Plant-based Milk Market Size, Share, and Trends 2024 to 2033

The global plant-based milk market size was valued at USD 3.32 billion in 2023 and is anticipated to reach around USD 8.87 billion by 2033, expanding at a CAGR of 10.32% from 2024 to 2033. The rise in vegan and vegetarian lifestyles has contributed significantly to the demand for plant-based milk market. And thereby fuelling the plant-based milk market further over the forecast period globally.

Plant-based Milk Market Key Takeaways

• Asia Pacific dominated the market with the largest share in 2023.
• By milk type, the soymilk segment dominated the market in 2023.
• Distribution Channel, the supermarket segment has held the largest market share in 2023.
• By end-user, the retail/household segment led the global market in 2023.

Plant-based Milk Market Overview

The plant-based milk market has experienced significant growth in recent times. It is driven by increasing consumer demand for a healthy lifestyle and more variety of food that is sustainable in nature and gives immense nutrients. Plant-based milk is generally derived from the plant sources like soy, almond, rice, oats, coconut, etc. It offers a great optional value for traditional dairy milk from animals, which contains lactose content that may trigger cholesterol-related issues and harmful ingredients if it is contaminated with other chemicals that increase milk production in animals.

Unlike tastes, plant-based milk is quite similar to animal milk in terms of base appearance, usage, and texture. Innovation in product development and manufacturing processes has also levelled up with various techniques that do not squeeze vital nutrients from plant-based milk. For instance, soy milk and almond milk have gained popularity as beverages for their rich source of protein. It has been used since ancient times in Indian food culture.

Plant-based Milk Market Growth Factors

• Plant-based milk is naturally lactose-free, making it an excellent choice for individuals who are lactose intolerant or have difficulty digesting dairy products.
• Many plant-based milk varieties, such as almond and oat milk, are lower in saturated fat than whole cow’s milk. This can be beneficial for heart health.
• Plant-based milk contains zero cholesterol, unlike dairy milk. High cholesterol levels are associated with an increased risk of heart disease.
• Depending on the type, plant-based milk can be fortified with essential nutrients such as calcium, vitamin D, and B vitamins. These nutrients are crucial for bone health, immune function, and well-being.
• Producing plant-based milk generally has a lower environmental footprint compared to dairy milk. It requires less water and land and emits fewer greenhouse gases.
• Plant-based milk comes in various Flavors and options, including almond, soy, coconut, oat, and rice milk. This diversity allows consumers to choose based on taste preferences and dietary needs they are seeking.

Plant-based Milk Market Scope

Plant-based Milk Market Dynamics

Driver: Growing number of individuals opting for vegetarian diet

One of the major drivers for the plant-based milk market is the increasing popularity of vegan and plant-based diets, as they are more convenient for the human digestive tract to digest and absorb. For health-conscious consumers, ethical values regarding animal welfare are supreme for their lifestyle. For this reason, they are more prone to make plant-based food choices than dairy products to promote a healthy environment for the planet. Also, allergies to dairy products have seen an upsurge over the past years, leading to the consumption and development of plant-based milk as a better alternative. Various kinds of milk are available for different people and their demands, such as soy, almond, coconut, oat, etc.

These milks offer a safer choice for people who are lactose intolerant and susceptible to allergies due to animal-based dairy products. Also, trends on social media about plant-based milk have gained popularity and influenced many people's diet habits. As mentioned, several health benefits and the antioxidant properties of plant-based milk are more important for reversing aging or slowing the aging process in humans. All these marketing tactics go very well to drive the further growth of the plant-based milk market globally.

Restraint: Processing level of plant-based milk is rising health concern.

Many plant-based milk products undergo over-processing and contain preservatives to extend their shelf life and mimic the taste and texture of dairy milk to attract consumers who are more prone to using dairy milk products. Because the inconsistency of plant-based milk compared to dairy milk is more noticeable. To overcome this, plant-based milk consists of additives, which may be the reason for concern regarding its health implications on the human system. Higher processing levels can reduce nutritional values and leave only Fiber content in it.

Also, plant-based milk and its products are primarily wrapped in a plastic cover, which is also an area of concern as plastic is nearly impossible to degrade and thereby harmful to the ecosystem of the earth. Such concerns are relatable and essential to consider. Hence, this can hinder the growth of the plant-based milk market.

Opportunity: Innovative product diversification

While soy and almond milk have dominated the plant-based milk market, there’s a lot more potential for diversification in this market. Because Consumers are increasingly seeking variety in flavours along with nutritional benefits beyond the traditional traits, to achieve this, distributors of plant-based milk products need to incorporate Innovations in achieving creamy textures without solely depending upon fat content to attract a broader consumer base. Also, infusing plant-based milk with natural flavours can create exciting options for different consumers. Research and development can focus on lesser-known plant sources such as oats, flaxseed, quinoa, etc.

These ingredients offer unique tastes and nutritional benefits as well. Additionally, incorporating functional additives like probiotics and prebiotics is vital to life. It can enhance the health appeal of plant-based milk among health-conscious people across the globe, and it will create immense opportunities to proliferate the plant-based milk market.

