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Germany Dairy Alternatives Market Size

The Germany Dairy Alternatives Market is experiencing significant growth, with the off-trade segment leading in distribution channels. The online retail sub-segment within off-trade is the fastest-growing, driven by the expansion of e-commerce and changing consumer habits, particularly during the pandemic. Despite a decline in on-trade sales due to the closure of foodservice outlets, the overall market is poised for substantial growth, supported by an omnichannel approach from major retailers. This strategy enhances accessibility and convenience, further driving the market's expansion.

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Market Size of germany dairy alternatives Industry

Germany Dairy Alternatives Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 2.1 Billion
svg icon Market Size (2029) USD 4.09 Billion
svg icon Largest Share by Distribution Channel Off-Trade
svg icon CAGR (2024 - 2029) 14.28 %
svg icon Fastest Growing by Distribution Channel Off-Trade
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Germany Dairy Alternatives Market Analysis

The Germany Dairy Alternatives Market size is estimated at 2.1 billion USD in 2024, and is expected to reach 4.09 billion USD by 2029, growing at a CAGR of 14.28% during the forecast period (2024-2029).

2.1 Billion

Market Size in 2024 (USD)

4.09 Billion

Market Size in 2029 (USD)

25.97 %

CAGR (2017-2023)

14.28 %

CAGR (2024-2029)

Largest Market by Category

63.27 %

value share, Non-Dairy Milk, 2023

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The rise in the vegan population along with the increasing popularity of organic foods and the increasing prevalence of lactose intolerance is bolstering the demand for non-dairy milk in Germany.

Largest Market by Distribution Channel

97.38 %

value share, Off-Trade, 2023

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Effective marketing strategies with the adoption of advanced technologies are helping the leading supermarket and hypermarket players to improve their revenue share.

Fastest-growing Market by Category

19.42 %

Projected CAGR, Non-Dairy Cheese, 2024-2029

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The product enhancement and availability of plant-based cheese in various formats with an increased distribution network in the segment is largely driving the growth in the segment.

Fastest-growing Market by Distribution Channel

14.84 %

Projected CAGR, Off-Trade, 2024-2029

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The market share from convenience stores and online retailers where shopping feasibility along with differentiated plant-based cheese offerings is driving the segmental growth.

Leading Market Player

18.20 %

market share, Danone SA, 2022

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Selective expansion of Danone's presence in the market along with the wider brand presence and products offered with active portfolio rotation is making it the market leader

Strong penetration of organized retail channels fueling the market growth

  • The off-trade segment dominates the distribution channels of the German dairy alternatives market. Among off-trade channels, the online retail sub-segment is the fastest-growing one, projected to record a CAGR of 15.6% over the forecast period. The growth of e-commerce has allowed companies to access a larger target market and effectively serve customer needs. Many people started ordering food items, particularly dairy alternatives, online due to their hectic schedules and the nationwide lockdown in 2020. The four main e-commerce channels for dairy alternatives were direct-to-consumer, click-and-collect, retail grocery delivery, and concierge services.
  • The sales value of dairy alternatives through on-trade channels across the country declined by 2% in 2020 as foodservice outlets were shut down due to the pandemic. In the same year, Germany recorded only 65,090 functional restaurants, a decrease of 8.49% from 2019. Based on the data from all distribution channels, the overall consumption in Germany was around 5.03 kg per person in 2022, with a 3.4 kg rise in the consumption of dairy alternatives since 2017. The on-trade channel is likely to record a CAGR of 10.7% during the forecast period.
  • Off-trade is projected to be the fastest-growing distribution channel, registering a CAGR value of 15.7% during the forecast period. This increase is anticipated in line with the rising demand for dairy alternative products, which are widely accessible at supermarkets and online retailers. The omnichannel approach adopted by major retailers across the globe is also driving the market for dairy desserts. Retailers such as REWE, Edeka, Aldi Süd, and Norma focus on omnichannel shopping, particularly expanding and integrating online capabilities into brick-and-mortar stores.
Germany Dairy Alternatives Market

Germany 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.

