North America Dairy Alternative Market Size
| Study Period: | 2018 - 2028 |
| CAGR: | 15.5 % |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
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North America Dairy Alternative Market Analysis
The North American dairy alternatives market is expected to witness a CAGR of 15.5% during the forecast period.
- The market for dairy alternatives is primarily driven by the perceived health benefits of consuming such products over conventional dairy products. North America is the largest geographical segment of this market, with increasing health concerns such as lactose intolerance among consumers leading to innovations in the market. However, one of the major restraining factors in the growth of the dairy alternatives market is allergies associated with plant-based sources such as soy and almonds, as well as the high cost of production.
- To address these challenges, key players in the market are focusing on product development and innovation to meet consumer needs by offering a variety of tastes and product quality to maintain premiumization. For example, Danone recently expanded its Canadian dairy-free portfolio by launching Silk Nextmilk, which is an excellent source of vitamins and nutrients.
- Consumers are increasingly switching to dairy-free products due to awareness of the potential health benefits, including alleviation of digestive distress, weight loss, acne, and irritable bowel syndrome. The availability of dairy alternatives and growing awareness regarding their benefits are expected to continue driving the market over the forecast period.
- Countries like the United States and Canada are observing growth in the demand for dairy alternatives, mainly due to increased disposable income, lifestyle changes, and eating patterns. The rise in popularity of organic plant-based milk and growing environmental concerns are also driving demand for dairy alternative products in the market.
North America Dairy Alternative Industry Segmentation
Dairy alternatives are foods made from plant-based milk instead of their usual animal products, such as cheese and yogurt.
The North American dairy alternatives market is segmented by product type, distribution channel, and geography. By Product Type, the market is bifurcated into food and beverage. The food segment contains yogurt, frozen desserts, and other foods, whereas the beverage segment contains soy, almond, coconut, rice, and other beverages. Based on the distribution channel, the market is segmented into hypermarkets/supermarkets, convenience stores, online retail channels, and other distribution channels. Also, the study analyzes the dairy alternatives market in the emerging and established markets across the North American region, including the United States, Canada, Mexico, and the Rest of the North American countries.
For each segment, the market sizing and forecast have been done based on value (in USD million).
| Product Type | |||||||
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| Distribution Channel | |
| Hypermarket/Supermarket | |
| Convenience Stores | |
| Online Retail Channels | |
| Other Distribution Channels |
| Geography | |
| United States | |
| Canada | |
| Mexico | |
| Rest of North America |
North America Dairy Alternative Market Trends
Dairy-Free/Lactose-Free Products On The Rise
- With the growing awareness of health and wellness, consumers are increasingly opting for healthy food options such as plant-based milk, which is lactose-free and has numerous health benefits. One of the major reasons for the popularity of lactose-free food products is their ability to aid in weight reduction and promote accurate digestion, thereby improving gut health. Moreover, customers are also favoring lactose-free food products as they can help reduce the impact of antimicrobials in the body, which is especially important given the global increase in digestive disorders and other diseases.
- For instance, soy milk is a highly consumed plant-based milk as it is lactose-free, dairy-free, cholesterol-free, and low in fat content. Therefore, consumers are increasingly gravitating towards plant-based products due to the numerous health benefits they offer.
- There are various reasons why customers are seeking dairy substitutes, including lactose intolerance, sustainability, and veganism. The most popular dairy-free products include milk, yogurts, frozen desserts, sour cream, and others. Millennials, in particular, are a potential target audience for probiotic plant-based yogurts as they are interested in probiotic foods and beverages, plant-based options, and snacking.
- For instance, a high-protein, chickpea-based milk free of chemical additives is available in three flavors. Manufacturers are focused on creating dairy-free yogurts that are healthy and plant-based, with clean labels, great taste, and exciting flavor profiles.
- The increasing number of product launches in the lactose-free dairy products category and their acceptance among consumers represent a significant opportunity for dairy alternative manufacturers. In April 2021, SunOpta acquired Hain Celestial Group's North American non-dairy beverage brands, Dream and WestSoy, for a total of USD 33 million. The acquisition indicates the rising demand for plant-based alternatives and highlights the potential of this market.
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United States To Dominate the North American Market
- The United States has seen a surge in demand for dairy alternatives due to lactose intolerance, dairy sensitivity, or allergy. Soy and almond milk are the most popular milk substitutes. The rise in popularity of plant-based milk is due to a growing number of health-conscious consumers who prefer plant-based diets.
- Moreover, the paleo diet trend has encouraged dairy alternative producers to expand their offerings. In addition to milk, there has been an observed increase in demand for soy-based desserts, particularly among consumers who indulge in on-the-go snacks. Chocolate-based soy desserts have experienced a significant increase in sales as they are 100% plant-based, lactose-free, and free from artificial colors and preservatives.
