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Japan Dairy Alternatives Market Size

The Japan Dairy Alternatives Market is experiencing growth, with the off-trade segment, particularly supermarkets and hypermarkets, playing a crucial role in its distribution. These channels benefit from their accessibility and product variety, influencing consumer purchasing decisions. While on-trade channels are still developing, there is a notable increase in the use of plant-based milk in restaurants for various beverages. The online retail channel within the off-trade segment is growing rapidly, driven by the convenience it offers to consumers. Plant-based milk holds a significant portion of the market share in off-trade channels, reflecting its popularity among Japanese shoppers.

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Market Size of japan dairy alternatives Industry

Japan Dairy Alternatives Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 1.39 Billion
svg icon Market Size (2029) USD 1.85 Billion
svg icon Largest Share by Distribution Channel Off-Trade
svg icon CAGR (2024 - 2029) 5.93 %
svg icon Fastest Growing by Distribution Channel Off-Trade
svg icon Market Concentration High

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

Key Players

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Japan Dairy Alternatives Market Analysis

The Japan Dairy Alternatives Market size is estimated at 1.39 billion USD in 2024, and is expected to reach 1.85 billion USD by 2029, growing at a CAGR of 5.93% during the forecast period (2024-2029).

1.39 Billion

Market Size in 2024 (USD)

1.85 Billion

Market Size in 2029 (USD)

8.21 %

CAGR (2017-2023)

5.93 %

CAGR (2024-2029)

Largest Market by Category

90.43 %

value share, Non-Dairy Milk, 2023

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The factors accumulated with the declining dairy consumption in Japan is largely propelling the consumption of dairy alternatives, especially plant-based milk products.

Largest Market by Distribution Channel

98.78 %

value share, Off-Trade, 2023

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Product availability and assortment in major off-trade retail channels along with considerable discounts in these retail channels is largely driving the segmental growth.

Fastest-growing Market by Category

29.03 %

Projected CAGR, Non-Dairy Cheese, 2024-2029

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The charecteristics of non-dairy cheese products which are created from nuts or seeds which has a perfect solid texture that will also melt, are encouraging the segment's growth.

Fastest-growing Market by Distribution Channel

5.96 %

Projected CAGR, Off-Trade, 2024-2029

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The onset of the experimential economy and the rising social media platforms with increasing consumer reach in the market is driving the off trade channels through online channels

Leading Market Player

38.42 %

market share, Kikkoman Corporation, 2022

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Kikkoman Corp's major focus on the quality and high standards of the products in plant-based beverages segment with products in wider range of brands made it market leader

Strong penetration of organized retail channels fueling the market growth

  • The off-trade segment holds a dominant position in the distribution channels of the Japanese dairy alternative market. Among the off-trade channels, supermarkets and hypermarkets occupied a significant value share of 71.9% in 2022. These channels benefit from their proximity to consumers, particularly in large and developed cities, influencing their purchasing decisions with the wide variety of products available. Furthermore, the adoption of an omnichannel approach by major supermarket and hypermarket retailers worldwide is driving the market for dairy desserts.
  • The on-trade channels in Japan have a relatively small market presence and are still in the early stages of development. Consumers prefer to consume dairy alternatives at home and are less inclined to eat at restaurants or food service outlets. Plant-based milk and non-dairy butter are experiencing growth, with some restaurants in the region using plant-based milk as an ingredient option in cocktails, smoothies, coffees, and espresso-based drinks. Consequently, the sales value of plant-based milk through on-trade channels increased by 5.43% in 2022 compared to 2021.
  • Within the off-trade segment, the online retail channel sub-segment is experiencing the fastest growth, projected to achieve a CAGR of 15.6% over the forecast period. The expansion of e-commerce has provided companies with the opportunity to reach a broader target market and effectively cater to customer needs. Convenience is the primary motivation for Japanese shoppers transitioning to online grocery shopping. Among all dairy alternative products, plant-based milk accounted for the majority share in off-trade channels. In 2022, plant-based milk represented over 90% of the value share.
Japan Dairy Alternatives Market

