Animal Free Dairy Products Market Size, Share, By Source (Soy, Almond, Coconut, Oat, Rice, Hemp, Cashew, Pea, and Others), By Product Type (Milk, Yogurt, Ice Cream, Cheese, Creamers, Butter, Sour Cream, and Other), By Distribution Channel (Supermarkets and Hypermarkets, Convenience Stores, Online Retail, and Foodservice) and By Region - Trends, Analysis and Forecast till 2034

Report Code: PMI561424 | Publish Date: September 2024 | No. of Pages: 172

Animal Free Dairy Products Market Overview

Animal free dairy products market size was valued at USD 26.77 Billion in 2024 and is expected to reach USD 69.47 Billion by 2034, growing at a CAGR of 11.0%

Animal-free dairy products market represents a growing new sector driven by converging consumer, environmental, and technological factors. Traditionally, dairy products have been obtained from animal milk; the primary source is cow's milk. The advent of plant-based alternatives and, more recently, precision fermentation technologies saw the redefinition of the dairy landscape. While it is popularly considered new, the plant-based dairy alternative market includes alternatives made from soy, almonds, oats, and coconuts. This provides for lactose intolerants, vegans, vegetarians, and others who wish to have less of an impact on the environment.

More recently, animal-free dairy products have been developed via precision fermentation. It's a process in which microorganisms use an identical structure to create milk proteins without including animals. Such tech can replicate taste, texture, and nutritional value compared with real dairy while removing animal welfare and sustainability concerns. Paralleled with the rising consumer demand for sustainable and ethical food choices, the animal-free dairy products market is increasing. With improving technology and enhanced consumer awareness over the next few years, the marketplace is estimated to rise to exponential values.

Animal Free Dairy Products Market Share

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Animal Free Dairy Products Market Dynamics

Key Drivers of Target Market:

More Awareness on Animal Welfare

  • The unethical treatment of animals in the dairy sector has been at the forefront of many consumers' radars. With increased concern for the ethical treatment of animals in the dairy industry, the consumer seeks more and more alternatives in line with values and ethical considerations. There is also an increased demand for transparency and traceability in food supply chains as people try to understand the products they consume. Moreover, the rise of social media and online platforms greatly emphasizes animal welfare, making the customer very aware and activist.

Environmental Sustainability

  • The large environmental footprint of milk production, including GHG emissions, use of water, land, and pollution, becomes of grave concern to consumers and policy actors. The growing interest in plant-based/animal-free dairy alternatives is thus fueled by an increasing desire to impact the environment positively. Consumers are increasingly demanding sustainable options that reduce their ecological impact. Again, the altering weather and increased frequency of extreme weather and climate disasters boost awareness about the food system being more sustainable.

Restrains:

Higher Cost

  • In most cases, animal-free dairy products are more expensive than conventional dairy. Several factors lead to a high price for such alternatives. First, it is an emerging industry. Besides, unique production processes and often smaller volumes can increase costs. On top of this, research and development to further improve product formulations and production efficiency can be cost-intensive. It is expected that, like other categories, as the market matures and production scales increase, economies of scale will drive down costs and make animal-free dairy more accessible to a broader set of consumers.

Opportunities:

Market Expansion

  • The most obvious opportunity is market expansion. Although the market is on the rise, huge potential remains untapped within many regions and consumer segments. Increased product availability, development of better distribution channels, and implementation of corresponding marketing campaigns are some of the ways to achieve market share growth.

Animal Free Dairy Products Market Segmentation

The market is segmented based on source, Product Type, Distribution channel, and Region.

By Source:

