Market Size of north america dairy alternatives Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2029 |
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Market Size (2024) | USD 10.74 Billion |
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Market Size (2029) | USD 16.49 Billion |
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Largest Share by Distribution Channel | Off-Trade |
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CAGR (2024 - 2029) | 8.96 % |
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Largest Share by Country | United States |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
North America Dairy Alternatives Market Analysis
The North America Dairy Alternatives Market size is estimated at 10.74 billion USD in 2024, and is expected to reach 16.49 billion USD by 2029, growing at a CAGR of 8.96% during the forecast period (2024-2029).
10.74 Billion
Market Size in 2024 (USD)
16.49 Billion
Market Size in 2029 (USD)
6.97 %
CAGR (2017-2023)
8.96 %
CAGR (2024-2029)
Largest Market by Category
47.13 %
value share, Non-Dairy Milk, 2023
The preference for plant-based milk is largely driven by the growing intend towards different taste stimuli coupled with health consciousness among the consumers in the country
Largest Market by Distribution Channel
92.31 %
value share, Off-Trade, 2023
The wider availability of various brands, ease of reading product labels and convenience in comparing different products make off-trade channel most preferred type.
Fastest-growing Market by Category
18.73 %
Projected CAGR, Non-Dairy Cheese, 2024-2029
Growing awareness regarding animal cruelty and high acceptance of veganism are prompting consumers to opt for vegan foods such as plant-based cheese, captivating to segmental growth
Fastest-growing Market by Distribution Channel
9.25 %
Projected CAGR, Off-Trade, 2024-2029
The rising preference to buy essential groceries online during the pandemic drove the off-trade channel. The growth is also assisted by better consumer reach through digital marketing
Leading Market Player
14.59 %
market share, Danone SA, 2022
Due to its rising revenue, Danone has the opportunity to invest its revenue in R&D which increases the number of products, leading to it gaining a competitive edge in the market.
Online retail channels are partnering with many brands to boost their sales
- The distribution channel of the North American dairy alternatives market is segmented into on-trade and off-trade. The off-trade channel plays a major role in the sales of alternative dairy products in the region. Supermarkets and hypermarkets are the largest off-trade distribution channels in the North American dairy alternatives market. The proximity factor of these channels, especially in large and developed cities, provides them with an added advantage of influencing the consumers' purchasing decisions. In 2022, the sales value of dairy alternatives through supermarkets and hypermarkets accounted for more than 73.4% compared to other retail channels.
- Plant-based milk plays a major role in the overall sales of retail channels. In 2021, the sales value of plant-based milk increased by 8.5% compared to 2020, while animal-based milk sales declined by 2%. In the same year, 42% of households purchased plant-based milk, and 76% bought it multiple times from retail channels.
- The online channel in North America is projected to be the fastest-growing distribution channel for dairy alternatives. It is anticipated to grow by 44% in 2024 compared to 2021. Online retailers are partnering with brands to expand their shelf space, increase assortments, and improve consumers’ shopping experience by offering a wide range of plant-based products. As of 2021, more than 22% of Canadians preferred to buy groceries online.
Understand The Key Trends Shaping This Market
Explosive population consumption and government backing is fueling the market growth
- The North American dairy alternatives market dominates the global market due to the increasing lactose intolerance and adoption of healthy diets. As of 2022, 30-50 million Americans were found to be lactose intolerant. The most preferred dairy-free products are milk, butter, frozen desserts, and cheese.
- The United States is the leading market for dairy alternatives in the region. It is projected to register the fastest Y-o-Y growth rate of 26% by value during 2024-2027. The higher demand is due to the higher production volume of nuts (almonds) and soybeans. For example, the United States produces around 2,002,742 metric tons of almonds annually, accounting for 80% of the world’s almond production. Continuous product launches are the key factor promoting the sales of dairy alternatives in the country, as American consumers are highly open to trying new products.
- As of 2021, 62% or 79 million US households bought plant-based products, an increase from 61% or 77 million in 2020.
- Canada is the second-leading market for dairy alternatives. Government support is the primary factor boosting the sales of non-dairy products in the country. In 2018, the government included the dairy alternatives industry in its Supercluster Initiative and invested USD 150 million in its development. In 2021, it invested an additional USD 173 million.
- The sales of dairy alternatives are expected to grow due to an anticipated increase in lifestyle disorders and lactose intolerance. The North American dairy alternatives market is projected to grow by a value of 16% in 2025 compared to 2023.
