Dairy Alternatives Market Size

Dairy Alternatives Market size was valued at USD 32.09 billion in 2024 and is set to exceed USD 153.6 billion by 2037, registering over 12.8% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of dairy alternatives is evaluated at USD 35.38 billion.

The market expansion is attributed to the increasing consumer demand for plant-based products due to health, environmental, and ethical considerations. The Plant Based Foods Association and the Good Food Institute reported that in 2021, plant-based food retail sales in the U.S. grew by 6.2%. Many consumers are shifting towards plant-based diets to manage lactose intolerance, reduce cholesterol intake, and avoid hormones and antibiotics found in conventional dairy products.

The environmental impact of dairy farming, including greenhouse gas emissions, water usage, and land requirements, is driving consumers to seek more sustainable alternatives. Dairy accounts for 2.9% of all human-induced greenhouse gas emissions. Furthermore, dairy production in intensive farming systems pollutes the air and water and contributes significantly to soil degradation and deforestation. Concerns about animal welfare and the treatment of dairy animals are also prompting more people to explore plant-based options.