United States Dairy Alternatives Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

The United States Dairy Alternatives Market is segmented by Category (Non-Dairy Butter, Non-Dairy Cheese, Non-Dairy Ice Cream, Non-Dairy Milk, Non-Dairy Yogurt) and by Distribution Channel (Off-Trade, On-Trade). Market Value in USD and Volume are both presented. Key Data Points observed include Per capita consumption; Population; and Production volume of plant-based products.

United States Dairy Alternatives Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

United States Dairy Alternatives Market Size

United States Dairy Alternatives Market Summary
Study Period 2017 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
Market Size (2025) USD 9.97 Billion
Market Size (2030) USD 15.23 Billion
CAGR (2025 - 2030) 8.84 %
Market Concentration Low

Major Players

United States Dairy Alternatives Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of United States Dairy Alternatives Market with other markets in Food & Beverage Industry

Beverages

Food

Food Ingredients and Food Additives

Food Supplements

United States Dairy Alternatives Market Analysis

The United States Dairy Alternatives Market size is estimated at 9.97 billion USD in 2025, and is expected to reach 15.23 billion USD by 2030, growing at a CAGR of 8.84% during the forecast period (2025-2030).

The dairy alternatives industry in the United States is experiencing significant transformation driven by evolving consumer health consciousness and dietary preferences. A notable health factor influencing the market is the prevalence of lactose intolerance, with approximately 30-50 million Americans being lactose intolerant as of 2022. This health concern, combined with the rising obesity rate of 41.9% among American adults in 2022, has led consumers to seek healthier, dairy-free, non-dairy options. The industry has responded by developing innovative products with enhanced nutritional profiles, focusing on lower fat content and added functional benefits.


The distribution landscape for dairy alternatives has evolved significantly, with retail channels adapting to changing consumer preferences. Convenience stores have emerged as significant players in the distribution network, with over 154,000 locations across the country serving approximately 160 million people daily. The retail sector has demonstrated strong commitment to the category, with conventional channels dedicating up to 30% of shelf space to plant milk beverages, reflecting the growing mainstream acceptance of milk alternatives.


Consumer purchasing behavior shows a strong trend toward repeat purchases and brand loyalty in the dairy alternatives market. Market data indicates that 76% of plant milk buyers made multiple purchases, demonstrating strong consumer commitment to these products. The consumption patterns reveal a significant preference for at-home consumption, with approximately 93% of meals or snacks including milk alternatives being consumed at home, while only 7% are consumed at restaurants or food service outlets.


The digital transformation of retail has significantly impacted the plant-based dairy market, with e-commerce emerging as a crucial distribution channel. Convenience is cited as the primary motivation for 61.1% of shoppers who have transitioned to online grocery shopping. Retailers have responded by implementing innovative technologies and expanding their online presence, with major grocery chains developing sophisticated e-commerce platforms and delivery services. Dairy alternatives have established a strong presence in conventional retail channels, now occupying 16% of all retail milk dollar sales, indicating its successful transition from niche to mainstream status.

Segment Analysis: Category

Non-Dairy Milk Segment in US Dairy Alternatives Market

Non-dairy milk continues to dominate the US dairy alternatives market, commanding approximately 44% market share in 2024, driven by increasing consumer preference for plant milk alternatives. The segment's strong performance is attributed to the growing health consciousness among American consumers and rising cases of lactose intolerance, with over 30 million Americans being lactose intolerant. The segment offers diverse options including almond milk, oat milk, soy milk, and other varieties, catering to different consumer preferences and dietary requirements. Major retailers are dedicating up to 30% of their shelf space to plant-based beverages, particularly non-dairy milk alternatives, reflecting the segment's market dominance. The segment's growth is further supported by the increasing adoption of these products in foodservice applications, particularly in coffee shops and restaurants, where plant-based milk alternatives have become standard offerings.

