United Kingdom Dairy Alternatives Market Size and Share

United Kingdom Dairy Alternatives Market (2025 - 2030)
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

United Kingdom Dairy Alternatives Market Analysis by Mordor Intelligence

The United Kingdom dairy alternatives market, valued at approximately USD 2.13 billion in 2025 and projected to reach around USD 4.79 billion by 2030 at a CAGR of 17.57%, is evolving from an early-growth niche into a mainstream category. This growth is driven by increasing health consciousness, heightened awareness of lactose intolerance, and the rising popularity of vegan and flexitarian diets. These factors are gradually reducing per-capita consumption of conventional dairy and integrating dairy alternatives into daily diets. Environmental and ethical concerns, including climate impact and animal welfare, further support this transition, as consumers increasingly view dairy alternatives as a sustainable choice aligned with personal values. The market is also becoming more innovation-driven and sophisticated, with brands competing on attributes such as barista performance, taste, texture, nutritional fortification, and sustainability credentials, rather than solely focusing on being dairy-free. 

Key Report Takeaways

  • By type, non-dairy milk held 41.52% of the United Kingdom dairy alternatives market share in 2024; non-dairy cheese is advancing at a 22.67% CAGR to 2030. 
  • By flavor, unflavored products captured 64.22% of 2024 sales, while flavored variants are set to grow at a 19.86% CAGR through 2030. 
  • By packaging, cartons dominated with 68.23% share in 2024; PET bottles are expanding at an 18.97% CAGR to on-the-go demand. 
  • By channel, off-trade accounted for 97.15% of distribution in 2024; on-trade is ramping up at an 18.91% CAGR as barista-grade oat milk gains traction in coffee shops. 

Segment Analysis

By Type: Oat Milk Dominance Masks Cheese Acceleration

Non-dairy milk accounted for 41.52% of the category value in the United Kingdom Dairy Alternatives Market in 2024, establishing itself as the leading segment. This dominance is primarily attributed to the increasing consumer shift towards plant-based diets, driven by heightened health awareness and growing recognition of lactose intolerance and dairy allergies. Among non-dairy milk options, oat milk has gained significant popularity due to its creamy texture, mild flavor, and perceived health benefits, including high fiber and vitamin content. Its versatility for use in beverages, cooking, and baking further enhances its appeal. Additionally, the segment's nutritional and functional benefits, such as being cholesterol-free, lower in saturated fats, and often fortified with vitamins and minerals, resonate strongly with health-conscious consumers.

The non-dairy cheese segment in the United Kingdom Dairy Alternatives Market is projected to grow at a compound annual growth rate (CAGR) of 22.67% through 2030. This growth is driven by significant advancements in flavor, texture, and nutritional profiles, making non-dairy cheese more appealing to a wider audience seeking dairy-like experiences without animal-derived ingredients. Additionally, increasing awareness of environmental sustainability and animal welfare is encouraging consumers to transition from conventional cheese to plant-based alternatives. For instance, in November 2024, Bel Group introduced a plant-based version of its popular Boursin soft cheese in Garlic & Herbs flavor. This product aims to closely replicate the taste and texture of traditional dairy-based Boursin cheese.  

United Kingdom Dairy Alternatives Market: Market Share by Type
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: Segment shares of all individual segments available upon report purchase

Get Detailed Market Forecasts at the Most Granular Levels
Download PDF

By Flavor: Premiumization Drives Flavored Surge

Unflavored dairy alternatives accounted for 64.22% of sales in the United Kingdom Dairy Alternatives Market in 2024, maintaining a dominant position due to their versatility, perceived natural attributes, and alignment with health-conscious consumer preferences. These products are widely favored as a straightforward substitute for traditional dairy in everyday applications, particularly by consumers seeking a neutral base without added sugars, artificial flavors, or unnecessary ingredients that could affect recipes or calorie targets. Additionally, unflavored options benefit from better shelf stability, cost-effective production, and easier fortification with essential nutrients such as calcium, vitamin D, and B12, enhancing their nutritional equivalence to traditional dairy.

Flavored dairy alternatives in the United Kingdom Dairy Alternatives Market are projected to grow at a strong CAGR of 19.86% through 2030, driven by consumer interest in experimentation, premiumization trends, and the demand for indulgent, plant-based options that go beyond basic dairy replacements. This segment's growth is further supported by seasonal and limited-edition product launches, which encourage trial, generate social media engagement, and enable premium pricing. For instance, in July 2025, Califia Farms introduced two new nut-flavored blends, pistachio and hazelnut, to its oat barista drink line in the United Kingdom. These launches highlight how brands are leveraging the flavored segment's growth by offering sophisticated, barista-quality options designed for coffee enthusiasts and home users.

