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United Kingdom Dairy Alternatives Market Size

The United Kingdom Dairy Alternatives Market is experiencing significant growth, with the market size expected to expand considerably over the forecast period. The off-trade segment, particularly through supermarkets and hypermarkets, holds a substantial portion of the market share, benefiting from their strategic locations and ability to influence consumer purchases. While the on-trade channel is also growing, the online retail channel is emerging as the fastest-growing distribution method, driven by the increasing preference for online grocery shopping among modern consumers. This trend is supported by the high internet penetration in the UK, facilitating the expansion of online sales in the dairy alternatives sector.

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Market Size of united kingdom dairy alternatives Industry

United Kingdom Dairy Alternatives Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 1.81 Billion
svg icon Market Size (2029) USD 4.08 Billion
svg icon Largest Share by Distribution Channel Off-Trade
svg icon CAGR (2024 - 2029) 17.70 %
svg icon Fastest Growing by Distribution Channel Off-Trade
svg icon Market Concentration Medium

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

Key Players

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United Kingdom Dairy Alternatives Market Analysis

The United Kingdom Dairy Alternatives Market size is estimated at 1.81 billion USD in 2024, and is expected to reach 4.08 billion USD by 2029, growing at a CAGR of 17.70% during the forecast period (2024-2029).

1.81 Billion

Market Size in 2024 (USD)

4.08 Billion

Market Size in 2029 (USD)

17.72 %

CAGR (2017-2023)

17.70 %

CAGR (2024-2029)

Largest Market by Category

42.48 %

value share, Non-Dairy Milk, 2023

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Plant-based milk consumption in United Kingdom is increasing across all age groups with lactose intolerance and allergen to cow or buffalo milk consumers adopting plant-based dairy products.

Largest Market by Distribution Channel

97.04 %

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

23.66 %

Projected CAGR, Non-Dairy Cheese, 2024-2029

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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 Distribution Channel

19.26 %

Projected CAGR, Off-Trade, 2024-2029

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The feasible localities of off-trade retail channels like convenience stores allows consumers to shop within minimal distances, making it karger segment in the market.

Leading Market Player

30.08 %

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.

Market is driven by sustainable growth in sales of non-dairy products led by online retail channels

  • The off-trade segment dominates the distribution channels of the UK dairy alternatives market. Hypermarkets and supermarkets primarily drive the high market share of off-trade channels. Supermarkets and 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 with an added advantage of influencing the consumer’s decision to purchase among the large variety of products available in the market. In the United Kingdom, supermarkets and hypermarkets held 72% of dairy alternatives sales, by value, in 2022.
  • The sales value of dairy alternatives through on-trade channels across the country increased by 31% during 2021-2022. Based on the distribution channel, the consumption in the United Kingdom was around 0.15 kg per person in 2023, with 0.13 kg/per capita consumption of dairy alternatives in 2021. The on-trade channel is likely to record a growth rate of 60% during 2024-2027.
  • The online retail channel is projected to be the fastest-growing distribution channel as modern consumers prefer online grocery purchases due to their busy lifestyles. Online sales of dairy alternatives are expected to grow by 56.8% during 2021-2023 to reach a market value of USD 33.4 million in 2023. In 2022, the share of households with internet access was recorded at 93%, up from 72% in 2011. The United Kingdom, along with other countries, has a high penetration of internet users. For instance, the key online cheese retailers include FROMAGES.COM, The East London Cheese Board, La Gourmeta, Love Cheese, Italia Regina, and Frank and Sal. The online retail channel's sales value is anticipated to register a growth rate of 87% during 2024-2027.
United Kingdom Dairy Alternatives Market

United Kingdom 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 UK dairy alternatives market. Hypermarkets and supermarkets primarily drive the high market share of off-trade channels. Supermarkets and 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 with an added advantage of influencing the consumer’s decision to purchase among the large variety of products available in the market. In the United Kingdom, supermarkets and hypermarkets held 72% of dairy alternatives sales, by value, in 2022.
  • The sales value of dairy alternatives through on-trade channels across the country increased by 31% during 2021-2022. Based on the distribution channel, the consumption in the United Kingdom was around 0.15 kg per person in 2023, with 0.13 kg/per capita consumption of dairy alternatives in 2021. The on-trade channel is likely to record a growth rate of 60% during 2024-2027.
  • The online retail channel is projected to be the fastest-growing distribution channel as modern consumers prefer online grocery purchases due to their busy lifestyles. Online sales of dairy alternatives are expected to grow by 56.8% during 2021-2023 to reach a market value of USD 33.4 million in 2023. In 2022, the share of households with internet access was recorded at 93%, up from 72% in 2011. The United Kingdom, along with other countries, has a high penetration of internet users. For instance, the key online cheese retailers include FROMAGES.COM, The East London Cheese Board, La Gourmeta, Love Cheese, Italia Regina, and Frank and Sal. The online retail channel's sales value is anticipated to register a growth rate of 87% during 2024-2027.
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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United Kingdom Dairy Alternatives Market Size Summary

The United Kingdom Dairy Alternatives Market is experiencing significant growth, driven by a shift in consumer preferences towards plant-based products. This market is characterized by a strong presence of off-trade distribution channels, particularly supermarkets and hypermarkets, which dominate sales due to their accessibility and extensive product offerings. The online retail channel is emerging as the fastest-growing segment, fueled by the increasing number of internet users and the convenience of online shopping. The demand for dairy alternatives is being propelled by a rise in veganism and a growing interest in plant-based proteins, with a notable portion of the population actively reducing dairy consumption and seeking plant-based options.

The market is moderately consolidated, with major players like Arla Foods, Blue Diamond Growers, Danone SA, Oatly Group AB, and Upfield Holdings BV holding significant shares. These companies are actively expanding their product lines to cater to the evolving consumer tastes, as seen with Oatly's introduction of a new range of oat-based yogurt. Despite being smaller than the plant-based meat sector, the dairy alternatives segment is witnessing higher growth rates, particularly in plant-based milk and cheese. Government initiatives and consumer trust in the safety of plant-based proteins are further supporting the market's expansion, indicating a robust future for dairy alternatives in the UK.

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United Kingdom 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

United Kingdom Dairy Alternatives Market Size FAQs

The United Kingdom Dairy Alternatives Market size is expected to reach USD 1.81 billion in 2024 and grow at a CAGR of 17.70% to reach USD 4.08 billion by 2029.

In 2024, the United Kingdom Dairy Alternatives Market size is expected to reach USD 1.81 billion.

United Kingdom Dairy Alternatives Market Report Snapshots

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