PLANT-BASED MILK MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Plant-based Milk Market Size and Trends

Plant-based milk market is estimated to be valued at USD 19.88 Bn in 2024 and is expected to reach USD 32.33 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 7.2% from 2024 to 2031.

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Plant-based milk market witnesses growth owing to rising health consciousness among consumers and increasing lactose intolerance. Various factors such as increasing vegan population, environmental concerns regarding dairy milk production, and rising availability of plant-based milk variants are driving the market growth. Moreover, growing awareness regarding the nutritional benefits of plant-based milk such as low cholesterol, lesser calories, and fat content compared to animal-based milk can also boost its demand.

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Insights By Product- Health-Conscious Consumers Fuels Almond Milk Demand

In terms of product, almond milk segment is estimated to contribute the highest market share of 23.5% in 2024, owing to rising health consciousness among consumers. Almond milk is preferred due to its low calorie and sugar content as compared to dairy milk, making it a popular choice for those looking to lose their weight or manage health conditions like diabetes. Nutritious composition of almonds, which are high in vitamin E and antioxidants, also boosts its demand.

Insights By Nature- Organic Plant-based Milk Appeals to Ethical Shoppers

In terms of nature, organic segment is estimated to contribute the highest market share of 61.3% in 2024, due to increasing consumer demand for plant-based milk without using synthetic pesticides and fertilizers. As food safety and ethical sourcing become priority purchasing criteria, many shoppers perceive organic as the gold standard. Products bearing the USDA Organic seal signal that strict national standards for soil health, animal welfare and environmental protection were followed.

Insights By Flavor- Versatile Unflavored Milk Remains a Staple

In terms of flavor, unflavored segment is estimated to contribute the highest market share of 54.3% in 2024. Unflavored product gain popularity, owing to its versatility. As a basic versatile milk that can be used in many recipes and consumed on its own, unflavored represents a staple grocery item whose demand remains steady. Unaltered by additional sugars and ingredients, the natural flavor also appeals to health-conscious buyers wishing to avoid extra calories.

Regional Insights

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Dominating Region- Asia Pacific

Asia Pacific is projected to lead this market in 2024, with an estimated market share of 42.2%. Asia Pacific plant-based milk market growth can be attributed to robust consumer awareness about health and nutrition. Companies like Hain Celestial Group, Inc. Farms have established strong brands loyalty through sustained marketing campaigns emphasizing sustainability and eco-friendly options. Government incentives also support innovation in this niche category.

Fastest-Growing Region- Europe

Europe region exhibits the fastest growth due to shifting lifestyle patterns among younger consumers. Popular alternatives such as oat, almond, and soy milk have witnessed huge adoption in diets. Local players have emerged to cater to regional taste preferences.

Plant-based Milk Market Outlook for Key Countries

Soy Milk Emerges as a Key Staple in China’s Market

China's market for plant-based milk is experiencing consolidation, with larger companies acquiring emerging brands. E-commerce has become a central distribution channel, especially for nutritious products aimed at health-conscious consumers in major cities. Alongside international players, domestic brands are also gaining ground, with soy milk remaining a popular staple.

Supportive Policies and Rising Vegan Demand in Germany

Germany stands out as one of the largest markets for plant-based milk in Europe, driven by supportive policies and a growing base of vegan and vegetarian consumers. The increasing popularity of almond, oat, and soy milk is notable, with oat milk particularly favored for its creamy texture. For instance, according to data published by Green Seed International Expertise in 2023, the turnover of plant-based meat alternatives in Germany was up 7% in 2022 and even up 13% in plant-based dairy.

Rising Demand for Organic and Sustainable Food Products in France

The French market for organic and plant-based products is characterized by a strong consumer preference for organic and natural options, driven by increasing awareness of sustainability and health benefits. For instance, according to data published by bioecoactual.com in May 2024, about 6.1% of household food consumption in France is organic, indicating a significant, albeit fluctuating, interest in organic foods.

Soy Milk Bridges Traditional and Modern Dietary Trends in Japan

In Japan, plant-based milk remains a niche market but is steadily growing, especially among health-conscious consumers. Soy milk is the most popular choice and is frequently incorporated into traditional dishes. The market reflects a blend of traditional dietary habits and modern health trends, creating a distinctive dynamic.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Plant-based Milk Market Players

• Established players focus heavily on R&D to innovate new products. Companies like Oatly and Blue Diamond invest over 10% of revenues annually to develop enhanced formulations, nutrient profiles and packaging. These also form strategic partnerships with food companies, cafes and restaurants to increase distribution and boost brand awareness. International expansion remains a top priority with major players opening new production plants worldwide every year.
• Mid-sized companies compete on cost while maintaining quality. Brands such as Kite Hill and Earth's Own ensure competitive pricing without compromising on taste. These frequently collaborate with local suppliers, co-packers and distributors to optimize manufacturing processes and logistics.
• Small-scale Players are carving out niches in specialized categories. For example, companies like Plenish focus on creating distinctive textures and flavors suited for cereal and baking. Other brands concentrate on meeting dietary needs with allergen-free or vegan products.

Emerging Startups in the Plant-based Milk Market

Innovative technologies are driving change in the dairy alternatives market. Startups like Perfect Day are pioneering animal-free dairy proteins using fermentation to create customized whey and casein, with the potential to transform the industry and lessen environmental impact.