By Packaging Type: Sustainability Mandates Accelerate Paper Transition

Cartons accounted for 68.23% of the packaging share in the United Kingdom Dairy Alternatives Market in 2024, maintaining their leadership through strong sustainability credentials and functional advantages. This dominance is supported by cartons' aseptic processing capabilities, which extend shelf life without refrigeration, essential for non-dairy milks, yogurts, and creams. Additionally, their lightweight design facilitates efficient storage, transport, and recyclability, offering a lower carbon footprint compared to plastic or glass alternatives. High-quality printability enables effective branding and nutritional labeling, fostering consumer trust and supporting the premium positioning of products. Features such as stackability, pourability, and resealability enhance user convenience for daily household and foodservice use, driving repeat purchases and providing resilience against supply chain disruptions impacting rigid packaging.

PET bottles are growing at a CAGR of 18.97% in the United Kingdom Dairy Alternatives Market, driven by increasing demand for on-the-go formats and single-serve convenience. These attributes align with fast-paced urban lifestyles, remote work trends, and active consumer routines that require portable, spill-proof options for commutes, gyms, offices, and travel. PET bottles' recyclability, shatterproof durability, and cost-effective scalability support rapid market penetration, particularly amid the growth of e-commerce and subscription models. However, sustainability concerns remain a challenge. To address this, the Government of the United Kingdom introduced a Plastic Packaging Tax on plastic packaging components containing less than 30% recycled content [1]Source: Government of the United Kingdom, "Plastic Packaging Tax: steps to take", gov.uk. This regulation incentivizes PET bottle producers to incorporate higher recycled material content and develop sustainable formulations, reducing regulatory costs while improving eco-credentials for dairy alternatives.

United Kingdom Dairy Alternatives Market: Market Share by Packaging Type
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: Segment shares of all individual segments available upon report purchase

Get Detailed Market Forecasts at the Most Granular Levels
Download PDF

By Distribution Channel: On-Trade Recovery Outpaces Retail

Off-trade channels accounted for 97.15% of distribution in the United Kingdom Dairy Alternatives Market in 2024, reflecting their strong dominance driven by convenience, extensive product variety, and integration into routine consumer shopping habits. These channels serve as the primary purchasing points for dairy alternatives in the country. Supermarkets and hypermarkets play a significant role in this dominance by offering large shelf space, promotional activities, loyalty programs, and the convenience of one-stop shopping. These factors encourage impulse purchases, trials of new flavors such as oat or almond variants, and bulk buying, which often aligns with weekly grocery shopping. Additionally, the rapid growth of online retail has further strengthened off-trade channels by providing subscription models, home delivery services, and personalized recommendations, catering to the needs of busy urban professionals and flexitarian families.

On-trade channels in the United Kingdom Dairy Alternatives Market are projected to grow at a robust CAGR of 18.91% through 2030. Cafés, coffee chains, restaurants, and other foodservice operators are increasingly incorporating dairy alternatives into their menus to meet the rising demand for vegan, flexitarian, and lactose-free options in out-of-home consumption. This growth is supported by the premiumization of beverages, enhanced menu visibility for plant-based options, and growing consumer expectations for dairy-free choices in hospitality venues. According to the Office for National Statistics, consumer spending on restaurants and cafés in the United Kingdom increased in 2024 compared to the previous year, reaching approximately GBP 138.39 billion [2]Source: Office for National Statistics, "Consumer spending on restaurants and cafes in the United Kingdom", ons.gov.uk. This rise in out-of-home dining and beverage consumption creates a favorable environment for the adoption of dairy alternatives in on-trade outlets. 

Geography Analysis

The United Kingdom represents a mature yet dynamic market for dairy alternatives, supported by strong consumer awareness, well-developed retail infrastructure, and regulatory frameworks that encourage plant-based innovation. Urban centers such as London exhibit higher adoption rates, driven by multicultural demographics, higher income levels, and a concentration of specialty retailers and coffee shops. This has led to increased demand for products like oat and almond milk in high-traffic areas, including Manchester and other metropolitan regions.