Japan Dairy Alternatives Industry Segmentation

Non-Dairy Butter, Non-Dairy Cheese, 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 holds a dominant position in the distribution channels of the Japanese dairy alternative market. Among the off-trade channels, supermarkets and hypermarkets occupied a significant value share of 71.9% in 2022. These channels benefit from their proximity to consumers, particularly in large and developed cities, influencing their purchasing decisions with the wide variety of products available. Furthermore, the adoption of an omnichannel approach by major supermarket and hypermarket retailers worldwide is driving the market for dairy desserts.
  • The on-trade channels in Japan have a relatively small market presence and are still in the early stages of development. Consumers prefer to consume dairy alternatives at home and are less inclined to eat at restaurants or food service outlets. Plant-based milk and non-dairy butter are experiencing growth, with some restaurants in the region using plant-based milk as an ingredient option in cocktails, smoothies, coffees, and espresso-based drinks. Consequently, the sales value of plant-based milk through on-trade channels increased by 5.43% in 2022 compared to 2021.
  • Within the off-trade segment, the online retail channel sub-segment is experiencing the fastest growth, projected to achieve a CAGR of 15.6% over the forecast period. The expansion of e-commerce has provided companies with the opportunity to reach a broader target market and effectively cater to customer needs. Convenience is the primary motivation for Japanese shoppers transitioning to online grocery shopping. Among all dairy alternative products, plant-based milk accounted for the majority share in off-trade channels. In 2022, plant-based milk represented over 90% of the value share.
Category
Non-Dairy Butter
Non-Dairy Cheese
Non-Dairy Milk
By Product Type
Almond Milk
Coconut 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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Japan Dairy Alternatives Market Size Summary

The Japan Dairy Alternatives Market is experiencing a notable expansion, driven by a growing consumer shift towards plant-based diets and lifestyles. This trend is supported by various factors, including ethical, environmental, and health considerations, which are increasingly influencing Japanese consumers' dietary choices. The market is characterized by a strong preference for off-trade distribution channels, particularly supermarkets and hypermarkets, which dominate the market due to their accessibility and product variety. The online retail segment within the off-trade channels is witnessing the fastest growth, propelled by the convenience of e-commerce. Plant-based milk, especially soy and almond milk, holds a significant share of the market, reflecting the rising popularity of veganism and vegetarianism in Japan. The market's growth is further bolstered by annual vegan festivals that promote plant-based foods, enhancing consumer awareness and demand for dairy alternatives.

The consumption of dairy alternatives in Japan is also influenced by the high prevalence of lactose intolerance among the population, leading to increased demand for non-dairy products. The market is moderately consolidated, with major players like Ezaki Glico Co. Ltd, Kikkoman Corporation, and MARUSAN-AI CO. LTD holding significant market shares. Innovations and product expansions by these companies, such as Blue Diamond Growers' introduction of Extra Cream Almond Milk and Sapporo Holdings Ltd's launch of soy, coconut, and almond-based yogurt, are contributing to the market's dynamic nature. The per capita consumption of dairy alternatives is expected to grow, driven by the rising awareness of health and wellness, as well as changing dietary habits among Japanese consumers.

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Japan 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 Milk

        1. 1.1.3.1 By Product Type

          1. 1.1.3.1.1 Almond Milk

          2. 1.1.3.1.2 Coconut Milk

          3. 1.1.3.1.3 Hemp Milk

          4. 1.1.3.1.4 Oat Milk

          5. 1.1.3.1.5 Soy Milk

      4. 1.1.4 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

Japan Dairy Alternatives Market Size FAQs

The Japan Dairy Alternatives Market size is expected to reach USD 1.39 billion in 2024 and grow at a CAGR of 5.93% to reach USD 1.85 billion by 2029.

In 2024, the Japan Dairy Alternatives Market size is expected to reach USD 1.39 billion.

Japan Dairy Alternatives Market Report Snapshots

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