzyme called lactase, which is responsible for breaking down lactose. Approximately 65% of the human population demonstrates a decreased ability to digest lactose after infancy. Additionally, consumers are increasingly shifting to plant-based alternatives due to rising concerns about allergens, hormones, and unethical farming practices in the dairy industry. This drives the demand for dairy alternatives.

However, the market faces significant challenges due to organoleptic profiles, lower nutritional content compared to conventional dairy, and rising raw material costs.

Leading Players Focus on Dairy Substitute Trends to Broaden Their Product Offerings

The global dairy alternatives market is experiencing significant growth due to the key players dominating the industry. These companies are actively pursuing acquisitions and mergers to strengthen their position and are adapting to changing consumer preferences. The competitive intensity of the market is expected to rise as global brands offer nutritionally adequate, environmentally friendly, and economical alternatives. Top producers of dairy alternatives are also focused on keeping up with dairy substitute trends to expand their product offerings.

Key Industry Development

• May 2025: A French luxury pastry brand, Maison Linotte, introduced a plant-based butter aimed at food service suppliers. This product, especially crafted for chefs and pastry makers, is claimed to be made from organic ingredients and is free from palm oil, major allergens, and additives.

List of Key Players Profiled in the Report

• Danone S.A. (France)
• Archer-Daniels-Midland Company (U.S.)
• Blue Diamond Growers (U.S.)
• SunOpta, Inc. (Canada)
• Vitasoy International Holdings Ltd (Hong Kong)
• Daiya Food, Inc. (Canada)
• Conagra Brands, Inc. (U.S.)
• Living Harvest Foods, Inc. (India)
• Organic Valley (U.S.)
• Eden Foods, Inc. (U.S.)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/industry-reports/dairy-alternatives-market-100221

Further Report Findings

• Asia Pacific held the largest dairy alternatives market share with a value of USD 17.04 billion in 2024. This growth is primarily driven by rising cases of lactose intolerance and cow milk allergies. Consumers are shifting to a vegan diet due to the increasing rates of hypercholesterolemia and obesity, leading them to adopt alternatives to cow’s milk.
• North America is experiencing rapid growth, driven by the increasing adoption of a vegan diet. Utilizing more plant-based options is essential for food and nutritional security. Individuals in the region are well-informed about the extensive range of dairy alternatives, which are widely available.
• Based on product type, the non-dairy milk segment takes the lead in the matket, attributed to promising demand dynamics, rising interest among key giants and private-label players to create milk from plant-based sources, and robust growth potential for vegan beverages.

Table of Segmentation