  • Soy: This is a source of protein with an amino acid profile that is complete; it, therefore, offers soy-based dairy alternatives with familiar taste and texture. They are often fortified to match the nutritional content of traditional dairy milk with added calcium and vitamin D. Soy milk has gained much popularity among those searching for a plant-based alternative that can offer cow milk-like nutrition.
  • Almond: This is for those seeking something light and refreshing, mildly flavored and nutty, with a high calcium content. Calories and fat are low compared with other plant-based milks, so this milk will suit those who watch their weight. Almond milk contains vitamin E, an antioxidant that protects cells from damage.
  • Coconut: Creamy in texture and with a tropical flavor, coconut milk is suitable for sweet dishes and baked goods. It is a good source of well-digested medium-chain triglycerides, which may help boost metabolism. It is also naturally rich in saturated fat, so it should be consumed in moderation.
  • Oat: This full-bodied, very satisfying milk alternative offers a good source of fibre and beta-glucan. Oat milk is creamy in texture and slightly sweet in flavor, so it works well in many applications. It is also a good source of iron and zinc, two essential minerals for overall health.
  • Rice: This milk is known for its hypoallergenic properties and thus is light on sensitivities. This milk tastes very mild and sweet; it is fragile in consistency. Rice milk is low in protein compared to other plant-based milks, but it has enough carbohydrates.
  • Hemp: It is full of omega-3 fatty acids, making it very popular with health enthusiasts, and has its own very distinctive nutty flavor. It was creamy with only a slightly earthy flavor. This milk contains a decent amount of protein and iron and very little saturated fat.
  • Cashew: Its smooth and creamy texture makes cashew milk suitable in high-end plant-based products. It has a rich taste with a slight sweetness and thick consistency. Cashew milk is a good source of proteins and magnesium and contains very few carbohydrates.
  • Pea: This new player has a complete protein profile and a very neutral taste, making it much more versatile for many applications. Sensorily, it is creamy and slightly sweet. This beverage is a good source of protein and iron while low in saturated fat.
  • Other: These are new potential sources, namely, hazelnut milk, flaxseed milk, and sunflower seed milk—each differing in characteristics and targeting a different market. Hazelnut milk is rich, somewhat nutty, and creamy. Flaxseed milk is rich in omega-3 fatty acids, while sunflower seed milk contains high vitamin E.

By Product Type:

  • Milk: The bedrock of plant-based dairy alternative markets, diversified in flavor, texture, and nutritional profile to match the diversified consumer preference. Recently, plant-based milk alternatives are fortified with some key nutrients like calcium, vitamin D, and protein to match traditional milk's nutritional profile. It is also available in flavors like vanilla, chocolate, and unsweetened to suit different tastes.
  • Yogurt: Fermented dairy alternative, processed in a variety of flavors and textures, with various functionalities, such as probiotic-rich options for digestive health. Plant-based yogurt is like natural yogurt; it's fermented to give a tangy taste and creamy texture. It comes in flavors, ranging from plain to fruit-flavored and Greek-style, providing great variety for customers. Furthermore, plant-based yogurt is often prepared with live and active cultures and may aid digestion.
  • Ice Cream: A frozen dessert everyone enjoys, formulated with plant-based ingredients to offer indulgent treats with much lower fat and cholesterol than traditional ice cream. Plant-based ice cream is rich and creamy, often accused through the use of plant-based fats and stabilizers. Flavors range from classics to innovative, diversifying the tastes of consumers. Moreover, it generally has fewer calories and less fat than regular ice cream, so plant-based ice cream is much healthier for people looking to shed some pounds.
  • Cheese: A broad category of various plant-based cheeses offering great variety in taste, texture, and melting performance to meet different application requirements. Those are just a limited few of hundreds of plant-based cheeses made out of a wide array of plant-based ingredients—cashews, almonds, coconut—to replicate the taste and texture of actual cheese. They come in cheddar, mozzarella, and cream cheese styles to provide versatility for different recipes. Where plant-based cheese does not entirely melt like real cheese, technology is fast-tracking the ultimate plant-based cheese alternative with better reliability.
  • Creamers: This category includes products that add flavor and texture to coffee and tea. Plant-based creamers range from dairy-free whipped cream alternatives to many other styles. Plant-based creamers are derived from plant materials, such as coconut oil, almond milk, and oat milk, among others, to add creaminess and flavor to beverages. They have different flavors, like vanilla, caramel, and hazelnut, to suit various tastes. Plant-based creamers also come in lower calorie and fat portions than the original. Hence, they are a healthy choice for those who are very mindful of their weight.
  • Butter: A spreadable plant-based product for cooking, baking, and spreading that gives consumers a dairy-free alternative in case of dietary intolerance or just preference. The other butter options are prepared from plant-based oils; some examples include coconut oil and palm oil. They generally also contain water and an emulsifier, allowing spreading. They come in many flavors, such as unsalted and salted ones, and are used not only to replace butter for cooking and baking purposes but also for spreading.
  • Sour Cream: This dairy alternative can be used on many dishes, taken as a dip, or used in a recipe to add tang and creaminess. Plant-based sour cream alternatives are basically derived from plant-based ingredients such as coconut milk and cashews, which undergo additional processing with acidulants to give them a tangy taste. Flavored in a number of ways, including plain and herb-flavored, they are mostly used as a sour cream substitute in many dishes.
  • Other: Companies have developed several innovative plant-based dairy alternatives, rapidly expanding into plant-based milk powders, puddings, and other dairy-inspired products. With plant-based milk powder, consumers can mix their milk or use it in recipes for ease and versatility. Plant-based pudding brings a creamy, indulgent dessert option, often constructed with plant-based milk and thickeners. Other plant-based dairy-inspired products would include ice cream sandwiches, yogurt drinks, and cheese spreads.