Scotland and Wales demonstrate slightly higher per-capita adoption of plant-based products compared to England, possibly due to greater environmental awareness and localized food movements. These regions benefit from strong local supply chains, government initiatives promoting sustainability, and a growing cultural focus on eco-friendly practices. Urban areas like Edinburgh are at the forefront of non-dairy cheese and yogurt consumption, influenced by wellness trends and the increasing availability of innovative plant-based options. Additionally, community-driven efforts and collaborations with local producers have further supported the growth of plant-based alternatives in these regions. 

The United Kingdom's role as a regulatory leader in Europe enhances the strategic significance of its market beyond its size. Initiatives by the Food Standards Agency, such as the 2024 vegan labeling campaign addressing allergen risks and the review of novel food approval processes, indicate a more stringent regulatory landscape [3]Source: Food Standards Agency, "FSA launches campaign highlighting risk of food labelled as vegan to people with allergies", food.gov.uk. These developments could either drive innovation or create challenges, positioning the country as a key testing ground for plant-based standards across Europe.

Competitive Landscape

The United Kingdom dairy alternatives market is moderately fragmented, with increasing competitive intensity driven by the convergence of precision-fermentation startups, private-label offerings, and multinational companies targeting similar health, sustainability, and taste-focused positioning. Established brands utilize their scale, research and development (R&D), and strong retailer relationships, while retailers expand their own-label dairy alternatives, leading to margin compression and necessitating continuous innovation in functionality and clean-label attributes. Meanwhile, agile startups emphasize niche claims such as high protein content, sugar reduction, or carbon labeling, shifting competition toward more differentiated value propositions rather than basic dairy replacements.

Key players in the United Kingdom market include Blue Diamond Growers, Arla Foods amba, Coconut Collaborative Ltd, Danone SA, and Oatly Group AB, each leveraging unique strengths. These companies invest significantly in marketing, barista-focused product lines, and category management to maintain shelf space and brand equity amidst growing competition. Their strategies increasingly focus on localized sourcing, sustainability metrics, and nutrition-oriented messaging to appeal to health-conscious and environmentally aware consumers in the United Kingdom.

Precision-fermentation technologies are creating opportunities in cheese and yogurt formats, where challenges related to texture and meltability have historically limited plant-based adoption. This has led to collaborations between ingredient technology firms and established players. In March 2025, Danone-owned plant-based dairy brand Alpro announced a transition to 100% locally sourced oats for its oat milk range in the United Kingdom. This move highlights how incumbents are adopting localized sourcing to mitigate supply risks, reduce environmental impacts, and enhance their positioning as made-for-UK products against both imports and domestic private labels.

United Kingdom Dairy Alternatives Industry Leaders

  1. Arla Foods amba

  2. Blue Diamond Growers

  3. Oatly Group AB

  4. Danone S.A.

  5. Coconut Collaborative Ltd

  6. *Disclaimer: Major Players sorted in no particular order
United Kingdom Dairy Alternatives Market Concentration
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.
Need More Details on Market Players and Competitors?
Download PDF

Recent Industry Developments

  • September 2025: Kallø launched two new premium oat milk products: Organic Oat & Protein Milk and Organic Gluten-Free Oat Milk. These products are made with minimal ingredients and processing.
  • June 2025: Violife has introduced Supreme Cheddarton, a new plant-based cheddar cheese alternative. This product is the first in its category to offer a high protein content and contains 30% less fat compared to traditional dairy cheddar.
  • April 2025: Oppo Brothers has introduced a new range of low-calorie, vegan ice cream sticks under the brand name Oppo Refreshed. Offered in three flavors, each stick contains 49 calories and holds a Nutri-Score A rating.
  • July 2024: The Coconut Collab has introduced a new plant-based protein yogurt, offering 10g of protein per serving. This coconut yogurt is fermented with live cultures to support gut health and includes added natural plant protein derived from soy and almonds.

