Global Animal-Free Dairy Products Market By Source (Soy, Almond, Coconut, And Others), By Type (Flavored, and Plain), By Product, By Distribution Channel, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the global Animal-free-Dairy Products Market was valued at USD 26.1 billion and is expected to reach USD 78.8 billion in 2032. This market is estimated to register the highest CAGR of 12% between 2023 and 2032.

The animal-free dairy products are produced by precision microbial fermentation technology that allows the production of bio-identical proteins like whey or casein without the use of animals.

DNA sequences from dairy protein are encoded onto microorganisms like fungi and yeast which are placed into fermentation tanks. In the process, microorganisms are fed with simple plant-based nutrition and sugars for the growth of the microorganisms. The further microbes produced are the same as cows’ dairy milk and dairy products, which are then filtered into pure milk protein used in animal-free dairy product production. Animal-free dairy products are lactose-free, and the demand in the global market is increasing.

Key Takeaways

• Market Growth: The global Animal-Free Dairy Products Market was valued at USD 26.1 billion in 2022 and is projected to reach USD 78.8 billion by 2032, representing a substantial Compound Annual Growth Rate (CAGR) of 12% between 2023 and 2032.
• Production Process: Animal-free dairy products are manufactured using precision microbial fermentation technology. This process involves encoding DNA sequences from dairy proteins onto microorganisms like fungi and yeast, which are then placed into fermentation tanks.
• Driving Factors: Shifting Consumer Preferences Increased demand for plant-based dairy products, driven by concerns about health issues associated with cow milk, such as lactose intolerance and allergies, is fueling the growth of animal-free dairy products.
• Restraining Factors: High Product Costs The cost of animal-free dairy products is a significant obstacle to market growth. Allergic Issues Some individuals may experience allergies, such as hives, itching, and eczema when consuming soy milk, which could negatively impact market growth.
• Dominant Source: The soy segment leads the market with a 24% market revenue share in 2022. Soy milk is favored for its nutritional richness, low cholesterol, and suitability for vegan and vegetarian diets.
• Preferred Type: Flavored animal-free dairy products are dominant, making up 59% of the market revenue in 2022. Consumers prefer flavored options due to their texture, sweetness, and creaminess, as well as their high health benefits.
• Dominant Product: Non-dairy milk, including options like oat milk, soy milk, and almond milk, holds the largest market revenue share at 35% in 2022, making it the dominant product in the animal-free dairy market.
• Preferred Distribution Channel: Supermarkets and hypermarkets are the dominant distribution channel, capturing 42% of the market revenue in 2022. These stores offer a wide variety of flavored products and allow consumers to experience products firsthand.
• Growth Opportunities: Rising demand for soymilk and the increasing use of animal-free dairy products in food industries are expected to create lucrative growth opportunities in the market. The addition of different flavors and nutritional enhancements will continue to meet consumer demand.
• Regional Dominance: North America is the leading region, with a market share of 34.8%. The market is driven by the increasing demand for plant-based milk in countries like the United States and Canada.
• Key Players: Major players in the animal-free dairy products market include Danone North America Public Benefit Corporation, The Hain Celestial Group, Inc., Blue Diamond Growers, SunOpta Food Group LLC, Freedom Foods Group Limited, Nestle S.A., Eden Foods Inc., Tomorrow Farms, Earth’s Own Food Company, Perfect Day, Inc., and others.

Driving Factors

Increasing Demand for Plant-Based Milk Driving the Global Animal-Free Dairy Products Market

Worldwide changing lifestyles and high demand for plant-based dairy products are driving market growth. Health problems with the consumption of cow milk, such as lactose intolerance, and allergies, consumers are shifting towards plant-based dairy products such as soymilk and coconut milk, which is driving demand for animal-free dairy products in the market. Regular soymilk consumption improves cholesterol levels, reduces high blood pressure, and supports weight loss or gain.

Also, with increasing numbers of sports clubs and gyms due to increasing health concerns, the demand for soy milk is increasing among health-conscious individuals. Regular intake of soy milk reduces 59% the risk of premenopausal breast cancer. Thus increasing nutritional benefits of soy milk products drive the growth of the global animal-free dairy products market.