By Distribution Channels:

  • Supermarkets and Hypermarkets: This is the dominant distribution channel for animal-free dairy products, offering an array of options to satisfy the different tastes of consumers. It often has a special plant-based section inside, whereby consumers can easily get and compare brands and types.
  • Convenience Stores: While stocking relatively small quantities of dairy products devoid of animals, convenience stores offer products that fit into busy people's schedules. Plant-based milk, yogurt, and other dairy alternatives can be found easily in most convenience stores, showing demand for this particular market.
  • Online Retail: Online distribution has been a powerful avenue for animal-free dairy products, especially considering the variety and home delivery services. Almost all online retailers deal with plant-based products and provide extensive information on each product, along with customer reviews, which are helpful for any consumer wishing to make informed decisions. Moreover, web-based platforms grant access to specialized/niche products that otherwise may not be available within a conventional retail store.
  • Food Service: The number of consumers with dietary restrictions or preferences is increasing, and dairy-free products are increasingly being placed on many food service menus. Many restaurants, cafes, and hotels have started offering plant-based milk for coffee and tea use. They have also started to introduce plant-based and dairy-free desserts and ice cream. Some food service operations may also look for innovative dishes or a menu purely along plant-based lines to help rope in more customers.

Regional Insights

  • North America: represents a mature market for animal-free dairy, driven by a large consumer base and early adopters of plant-based. In addition, there is an established production and distribution infrastructure with numerous options. Central American and Canadian cities have seen the growth of plant-based eateries and grocery stores in response to surging demand. The region also leads research and development of new plant-based products and technologies.
  • Asia Pacific: region is fast-growing in the animal-free dairy products market due to a rising population, growing middle class, and increasing health and sustainability consciousness. Soy milk is produced mainly in countries such as China and India, and recently, R&D activity has increased in plant-based dairy alternatives in the region. Government incentives to encourage the plant-based industry further drive market growth.
  • Europe: this is a serious market with consumer demand for animal-free dairy products. Consumers from this region are developing concerns about animal welfare, environmental impact, and lactose intolerance, which will boost the region's market. In that respect, the region has the presence of a large number of established plant-based brands and increasing startups focused on innovation.
  • Latin America: Though still in its developing stage, Latin America also holds potential for the animal-free dairy products market. With increasing urbanization, rising disposable incomes, and growing health consciousness, opportunities are opening up. However, this faces some challenges due to limited product availability and consumer education.
  • Middle East and Africa: this region are emerging markets for animal-free dairy, with low consumer awareness and limited product availability. However, the rising urban populations, concerns about health, and the young, tech-savvy consumer all hold out hopes for market growth.

Animal Free Dairy Products Market Report Scope:

Attribute

Details

Market Size 2024

USD 26.77 Billion 

Projected Market Size 2034

USD 69.47 Billion

CAGR Growth Rate

11.0%

Base year for estimation

2023

Forecast period

2024 – 2034

Market representation

Revenue in USD Billion & CAGR from 2024 to 2034

Market Segmentation

By Source - Soy, Almond, Coconut, Oat, Rice, Hemp, Cashew, Pea, and Others

By Product Type - Milk, Yogurt, Ice Cream, Cheese, Creamers, Butter, Sour Cream, and Other

By Distribution Channel - Supermarkets and Hypermarkets, Convenience Stores, Online Retail, and Foodservice.

Regional scope

North America - U.S., Canada

Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe

Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific

Latin America - Brazil, Mexico, Argentina, Rest of Latin America

Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study segmented the target market report based on Source, Product Type, Distribution Channel and Region.

Segmentation:

By Source:

  • Soy
  •  Almond
  • Coconut
  •  Oat
  •  Rice
  •  Hemp
  • Cashew
  •  Pea
  • Others

By Product Type:

  • Milk
  • Yogurt
  • Ice Cream
  •  Cheese
  •  Creamers
  •  Butter
  •  Sour Cream
  •  Other

By Distribution Channel:

  • Supermarkets and Hypermarkets
  •  Convenience Stores
  •  Online Retail
  •  Foodservice

By Region:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • Israel
    • South Africa
    • Rest of Middle East & Africa

Animal Free Dairy Products Market Key Players

The key players operating the Animal Free Dairy Products Market include Danone, Nestle, Unilever Oatly, Alpro, Silk, Perfect Day, TurtleTree Labs, Motif, and Food giants.