Market Analysis of United States Dairy Alternatives Market: Chart for Category

Non-Dairy Cheese Segment in US Dairy Alternatives Market

The non-dairy cheese segment is experiencing remarkable growth in the US dairy alternatives market, with a projected growth rate of approximately 16% during 2024-2029. This accelerated growth is driven by continuous product innovations and improvements in taste and texture profiles that more closely mimic traditional dairy cheese. The segment's expansion is supported by increasing investments in research and development, with plant-based food companies receiving significant funding to develop new cheese alternatives. The growth is further fueled by the rising vegan population in the United States, which has grown to nearly 6% of the population, compared to previous years. Manufacturers are introducing various cheese alternatives made from nuts, soy, and other plant-based ingredients, offering options like slices, shreds, and spreads to meet diverse consumer needs.

Remaining Segments in US Dairy Alternatives Market

The other significant segments in the US dairy alternatives market include non-dairy butter, non-dairy ice cream, and non-dairy yogurt, each contributing uniquely to the market's diversity. Non-dairy butter alternatives have gained traction among health-conscious consumers seeking lower-fat options, while non-dairy ice cream has become increasingly popular among consumers looking for indulgent yet dairy-free dessert options. The non-dairy yogurt segment has established itself as a significant category, particularly appealing to health-conscious consumers seeking probiotic benefits in plant-based formats. These segments continue to evolve with new product innovations, improved formulations, and expanding distribution channels, contributing to the overall growth of the dairy alternatives market.

Segment Analysis: Distribution Channel

Off-Trade Segment in US Dairy Alternatives Market

The off-trade distribution channel dominates the US dairy alternatives market, commanding approximately 90% of the total market share in 2024. This substantial market presence is primarily driven by the extensive network of retail outlets, including supermarkets, hypermarkets, convenience stores, and online platforms. The segment's dominance is reinforced by changing consumer preferences, with about 93% of meals or snacks containing milk substitutes being consumed at home rather than at restaurants. Supermarkets and hypermarkets lead the off-trade channel, holding around 80% of the retail volume share, while online retail is experiencing significant growth due to increasing e-commerce adoption. The segment's strength is further bolstered by the presence of over 63,000 supermarkets across the United States, offering consumers easy access to a wide variety of dairy replacement products. Additionally, the segment benefits from the growing trend of multiple purchases, with 76% of plant-based milk buyers making repeat purchases through retail channels.

On-Trade Segment in US Dairy Alternatives Market

The on-trade segment, encompassing restaurants and food service operators, represents a smaller but significant channel in the US dairy alternatives market. This segment's growth is supported by the expanding food service industry, with over 600,000 restaurants operating across the United States. The channel is experiencing transformation through increased digitalization, with approximately 77% of consumers visiting restaurant websites before dining in or ordering takeout. The presence of more than 200,000 quick-service restaurant (QSR) establishments has created significant opportunities for dairy alternatives, particularly in categories like non-dairy ice creams and desserts. The segment's development is also influenced by changing consumer preferences, with food expenditure away from home reaching 55% of total food spending. The continuous expansion of QSR franchises and the growing adoption of plant-based options in restaurant menus are expected to further strengthen this distribution channel's position in the market.

United States Dairy Alternatives Industry Overview

Top Companies in United States Dairy Alternatives Market

The dairy alternatives market in the United States is characterized by continuous product innovation across categories including alternative dairy products such as plant-based milk, cheese, yogurt, and ice cream. Companies are focusing on expanding their production capacities through new facility investments and strategic partnerships to meet growing consumer demand. Operational agility is demonstrated through the development of specialized manufacturing processes, particularly in fermentation technologies and plant protein extraction. Strategic moves include significant investments in research and development to improve taste profiles and the nutritional content of dairy alternatives. Market leaders are also emphasizing sustainable packaging solutions and expanding their distribution networks through both traditional retail channels and e-commerce platforms. The industry has witnessed substantial expansion through both organic growth and acquisitions, particularly in acquiring smaller innovative brands to diversify product portfolios.

Market Led By Global and Regional Players

The United States dairy alternatives market exhibits a moderately fragmented structure with a mix of global conglomerates and specialized plant-based manufacturers. Global players like Danone SA and Campbell Soup Company leverage their extensive distribution networks and manufacturing capabilities to maintain market leadership, while specialized players such as Oatly Group AB and Califia Farms focus on product innovation and brand differentiation. The market demonstrates a balanced presence of both established food companies diversifying into plant-based dairy alternatives and pure-play plant-based manufacturers developing specialized product lines.


The industry has experienced significant consolidation through mergers and acquisitions, particularly with larger companies acquiring innovative start-ups to expand their plant-based portfolios. Companies are increasingly focusing on vertical integration to control quality and ensure sustainable sourcing of key ingredients like almonds, oats, and soybeans. Regional players maintain competitive advantages through local sourcing relationships and understanding of consumer preferences, while global players bring economies of scale and international market expertise.

Innovation and Distribution Drive Market Success

Success in the dairy alternatives market increasingly depends on companies' ability to develop products that match conventional dairy in taste, texture, and functionality while maintaining clean label credentials. Incumbents can strengthen their market position by investing in research and development, expanding production capacity, and developing strong relationships with retailers. Companies must also focus on sustainable packaging solutions and transparent supply chains to meet growing consumer expectations for environmentally responsible products.


For contenders looking to gain market share, differentiation through unique ingredient combinations and targeted health benefits presents significant opportunities. Success factors include developing efficient cold chain logistics, securing shelf space in major retail outlets, and building a strong online presence through direct-to-consumer channels. The regulatory environment, particularly regarding labeling requirements and health claims, continues to shape market dynamics. Companies must also address potential substitution risks by maintaining price competitiveness with conventional dairy products while investing in consumer education about dairy-free benefits.

United States Dairy Alternatives Market Leaders

  1. Blue Diamond Growers

  2. Califia Farms LLC

  3. Campbell Soup Company

  4. Danone SA

  5. Oatly Group AB

  6. *Disclaimer: Major Players sorted in no particular order
United States Dairy Alternatives Market Concentration
Need More Details on Market Players and Competiters?
Download PDF

United States Dairy Alternatives Market News

  • October 2022: SunOpta Inc. announced the acquisition of The Hain Celestial Group Inc.'s Dream® and WestSoy® plant-based beverage brands for USD 33 million. The company may benefit from the acquired brands, thus boosting its growth in this competitively advantaged business.
  • October 2022: SunOpta completed the first phase of the USD 100-million sterile alternative milk plant in Midlothian to manufacture sustainable milk and food products.
  • August 2022: The addition of the new Oat Barista Blend to Califia Farms' already well-liked Original and Unsweetened Almondmilk Barista Blends demonstrated the company's commitment to quality coffee while bolstering its relationships with both old and new coffee shops.

United States Dairy Alternatives Market Report - Table of Contents

1. EXECUTIVE SUMMARY & KEY FINDINGS

2. REPORT OFFERS

3. INTRODUCTION

  • 3.1 Study Assumptions & Market Definition
  • 3.2 Scope of the Study​
  • 3.3 Research Methodology

4. KEY INDUSTRY TRENDS

  • 4.1 Per Capita Consumption
  • 4.2 Raw Material/commodity Production
    • 4.2.1 Dairy Alternative - Raw Material Production
  • 4.3 Regulatory Framework
    • 4.3.1 United States
  • 4.4 Value Chain & Distribution Channel Analysis

5. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)

  • 5.1 Category
    • 5.1.1 Non-Dairy Butter
    • 5.1.2 Non-Dairy Cheese
    • 5.1.3 Non-Dairy Ice Cream
    • 5.1.4 Non-Dairy Milk
    • 5.1.4.1 By Product Type
    • 5.1.4.1.1 Almond Milk
    • 5.1.4.1.2 Cashew Milk
    • 5.1.4.1.3 Coconut Milk
    • 5.1.4.1.4 Hemp Milk
    • 5.1.4.1.5 Oat Milk
    • 5.1.4.1.6 Soy Milk
    • 5.1.5 Non-Dairy Yogurt
  • 5.2 Distribution Channel
    • 5.2.1 Off-Trade
    • 5.2.1.1 Convenience Stores
    • 5.2.1.2 Online Retail
    • 5.2.1.3 Specialist Retailers
    • 5.2.1.4 Supermarkets and Hypermarkets
    • 5.2.1.5 Others (Warehouse clubs, gas stations, etc.)
    • 5.2.2 On-Trade

6. COMPETITIVE LANDSCAPE

  • 6.1 Key Strategic Moves
  • 6.2 Market Share Analysis
  • 6.3 Company Landscape
  • 6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
    • 6.4.1 Blue Diamond Growers
    • 6.4.2 Califia Farms LLC
    • 6.4.3 Campbell Soup Company
    • 6.4.4 Danone SA
    • 6.4.5 Miyoko's Creamery
    • 6.4.6 Nuts for Cheese
    • 6.4.7 Oatly Group AB
    • 6.4.8 Ripple Foods PBC
    • 6.4.9 SunOpta Inc.
    • 6.4.10 The J.M. Smucker Company
    • 6.4.11 Tofutti Brands Inc.

7. KEY STRATEGIC QUESTIONS FOR DAIRY AND DAIRY ALTERNATIVE CEOS

8. APPENDIX

  • 8.1 Global Overview
    • 8.1.1 Overview
    • 8.1.2 Porter’s Five Forces Framework
    • 8.1.3 Global Value Chain Analysis
    • 8.1.4 Market Dynamics (DROs)
  • 8.2 Sources & References
  • 8.3 List of Tables & Figures
  • 8.4 Primary Insights
  • 8.5 Data Pack
  • 8.6 Glossary of Terms
You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

United States Dairy Alternatives Industry Segmentation

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.
Category Non-Dairy Butter
Non-Dairy Cheese
Non-Dairy Ice Cream
Non-Dairy Milk By Product Type Almond Milk
Cashew Milk
Coconut Milk
Hemp Milk
Oat Milk
Soy Milk
Non-Dairy Yogurt
Distribution Channel Off-Trade Convenience Stores
Online Retail
Specialist Retailers
Supermarkets and Hypermarkets
Others (Warehouse clubs, gas stations, etc.)
On-Trade
Need A Different Region or Segment?
Customize Now

United States Dairy Alternatives Market Research FAQs

How big is the United States Dairy Alternatives Market?

The United States Dairy Alternatives Market size is expected to reach USD 9.97 billion in 2025 and grow at a CAGR of 8.84% to reach USD 15.23 billion by 2030.

What is the current United States Dairy Alternatives Market size?

In 2025, the United States Dairy Alternatives Market size is expected to reach USD 9.97 billion.

Who are the key players in United States Dairy Alternatives Market?

Blue Diamond Growers, Califia Farms LLC, Campbell Soup Company, Danone SA and Oatly Group AB are the major companies operating in the United States Dairy Alternatives Market.

Which segment has the biggest share in the United States Dairy Alternatives Market?

In the United States Dairy Alternatives Market, the Off-Trade segment accounts for the largest share by distribution channel.

Which is the fastest growing segment in the United States Dairy Alternatives Market?

In 2025, the Off-Trade segment accounts for the fastest growing by distribution channel in the United States Dairy Alternatives Market.

What years does this United States Dairy Alternatives Market cover, and what was the market size in 2025?

In 2025, the United States Dairy Alternatives Market size was estimated at 9.97 billion. The report covers the United States Dairy Alternatives Market historical market size for years: 2017, 2018, 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the United States Dairy Alternatives Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

United States Dairy Alternatives Market Research

Mordor Intelligence provides comprehensive market research on dairy alternatives, offering expert analysis of the rapidly evolving US dairy alternatives market. Our extensive research covers the full range of dairy free and non dairy products. This includes segments such as almond milk, oat milk, coconut milk, and soy milk. The report delivers detailed insights into the plant-based dairy market landscape, examining both established and emerging alternative dairy products across the United States.

Stakeholders gain valuable insights through our report PDF, available for download, which offers in-depth analysis of dairy alternatives products trends and growth drivers. The research explores emerging opportunities in vegan dairy segments, milk alternatives development, and alternative protein innovations. Our comprehensive coverage of dairy substitutes and plant milk categories provides essential data for businesses operating in the dairy and dairy alternatives sector. This supports strategic decision-making with actionable intelligence on milk substitutes market dynamics and consumer preferences.