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North America Dairy Alternatives Market Size

The North America Dairy Alternatives Market is experiencing significant growth, driven by increasing lactose intolerance and the adoption of healthier diets. The market's expansion is supported by the dominance of off-trade distribution channels, particularly supermarkets and hypermarkets, which play a crucial role in consumer purchasing decisions. Plant-based milk is a major contributor to retail sales, with a notable shift towards online shopping as a rapidly growing distribution channel. The United States leads the region in market share, fueled by high production volumes of key ingredients like almonds and soybeans, while Canada follows closely, benefiting from substantial government support.

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Market Size of north america dairy alternatives Industry

North America Dairy Alternatives Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 10.74 Billion
svg icon Market Size (2029) USD 16.49 Billion
svg icon Largest Share by Distribution Channel Off-Trade
svg icon CAGR (2024 - 2029) 8.96 %
svg icon Largest Share by Country United States
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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North America Dairy Alternatives Market Analysis

The North America Dairy Alternatives Market size is estimated at 10.74 billion USD in 2024, and is expected to reach 16.49 billion USD by 2029, growing at a CAGR of 8.96% during the forecast period (2024-2029).

10.74 Billion

Market Size in 2024 (USD)

16.49 Billion

Market Size in 2029 (USD)

6.97 %

CAGR (2017-2023)

8.96 %

CAGR (2024-2029)

Largest Market by Category

47.13 %

value share, Non-Dairy Milk, 2023

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The preference for plant-based milk is largely driven by the growing intend towards different taste stimuli coupled with health consciousness among the consumers in the country

Largest Market by Distribution Channel

92.31 %

value share, Off-Trade, 2023

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The wider availability of various brands, ease of reading product labels and convenience in comparing different products make off-trade channel most preferred type.

Fastest-growing Market by Category

18.73 %

Projected CAGR, Non-Dairy Cheese, 2024-2029

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Growing awareness regarding animal cruelty and high acceptance of veganism are prompting consumers to opt for vegan foods such as plant-based cheese, captivating to segmental growth

Fastest-growing Market by Distribution Channel

9.25 %

Projected CAGR, Off-Trade, 2024-2029

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The rising preference to buy essential groceries online during the pandemic drove the off-trade channel. The growth is also assisted by better consumer reach through digital marketing

Leading Market Player

14.59 %

market share, Danone SA, 2022

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Due to its rising revenue, Danone has the opportunity to invest its revenue in R&D which increases the number of products, leading to it gaining a competitive edge in the market.

Online retail channels are partnering with many brands to boost their sales

  • The distribution channel of the North American dairy alternatives market is segmented into on-trade and off-trade. The off-trade channel plays a major role in the sales of alternative dairy products in the region. Supermarkets and hypermarkets are the largest off-trade distribution channels in the North American dairy alternatives market. The proximity factor of these channels, especially in large and developed cities, provides them with an added advantage of influencing the consumers' purchasing decisions. In 2022, the sales value of dairy alternatives through supermarkets and hypermarkets accounted for more than 73.4% compared to other retail channels.
  • Plant-based milk plays a major role in the overall sales of retail channels. In 2021, the sales value of plant-based milk increased by 8.5% compared to 2020, while animal-based milk sales declined by 2%. In the same year, 42% of households purchased plant-based milk, and 76% bought it multiple times from retail channels.
  • The online channel in North America is projected to be the fastest-growing distribution channel for dairy alternatives. It is anticipated to grow by 44% in 2024 compared to 2021. Online retailers are partnering with brands to expand their shelf space, increase assortments, and improve consumers’ shopping experience by offering a wide range of plant-based products. As of 2021, more than 22% of Canadians preferred to buy groceries online.
North America Dairy Alternatives Market

Explosive population consumption and government backing is fueling the market growth

