Market Size of europe dairy alternatives Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2029 |
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Market Size (2024) | USD 9.42 Billion |
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Market Size (2029) | USD 18.78 Billion |
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Largest Share by Distribution Channel | Off-Trade |
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CAGR (2024 - 2029) | 14.79 % |
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Largest Share by Country | Germany |
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Market Concentration | Low |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Europe Dairy Alternatives Market Analysis
The Europe Dairy Alternatives Market size is estimated at 9.42 billion USD in 2024, and is expected to reach 18.78 billion USD by 2029, growing at a CAGR of 14.79% during the forecast period (2024-2029).
9.42 Billion
Market Size in 2024 (USD)
18.78 Billion
Market Size in 2029 (USD)
15.66 %
CAGR (2017-2023)
14.79 %
CAGR (2024-2029)
Largest Market by Category
59.97 %
value share, Non-Dairy Milk, 2023
With the increase in the prevalence of diabetes and obesity, the preference for non-dairy milk is increasing drastically in the market
Largest Market by Country
21.62 %
value share, Germany, 2023
The increasing consumer appetite for vegan-friendly foods in Germany depicts a huge market potential for plant-based milk products in the country during the study period.
Fastest-growing Market by Category
22.49 %
Projected CAGR, Non-Dairy Cheese, 2024-2029
Non-dairy cheese products, which are created from nuts or seeds and have a perfect solid texture that will also melt, are encouraging the segment's growth in the country.
Fastest-growing Market by Country
21 %
Projected CAGR, Russia, 2024-2029
The younger consumers with a growing interest in free-from foods are impacting the growth. The majority (95%) of Russians are aware of the availability of plant-based substitutes.
Leading Market Player
21.08 %
market share, Danone SA, 2022
The presence of exhaustive product offerings along with a larger distribution network and a wider presence throughout the country has made Danone a leading market player.
Rise in modern grocery retailing including hypermarkets and online stores fuels the sales through off-trade channels
- Hypermarkets and supermarkets primarily drive the high market share of off-trade channels. Supermarkets/hypermarkets have always maintained a strong lead in the sales of dairy alternatives in the market studied. The proximity factor of these channels, especially in large and developed cities, provides them the added advantage of influencing the consumer's decision to purchase among a large variety of products available in the market. Supermarkets and hypermarkets covered 61.38%, by value, of dairy alternative sales through off-trade channels in 2022.
- The online channel is projected to be the fastest-growing distribution channel as modern consumers prefer online grocery purchases due to their busy lifestyles. Around 68% of individuals in the European Union ordered or bought goods or services over the internet for private use in 2022, up from 54% in 2017. The Netherlands, France, the United Kingdom, Germany, and Italy are the countries with high penetration of internet users. Online sales of dairy alternatives are estimated to record a CAGR of 25.80% during the forecast period.
- By product type, plant-based milk is the largest sold category across online retail channels. Key German supermarkets offering coconut milk include Müller and Alnatura. Koro brand coconut milk is available across 122 Müller stores located in Germany.
- On-trade sales are primarily driven by the rising number of restaurants and cafes specializing in vegan menus across key countries such as the United Kingdom, Germany, and Italy. In the United Kingdom, the on-trade sales value of dairy alternatives is estimated to record a CAGR of 22.62% during the forecast period to reach a market value of USD 142.40 million by 2029.
Understand The Key Trends Shaping This Market
Growing number of lactose intolerant consumers in europe is fueling the dairy alternative market
- The European dairy alternatives market observed a growth of 17.25% in 2022 compared to 2021. The growth was attributed to the rising volume of lactose-intolerant populations across the region. In 2022, 5% of the total population was lactose intolerant. In the United Kingdom, lactose intolerance is more common in people of Asian or African-Caribbean descent. Lactose intolerance can develop at any age. In many cases, the symptoms first develop in people aged 20 to 40, although babies and young children can also be affected.
- To mitigate the effects of lactose intolerance, these consumers mainly consume oat milk as a replacement for animal milk. Consumers dealing with the risk of obesity prefer low-fat beverages. Animal-milk-based products contain more fat percentages compared to plant products. One cup of unsweetened cashew milk contains 25 calories, less than 1 gram of protein, and 2 grams of fat, while animal milk (goat milk) contains 10 grams of fat. As a result, there is a rise in demand for dairy-free products in the European region. Hence, the market is estimated to grow by 58.64% by 2025 from 2022.
- Under the off-trade segment, convenience stores hold the second-largest share of 71.35% of the country's retail space. These stores offer cashew milk at varied prices (low, medium, and high). The average selling price of cashew milk in the United Kingdom is USD 20.5. Some famous convenience stores across the country are 7-Eleven, Marks & Spencer, Little Waitrose, The Co-op, and Sainsbury's. To captivate consumers' focus toward the hemp milk segment, these retailers offer hemp milk at varied prices (low, medium, and high). This aspect also promotes the buying power of consumers.
Europe Dairy Alternatives Industry Segmentation
Non-Dairy Butter, Non-Dairy Cheese, Non-Dairy Ice Cream, Non-Dairy Milk, Non-Dairy Yogurt are covered as segments by Category. Off-Trade, On-Trade are covered as segments by Distribution Channel. Belgium, France, Germany, Italy, Netherlands, Russia, Spain, Turkey, United Kingdom are covered as segments by Country.