- Individuals in the United States who are from or whose families are from regions where lactose malabsorption is more common are more likely to have lactose intolerance, according to the National Institute of Diabetes and Digestive and Kidney Diseases. This includes American American, American Indian, Asian American, or Hispanic/Latino individuals.
- The increasing popularity of lactose-free products, including milk, is expected to drive the growth of the dairy alternatives market in the coming years. Manufacturers are continually launching new products to keep up with changing consumer preferences. For example, in September 2022, Global Food and Ingredients Ltd. introduced a high-protein, chickpea-based milk under its Yofit brand, which is free of chemical additives and available in three flavors.
- Furthermore, the rising health awareness among consumers, particularly those who are unable to digest lactose, has led to increased consumption of lactose-free products. These products typically help in the absorption of calcium, which is beneficial for building and repairing muscle tissue/cells.
- The leading players in the United States are focusing on product launches and acquisitions to expand their market share. For instance, in October 2022, Nature’s Fynd launched dairy-free cream cheese across Sprouts Farmers Markets in the United States.
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North America Dairy Alternative Industry Overview
North America's market for dairy alternative products is highly fragmented, with numerous small and medium-sized companies, as well as a few major players, leading to intense competition. Several family-owned private companies operate within distinct categories, with a limited presence across the region. Some of the prominent companies engaged in the production and distribution of dairy alternatives in the region include Blue Diamond Growers Inc., Sunopta Inc., Danone S.A., Dairy Farmers of America, and Sanitarium Health and Wellbeing Company.
Manufacturers in the industry are attracted by high profitability and are adopting powerful competitive strategies, resulting in intensifying competition among existing market players. The key players are focused on product innovation and expansion as their primary strategies to strengthen their position in the market.
North America Dairy Alternative Market Leaders
SunOpta Inc.
Blue Diamond Growers
Danone S.A.
Dairy Farmers of America
Sanitarium Health and Wellbeing Company
*Disclaimer: Major Players sorted in no particular order
North America Dairy Alternative Market News
- January 2022: Otsuka Holding's plant-based food brand Daiya launched a cream cheese in two flavors, roasted garlic and herbs, to its recently reformulated plant-based cream cheese line. The plant-based cream cheese is made with roasted garlic, herbs, and decadent coconut cream.
- January 2022: Danone North America created plant-based “milk” that doesn’t taste like plants. Applying their expertise in both dairy and plant-based beverages via its Silk and So Delicious Dairy Free brands, Danone North America experts deconstructed beloved dairy attributes and sensory experiences and then recreated them by blending a mix of familiar, high-quality plant-based ingredients. The result is a new plant-based “dairy-like” segment of plant-based products that don’t taste like any specific plant-based ingredient (almond, oat, soy, etc.).
- April 2021: Mexican food tech company, Heartbest Foods, announced that its plant-based milk would be available nationwide across Mexico. The company produces a range of vegan milk, cheese, and creams, including unique drinks such as peas and amaranth.
- February 2021: Danone acquired Follow Your Heart, a top plant-based player, to introduce different organic products to meet the consumers’ demand and maintain dominance over other players in the same segment. The acquisition of Follow Your Heart helps bolster the company’s plant-based portfolio, which also includes brands Silk and So Delicious.
North America Dairy Alternative Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Food
5.1.1.1 Yogurt
5.1.1.2 Frozen Desserts
5.1.1.3 Other Foods
5.1.2 Beverage
5.1.2.1 Soy Milk
5.1.2.2 Almond Milk
5.1.2.3 Coconut Milk
5.1.2.4 Rice Milk
5.1.2.5 Other Beverages
5.2 Distribution Channel
5.2.1 Hypermarket/Supermarket
5.2.2 Convenience Stores
5.2.3 Online Retail Channels
5.2.4 Other Distribution Channels
5.3 Geography
5.3.1 United States
5.3.2 Canada
5.3.3 Mexico
5.3.4 Rest of North America
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Danone S.A.
6.3.2 Dairy Farmers of America
6.3.3 SunOpta Inc.
6.3.4 Blue Diamond Growers Inc.
6.3.5 Otsuka Holdings Co., Ltd. (Daiya Foods)
6.3.6 The Hain Celestial Group Inc.
6.3.7 Eden Foods Inc.
6.3.8 Sanitarium Health and Wellbeing Company
6.3.9 Campbell Soup Company
6.3.10 Califia Farms, LLC
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
North America Dairy Alternative Market Research FAQs
What is the study period of this market?
The North America Dairy Alternative Market is studied from 2018 - 2028.
What is the growth rate of North America Dairy Alternative Market?
The North America Dairy Alternative Market is growing at a CAGR of 15.5% over the next 5 years.
Who are the key players in North America Dairy Alternative Market?
SunOpta Inc., Blue Diamond Growers, Danone S.A., Dairy Farmers of America, Sanitarium Health and Wellbeing Company are the major companies operating in North America Dairy Alternative Market.
North America Dairy Alternative Industry Report
Statistics for the 2023 North America Dairy Alternative market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Dairy Alternative analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
