Market Size of europe dairy alternatives Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2029 |
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Market Size (2024) | USD 9.42 Billion |
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Market Size (2029) | USD 18.78 Billion |
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Largest Share by Distribution Channel | Off-Trade |
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CAGR (2024 - 2029) | 14.79 % |
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Largest Share by Country | Germany |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Europe Dairy Alternatives Market Analysis
The Europe Dairy Alternatives Market size is estimated at 9.42 billion USD in 2024, and is expected to reach 18.78 billion USD by 2029, growing at a CAGR of 14.79% during the forecast period (2024-2029).
9.42 Billion
Market Size in 2024 (USD)
18.78 Billion
Market Size in 2029 (USD)
15.66 %
CAGR (2017-2023)
14.79 %
CAGR (2024-2029)
Largest Market by Category
59.97 %
value share, Non-Dairy Milk, 2023
With the increase in the prevalence of diabetes and obesity, the preference for non-dairy milk is increasing drastically in the market
Largest Market by Country
21.62 %
value share, Germany, 2023
The increasing consumer appetite for vegan-friendly foods in Germany depicts a huge market potential for plant-based milk products in the country during the study period.
Fastest-growing Market by Category
22.49 %
Projected CAGR, Non-Dairy Cheese, 2024-2029
Non-dairy cheese products, which are created from nuts or seeds and have a perfect solid texture that will also melt, are encouraging the segment's growth in the country.
Fastest-growing Market by Country
21 %
Projected CAGR, Russia, 2024-2029
The younger consumers with a growing interest in free-from foods are impacting the growth. The majority (95%) of Russians are aware of the availability of plant-based substitutes.
Leading Market Player
21.08 %
market share, Danone SA, 2022
The presence of exhaustive product offerings along with a larger distribution network and a wider presence throughout the country has made Danone a leading market player.
Rise in modern grocery retailing including hypermarkets and online stores fuels the sales through off-trade channels
- Hypermarkets and supermarkets primarily drive the high market share of off-trade channels. Supermarkets/hypermarkets have always maintained a strong lead in the sales of dairy alternatives in the market studied. The proximity factor of these channels, especially in large and developed cities, provides them the added advantage of influencing the consumer's decision to purchase among a large variety of products available in the market. Supermarkets and hypermarkets covered 61.38%, by value, of dairy alternative sales through off-trade channels in 2022.
- The online channel is projected to be the fastest-growing distribution channel as modern consumers prefer online grocery purchases due to their busy lifestyles. Around 68% of individuals in the European Union ordered or bought goods or services over the internet for private use in 2022, up from 54% in 2017. The Netherlands, France, the United Kingdom, Germany, and Italy are the countries with high penetration of internet users. Online sales of dairy alternatives are estimated to record a CAGR of 25.80% during the forecast period.
- By product type, plant-based milk is the largest sold category across online retail channels. Key German supermarkets offering coconut milk include Müller and Alnatura. Koro brand coconut milk is available across 122 Müller stores located in Germany.
- On-trade sales are primarily driven by the rising number of restaurants and cafes specializing in vegan menus across key countries such as the United Kingdom, Germany, and Italy. In the United Kingdom, the on-trade sales value of dairy alternatives is estimated to record a CAGR of 22.62% during the forecast period to reach a market value of USD 142.40 million by 2029.
Understand The Key Trends Shaping This Market
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Growing number of lactose intolerant consumers in europe is fueling the dairy alternative market
- The European dairy alternatives market observed a growth of 17.25% in 2022 compared to 2021. The growth was attributed to the rising volume of lactose-intolerant populations across the region. In 2022, 5% of the total population was lactose intolerant. In the United Kingdom, lactose intolerance is more common in people of Asian or African-Caribbean descent. Lactose intolerance can develop at any age. In many cases, the symptoms first develop in people aged 20 to 40, although babies and young children can also be affected.
- To mitigate the effects of lactose intolerance, these consumers mainly consume oat milk as a replacement for animal milk. Consumers dealing with the risk of obesity prefer low-fat beverages. Animal-milk-based products contain more fat percentages compared to plant products. One cup of unsweetened cashew milk contains 25 calories, less than 1 gram of protein, and 2 grams of fat, while animal milk (goat milk) contains 10 grams of fat. As a result, there is a rise in demand for dairy-free products in the European region. Hence, the market is estimated to grow by 58.64% by 2025 from 2022.
- Under the off-trade segment, convenience stores hold the second-largest share of 71.35% of the country's retail space. These stores offer cashew milk at varied prices (low, medium, and high). The average selling price of cashew milk in the United Kingdom is USD 20.5. Some famous convenience stores across the country are 7-Eleven, Marks & Spencer, Little Waitrose, The Co-op, and Sainsbury's. To captivate consumers' focus toward the hemp milk segment, these retailers offer hemp milk at varied prices (low, medium, and high). This aspect also promotes the buying power of consumers.