The Dairy farms emit about 2,000 tons of carbon dioxide, methane, and nitrous oxide, which negatively impact the environment. The animal-based dairy products are environmentally friendly because they reduce the emission of carbon dioxide. In addition, the increasing adoption of smartphones and online shopping channels is driving the growth of the animal-free dairy products market.

Restraining Factors

High Products Costs and Allergic Issues Restraining the Market Growth.

The high cost of animal-free dairy products is the primary factor restraining the market growth. In addition, the consumption of soymilk can cause allergies such as hives, itching, and eczema in infants and adults, which is expected to have a negative impact on market growth.

By Source Analysis

The Soy Segment is Dominant in the Global Animal-Free Dairy Products Market

Based on source, the market is classified into soy, almond, coconut, rice, oats, hemp, and others. The soy segment is dominant in the market, with the largest market revenue share of 24% in 2022, owing to its increasing popularity. Soy milk is healthy and plant-based, and it helps in building muscles and organs, which is a primary factor for the growth of this segment.

Soy milk is rich in omega-3 fatty acids, which helps in reducing the health risks of dementia and Alzheimer’s diseases. Soy milk is beneficial in improving the cardiovascular system and maintaining blood pressure.  Soy milk does not contain cholesterol and saturated fatty acids. Therefore, soymilk is a good alternative to cow’s milk. Soy milk is derived from soybeans which contain nutrition, calcium, and vitamin D. A cup of soy milk serves 100 calories, 7 grams of protein, 4 grams of fats, 8 grams of carbohydrates, and 6 grams of sugar which is highly nutrition-rich as compared to cow milk.

The availability of soybeans in Asia, mainly in China and India, is significant. Thus, Asia Pacific is the dominant region in the use of soymilk. Soy milk is the second-most consumed plant milk in the world. Therefore, the demand for soy milk worldwide is increasing. The demand for soymilk is increasing mainly due to the introduction of flavors of sweetened soymilk and its increasing uses in deserts. Individuals prefer soy milk as a vegan and vegetarian food product as an alternative to cow milk.

Soy milk is significantly used to make dairy products such as soy cream, soy kefir, and soy yogurt. The coconut segment is expected to grow at the fastest CAGR during the forecast period. Coconut milk contains medium-chain fatty acids and has anti-inflammatory, antimicrobial, and anti-fungal properties.  Due to the high health benefits of coconut milk, the popularity among the coconut milk is increasing.

By Type Analysis

The Flavored Segment is Dominant in Animal-Free Dairy Products Market

On the basis of type, the market is segmented into flavored and plain animal-free dairy products. The flavored segment was dominant in the market, with the largest market revenue share of 59% in 2022. The demand for flavored animal-free dairy products is increasing due to the increasing demand for packed drinks and increasing consumer preference for plant-based milk due to its high health benefits. In addition, animal-free milk offer desired texture, sweetness, and creaminess.

Due to this, consumers prefer soy milk and coconut milk. For instance, Tomorrow Farm is debuting its product Bored Cow which uses Perfect Days animal-free whey protein to recreate a cow-free flavored milk rich with nutrition and proteins. The plain segment is anticipated to grow at the fastest CAGR during the forecast period due to increasing demand for plain milk, cheese, butter, and yogurt.

By Product Analysis

Non-Dairy Milk Segment is Dominant in the Market, with Largest Market Revenue Share

Based on products, the market is classified into non-dairy milk, ice cream, yogurt, cheese, creamers, and others. The non-dairy milk segment was dominant in the market, with the largest market revenue share of 35% in 2022, and is expected to remain dominant in the market during the forecast period. Plant-based milk is a good alternative to cow milk due to its wide variety of flavors and high nutritional value.

The popularity of animal-free milk, such as oat milk, soy milk, and almond milk, is increasing among consumers. Almond milk is low in calories and carbs as compared to cow milk. Almond milk contains 50% to 80% fewer calories than dairy milk and is considered a low glycemic index food. The consumption of hemp milk is increasing among the younger generation due to its high benefits in brain health. It also helps in boosting the immune system, which is helpful in combating various diseases. The demand for animal-free creamers is increasing due to the increasing applications of creamers in food industries.

By Distribution Channel Analysis

The Supermarkets & Hypermarkets Segment is Dominant in the Market, with Largest Market Revenue Share

Based on distribution channel, the market is classified into convenience stores, online stores, and supermarkets & hypermarkets. The supermarkets & hypermarkets segment was dominant, with the largest market revenue share of 42% in 2022. The supermarkets and hypermarkets contain a wide variety of flavored products. Consumers can taste, touch, and smell the products which enhances consumers’ experience.

