Why Dairy Alternatives Are Taking Over | Market on Track for Huge 2031 Expansion

AUSTIN, TX, UNITED STATES, November 20, 2025 /EINPresswire.com/ -- Market Size and Growth

According to DataM Intelligence report, The global dairy alternatives market was valued at USD 22.2 billion in 2022 and is projected to reach USD 44.6 billion by 2031, expanding at a CAGR of 8.9% from 2024 to 2031.

Increasing lactose intolerance, veganism, and environmental concerns are propelling demand for plant-based milk, yogurt, and cheese substitutes.

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Industry Trends and Strategic Insights

1. North America remains the dominant region in the global dairy alternatives for infant market, accounting for 32.6% of total revenue in 2024.

2. Within product type segments, soy-based formulas hold the leading position, representing 41.4% of the market’s revenue share in 2024.

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Growth Drivers

✦ Rising consumer preference for plant-based, allergen-free dairy alternatives such as almond, oat, soy, and pea proteins.

✦ Expansion of retail distribution channels and product innovation enhancing accessibility.

✦ Environmental sustainability initiatives reducing dairy carbon footprints.

✦ Government support for sustainable agriculture and food tech startups.

✦ Increasing adoption among millennials and Gen Z demographic groups.

Latest M&A Activity

1. Danone finalized a significant acquisition to gain majority stake in Kate Farms, a US producer of plant-based, organic nutrition and dairy alternative products, expanding its portfolio across infant to adult nutrition.​

2. The alternative protein sector is undergoing consolidation with many startups and established players involved in funding rounds, investments, and acquisition discussions to scale production and innovation.​

3. European and Asian markets see rising investments in local plant-based dairy alternatives, spurring regional deals and new entrant partnerships.

Market Segmentation Analysis

By Product Type: Milk Alternatives, Yogurt Alternatives, Cheese Alternatives, Others

By Source: Almond, Soy, Oat, Coconut, Pea, Rice

By Distribution Channel: Supermarkets, Online Retail, Convenience Stores

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Regional Insights

Europe and North America hold significant market shares due to high consumer awareness.

Asia-Pacific expected to witness fastest growth with rising urbanization and health consciousness.

Recent Product Launches and Innovation

✦ Eclipse Foods launched a shelf-stable, whole plant milk formulated from isolated pea and chickpea proteins designed to replicate traditional dairy’s taste, texture, and functionality even for foodservice applications.​

✦ Arla Foods introduced Arla Cultura, a gut-health focused plant-based yogurt and drink range in the UK, blending probiotic bacteria cultures with dairy-free formats to appeal to health-conscious consumers.​

✦ Califia Farms expanded its US portfolio with plant-based milk for kids and reduced sugar coconut juice beverages responding to wellness and family nutrition trends.​

✦ Miyoko's Creamery launched a Jalapeño-flavored plant milk cheese spread for the US market, blending spicy and creamy elements for a bold dairy alternative.

Key Players

Leading companies include Blue Diamond Growers || Earth’s Own Food Company, Inc. || Valsoia || Triballat Noyal || The Whitewave Foods Company, Sunopta Inc. || Döhler GmBH || Free-dom Foods Group Limited || Eden Foods Inc. and Nutriops S.L., focusing on R&D and strategic acquisitions.

Recent Developments

1. Oatly introduced a fortified oat milk range enriched with vitamins (April 2025).

2. Danone expanded its plant-based yogurt portfolio in North America (January 2025).

Market Outlook

With rising health and environmental concerns, dairy alternatives are set to become mainstream dietary choices worldwide.

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Conclusion

The Dairy Alternatives Market is experiencing robust global expansion as consumers increasingly shift toward plant-based nutrition, driven by rising lactose intolerance, health awareness, and sustainability concerns. With continuous product innovation, improved taste profiles, and broader retail availability, plant-based dairy is moving firmly into the mainstream. As major food manufacturers and startups invest in new formulations from plant-based milk and yogurts to infant nutrition the market is poised for sustained growth through 2031. Dairy alternatives will continue to reshape the future of the food and beverage industry, offering healthier, environmentally friendly options that align with evolving consumer preferences worldwide.

Related Reports:

Almond Milk Market

Oat Milk Market

Sai Kiran
DataM Intelligence 4market Research LLP
+1 877-441-4866
sai.k@datamintelligence.com
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