  • The off-trade segment dominates the distribution channels of the German dairy alternatives market. Among off-trade channels, the online retail sub-segment is the fastest-growing one, projected to record a CAGR of 15.6% over the forecast period. The growth of e-commerce has allowed companies to access a larger target market and effectively serve customer needs. Many people started ordering food items, particularly dairy alternatives, online due to their hectic schedules and the nationwide lockdown in 2020. The four main e-commerce channels for dairy alternatives were direct-to-consumer, click-and-collect, retail grocery delivery, and concierge services.
  • The sales value of dairy alternatives through on-trade channels across the country declined by 2% in 2020 as foodservice outlets were shut down due to the pandemic. In the same year, Germany recorded only 65,090 functional restaurants, a decrease of 8.49% from 2019. Based on the data from all distribution channels, the overall consumption in Germany was around 5.03 kg per person in 2022, with a 3.4 kg rise in the consumption of dairy alternatives since 2017. The on-trade channel is likely to record a CAGR of 10.7% during the forecast period.
  • Off-trade is projected to be the fastest-growing distribution channel, registering a CAGR value of 15.7% during the forecast period. This increase is anticipated in line with the rising demand for dairy alternative products, which are widely accessible at supermarkets and online retailers. The omnichannel approach adopted by major retailers across the globe is also driving the market for dairy desserts. Retailers such as REWE, Edeka, Aldi Süd, and Norma focus on omnichannel shopping, particularly expanding and integrating online capabilities into brick-and-mortar stores.
Category
Non-Dairy Butter
Non-Dairy Cheese
Non-Dairy Ice Cream
Non-Dairy Milk
By Product Type
Almond Milk
Cashew Milk
Coconut Milk
Hazelnut Milk
Hemp Milk
Oat Milk
Soy Milk
Non-Dairy Yogurt
Distribution Channel
Off-Trade
Convenience Stores
Online Retail
Specialist Retailers
Supermarkets and Hypermarkets
Others (Warehouse clubs, gas stations, etc.)
On-Trade
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Germany Dairy Alternatives Market Size Summary

The Germany Dairy Alternatives Market is experiencing significant growth, driven by a shift in consumer preferences towards plant-based products. This trend is largely influenced by the increasing number of vegans, vegetarians, and flexitarians in the country, making Germany a leader in the vegan movement in Europe. The market is characterized by a fragmented landscape with major players like AlnaturA, Bel Group, Danone, Nestlé, and Oatly Group AB. These companies are expanding their product offerings to cater to the rising demand for vegan-friendly and organic products. The market's expansion is further supported by the omnichannel retail approach, with supermarkets and online platforms playing a crucial role in making dairy alternatives more accessible to consumers.

The distribution channels for dairy alternatives in Germany are evolving, with the off-trade segment, particularly online retail, showing the fastest growth. This shift is attributed to the convenience of e-commerce, which has become increasingly popular due to busy lifestyles and the impact of the pandemic. While on-trade channels saw a decline during the pandemic, they are expected to recover and grow steadily. The market's growth is also reflected in the increasing consumption of milk alternatives, with a significant portion of the population opting for these products over traditional dairy. The focus on clean-label, allergen-free, and organic products is becoming more prominent, aligning with consumer preferences for healthier and more sustainable food options.

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Germany Dairy Alternatives Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Category

      1. 1.1.1 Non-Dairy Butter

      2. 1.1.2 Non-Dairy Cheese

      3. 1.1.3 Non-Dairy Ice Cream

      4. 1.1.4 Non-Dairy Milk

        1. 1.1.4.1 By Product Type

          1. 1.1.4.1.1 Almond Milk

          2. 1.1.4.1.2 Cashew Milk

          3. 1.1.4.1.3 Coconut Milk

          4. 1.1.4.1.4 Hazelnut Milk

          5. 1.1.4.1.5 Hemp Milk

          6. 1.1.4.1.6 Oat Milk

          7. 1.1.4.1.7 Soy Milk

      5. 1.1.5 Non-Dairy Yogurt

    2. 1.2 Distribution Channel

      1. 1.2.1 Off-Trade

        1. 1.2.1.1 Convenience Stores

        2. 1.2.1.2 Online Retail

        3. 1.2.1.3 Specialist Retailers

        4. 1.2.1.4 Supermarkets and Hypermarkets

        5. 1.2.1.5 Others (Warehouse clubs, gas stations, etc.)

      2. 1.2.2 On-Trade

Germany Dairy Alternatives Market Size FAQs

The Germany Dairy Alternatives Market size is expected to reach USD 2.10 billion in 2024 and grow at a CAGR of 14.28% to reach USD 4.09 billion by 2029.

In 2024, the Germany Dairy Alternatives Market size is expected to reach USD 2.10 billion.

Germany Dairy Alternatives Market Report Snapshots

Germany Dairy Alternatives Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029