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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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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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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

Consumer Goods and Retail | Apr, 2025

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

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