The global market for dairy alternatives is projected to exceed $51.5 billion by 2028, according to new data from research group The Insight Partners.
The report found that the market for alternative dairy products, made from soy, almond, coconut, oat and more, is growing at a CAGR of 10.6%, with the market reaching over $28 billion in 2022 alone. The report gives retailers a look at how to best expand their private label plant-based assortment.
Of the categories included in the study (milk, ice cream, yogurt, cheese), plant-based yogurt is expected to register the highest CAGR during the forecast period, as consumers seek more functional capabilities from food, and plant-based products in particular.
“People widely consume yogurt to improve their gut health due to its natural prebiotic content,” wrote The Insight Partners. “Plant-based yogurts have low fat and cholesterol content, thereby boosting their popularity among health-conscious consumers. Nowadays, consumers are increasingly seeking functional benefits from the products they consume. They are looking for products with high nutrient content to fulfill their daily nutritional requirements. The dairy alternatives manufacturers are incorporating functional ingredients, such as antioxidants, collagens, adaptogens, and nootropics, in their products to meet the rising demand for functional dairy alternatives.”
Of the major plant-based substitutes in the dairy alternatives category, soy is the most popular, and is expected to grow the most during the period.
“Soy-based products are becoming popular, especially among women, including isoflavones, lowering the risk of heart disease and breast cancer,” added the firm. “Soy milk is one of the most popular and easiest-to-find non-dairy milk. It has the approximately same amount of protein as cow's milk and is a very good vitamin D and calcium source. Moreover, the increasing adoption of soy-based dairy alternatives among professional athletes and fitness enthusiasts further boosts the growth of the soy segment.”
The full report from The Insight Partners can be found here.