(Entertainment-NewsWire.com, December 13, 2023 ) The dairy alternatives market is set to flourish, with an estimated value of USD 27.0 billion in 2023 and a projected surge to USD 43.6 billion by 2028, boasting a remarkable Compound Annual Growth Rate (CAGR) of 10.1% from 2023 to 2028. Plant-based dairy alternatives, including soy milk, almond milk, oat milk, and rice milk, are gaining popularity for their nutritional benefits and sustainable appeal as individuals seek healthier and eco-friendly alternatives to traditional dairy products.
Rising Health Awareness Propels Plant-Based Alternatives
Driven by heightened health consciousness, consumers are increasingly turning to plant-based dairy alternatives for their nutritional advantages. The consumption of these alternatives has witnessed a notable rise due to documented benefits, including lowered cholesterol levels, improved cardiovascular well-being, and enhanced diabetes management. Plant-based milk substitutes, such as soy, almond, oat, and rice milk, offer lower fat and calorie content compared to traditional cow's milk, further contributing to their appeal among health-conscious individuals.
Dairy Alternatives Address Dietary Intolerances and Allergies
The prevalence of dairy intolerance and allergies has propelled the exploration and adoption of dairy-free alternatives. These alternatives provide relief for individuals facing digestive discomfort or adverse reactions after consuming traditional dairy products. Almond milk and coconut milk, among others, have gained popularity for offering nourishing and easily digestible options for those with sensitivities. The market is evolving to provide not only basic nutrition but also functional benefits, with products enriched with essential nutrients, including vitamins, minerals, and antioxidants, supporting overall well-being.
Diverse Offerings Cater to Allergen-Free Choices
In response to the growing demand for allergen-free options, the dairy alternatives market has diversified its offerings to accommodate diverse dietary requirements. Recognizing the prevalence of nut allergies, manufacturers are introducing alternatives derived from seeds, grains, and legumes, ensuring options for those with nut allergies while maintaining nutritional value. Culinary innovation and flavor exploration have become prominent trends, with consumers seeking flavored alternatives to plain, unflavored options.
Flavored Sub-Segment Drives Growth in Formulation
The flavored sub-segment in the formulation segment is projected to grow at an estimated rate of 10.4% during the forecast period. Flavored milk alternatives successfully replicate the creamy and indulgent qualities of traditional dairy milk. Advanced formulation techniques allow manufacturers to closely resemble conventional dairy milk in both texture and flavor. Flavored alternatives, including low-sugar and fortified versions, are gaining popularity among health-conscious consumers. The versatility of flavored milk alternatives, suitable for use in various culinary applications such as smoothies, desserts, and baking, further enhances their appeal.
Almond Source Dominates Dairy Alternatives Market
Among the sources in the dairy alternatives market, almond-based products are estimated to dominate, experiencing substantial demand due to their nutritional profile, ready availability of raw materials, and increasing popularity among consumers. Almond milk, in particular, aligns with consumer preferences for lactose-free, low-saturated fat, and low-calorie options. Recognizing the rising demand for healthier choices, almond milk has emerged as a preferred dairy alternative, catering to vegetarianism, lactose intolerance, and environmental consciousness.
Europe is poised to experience the fastest Compound Annual Growth Rate (CAGR) in the dairy alternatives market. Despite the dominance of traditional dairy in the European market, a surge in the growth of dairy and plant-based alternatives has been observed, driven by heightened health awareness, environmental sustainability considerations, and consumer scrutiny of product ingredients. Major industry leaders, such as Nutriops S.L. (Spain), Grupo Leche Pascua SA (Spain), Danone (France), and Oatly (Sweden), are strategically expanding and diversifying their portfolios to meet the region's increasing demand for dairy alternatives.
The global dairy alternatives market is witnessing a transformative phase, driven by consumer preferences for healthier, sustainable, and allergen-free choices. With a projected CAGR of 10.1% from 2023 to 2028, the market is set to reach USD 43.6 billion by 2028, indicating a substantial growth trajectory.
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