The global dairy alternative market size was valued at USD 32.77 billion in 2024 and is expected to reach USD 66.91 billion in 2030, growing at a CAGR of 12.7% from 2025 to 2030. This strong growth trajectory is largely driven by the increasing prevalence of milk allergies among consumers, which has encouraged a shift toward plant-based beverage and food options. As awareness of dietary sensitivities continues to rise, many individuals are actively seeking substitutes that provide similar taste, texture, and nutritional benefits to traditional dairy products while minimizing allergic reactions and digestive discomfort. The expanding availability of innovative dairy alternative products across retail and foodservice channels is also supporting wider consumer adoption.

Furthermore, evolving dietary habits and the growing popularity of vegan and plant-based lifestyles are expected to significantly contribute to market expansion during the forecast period. Consumers are increasingly prioritizing ethical consumption, environmental sustainability, and personal health, leading to a steady rise in demand for non-dairy products made from sources such as almonds, soy, oats, coconut, and other plant-based ingredients. According to data published in April 2023 by the National Library of Medicine, approximately 65% of the global population is lactose intolerant, highlighting a substantial consumer base seeking dairy-free alternatives as part of their daily nutrition.

The growing prevalence of lactose intolerance and milk allergies is therefore expected to remain a major driver of the dairy alternatives market throughout the forecast period. Lactose intolerance, which is largely genetic in nature, is particularly common among Southeast Asian populations, where a significant portion of consumers experience difficulty digesting conventional dairy products. Individuals affected by this condition frequently turn to lactose-free and plant-based alternatives to maintain adequate intake of essential nutrients such as calcium, vitamins, and fortified proteins without experiencing digestive issues. In addition, increasing health consciousness among consumers—combined with rising disposable incomes in both developed and developing economies—is encouraging experimentation with premium and functional dairy alternatives. These factors are collectively strengthening consumer demand and supporting sustained growth of dairy alternative products worldwide during the forecast period.

Key Market Trends & Insights:

• The Asia Pacific region dominated the dairy alternatives market with a share of 45.80% in 2024, reflecting strong consumer demand driven by changing dietary habits, widespread lactose intolerance, and increasing awareness of plant-based nutrition. The region’s large population base, coupled with growing urbanization and rising disposable incomes, has significantly contributed to higher consumption of dairy alternative products. In addition, traditional dietary patterns in several Asian countries already incorporate plant-based ingredients such as soy, coconut, and rice, which has supported faster acceptance of dairy substitutes. Expanding retail networks, increasing product availability, and growing investments by manufacturers in product innovation and regional expansion have further strengthened the region’s leading market position.

• Based on source, soy sources for dairy alternatives accounted for a share of 34.8% of the global revenue in 2024, making soy one of the most widely used raw materials in dairy alternative production. Soy-based products are highly valued for their strong nutritional profile, including high protein content and essential amino acids, which closely resemble the nutritional benefits of conventional dairy. Additionally, soy ingredients are relatively cost-effective and widely available, allowing manufacturers to produce a variety of dairy alternative products such as beverages, yogurt, and desserts at competitive prices. Long-standing consumer familiarity with soy products in many regions has also contributed to the segment’s strong market performance.

• Based on product, the milk segment accounted for a share of 67.6% of the global revenue in 2024, highlighting its position as the most consumed dairy alternative category. Plant-based milk products serve as direct substitutes for traditional dairy milk and are widely used in everyday applications such as beverages, coffee, cereals, cooking, and baking. The increasing demand for convenient, ready-to-consume products, along with the expansion of flavored and fortified plant-based milk options, has strengthened consumer adoption across different age groups. Continuous product innovation, improved taste profiles, and enhanced nutritional formulations have further supported the dominance of this segment.

• Based on distribution channel, the sales of dairy alternatives through the supermarkets and hypermarkets segment accounted for a share of around 39.3% of the global revenue in 2024. These retail formats remain key distribution platforms due to their wide product assortment, strong brand visibility, and ability to offer consumers the convenience of comparing multiple products in a single location. Supermarkets and hypermarkets also play an important role in driving consumer awareness through promotional activities, in-store displays, and expanding dedicated plant-based product sections. Their extensive supply chains and established customer trust continue to support strong sales performance for dairy alternative products worldwide.

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Market Size & Forecast:

• 2024 Market Size: USD 32.77 Billion

• 2030 Projected Market Size: USD 66.91 Billion

• CAGR (2025-2030): 12.7%

• Asia Pacific: Largest market in 2024

Key Companies & Market Share Insights:

Many brands operating in the global dairy alternatives industry have increasingly recognized the presence of untapped opportunities within their existing product portfolios and are actively working to capitalize on these gaps. As consumer expectations continue to evolve, companies are closely analyzing changing dietary trends, lifestyle preferences, and nutritional demands to identify areas where current offerings may not fully meet market needs. By recognizing underserved consumer segments and emerging consumption patterns, brands are strategically positioning themselves to expand their reach and strengthen customer engagement.

To address these opportunities, companies are investing in the development of new product designs, improved formulations, and innovative flavor profiles that align more closely with consumer preferences. This includes enhancing taste, texture, nutritional value, and functional benefits while also introducing products tailored to specific dietary requirements such as high-protein, low-sugar, or fortified alternatives. In addition to product innovation, brands are refining their marketing strategies through targeted campaigns, sustainable branding initiatives, and digital engagement efforts to better communicate product benefits and connect with health-conscious and environmentally aware consumers.

These initiatives enable companies to differentiate themselves in a highly competitive market while responding effectively to shifting consumer behavior. By focusing on innovation, personalization, and strategic marketing, dairy alternative brands are not only filling existing market gaps but also creating new growth avenues that support long-term industry expansion.

Key Players

• Chobani, LLC

• Danone S.A.

• Hain Celestial

• Daiya Foods

• Eden Foods

• NUTRIOPS, SL

• Earth’s Own

• SunOpta

• Melt Organic

• Oatly AB

• Blue Diamond Growers

• Ripple Foods

• Vitasoy International Holdings Ltd

• Organic Valley

• Living Harvest

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Conclusion:

The global dairy alternatives industry is witnessing strong growth driven by rising consumer awareness about health, sustainability, and ethical food consumption. Increasing cases of lactose intolerance and milk allergies, along with the growing adoption of plant-based and vegan lifestyles, are significantly supporting demand for non-dairy products. Continuous product innovation, expanding flavor varieties, and improved nutritional formulations are encouraging wider consumer acceptance across different age groups.