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United States Dairy Alternatives Market Size

The United States Dairy Alternatives Market is experiencing significant growth, with a notable expansion in its market size over the forecast period. The shift towards plant-based dairy products has been driven by increased consumer purchases through retail channels, particularly in off-trade settings. While the market for on-trade channels remains underdeveloped, the off-trade segment continues to dominate, with online shopping emerging as the fastest-growing distribution channel. This growth is fueled by consumer preferences for convenience and the rising number of smartphone users, highlighting the substantial opportunities for brands across various retail platforms.

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Market Size of united states dairy alternatives Industry

United States Dairy Alternatives Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 9.25 Billion
svg icon Market Size (2029) USD 13.9 Billion
svg icon Largest Share by Distribution Channel Off-Trade
svg icon CAGR (2024 - 2029) 8.48 %
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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United States Dairy Alternatives Market Analysis

The United States Dairy Alternatives Market size is estimated at 9.25 billion USD in 2024, and is expected to reach 13.9 billion USD by 2029, growing at a CAGR of 8.48% during the forecast period (2024-2029).

9.25 Billion

Market Size in 2024 (USD)

13.9 Billion

Market Size in 2029 (USD)

6.81 %

CAGR (2017-2023)

8.48 %

CAGR (2024-2029)

Largest Market by Category

45.10 %

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

91.48 %

value share, Off-Trade, 2023

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The availability of a wide range of products with several brand options in dairy alternatives and the ease of free checkout and delivery options are aiding the segmental growth.

Fastest-growing Market by Category

15.65 %

Projected CAGR, Non-Dairy Cheese, 2024-2029

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Non-dairy cheese is a healthier alternative to cheese and is considered to reduce risk of heart disease due to its lower content of fat, largely driving the segmental growth

Fastest-growing Market by Distribution Channel

8.76 %

Projected CAGR, Off-Trade, 2024-2029

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Among the off-trade channels, the increased adoption of e-commerce platform among the consumers and growing presence of online retailers is anticipated to drive the segment in the forecasted period

Leading Market Player

13.13 %

market share, Danone SA, 2022

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The presence of exhaustive product offerings along with larger distribution network and a wider presence throughout the country has made it a leading market player.

Market is driven by sustainable growth in sales of plant-based milk led by off-trade retail channels

  • Consumers purchased more plant-based dairy through retail groceries (off-trade) than ever in 2020, resulting in a 14% increase in sales. All categories of dairy alternatives showed growth, which was able to hold steady after recording significant growth in 2020. This demonstrates the incredible opportunities available for brands in every part of the store and across online platforms. In 2021, 42% of households purchased plant-based milk, and 76% of plant-based milk buyers made multiple purchases.
  • The country currently has a nascent market for on-trade channels, as consumers prefer to consume dairy alternatives at home rather than at restaurants or food service outlets. Approximately 93% of meals or snacks that include milk alternatives are consumed at home, while only 7% are consumed at a restaurant or food service outlet. Within the food service industry, plant-based foods account for less than 1% of all foods shipped through broadline foodservice distribution to commercial and non-commercial food service outlets.
  • Off-trade remains the primary outlet for sales of plant-based dairy across all product categories. For example, plant-based milk occupies 16% of all retail milk dollar sales in conventional channels and 40% in the Natural Enhanced Channel. The latter represents over 50 retailers and approximately 2,000 natural retail stores.
  • The online channel is expected to be the fastest-growing distribution channel in the off-trade segment, with a projected Y-o-Y growth rate of 32% from 2023 to 2025. Convenience is the primary motivation for 61.1% of shoppers who have transitioned to shopping for groceries online. This growth can be attributed to the increasing number of smartphone users, which saw an increase of 11 million between 2020 and 2021.
United States Dairy Alternatives Market

United States 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.

  • Consumers purchased more plant-based dairy through retail groceries (off-trade) than ever in 2020, resulting in a 14% increase in sales. All categories of dairy alternatives showed growth, which was able to hold steady after recording significant growth in 2020. This demonstrates the incredible opportunities available for brands in every part of the store and across online platforms. In 2021, 42% of households purchased plant-based milk, and 76% of plant-based milk buyers made multiple purchases.
  • The country currently has a nascent market for on-trade channels, as consumers prefer to consume dairy alternatives at home rather than at restaurants or food service outlets. Approximately 93% of meals or snacks that include milk alternatives are consumed at home, while only 7% are consumed at a restaurant or food service outlet. Within the food service industry, plant-based foods account for less than 1% of all foods shipped through broadline foodservice distribution to commercial and non-commercial food service outlets.
  • Off-trade remains the primary outlet for sales of plant-based dairy across all product categories. For example, plant-based milk occupies 16% of all retail milk dollar sales in conventional channels and 40% in the Natural Enhanced Channel. The latter represents over 50 retailers and approximately 2,000 natural retail stores.
  • The online channel is expected to be the fastest-growing distribution channel in the off-trade segment, with a projected Y-o-Y growth rate of 32% from 2023 to 2025. Convenience is the primary motivation for 61.1% of shoppers who have transitioned to shopping for groceries online. This growth can be attributed to the increasing number of smartphone users, which saw an increase of 11 million between 2020 and 2021.
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
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United States Dairy Alternatives Market Size Summary

The United States Dairy Alternatives Market is experiencing significant growth, driven by a shift in consumer preferences towards plant-based products. This market is characterized by a robust expansion in off-trade channels, particularly retail groceries and online platforms, where convenience and variety are key drivers. The market's growth is supported by a growing number of consumers adopting vegan and flexitarian diets, motivated by concerns over animal welfare and health. The increasing availability of diverse dairy alternatives, such as plant-based milk, yogurt, ice cream, and cheese, is further fueling this trend. The market is still in its early stages in on-trade channels, with most consumption occurring at home rather than in restaurants or food service outlets.

Governmental support and investment play a crucial role in the market's development, with significant funding directed towards plant-based food companies. This financial backing is helping to expand the production and consumption of dairy alternatives across the country. The market is fragmented, with major players like Blue Diamond Growers, Califia Farms LLC, Campbell Soup Company, Danone SA, and Oatly Group AB holding a significant share. Recent acquisitions and investments, such as SunOpta Inc.'s acquisition of Dream® and WestSoy® brands and the establishment of a new sterile alternative milk plant, highlight the competitive dynamics and growth potential within the industry. As consumer interest continues to rise, the market is poised for further expansion, offering substantial opportunities for brands and retailers.

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United States 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

United States Dairy Alternatives Market Size FAQs

The United States Dairy Alternatives Market size is expected to reach USD 9.25 billion in 2024 and grow at a CAGR of 8.48% to reach USD 13.90 billion by 2029.

In 2024, the United States Dairy Alternatives Market size is expected to reach USD 9.25 billion.

United States Dairy Alternatives Market Report Snapshots

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