Dairy alternatives are plant-based products like non-dairy milk, yogurt, cheese & creamers, ice creams, etc. Plant-based dairy alternatives are known to offer various nutritional benefits, for which the demand for them has witnessed continuous growth over the years. Plant-based dairy alternatives are known to have positive effect on cholesterol levels, cardiovascular health, and diabetes management. This has increased the consumption of dairy alternatives by health-conscious people.
The global dairy alternatives market is projected to grow at a double-digit CAGR of 10.1% during 2019 to 2026 and reach a value of USD 40,901.2 million by 2026. The growth of the global market is being driven by increasing awareness about the benefits of plant-based dairy alternatives, high demand for these alternatives among people following vegan diets, and a significant increase in vegan population in many countries.
Another major factor that is pushing the global dairy alternatives market is the rising incidence of milk allergies and lactose intolerance. Due to increasing occurrence of milk allergies and lactose intolerance, the demand for and popularity of dairy substitutes like soy milk, almond milk, etc., has been increasing significantly. Almond milk is rich in protein, fiber, and lipids, and it helps regulate blood pressure. It is also good for the health of the heart, kidney, and skin.
Risingconsumer awareness about the benefits of following dairy-free diets will also boost the growth of the global dairy alternatives market. Following dairy-free diets may prove beneficial for the management of conditions like digestive ailments and irritable bowel syndrome. This is expected to increase the demand for dairy alternatives in the coming days.
However, volatile prices of raw materials could be a major impediment for the growth of the global dairy alternatives market. Theprices of dairy alternatives are usually higher than that of dairy milk. The price of dairy alternatives depends on the supply of raw materials and hence, any shortage or unavailability of raw materials can result in an increase in product prices.
Further, limited awareness about the nutritional benefits of dairy alternatives and the belief that thenutritional content of dairy alternatives is lower than that of cow’s milkcan slow down the growth of the global dairy alternatives market. This type of misconception is common in underdeveloped and developing countries, which can impede the growth of the dairy alternatives market in these regions.
Currently, the world economy is facing a downturn due to the global Covid-19 pandemic. The growth of the dairy alternatives market has also been adversely affected by the pandemic. Stringent government policies and restrictions imposed on transportation have impacted the global market, and if the situation does not improve soon, it can affect the growth estimates for the dairy alternatives market.
The Asia-Pacific region is dominating the global market and held a share of 36.80% in the global market in 2018. The region is likely to maintain its dominance over the global market over the next few years as well. The growth of this regional market will be driven by rapid urbanization, increasing awareness about the benefits of non-dairy milk, increasing incidence of lactose intolerance in the region, and liberalization of FDI in the food sector.
The key players operating in the global dairy alternatives market are Dhler GmbH, Blue Diamond Growers, Earth’s Own Food Company, Eden Foods, NutriopsSL., Organic Valley, Freedom Foods Group, Panis Brands, Sanitarium Health and Wellbeing Company, SunOpta Inc., The WhiteWave Foods Company, The Hain Celestial, and Triballat Noyal, and Valsoia SpA, among others.