Australia Non-Dairy Milk Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Australia Non-Dairy Milk Market Analysis

The Australia Non-Dairy Milk Market size is estimated at 396.4 million USD in 2025, and is expected to reach 648.5 million USD by 2030, growing at a CAGR of 10.34% during the forecast period (2025-2030).

The Australian non-dairy milk market is experiencing significant transformation driven by evolving consumer preferences and retail modernization. Supermarkets and hypermarkets dominate the distribution landscape, accounting for 73% of the value share in 2022, with major chains like Woolworths and Coles expanding their footprint through over 3,500 combined stores nationwide. This retail expansion has been accompanied by enhanced product placement strategies, dedicated shelf space for plant-based milk alternatives, and the introduction of private label offerings. The strategic positioning of these products in large-scale retail environments has significantly influenced consumer purchasing decisions, particularly in urban areas where store accessibility is high.

The digitalization of retail channels has emerged as a crucial market development, supported by Australia's robust digital infrastructure with an internet penetration rate of 91% in 2022. Online grocery platforms are revolutionizing the shopping experience through mobile-optimized apps, subscription services, and personalized recommendations. The emergence of specialized plant-based milk delivery platforms such as The FruitBox, MILKRUN, and Milkbasket has created new avenues for market growth. These platforms are implementing innovative features like scheduled deliveries, subscription models, and real-time inventory tracking to enhance customer convenience and retention.

The foodservice sector is witnessing a remarkable shift in consumer preferences, with plant-based beverages capturing approximately half of café drink sales. Major coffee chains are responding by expanding their plant-based beverage menus, introducing innovative pairings such as specialty lattes, and offering multiple dairy alternatives. This trend has prompted foodservice establishments to enhance their barista training programs and invest in equipment specifically designed for dairy-free milk preparation, ensuring optimal texture and taste in coffee-based beverages.

The market is characterized by continuous product innovation and diversification, with manufacturers focusing on clean-label products and enhanced nutritional profiles. Retailers are allocating increased shelf space to accommodate a growing variety of non-dairy milk alternatives, including new flavors and fortified variants. The off-trade channel has emerged as a dominant force, commanding over 85% of the value share in plant-based milk sales in 2022. This channel's success is attributed to strategic product positioning, competitive pricing strategies, and the ability to offer a comprehensive range of options under one roof, catering to increasingly sophisticated consumer preferences.

Australia Non-Dairy Milk Market Trends

Vegan influence drives the plant-based milk consumption in the country

• The consumption of different types of plant milk in Australia has been on the rise for the past few years due to the growing vegan population. There are even vegan music festivals conducted in numerous Australian cities. Australia has the third-highest percentage of vegans per capita globally. As of 2022, there are 2.5 million vegans and vegetarians in the country.
• Several vegan celebrities in Australia, particularly celebrity chefs, have played a significant role in bringing plant-based lifestyles into the mainstream of dining and food culture. This is increasing the inclusion of soy milk, especially in the daily diet, as it replaces conventional milk, is strengthening consumption patterns across the country.
• According to the Australian Bureau of Statistics, consumers drink about half a metric cup of milk alternatives per person every week. The most popular plant-based milk in Australia is currently soy milk (which occupies almost half the market), followed by almond milk, oat milk, and coconut milk.
• Consumers, especially those allergic to milk, are keen to consume plant-based milk products. Cow milk allergy is one of the common food allergies in young children. As of 2022, in Australia, around 1 in 50 babies and young children showed signs of an allergy to cow's milk. Also, 45% of consumers are actively trying to reduce the number of animal products they consume. Thus, the per capita consumption of plant-based milk in Australia is estimated to increase by 4.74% during 2022-2023.
• Australians choose plant-based diets and lifestyles due to various factors ranging from ethical, political, environmental, religious, or economic reasons. Thus, the per capita consumption is expected to grow significantly during the forecast period.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Product Type

Soy Milk Segment in Australia Non-Dairy Milk Market

Soy milk continues to dominate the Australian non-dairy milk market, commanding approximately 50% of the total market share in 2024. The segment's strong position is primarily driven by its high protein content, nutritional benefits, and widespread acceptance among health-conscious consumers. The growing lactose-intolerant population and increasing awareness of soy milk's health benefits, including its omega-3 fatty acids content and potential to reduce the risk of various diseases, have contributed to its market leadership. Supermarkets and hypermarkets remain the primary distribution channels for soy milk, with major retailers offering various flavors, including vanilla, chocolate, and unsweetened varieties, to cater to diverse consumer preferences.

Coconut Milk Segment in Australia Non-Dairy Milk Market

The coconut milk segment is experiencing remarkable growth in the Australian market, projected to expand at the highest rate among all plant-based milk alternatives during 2024-2029. This growth is primarily attributed to coconut milk's extended shelf life, excellent nutritional profile, and versatile applications in both beverages and food preparation. The segment's popularity is further enhanced by its natural electrolyte content and healthy fat composition, making it an attractive option for health-conscious consumers. The increasing adoption of coconut milk in cafes and restaurants, particularly in specialty coffee preparations, is also driving its market expansion. Additionally, manufacturers are introducing innovative variants and packaging formats to meet evolving consumer preferences and lifestyle needs.

Remaining Segments in Australia Non-Dairy Milk Market

The Australian non-dairy milk market features several other significant segments, including almond milk, oat milk, cashew milk, and hazelnut milk, each catering to specific consumer preferences and dietary requirements. Almond milk maintains its position as the second-largest segment, particularly popular among consumers seeking low-calorie dairy alternatives. Oat milk has gained significant traction in the coffee industry due to its creamy texture and barista-friendly properties. Cashew milk and hazelnut milk, while smaller in market share, are carving out their niches by appealing to consumers looking for unique flavors and nutritional profiles. These segments collectively contribute to the market's diversity and cater to various consumer preferences, dietary restrictions, and usage occasions.

Segment Analysis: Distribution Channel

Off-trade Segment in Australia Non-Dairy Milk Market

The off-trade distribution channel dominates the Australian non-dairy milk market, accounting for approximately 86% of the total market value in 2024. This significant market share is primarily driven by supermarkets and hypermarkets, which serve as the primary retail outlets for plant-based milk products. The channel's dominance is supported by the extensive network of major retail chains like Woolworths Group, Coles, Aldi, and Independent Grocers of Australia, which collectively constitute over 80% of the Australian grocery market. These retailers provide consumers with a wide selection of milk alternative varieties and flavors, while also offering convenient mobile-optimized shopping apps that enhance the purchasing experience. The growth of this segment is further bolstered by the rising adoption of online grocery shopping platforms and the expansion of specialty stores that cater to health-conscious consumers seeking premium plant-based milk alternatives.

On-trade Segment in Australia Non-Dairy Milk Market

The on-trade channel represents a vital segment of the Australian non-dairy milk market, primarily driven by the increasing adoption of plant-based milk alternatives in cafes, restaurants, and other foodservice establishments. Major coffee chains like Starbucks, Blue Tokai Coffee, Costa Coffee, and Third Wave Coffee Roaster are actively expanding their plant-based milk menu options, particularly in beverages such as lattes, espresso-based drinks, smoothies, and cocktails. The segment's growth is supported by the rising consumer preference for plant-based milk alternatives in coffee shops, with approximately 25% of Australian cafe customers opting for plant-based milk options. The channel's development is further enhanced by the extensive network of coffee shops across the country, with major chains like Costa Coffee operating over 450 outlets and Starbucks maintaining more than 61 locations in Australia.

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