Table of Contents for United Kingdom Dairy Alternatives Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Increasing lactose intolerance awareness
    • 4.2.2 Environmental and ethical concerns
    • 4.2.3 Product innovation and diversification
    • 4.2.4 Social media marketing and celebrity endorsements
    • 4.2.5 Rising veganism and flexitarian diets
    • 4.2.6 Fortification of Products with vitamins and minerals
  • 4.3 Market Restraints
    • 4.3.1 Taste and texture limitations
    • 4.3.2 Supply chain and raw material challenges
    • 4.3.3 Higher price point compared to dairy
    • 4.3.4 Shorter shelf compared to dairy products
  • 4.4 Consumer Behaviour Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Forces Analysis
    • 4.7.1 Threat of New Entrants
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Bargaining Power of Suppliers
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Intensity of Competitive Rivalry

5. MARKET SIZE AND GROWTH FORECASTS (VALUE AND VOLUME)

  • 5.1 By Type
    • 5.1.1 Non-Dairy Milk
    • 5.1.1.1 Oat Milk
    • 5.1.1.2 Hemp Milk
    • 5.1.1.3 Hazelnut Milk
    • 5.1.1.4 Soy Milk
    • 5.1.1.5 Almond Milk
    • 5.1.1.6 Coconut Milk
    • 5.1.1.7 Cashew Milk
    • 5.1.2 Non-Dairy Cheese
    • 5.1.3 Non-Dairy Desserts
    • 5.1.4 Non-Dairy Yogurt
    • 5.1.5 Others
  • 5.2 By Flavor
    • 5.2.1 Flavored
    • 5.2.2 Unflavored
  • 5.3 By Packaging Type
    • 5.3.1 PET Bottles
    • 5.3.2 Cans
    • 5.3.3 Cartons
    • 5.3.4 Others
  • 5.4 By Distribution Channel
    • 5.4.1 On-trade
    • 5.4.2 Off-trade
    • 5.4.2.1 Convenience Stores
    • 5.4.2.2 Supermarkets and Hypermarkets
    • 5.4.2.3 On-line Retail
    • 5.4.2.4 Others (Warehouse clubs, gas stations, etc.)

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Arla Foods amba
    • 6.4.2 Blue Diamond Growers
    • 6.4.3 Britvic plc
    • 6.4.4 Coconut Collaborative Ltd
    • 6.4.5 Danone SA (Alpro)
    • 6.4.6 Oatly Group AB
    • 6.4.7 Plamil Foods Ltd
    • 6.4.8 The Hain Celestial Group Inc.
    • 6.4.9 Upfield Holdings BV
    • 6.4.10 VBites Foods Ltd
    • 6.4.11 Minor Figures Ltd
    • 6.4.12 Califia Farms
    • 6.4.13 Rude Health Foods Ltd
    • 6.4.14 Innocent Drinks
    • 6.4.15 Elmhurst 1925
    • 6.4.16 Good Hemp Food
    • 6.4.17 Nestle SA (Wunda)
    • 6.4.18 SunOpta Inc.
    • 6.4.19 Equinox Kombucha Ltd
    • 6.4.20 Pulsetta Foods

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

United Kingdom Dairy Alternatives Market Report Scope

Non-Dairy Butter, Non-Dairy Cheese, Non-Dairy Ice Cream, Non-Dairy Milk, Non-Dairy Yogurt are covered as segments by Category. Off-Trade, On-Trade are covered as segments by Distribution Channel.
By Type
Non-Dairy Milk Oat Milk
Hemp Milk
Hazelnut Milk
Soy Milk
Almond Milk
Coconut Milk
Cashew Milk
Non-Dairy Cheese
Non-Dairy Desserts
Non-Dairy Yogurt
Others
By Flavor
Flavored
Unflavored
By Packaging Type
PET Bottles
Cans
Cartons
Others
By Distribution Channel
On-trade
Off-trade Convenience Stores
Supermarkets and Hypermarkets
On-line Retail
Others (Warehouse clubs, gas stations, etc.)
By Type Non-Dairy Milk Oat Milk
Hemp Milk
Hazelnut Milk
Soy Milk
Almond Milk
Coconut Milk
Cashew Milk
Non-Dairy Cheese
Non-Dairy Desserts
Non-Dairy Yogurt
Others
By Flavor Flavored
Unflavored
By Packaging Type PET Bottles
Cans
Cartons
Others
By Distribution Channel On-trade
Off-trade Convenience Stores
Supermarkets and Hypermarkets
On-line Retail
Others (Warehouse clubs, gas stations, etc.)
Need A Different Region or Segment?
Customize Now