Milk Type Insights

The soymilk segment dominated the market share in 2023. Soy milk is naturally resistant to allergens like lactose and dairy products. For people with lactose intolerance, soymilk is the best and most convenient option as it is available widely nowadays. Such a rising prevalence of lactose intolerance is increasing the demand for the soymilk segment. Also, plant-based diets and vegan trends have spurred the world widely due to the benefits that plant-based milk provides. Soymilk production requires less natural resources like water and land, and therefore, it generates lower greenhouse emissions than dairy production. All these factors are propelling the soymilk segment in the plant-based milk market globally.

Distribution Channel Insights

The supermarket segment has dominated the plant-based milk market based on distribution channels in 2023. The segment is observed to sustain the position throughout the forecast period in response to the higher demand from the industry, supermarkets offer various brands of plant milk markets. This is to ensure a diverse range of options, including flavours and different formulations as per consumers' needs, can be available easily on their shelves.

Such ease of availability encourages consumers to repeatedly purchase from the same shops or supermarkets owing to the availability of a wide range of products at the same place. Moreover, supermarkets play an important role in marketing plant-based milk products and promoting them as a healthy diet option. They mainly highlight the benefits and contains of the product to maintain transparency throughout. Such an effort raises awareness of the masses and drives frequent purchasing from the same store.

End-user Insights

The retail/household segment dominated the global plant-based milk market. Increasing awareness about health and wellness has impacted the masses over the past years and drives plant-based milk products. That is why many people adopt a plant-based diet.

Plant-based milk is often perceived as a healthy alternative to dairy products as it contains less saturated fats and fewer calories. It also increases awareness about the impact of animal agriculture, water use, and greenhouse emissions fuelling the plant-based milk market.

Regional Insights

Asia Pacific region dominated the global plant-based milk market in 2023. The region is observed to sustain the dominance throughout the forecast period. Owing to the increase in demand for lactose-free milk and less fatty milk products as a regime of healthy lifestyle among several people in urban cities. India, China, Taiwan, and Singapore are some of the leading countries and, thus, major market contributors in the market.

The raw source materials like soy, almond and rice are abundantly available in the Asian region will further propel the markets growth. The most demanding milk is soy, hemp, coconut, and almond milk. All these milks are widely available in the regional market because of the increasing demand from people. The rising awareness of vegan products and avoiding dairy products will further boost the plant-based milk market growth on a larger scale in the food and beverage industry throughout Asia Pacific.

North America is the second-largest region globally for plant milk. North America is a significant and most influential market for plant-based milk, with substantial growth and consumer adoption across the globe. Plant-based milk alternatives have become mainstream, appealing to vegans and a broader consumer base. For instance, in the United States, nearly three billion dollars in revenue is generated annually due to the surge of plant-based milk.

As health awareness increases, the country is witnessing a sudden spur for plant-based milk and its product as a dairy alternative. This is part of trends in the USA, which is declared by eating and nutrition trends. It shows a forecast by the USA Department of Agriculture that shows consumers' eating habits and preferences. High demand for plant-based milk can also be the reason for increasing lactose intolerance and general awareness of healthy eating habits.

Plant-based Milk Market Recent Developments

• In August 2023, an Oat milk company named Oatley from Swidden made an announcement that they plan to build a new manufacturing plant in Idaho, US. This plant milk will have the ability to produce about 120 million litres of oat milk annually. Such a move will strengthen Oatly's presence in the US market. This plant will further create new jobs in the region.
• In February 2023, the multinational food company Danone disclosed its plans to increase its focus on plant-based products prominently. The company set the target to achieve USD 10 billion in plant-based product revenue by 2025. They also plan to expand their business by introducing new plant-based milk products for dairy alternatives, such as soy milk, almond milk, and oat milk. Such a step will proliferate the plant-based milk market and also strengthen Danone's presence in the global market.
• In June 2022, nestle owned an SMA feeding and launched a new product for kids ages one to three. It is a vegan alternative drink named Plantygrow Growing Up Drink, extending its product range to the infant nutrition line.

Plant-based Milk Market Companies

• Groupe Danone
• The Hain Celestial Group Inc.
• Vitasoy International Holdings Limited.
• SunOpta Inc.
• Pacific Foods of Oregon, Inc.
• Goya Foods.
• Blue Diamond Growers, Inc.
• Califia Farms
• Ripple Foods
• Sanitarium
• Ecomil
• Hiland Dairy
• Natura Foods.
• Earth’s Own Food Company Inc.
• Edward & Sons
• Chef’s Choice Food Manufacturer Company Limited

Segments Covered in the Report

By Milk Type

• Almond
• Soy
• Rice
• Oat
• Coconut
• Others

By Distribution Channel

• Online
• Supermarkets
• Convenience Stores

By End-user

• Retail/Household
• Food and Beverages Industry
• Food Services Industry

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa