Dairy Alternatives Market Trends

Growth Drivers

• Rising burden of food allergies: A growing number of individuals are diagnosed with lactose intolerance, leading them to seek lactose-free or dairy free alternatives to avoid gastrointestinal discomfort and other symptoms. Around 30 to 50 million Americans are sensitive to lactose. Lactose intolerance affects 80% of Native Americans and African Americans and more than 90% of Asian Americans. People with dairy allergies especially children require alternatives to traditional dairy products to prevent allergic reactions, driving demand for safe, plant-based options.

• Innovative product ideas: New and unique products enhance the variety within the dairy alternatives market and address specific consumer needs, driving interest and engagement through innovative ideas. Product ideas such as plant-based yogurts with unique probiotics, enhanced protein-rich milk, functional creamers, and coffee additives, ready-to-eat plant-based desserts, dairy-free cheese, plant-based smoothie blends, nut-based butter, and spreads all offer novel twists on traditional dairy alternatives along with the substantial nutritional value.
• Presence of major key players: The presence of major key players in the market significantly influences its dynamics through global and regional operations. These companies leverage global distribution networks, innovative products, and strategic marketing to shape the dairy alternatives market across different regions. For instance, Oatly, a Swedish food company has a strong presence in Europe and has expanded aggressively into North America and Asia. It is recognized for its oat-based milk and has rapidly grown in various international markets.

Challenges

• Price comparison: Plant-based dairy alternatives often cost more to produce than traditional dairy products due to the cost of raw materials, processing, and technology. This higher price can deter price-sensitive consumers.
• Limited availability: In some regions, especially in developing countries, the availability of dairy alternatives can be limited, restricting market growth.