Also, supermarkets provide attractive offers and discounts on products to attract consumers. The online retail store segment is expected to grow at the fastest CAGR due to the emergence of e-commerce services and the increasing adoption of smartphones. Online shopping channels are increasing due to the increasing adoption of smartphones. Also, online channels provide doorstep services. Thus the sale of animal-free dairy products is expected to rise in demand through online shopping channels during the forecast period.

Key Market Segments

By Source

• Soy
• Almond
• Coconut
• Rice
• Oats
• Hemp
• Others

By Type

• Flavored
• Plain

By Product

• Non-Dairy Milk
• Ice-Cream
• Yogurt
• Cheese
• Creamers
• Others

By Distribution Channel

• Supermarkets & Hypermarkets
• Convenience Stores
• Online stores

Growth Opportunity

Rising Demand for Soymilk Expected to Create Lucrative Growth Opportunities in Market

The increasing popularity of plant-based milk products among individuals is expected to drive the market during the forecast period. Animal-free dairy products producers are focusing on increasing products’ nutritional values and the addition of different flavors to meet rising consumer demand. Also, demand for animal-free dairy products is increasing in emerging economies such as China, India, and Japan to overcome malnutrition and meet consumer demand. Increasing uses in food industries are also expected to create growth opportunities in the market. Individuals are performing more physical activities with increasing numbers of gyms and sports clubs. Thus, individuals prefer soy milk to maintain their diet and nutrition, which is useful in muscle building and recovery.

Latest Trends

Rising Demand for Vegan Ice-Creams Leads Companies to Launch Flavored Vegan Ice-Creams

The young population is inclined towards physical sports activities. Therefore, the young generation is shifting towards soymilk to fulfill daily nutritional values. The demand for vegan ice creams, vegan milk, and novelty products is increasing in the market, so many food makers are focusing on launching new flavored vegan ice cream products. Nestle announced that it would bring chocolate and plain milk products which contain animal-free protein into the US market as a part of ‘test and learn’ in convenience stores.

Regional Analysis

North America region is Dominant in Global Animal-Free Dairy Products Market

North America Region is estimated to be the most lucrative market in the global animal-free dairy products market, with the largest market share of 34.8%, and is expected to register the highest CAGR during the forecast period. The growth of the market in North America is propelled by increasing demand for plant-based milk in developed countries such as U.S., Canada, and Mexico. Increasing health awareness and sport-related activities in North America are fueling the demand for animal-free dairy products in the market.

Asia Pacific Region is expected to grow at the fastest CAGR during the forecast period due to rising population and high product consumption in in emerging economies such as China, Japan, Hong Kong, and Australia. Also, India and China are the largest producers of soymilk, which is expected to impact market growth positively. Due to increasing concerns about hypercholesterolemia and obesity, the demand for animal-free dairy products is expected to increase in Europe.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share & Key Players Analysis:

Key market players are focusing on the production of flavored animal-free dairy products to meet increasing consumer demand. Top key players in the animal-free dairy products market include Danone North America Public Benefit Corporation, The Hain Celestial Group, Inc., Blue Diamond Growers, SunOpta Food Group LLC, Freedom Foods Group Limited, Nestle S.A., Eden Foods Inc., Tomorrow Farms, Earth’s Own Food Company, Perfect Day, Inc., and Other Key Players.

Key Players in Animal-free-Dairy Products Market:

Listed below are some of the major players in the animal-free dairy products market.

• Danone North America Public Benefit Corporation
• The Hain Celestial Group, Inc.
• Blue Diamond Growers
• SunOpta Food Group LLC
• Freedom Foods Group Limited
• Nestle S.A.
• Eden Foods Inc.
• Tomorrow Farms
• Earth’s Own Food Company
• Perfect Day, Inc.
• Other Key Players

Recent Developments:

• In November 2021, Perfect Day announced its entrance into the sports nutrition market, offering vegan whey protein powders under the California Performance Co. brand.
• In 2022, Tomorrows Farms launched Bored Cow, a brand of chocolate, vanilla, and strawberry milk made with Perfects Day’s whey.

Report Scope: