United States Dairy Alternatives Market to Grow with a CAGR of 8.73% through 2030
The United States dairy alternatives
market is driven by rising lactose intolerance, growing veganism, and
health-conscious consumer trends, with innovations in plant-based beverages
like almond, soy, and oat milk
According
to TechSci Research report, “United States Dairy Alternatives Market – By
Region, Competition, Forecast & Opportunities, 2030F”, the United
States Dairy Alternatives market stood at 9.38 billion in 2024 and is
anticipated to grow USD 15.45 billion by 2030 with a CAGR of 8.73% during
forecast period. The United
States dairy alternatives market has experienced substantial growth over the
past decade, driven by shifts in consumer preferences toward plant-based diets,
increased health consciousness, and greater environmental awareness. Consumers
are becoming more attuned to the potential health benefits of plant-based
products and are seeking alternatives to dairy for various reasons, including
lactose intolerance, veganism, ethical concerns regarding animal welfare, and
the environmental impact of dairy farming. This changing consumer landscape has
opened new opportunities for innovation within the market, spurring the growth
of plant-based milk, cheese, yogurt, ice cream, and other dairy alternatives.
Lactose intolerance is widespread in the
United States, with approximately 68% of the global population experiencing
some degree of lactose malabsorption. In the U.S., a significant portion of the
population, particularly those of Asian, African American, and Hispanic
descent, struggles with lactose digestion. As a result, many individuals are
turning to plant-based milk alternatives that offer similar tastes and textures
without the discomfort that traditional dairy products might cause.
Moreover, the growing popularity of
various dietary lifestyles, such as veganism, paleo, and keto, has fueled the
demand for dairy-free options. These diets restrict or completely eliminate
animal-based products, encouraging consumers to explore plant-based
substitutes. This is particularly true for millennials and Gen Z, who are more
likely to adopt dairy-free diets, making the dairy alternatives market even
more appealing to food brands looking to cater to these younger,
health-conscious, and socially aware consumers.
The dairy alternatives market in the United
States is not only influenced by changing consumer diets but also by the
growing interest in environmental sustainability. Conventional dairy farming
has long been criticized for its environmental impact, particularly concerning
greenhouse gas emissions, water usage, and land degradation. Plant-based dairy
alternatives are often perceived as more sustainable options, contributing to
their popularity. For example, producing oat milk has a much lower
environmental footprint compared to dairy milk in terms of water and land use,
making it an attractive option for eco-conscious consumers.
Despite the growth in demand for dairy
alternatives, the market still faces several challenges. One significant hurdle
is the relatively high price of plant-based dairy products. In many cases,
plant-based milk, cheese, and yogurt can be more expensive than their
traditional dairy counterparts, which can be a barrier to widespread adoption.
While many consumers are willing to pay a premium for plant-based alternatives,
price-sensitive buyers, particularly in lower-income demographics, may find
these products inaccessible. Brands are increasingly working to optimize
production processes and reduce costs, but the price gap remains a challenge.
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" United States Dairy Alternatives Market”
The United States Dairy Alternatives market is segmented
into type, source, formulation, sales channel, and company.
Based on the sales channel, The online channel is
the fastest-growing segment in the United States dairy alternatives market,
driven by increasing e-commerce adoption and shifting consumer behaviors. This
surge is attributed to the convenience of online shopping, broader product
availability, and the rise of direct-to-consumer models. Consumers are
increasingly turning to online platforms for a diverse range of plant-based
dairy products, including milk, yogurt, and cheese alternatives. The expansion
of digital retail channels and targeted marketing efforts are further
propelling this growth, making online sales a pivotal component of the market's
future.
Based on the region,
the Western United States is emerging as the fastest-growing region in the
country's dairy alternatives market, driven by a combination of
health-conscious consumers, environmental awareness, and a strong plant-based
culture. States like California, Oregon, and Washington are at the forefront,
with a high concentration of vegan and flexitarian populations fueling demand
for non-dairy products. The region's robust food innovation ecosystem, coupled
with the presence of leading plant-based brands and startups, contributes to
rapid product development and market penetration. Additionally, widespread
availability of dairy alternatives in supermarkets, specialty stores, and
foodservice outlets across the West supports this accelerated growth
trajectory.
Major companies
operating in United States Dairy Alternatives market are:
- Danone
North America Public Benefit Corporation
- SunOpta,
Inc.
- The
Hain Celestial Group, Inc.
- Daiya
Foods Inc.
- Eden
Foods, Inc.
- Living
Harvest Foods Inc.
- Archer-Daniels-Midland
Company
- Earth's
Own Food Company Inc.
- Pacific
Foods of Oregon, LLC
- Kite
Hill
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“As consumers
continue to prioritize health and transparency, the demand for clean label
products is growing. Plant-based dairy products are now being formulated with
simpler, natural ingredients and without artificial additives or preservatives.
Functional ingredients, such as probiotics, adaptogens, and added protein, are
also being incorporated into dairy alternatives to cater to consumers’ evolving
wellness goals. For example, plant-based milks are being fortified with
nutrients such as calcium, vitamin D, and B12 to meet the nutritional needs of
those who rely on these products as a substitute for cow’s milk. Furthermore,
functional ingredients like probiotics are being added to plant-based yogurt to
promote gut health, and plant-based ice creams are being made with reduced
sugar or added protein to appeal to health-conscious consumers,” said Mr. Karan
Chechi, Research Director of TechSci Research, a research-based management
consulting firm.
"United States Dairy
Alternatives Market, By Type (Milk, Butter, Yogurt, Cheese, Others (Ice Cream,
Cream, Tofu, Smoothies, etc.)), By Source (Soy, Coconut, Almond, Others), By
Formulation (Unsweetened, Sweetened), By Sales Channel (Supermarkets/Hypermarkets,
Departmental Stores, Online, Others), By Region, Competition, Forecast &
Opportunities, 2020-2030F”, has evaluated the future growth potential of United
States Dairy Alternatives market and provides statistics & information on
market size, structure and future market growth. The report intends to provide
cutting-edge market intelligence and help decision makers take sound investment
decisions. Besides, the report also identifies and analyzes the emerging trends
along with essential drivers, challenges, and opportunities in the United
States Dairy Alternatives market.
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