The Europe Dairy Alternatives Market report segments the industry into Category (Non-Dairy Butter, Non-Dairy Cheese, Non-Dairy Ice Cream, Non-Dairy Milk, Non-Dairy Yogurt), Distribution Channel (Off-Trade, On-Trade), and Country (Belgium, France, Germany, Italy, Netherlands, Russia, Spain, Turkey, United Kingdom, Rest of Europe). Get five years of historical data and five-year forecasts.

The Europe Non-Dairy Alternatives Market Report is Segmented by Category (Non-Dairy Milk, Non-Dairy Cheese, Non-Dairy Desserts, Non-Dairy Yogurt, Others), Packaging Type (PET Bottles, Cans, Cartons, Others), Distribution Channels (Off-Trade, On-Trade), and Geography (Belgium, France, Germany, Italy, Netherlands, Russia, Spain, Turkey, United Kingdom, Rest of Europe). The Market Forecasts are Provided in Terms of Value (USD).

The Europe Dairy Alternatives Market size was valued at USD 6.13 billion in 2023 and is projected to reach USD 13.05 billion by 2032, exhibiting a CAGR of 11.4 % during the forecasts period. Recent developments include: In February 2023, Blue Diamond declared that it is launching three campaigns for three products-Snack Almonds, Almond Breeze almond milk, and Almond Flour-in an effort to capitalize on the rising demand for plant-based diets. This indicates a greater effort to present the advantages of almonds in novel ways. The Snack Almonds campaign uses catchy jingles and a range of packaging sizes to promote the variety of snacking options. The taste and adaptability of almond milk are highlighted by the Almond Breeze promotion. These commercials will appear online, on social media, and on linear TV. , In June 2023, Oatly Group AB introduced cream cheese in vegan option, which is available across U.S. This cream cheese is produced into two interesting flavors such as Plain and Chive & Onion. .

The European dairy alternatives market is experiencing robust growth, driven by increasing consumer awareness of health and environmental benefits, along with the rising popularity of vegan and vegetarian lifestyles. The market, encompassing non-dairy milk, yogurt, cheese, butter, and ice cream, is segmented by product type (almond, cashew, coconut, hazelnut, hemp, oat, soy milk, etc.) and distribution channel (off-trade and on-trade). Significant growth is observed in plant-based milk alternatives like oat and almond milk, fueled by their perceived nutritional advantages and versatility in culinary applications. The market's expansion is further propelled by the growing availability of dairy-free products in supermarkets, convenience stores, and online retailers, enhancing accessibility for consumers. While challenges exist, such as price points sometimes higher than dairy alternatives and potential concerns about sustainability of some raw materials, the overall market trajectory is overwhelmingly positive, indicating substantial growth potential over the coming years. The competitive landscape in Europe is characterized by a mix of established multinational corporations and smaller specialized players. Key players are investing heavily in product innovation, expanding distribution networks, and launching marketing campaigns to capture market share. The market's success hinges on continued innovation in product development, addressing potential sustainability issues linked to sourcing raw materials, and effectively communicating the health benefits and versatility of dairy alternatives to a broader consumer base. Regional variations in consumption patterns exist across Europe, with countries like the UK, Germany, and France leading the adoption of dairy alternatives, but significant growth opportunities remain in other European markets. Considering the overall trend and predicted CAGR, a conservative estimate of current market size (2025) could be in the range of €5-7 billion, projected to grow to €8-12 billion by 2033. This estimate is based on the provided timeframe and considering a realistic market expansion consistent with industry growth trends for similar markets. Recent developments include: November 2022: Oatly Group AB announced that it would release a new range of oat-based yogurt. The new range comes in four flavors: strawberry, blueberry, plain, and Greek style.September 2022: Swedish coffee chain Espresso House, which operates 35 stores in Germany, extended an existing partnership with Oatly to serve Oatly Barista Edition across its coffee shops in the Nordics and Germany.August 2022: The addition of the new Oat Barista Blend to Califia Farms' already well-liked Original and Unsweetened Almondmilk Barista Blends demonstrated the company's commitment to quality coffee while bolstering its relationships with both old and new coffee shops.. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

The total European market value of dairy alternatives in 2020 was estimated to be *** billion U.S. dollars. The largest category on the market was almond milk, followed by rice milk, with a value of *** billion and *** million U.S. dollars, respectively. The entire market is expected to grow to *** billion U.S. dollars by 2025.

The size of the Europe Dairy Alternatives Market market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 5.35% during the forecast period. Recent developments include: November 2022: Oatly Group AB announced that it would release a new range of oat-based yogurt. The new range comes in four flavors: strawberry, blueberry, plain, and Greek style.September 2022: Swedish coffee chain Espresso House, which operates 35 stores in Germany, extended an existing partnership with Oatly to serve Oatly Barista Edition across its coffee shops in the Nordics and Germany.August 2022: The addition of the new Oat Barista Blend to Califia Farms' already well-liked Original and Unsweetened Almondmilk Barista Blends demonstrated the company's commitment to quality coffee while bolstering its relationships with both old and new coffee shops.. Key drivers for this market are: Growing Inclination Towards Vegan/Plant-based Protein Sources, Increasing Demand for Functional Protein Beverages. Potential restraints include: Competition from Substitute Products. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

Europe dairy alternatives market to exceed USD 12.16 billion by 2030, supported by rise in flexitarianism and ethical food choices.

The Europe dairy alternatives market attained USD 4468.59 Million in 2024. The market is expected to grow at a CAGR of 10.30% in the forecast period of 2025-2034 to attain USD 11910.38 Million by 2034.

Europe Dairy Alternatives Market Outlook

According to our latest research, the global dairy alternatives market size reached USD 28.5 billion in 2024, with a robust compound annual growth rate (CAGR) of 10.2%. The market is expected to expand significantly, reaching a forecasted value of USD 67.6 billion by 2033, driven by rising consumer demand for plant-based products, growing lactose intolerance rates, and increasing environmental sustainability concerns. Europe remains a key region in this global surge, accounting for a substantial share of the market, propelled by progressive dietary shifts and supportive regulatory frameworks.

The primary growth factor for the Europe dairy alternatives market is the evolving consumer preference for healthier and more sustainable food choices. European consumers are increasingly aware of the health implications associated with traditional dairy consumption, such as lactose intolerance, cholesterol levels, and allergies. This awareness, coupled with the rising prevalence of veganism and flexitarian diets, has led to a notable shift toward plant-based dairy substitutes. The market is further bolstered by the growing number of product launches that cater to varying taste preferences and nutritional requirements, ensuring that dairy alternatives are not only accessible but also appealing to a broad demographic.

Another significant driver is the environmental consciousness that permeates European society. Dairy farming is associated with high greenhouse gas emissions, water consumption, and land use, all of which are critical concerns for environmentally minded consumers. Plant-based dairy alternatives, such as soy, almond, and oat milk, present a more sustainable option, reducing the carbon footprint and conserving natural resources. This has prompted both consumers and policymakers to advocate for and adopt dairy alternatives, with many governments introducing incentives and regulations to support plant-based food production and labeling.

Technological advancements and innovation in food processing have also played a crucial role in the growth of the Europe dairy alternatives market. Manufacturers are leveraging cutting-edge technologies to improve the taste, texture, and nutritional profile of dairy alternatives, making them increasingly indistinguishable from traditional dairy products. This has led to higher consumer satisfaction and repeat purchases. Furthermore, advancements in supply chain management and distribution have ensured that these products are widely available across various retail formats, from supermarkets and hypermarkets to online platforms, thus enhancing market penetration.

Regionally, Western Europe dominates the dairy alternatives market, with countries like Germany, the UK, and France leading in both consumption and innovation. This regional dominance is attributed to high disposable incomes, urbanization, and a strong culture of health and wellness. Southern and Eastern European countries are also witnessing rapid growth, albeit from a smaller base, as awareness and availability of dairy alternatives continue to spread. Overall, EuropeÂ’s diverse and dynamic market landscape, coupled with favorable demographic and socioeconomic trends, positions the region at the forefront of the global dairy alternatives movement.

The rising interest in Dairy Alternatives Ingredients is a testament to the evolving landscape of the food industry. As consumers become more health-conscious and environmentally aware, the demand for ingredients that can effectively replace traditional dairy components has surged. These ingredients, which include a variety of plant-based proteins, oils, and stabilizers, are critical in creating products that not only mimic the taste and texture of dairy but also offer nutritional benefits. The innovation in this space is driven by the need to cater to diverse dietary preferences, including vegan, lactose-free, and allergen-free diets, making it a dynamic and rapidly growing segment within the broader dairy alternatives market.

Europe Dairy Alternatives Market size was valued at USD 8.3 Billion in 2024 and is projected to reach USD 18.0 Billion by 2032, growing at a CAGR of 10.2 % from 2026 to 2032.