- Hypermarkets and supermarkets primarily drive the high market share of off-trade channels. Supermarkets/hypermarkets have always maintained a strong lead in the sales of dairy alternatives in the market studied. The proximity factor of these channels, especially in large and developed cities, provides them the added advantage of influencing the consumer's decision to purchase among a large variety of products available in the market. Supermarkets and hypermarkets covered 61.38%, by value, of dairy alternative sales through off-trade channels in 2022.
- The online channel is projected to be the fastest-growing distribution channel as modern consumers prefer online grocery purchases due to their busy lifestyles. Around 68% of individuals in the European Union ordered or bought goods or services over the internet for private use in 2022, up from 54% in 2017. The Netherlands, France, the United Kingdom, Germany, and Italy are the countries with high penetration of internet users. Online sales of dairy alternatives are estimated to record a CAGR of 25.80% during the forecast period.
- By product type, plant-based milk is the largest sold category across online retail channels. Key German supermarkets offering coconut milk include Müller and Alnatura. Koro brand coconut milk is available across 122 Müller stores located in Germany.
- On-trade sales are primarily driven by the rising number of restaurants and cafes specializing in vegan menus across key countries such as the United Kingdom, Germany, and Italy. In the United Kingdom, the on-trade sales value of dairy alternatives is estimated to record a CAGR of 22.62% during the forecast period to reach a market value of USD 142.40 million by 2029.
| Category | |||||||||||
| Non-Dairy Butter | |||||||||||
| Non-Dairy Cheese | |||||||||||
| Non-Dairy Ice Cream | |||||||||||
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| Non-Dairy Yogurt |
| Distribution Channel | |||||||
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| On-Trade |
| Country | |
| Belgium | |
| France | |
| Germany | |
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| Netherlands | |
| Russia | |
| Spain | |
| Turkey | |
| United Kingdom | |
| Rest of Europe |
Need A Different Region Or Segment?
Europe Dairy Alternatives Market Size Summary
The Europe Dairy Alternatives Market is experiencing significant growth, driven by changing consumer preferences and increasing awareness of health and dietary issues. The market is characterized by a shift towards plant-based products, with a notable rise in the consumption of non-dairy milk, cheese, and yogurt. This trend is largely fueled by the growing lactose-intolerant population and the rising demand for low-fat and healthier beverage options. Supermarkets and hypermarkets dominate the off-trade sales channels, benefiting from their strategic locations and extensive product offerings. However, online sales are emerging as the fastest-growing distribution channel, reflecting the modern consumer's preference for convenience and ease of shopping. Countries like the Netherlands, France, the United Kingdom, Germany, and Italy are leading in online grocery purchases, further boosting the market's expansion.
The market landscape is fragmented, with key players such as Danone SA, Ecotone, Oatly Group AB, The Hain Celestial Group Inc., and Upfield Holdings BV holding a significant share. These companies are actively innovating and expanding their product lines to cater to the increasing demand for dairy alternatives. The younger generation, particularly those aged 18 to 35, is driving the market growth by opting for non-dairy products due to health concerns related to animal-based products. The popularity of flexitarian, vegetarian, and vegan lifestyles is also contributing to the market's expansion, as more consumers seek to reduce their dairy consumption. With the continuous introduction of new plant-based products and flavors, the Europe Dairy Alternatives Market is poised for substantial growth in the coming years.
Europe Dairy Alternatives Market Size - Table of Contents
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1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)
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1.1 Category
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1.1.1 Non-Dairy Butter
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1.1.2 Non-Dairy Cheese
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1.1.3 Non-Dairy Ice Cream
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1.1.4 Non-Dairy Milk
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1.1.4.1 By Product Type
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1.1.4.1.1 Almond Milk
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1.1.4.1.2 Cashew Milk
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1.1.4.1.3 Coconut Milk
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1.1.4.1.4 Hazelnut Milk
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1.1.4.1.5 Hemp Milk
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1.1.4.1.6 Oat Milk
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1.1.4.1.7 Soy Milk
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1.1.5 Non-Dairy Yogurt
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1.2 Distribution Channel
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1.2.1 Off-Trade
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1.2.1.1 Convenience Stores
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1.2.1.2 Online Retail
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1.2.1.3 Specialist Retailers
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1.2.1.4 Supermarkets and Hypermarkets
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1.2.1.5 Others (Warehouse clubs, gas stations, etc.)
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1.2.2 On-Trade
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1.3 Country
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1.3.1 Belgium
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1.3.2 France
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1.3.3 Germany
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1.3.4 Italy
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1.3.5 Netherlands
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1.3.6 Russia
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1.3.7 Spain
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1.3.8 Turkey
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1.3.9 United Kingdom
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1.3.10 Rest of Europe
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Europe Dairy Alternatives Market Size FAQs
How big is the Europe Dairy Alternatives Market?
The Europe Dairy Alternatives Market size is expected to reach USD 9.42 billion in 2024 and grow at a CAGR of 14.79% to reach USD 18.78 billion by 2029.
What is the current Europe Dairy Alternatives Market size?
In 2024, the Europe Dairy Alternatives Market size is expected to reach USD 9.42 billion.
