The report "Dairy Alternatives Market by Type (Soy, Almond, Coconut, Rice, Oat, Hemp), Formulation (Plain & Sweetened, Plain & Unsweetened, Flavored & Sweetened, Flavored & Unsweetened), Application (Food, Beverages), and Region - Global Forecast to 2022", published by MarketsandMarkets™, the Dairy Alternatives Market was valued at USD 7.37 Billion in 2016. It is projected to grow at a CAGR of 11.7% from 2017, to reach USD 14.36 Billion by 2022. The base year considered for this study is 2016, while the forecast period is from 2017 to 2022.
The global Dairy Alternatives Market is expanding with considerable growth potential over the next five years. The growth of this market can be attributed to the growing inclination toward vegan, especially plant-based food, growing lactose intolerance among a large section of the population, and rising demand for various innovative dairy-free applications.
Soy milk estimated to be the largest segment, by type, in 2017
In terms of type, the soy segment is estimated to account for the largest share of the Dairy Alternatives Market in 2017. Soy milk and its products are experiencing steady demand in industrialized countries and occupy a significant share of the Dairy Alternatives Market, especially in Asia-Pacific region. The popularity of soy milk can be attributed to the plethora of varieties, in terms of flavors, blends, fat content, and formulations offered by leading dairy alternative manufacturers. The rising awareness about the nutritional benefits of soy-based products, along with their easy availability, is driving the soy milk market growth. In addition to being lactose- & cholesterol-free, soy milk is also a good source of essential amino acids (high-quality protein), potassium, fiber, and B vitamins which are required for growth. Overall, the market for plant-based dairy alternatives has witnessed significant growth in the last couple of years, due to a steady decline in the consumption of cow milk.
Flavored & sweetened is estimated to be the largest segment in 2017
The flavored & sweetened segment is estimated to account for the largest share of the Dairy Alternatives Market, in terms of value, in 2017. Flavored & sweetened dairy alternatives such as dairy-free yogurt, milk, and frozen dessert alternatives are available in the market to cater to the changing consumer demands and for manufacturers to increase their product offering. Incorporation of flavor enhances the palatability of dairy alternatives such as soy, rice, and oat milk. The widely available flavored plant-based products in the market are vanilla and chocolate, followed by other flavors, such as peach, strawberry, blueberry, and mango. Companies have launched new products with fruit flavors to gain consumer base and increase their market share. The increasing diabetic population has also led to changing dietary preferences, which has further facilitated the rise in the number of different formulations to suit their needs.
Asia-Pacific is estimated to be the most lucrative market for dairy alternatives
In 2017, the Asia-Pacific region is estimated to hold a significant share of the global Dairy Alternatives Market. The major drivers for this significant share are the increasing consumer expectations for innovations and availability of healthy dairy-free food products. The Asia-Pacific market is driven by countries such as China, Japan, South Korea, Taiwan, Singapore, Malaysia, and Indonesia. The primary driver for this region is the increasing consumer demand for lactose-free food products coupled with abundance of soy-based dairy-free products. The Dairy Alternatives Market in this region is currently undergoing a dramatic transformation in response to rapid urbanization, diet diversification, and liberalization of foreign direct investment in the food sector. Also, the rising income, purchasing power, rapid growth of the middle-class population, and the increasing consumer awareness about health & fitness are driving the Asia-Pacific market growth.
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