Key Market Drivers

Increasing Adoption of Plant-Based Diets: Increasing adoption of plant-based diets is driving the Europe Dairy Alternatives Market. This movement is being driven by increased health awareness, environmental concerns, and animal welfare issues. The European Commission’s 2023 Consumer Trends Report, 30% of European consumers identify as flexitarian, vegetarian, or vegan, representing a 7% increase from 2020. estimates from the European Vegetarian Union show a 49% increase in plant-based food consumption across Europe between 2018 and 2023, with Germany leading the way, with 42% of families frequently purchasing plant-based milk.

Europe Dairy Alternatives Market is projected to grow around USD 43.7 billion by 2031, at a CAGR of 12.3% during the forecast period.

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Dairy Alternatives Market Size 2024-2028

The dairy alternatives market size is valued to increase USD 23.01 billion, at a CAGR of 12% from 2023 to 2028. Growth of organized retail sector will drive the dairy alternatives market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 37% growth during the forecast period.
By Distribution Channel - Supermarkets and hypermarkets segment was valued at USD 6.79 billion in 2022
By Product - Beverages-based dairy alternatives segment accounted for the largest market revenue share in 2022

Market Size & Forecast

Market Opportunities: USD 169.36 million
Market Future Opportunities: USD 23006.20 million
CAGR from 2023 to 2028 : 12%

Market Summary

The market represents a dynamic and continually evolving landscape, driven by the increasing demand for lactose-free and plant-based food options. Core technologies, such as soy, almond, and oat milk production, are at the forefront of this market, fueled by advancements in plant-based protein extraction and emulsion processes. Applications span various sectors, including foodservice, retail, and food manufacturing. Service types, such as contract manufacturing and custom formulation, are increasingly popular as companies seek to expand their product offerings. Regulations, including labeling requirements and safety standards, continue to shape market dynamics.
For instance, the organized retail sector accounts for over 50% of the market share, while online retailing experiences significant growth. Distribution challenges in the packaged food and beverages sector persist, necessitating innovative logistics solutions. Despite these challenges, the market presents numerous opportunities for growth, particularly in emerging regions like Asia Pacific and the Middle East.

What will be the Size of the Dairy Alternatives Market during the forecast period?

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How is the Dairy Alternatives Market Segmented ?

The dairy alternatives industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Distribution Channel

  Supermarkets and hypermarkets
  Convenience stores
  Online retail
  Others


Product

  Beverages-based dairy alternatives
  Food-based dairy alternatives


Source

  Soy
  Almond
  Oat
  Coconut


Formulation Type

  Plain
  Flavored


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    Egypt
    KSA
    Oman
    UAE


  APAC

    China
    India
    Japan


  South America

    Argentina
    Brazil


  Rest of World (ROW)

By Distribution Channel Insights

The supermarkets and hypermarkets segment is estimated to witness significant growth during the forecast period.

In the dynamic and evolving the market, nutritional fortification plays a pivotal role in catering to consumers' growing demand for healthier options. Pea protein concentrate, derived through microbial fermentation, is a popular choice due to its high protein content and affordability, making it a cost-effective alternative to traditional dairy proteins. Casein substitutes, produced via enzymatic hydrolysis, offer similar functionalities to dairy casein, ensuring texture modification and stability in various food applications. Microbial fermentation, an essential process in the production of plant-based proteins, is increasingly being adopted to improve protein denaturation and solubility. Whey protein alternatives, such as soy protein isolate, are gaining popularity due to their high protein content and amino acid profile, making them suitable for various food applications.

Shelf-life extension and supply chain management are critical considerations in the market, with stabilizer systems and emulsifier blends playing essential roles in maintaining product quality. Consumer acceptance is a significant factor influencing market trends, with sensory evaluation and food safety standards being crucial determinants. Lipid oxidation, a common challenge in plant-based milk production, is being addressed through process optimization and packaging innovations. Dairy-free yogurt cultures and gelling agents are being developed to mimic the texture and mouthfeel of traditional dairy products. The market for dairy alternatives is projected to grow significantly, with a rise in demand for plant-based protein sources and a shift towards healthier food options.

According to recent studies, the market for dairy alternatives is expected to reach 27% of the total dairy market by 2025. Furthermore, the demand for oat milk is projected to grow by 30% in the next five years, driven by its creamy texture and nutrition

The booming dairy alternatives market is projected to reach $77.1 billion by 2033, driven by health consciousness, lactose intolerance, and veganism. Explore key trends, leading companies, and regional growth in this comprehensive market analysis.

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Dairy Alternative Plant Milk Beverages Market Size 2024-2028

The dairy alternative plant milk beverages market size is forecast to increase by USD 12.75 billion at a CAGR of 8.8% between 2023 and 2028.