Animal Free Dairy Products Market Key Players

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Animal Free Dairy Products Market Key Issues Addressed

  • In January 2024, Imagindairy acquires industrial-scale precision fermentation lines for animal-free whey Israeli startup Imagindairy has acquired industrial-scale precision fermentation production lines at an undisclosed location "near Israel" and now expects products containing its animal-free whey protein to launch in the U.S. this year.

Animal Free Dairy Products Market Company Profile

  • Danone
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
  •  Nestle
  • Unilever Oatly
  •  Alpro
  •  Silk
  •  Perfect Day
  •  TurtleTree Labs
  •  Motif
  • Food giants.

“*” marked represents similar segmentation in other categories in the respective section.

Animal Free Dairy Products Market Table of Contents

Research Objective and Assumption

  • Research Objectives
  • Assumptions
  • Abbreviations

Market Preview

  • Report Description
    • Market Definition and Scope
  • Executive Summary
    • Market Snippet, By Source
    • Market Snippet, By Product Type
    • Market Snippet, By Distribution Channel
    • Market Snippet, By Region
  • Opportunity Map Analysis

Market Dynamics, Regulations, and Trends Analysis

  • Market Dynamics
    • Drivers
    • Restraints
    • Market Opportunities
  • Market Trends
  • Product Launch
  • Merger and Acquisitions
  • Impact Analysis
  • PEST Analysis
  • Porter’s Analysis

Market Segmentation, Source, Forecast Period up to 10 Years, (USD Bn)

  • Overview
    • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
    • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
    • Segment Trends
  • Soy
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Almond
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Coconut
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Oat
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Rice
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Hemp
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Cashew
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Pea
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Others
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, Product Type, Forecast Period up to 10 Years, (USD Bn)

  • Overview
    • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
    • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
    • Segment Trends
  • Milk
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Yogurt
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Ice Cream
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Cheese
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Creamers
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Butter
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Sour Cream
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Other
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, Distribution Channel, Forecast Period up to 10 Years, (USD Bn)

  • Overview
    • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
    • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
    • Segment Trends
  • Supermarkets and Hypermarkets
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Convenience Stores
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Online Retail
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Foodservice
    • Overview
    • Market Size and Forecast (USD Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Region, Forecast Period up to 10 Years, (USD Bn)

  • Overview
    • Market Value and Forecast (USD Bn), and Share Analysis (%), Forecast Period up to 10 Years
    • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
    • Regional Trends
  • North America
    • Market Size and Forecast (USD Bn), By Source, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Product Type, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Distribution Channel, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
      • U.S
      • Canada
  • Asia Pacific
    • Market Size and Forecast (USD Bn), By Source, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Product Type, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Distribution Channel, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
      • India
      • Japan
      • South Korea
      • China
      • Rest of Asia Pacific
  • Europe
    • Market Size and Forecast (USD Bn), By Source, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Product Type, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Distribution Channel, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
      • UK
      • Germany
      • France
      • Russia
      • Italy
      • Rest of Europe
  • Latin America
    • Market Size and Forecast (USD Bn), By Source, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Product Type, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Distribution Channel, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
      • Brazil
      • Mexico
      • Rest of Latin America
  • Middle East and Africa
    • Market Size and Forecast (USD Bn), By Source, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Product Type, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Distribution Channel, Forecast Period up to 10 Years
    • Market Size and Forecast (USD Bn), By Country, Forecast Period up to 10 Years
      • GCC
      • Israel
      • South Africa
      • Rest of Middle East and Africa

Competitive Landscape

  • Heat Map Analysis
  • Company Profiles
  • Danone
  • Nestle
  • Unilever Oatly
  •  Alpro
  •  Silk
  •  Perfect Day
  •  TurtleTree Labs
  •  Motif
  • Food giants.

The Last Word

  • Future Impact
  • About Us
  • Contact

FAQs

Animal Free Dairy Products market size was valued at USD 26.77 Billion in 2024 and is expected to reach USD 69.47 Billion by 2034, growing at a CAGR of 11.0%

Animal Free Dairy Products Market is segmented into Source, Product Type, Distribution channel, and Region.

Factors driving the market include Increased awareness of animal welfare and environmental sustainability.

The Animal Free Dairy Products Market's restraints include Higher Costs.

The Animal-Free Dairy Products Market is segmented by Region into North America, Asia Pacific, Europe, Latin America, the Middle East, and Africa. North America is expected to dominate the Market.

The key players operating in the Animal-Free Dairy Products Market include Danone, Nestle, Unilever Oatly, Alpro, Silk, Perfect Day, TurtleTree Labs, Motif, and Food giants.