Sustainability is at the core for several startups. For instance, Nut Pod’s oat milk comes in cartons made from recycled household materials, saving millions of plastic bottles each year, while Bolt Threads has created a packaging material from mycelium and agricultural by-products.

New companies are also addressing niche needs. Minor Figures, for example, offers specialty milk aimed at families with infants, designed to mimic the properties of breastmilk. Meanwhile, other brands collaborate with chefs and mixologists to develop unique ingredients for innovative recipes and culinary concepts.

Plant-based Milk Industry News

• In June 2024, Califia Brand, a company that is known for its dairy-free products, introduced 'Complete Kids,' a nutritious alternative to dairy milk aimed at children. This product combines peas, chickpeas, and fava beans, providing 8g of protein, Omega-3, calcium, choline, and prebiotics. It contains 50% less sugar than traditional milk and offers a smooth, creamy flavor. Califia Brand has made the milk accessible through online platforms and U.S. grocery stores.
• In May 2024, Lactalis Canada, a subsidiary of the France-based dairy company- Lactalis, launched a new plant-based milk brand called "Enjoy" in Canada, targeting health-conscious consumers. The brand product portfolio includes six varieties of plant-based milk: plain oat, almond, and hazelnut milks, as well as vanilla-flavored oat and almond options, and a hazelnut-oat blend. These milks are non-GMO, gluten-free, and free from artificial colors, preservatives, and flavors.
• In April 2024, PLANTSTRONG Foods introduced a line of fortified whole plant-based milks in the U.S. The milk comes in four varieties: Unsweetened Almond, Unsweetened Oat, Oat & Almond, and Oat & Walnut, all packaged in 32-ounce containers that require no refrigeration until opened. These products are exclusively offered in over 500 whole foods market locations nationwide and can also be purchased directly from the company's website.
• In April 2024, Yeo Hiap Seng, a Singapore-based brand, introduced Yeo’s Immuno Soy Milk fortified with vitamin B6 and zinc. It is designed to bolster the immune system. Endorsed as a Healthier Choice in Singapore and Malaysia, it provides a lactose-free and nutritious alternative to traditional breakfast beverages. This soy milk range is rich in protein and calcium, available in original and chocolate flavors, with additional variations expected in the future.

Key Takeaways from Analyst

• Rising health consciousness among consumers along with growing vegan and lactose intolerant population are expected to boost demand for plant-based milk products. Plant-based milk such as soy milk, almond milk and coconut milk are gaining immense popularity as these are perceived to be more nutritious alternatives to dairy milk. Major factor contributing to the market growth include flexitarian diet culture especially in western countries.
• Price sensitivity can hamper the market growth. Plant-based milk is generally more expensive than dairy milk which could hamper mass consumption. Consumer preference for authentic taste is also a challenge as many plant-based options fail to mimic dairy milk flavors perfectly.
• Asia Pacific currently dominates the global plant-based milk market, owing to widespread vegan trends and adoption of healthier lifestyle in the region. Europe region is anticipated to witness the fastest growth in the future due to rising health consciousness, growing incomes and western influence in countries like India and China. The Middle East and Africa also presents untapped growth potential for plant-based milk due to increasing lactose intolerant population in Gulf Countries.

Market Report Scope

Market Dynamics

Market Driver- Health benefits of plant-based milk

Major driver fueling the market growth include rising awareness about the health benefits associated with the consumption of plant-based milk over dairy milk. For instance, in 2022, according to a report published by the Food and Agriculture Organization (FAO) of the United Nations, one cup of soy milk contains approximately 79 calories and 3.5 grams of fat as compared to 149 calories and 8 grams of fat in one cup of cow milk.

Market Challenge- High prices compared to animal-based milk

Key challenges currently faced by the market includes relatively high prices of these products compared to conventional animal-based milk such as cow's milk. Plant-based milk alternatives tend to have a higher production cost due to the more complex processing required and the need to extract the milk from plant sources rather than simply milking cows. This price differential means that plant milks often cost nearly 2-3 times as much as cow's milk on a per gallon/liter basis.

Market Opportunity- Innovation in new product formulations

Plant-based milk market presents a major opportunity for innovation in new product formulations that can appeal to an even wider consumer base. With more companies entering the market, there has been increase in R&D to replicate the taste, texture, and nutritional profile of cow's milk more closely through new formulations. Products enriched with calcium, vitamins, and other nutrients are also improving. There has been scope to innovatively use different plant bases beyond the usual soy, almond and coconut to launch unique varieties.

Market Segmentation

•  Product Insights (Revenue, USD Bn, 2019 - 2031)
• • Almond Milk
  • Oat Milk
  • Soy Milk
  • Coconut Milk
  • Rice Milk
  • Others
•  Nature Insights (Revenue, USD Bn, 2019 - 2031)
• • Organic
  • Conventional
•  Flavor Insights (Revenue, USD Bn, 2019 - 2031)
• • Unflavored
  • Flavored
•  Distribution Channel Insights (Revenue, USD Bn, 2019 - 2031)
• • Offline
  • Online
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Danone S.A.
  • Blue Diamond Growers
  • The Hain Celestial Group, Inc.
  • Califia Farms, LLC
  • SunOpta Inc.
  • Ripple Foods, PBC
  • Elmhurst Milked Direct, LLC
  • Pacific Foods of Oregon, LLC
  • Oatly AB
  • Daiya Foods Inc.
  • Dohler GmbH
  • Horizon Organic