  • The North American dairy alternatives market dominates the global market due to the increasing lactose intolerance and adoption of healthy diets. As of 2022, 30-50 million Americans were found to be lactose intolerant. The most preferred dairy-free products are milk, butter, frozen desserts, and cheese.
  • The United States is the leading market for dairy alternatives in the region. It is projected to register the fastest Y-o-Y growth rate of 26% by value during 2024-2027. The higher demand is due to the higher production volume of nuts (almonds) and soybeans. For example, the United States produces around 2,002,742 metric tons of almonds annually, accounting for 80% of the world’s almond production. Continuous product launches are the key factor promoting the sales of dairy alternatives in the country, as American consumers are highly open to trying new products.
  • As of 2021, 62% or 79 million US households bought plant-based products, an increase from 61% or 77 million in 2020.
  • Canada is the second-leading market for dairy alternatives. Government support is the primary factor boosting the sales of non-dairy products in the country. In 2018, the government included the dairy alternatives industry in its Supercluster Initiative and invested USD 150 million in its development. In 2021, it invested an additional USD 173 million.
  • The sales of dairy alternatives are expected to grow due to an anticipated increase in lifestyle disorders and lactose intolerance. The North American dairy alternatives market is projected to grow by a value of 16% in 2025 compared to 2023.

North America 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. Canada, Mexico, United States are covered as segments by Country.

  • The distribution channel of the North American dairy alternatives market is segmented into on-trade and off-trade. The off-trade channel plays a major role in the sales of alternative dairy products in the region. Supermarkets and hypermarkets are the largest off-trade distribution channels in the North American dairy alternatives market. The proximity factor of these channels, especially in large and developed cities, provides them with an added advantage of influencing the consumers' purchasing decisions. In 2022, the sales value of dairy alternatives through supermarkets and hypermarkets accounted for more than 73.4% compared to other retail channels.
  • Plant-based milk plays a major role in the overall sales of retail channels. In 2021, the sales value of plant-based milk increased by 8.5% compared to 2020, while animal-based milk sales declined by 2%. In the same year, 42% of households purchased plant-based milk, and 76% bought it multiple times from retail channels.
  • The online channel in North America is projected to be the fastest-growing distribution channel for dairy alternatives. It is anticipated to grow by 44% in 2024 compared to 2021. Online retailers are partnering with brands to expand their shelf space, increase assortments, and improve consumers’ shopping experience by offering a wide range of plant-based products. As of 2021, more than 22% of Canadians preferred to buy groceries online.
Category
Non-Dairy Butter
Non-Dairy Cheese
Non-Dairy Ice Cream
Non-Dairy Milk
By Product Type
Almond Milk
Cashew 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
Country
Canada
Mexico
United States
Rest of North America
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North America Dairy Alternatives Market Size Summary

The North America Dairy Alternatives Market is experiencing significant growth, driven by increasing consumer demand for plant-based products and a shift towards healthier diets. The market is characterized by a robust distribution network, with supermarkets and hypermarkets leading the off-trade channels due to their strategic locations in urban areas. The online channel is emerging as the fastest-growing distribution avenue, as retailers expand their offerings to cater to the rising preference for plant-based products. The market's expansion is further supported by the growing prevalence of lactose intolerance and lifestyle disorders, prompting consumers to seek dairy-free alternatives. The United States and Canada are the leading markets, with the U.S. benefiting from high production volumes of key ingredients like almonds and soybeans, while Canada sees government support bolstering the industry.

The market landscape is fragmented, with major players like Agrifoods International Cooperative Ltd, Blue Diamond Growers, Califia Farms LLC, Danone SA, and Oatly Group AB holding significant shares. Continuous product innovation and strategic acquisitions, such as SunOpta Inc.'s acquisition of Dream® and WestSoy® brands, are key drivers of growth. The market is also witnessing a rise in per capita consumption of ingredients like oat, soybeans, pea, and almonds, which are increasingly used in various food applications. Consumer trends indicate a shift towards flexitarian and vegan diets, with a notable portion of the population reducing or eliminating dairy consumption due to health and environmental concerns. This evolving consumer behavior, coupled with strategic industry developments, positions the North America Dairy Alternatives Market for sustained growth in the coming years.

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North America 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 Hemp Milk

          5. 1.1.4.1.5 Oat Milk

          6. 1.1.4.1.6 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

    3. 1.3 Country

      1. 1.3.1 Canada

      2. 1.3.2 Mexico

      3. 1.3.3 United States

      4. 1.3.4 Rest of North America

North America Dairy Alternatives Market Size FAQs

The North America Dairy Alternatives Market size is expected to reach USD 10.74 billion in 2024 and grow at a CAGR of 8.96% to reach USD 16.49 billion by 2029.

In 2024, the North America Dairy Alternatives Market size is expected to reach USD 10.74 billion.

North America Dairy Alternative Market Report Snapshots

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