Market Definition

  • Dairy Alternatives - Dairy alternatives are foods that are made from plant-based milk/oils instead of their usual animal products, such as cheese, butter, milk, ice cream, yogurt, etc. Plant-based or non-dairy milk alternative is the fast-growing segment in the newer food product development category of functional and specialty beverage across the globe.
  • Non-Dairy Butter - Non dairy butter is a vegan butter alternative that is made from a mixture of plant oils. With an increase in alternative diets like vegetarianism, veganism, and gluten intolerance, plant butter is a healthy non-dairy substitute for normal butter.
  • Non-Dairy Ice Cream - Plant based ice cream is a growing category. Non-dairy ice cream is a type of dessert made without any animal ingredients. This is typically considered a substitute for regular ice cream for those who cannot or do not eat animal or animal-derived products, including eggs, milk, cream, or honey.
  • Plant-Based Milk - Plant based milks are milk substitutes that are made from nuts (e.g., hazelnuts, hemp seeds), seeds (e.g., sesame, walnuts, coconuts, cashews, almonds, rice, oats, etc.) or legumes (e.g., soy). Plant-based milk such as soy milk and almond milk have been popular in East Asia and the Middle East for centuries.
Keyword Definition
Cultured Butter Cultured butter is prepared by having the raw butter go through chemical processing and has been added with certain emulsifiers and foreign ingredients.
Uncultured Butter This type of butter is one which has not been processed in any way
Natural Cheese The type of cheese in its most natural form. It is made from natural and simple products and ingredients, including fresh and natural salts, natural colors, enzymes, and high-quality milk.
Processed Cheese Processed cheese undergoes the same processes as natural cheese; however, it requires more steps and many different forms of ingredients. Making processed cheese involves melting natural cheese, emulsifying it, and adding preservatives and other artificial ingredients or colorings.
Single Cream Single cream contains around 18% fat. It’s a single layer of cream that appears over boiled milk.
Double Cream Double cream contains 48% fat, more than double the amount of fat of single cream. It’s heavier and thicker than single cream
Whipping Cream This has a much higher fat percentage than single cream (36%). Used to top cakes, pies, and puddings and as a thickener for sauces, soups, and fillings.
Frozen Desserts Desserts that are meant to be eaten in frozen condition. E.g., sherbets, sorbets, frozen yogurts
UHT Milk (Ultra-high temperature milk) Milk heated at a very high temperature. Ultra-high-temperature processing (UHT) of milk involves heating for 1–8 sec at 135–154°C. which kills the spore-forming pathogenic microorganism, resulting in a product with a shelf-life of several months.
Non-dairy butter/Plant-based butter Butter made from plant-derived oil such as coconut, palm, etc.
Non-dairy Yogurt Yogurt made from typically made from nuts, like almonds, cashews, coconuts, and even other foods like soybeans, plantains, oats, and peas
On-trade It refers to restaurants, QSRs, and bars.
Off-trade It refers to supermarkets, hypermarkets, on-line channels, etc.
Neufchatel cheese One of the oldest kinds of cheese in France. It is a soft, slightly crumbly, mold-ripened, bloomy-rind cheese made in the Neufchâtel-en-Bray region of Normandy.
Flexitarian It refers to a consumer preferring a semi-vegetarian diet, that is centered on plant foods with limited or occasional inclusion of meat.
Lactose Intolerance Lactose intolerance is a reaction in digestive system to lactose, the sugar in milk. It causes uncomfortable symptoms in response to the consumption of dairy products.
Cream Cheese Cream cheese is a soft and creamy fresh cheese with a tangy taste made from milk and cream.
Sorbets Sorbet is a frozen dessert made using ice combined with fruit juice, fruit purée, or other ingredients, such as wine, liqueur, or honey.
Sherbet Sherbet is a sweetened frozen dessert made with fruit and some sort of dairy product such as milk or cream.
Shelf stable Foods that can be safely stored at room temperature, or "on the shelf," for at least one year and do not have to be cooked or refrigerated to eat safely.
DSD Direct Store Delivery is the process in supply chain management wherein the product is delivered from manufacturing plant directly to the retailer.
OU Kosher Orthodox Union Kosher is a kosher certification agency based in New York City.
Gelato Gelato is a frozen creamy dessert made with milk, heavy cream and sugar.
Grass-fed Cows Grass-fed cows are allowed to graze in pastures, where they eat a variety of grasses and clover.
Need More Details on Market Definition?
Ask a Question

Research Methodology

Mordor Intelligence follows a four-step methodology in all our reports.

  • Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step 1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set, and the model is built on the basis of these variables.​
  • Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.​
  • Step-3: Validate and Finalize: In this important step, all market numbers, variables, and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.​
  • Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
research-methodology
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.
Get More Details On Research Methodology
Download PDF