The market is witnessing growth due to the increasing demand for plant-based milk as an alternative to traditional dairy products. This trend is driven by the rising health consciousness among consumers and the growing number of lactose intolerant and vegan populations. Furthermore, frequent product innovation and the launch of new flavors and varieties are also fueling market growth. However, the market faces challenges such as the presence of allergens in plant-based sources like soy, almond, and coconut, which may limit its consumer base. To mitigate this challenge, companies are focusing on producing allergen-free plant-based milk beverages using alternative sources like organic rice, oat, and hemp. Overall, the market is expected to continue its growth trajectory due to these factors.

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Dairy alternatives have gained significant popularity in recent years due to various health, ethical, and environmental concerns. These plant-based milk beverages cater to individuals with lactose intolerance, vegetarian and flexitarian diets, and those following veganism. Cholesterol concerns, personal health, animal welfare, and environmental issues are key drivers for the market's growth. Almond milk, one popular alternative, is free from cholesterol and suitable for those with nut allergies, but its production has high carbon and greenhouse gas emissions.
Soy milk, another common alternative, is rich in proteins and can cause allergic reactions in some individuals due to soy lecithin and soybean oil. Moreover, proactive measures are being taken to address food allergens and sensitivities, ensuring the production of safe and high-quality dairy alternatives. Despite these challenges, the market for dairy alternatives continues to expand, driven by the growing number of individuals seeking healthier and more sustainable options.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Distribution Channel

  Offline
  Online


Source

  Almond milk
  Soy milk
  Rice milk
  Coconut milk
  Others


Geography

  APAC

    China
    Japan


  Europe

    Germany
    UK


  North America

    US


  South America



  Middle East and Africa

By Distribution Channel Insights

The offline segment is estimated to witness significant growth during the forecast period.

The market is witnessing significant growth due to increasing health consciousness and dietary preferences. Consumers are increasingly turning to plant-based milk beverages as alternatives to dairy products for various reasons, including lactose intolerance, cholesterol concerns, and ethical considerations such as vegetarian and flexitarian diets, as well as veganism. These beverages offer solutions for individuals with food allergies or sensitivities to dairy, nuts, soy, or other common food allergens. Environmental concerns, such as carbon emissions and greenhouse gas emissions from animal agriculture, also contribute to the market's growth. Plant-based milk beverages, particularly those derived from almonds, rice, and other sources, offer nutritional value with essential nutrients like calcium, casein, proteins, and phytochemicals.

Moreover, isoflavones, found in soy milk, have been linked to heart disease prevention and breast cancer recurrence. The offline segment holds the largest market share due to consumers' preference for checking product quality and specifications before purchasing. Offline distribution channels include hypermarkets, supermarkets, convenience stores, and other discount stores. companies are expanding their product reach by collaborating with retailers to showcase innovative plant-based milk beverages.

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The offline segment was valued at USD 15.78 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 49% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Plant milk beverages, a popular alternative to traditional dairy products, are increasingly gaining traction in online stores. These non-dairy options cater to various dietary preferences an

In Europe Plant-Based Dairy Alternatives Market is projected to grow from USD 18.2 billion in 2025 to USD 43.6 billion by 2031, at a CAGR of 15.5%

Europe Dairy Market size was valued at USD 171.1 Billion in 2024 and is expected to reach USD 206.9 Billion by 2032, growing at a CAGR of 2.4% from 2026-2032.

Europe Dairy Market Drivers

Consumers are increasingly conscious of their health, driving demand for dairy products with specific nutritional benefits, such as high protein, low fat, and added vitamins or probiotics.

The rising popularity of vegan and flexitarian diets is driving significant growth in the plant-based dairy alternatives market (e.g., oat milk, almond milk, soy yogurt). This trend poses both a challenge and an opportunity for the traditional dairy sector.

Busy lifestyles are fueling demand for convenient dairy products, such as single-serve yogurts, cheese snacks, and ready-to-drink milk beverages.

Dairy products are staple goods, and consumer purchasing decisions are influenced by price fluctuations. Economic downturns can lead to increased demand for cheaper, private-label options.

Discover the booming European non-dairy milk market! This comprehensive analysis reveals key trends, growth drivers, and market segmentation (almond, oat, soy, etc.) from 2019-2033, including market size, CAGR, and leading companies. Learn about the opportunities and challenges in this rapidly expanding sector. Recent developments include: September 2022: Valsoia SpA signed an agreement with the multinational company General Mills for exclusive distribution in the Italian segment of the ice cream brand Häagen-Dazs.August 2022: Califia Farms expanded its portfolio by launching a dairy-free product, the Pumpkin Spice Oat Barista.May 2022: Oatly Group launched its one-hour delivery for its bestselling oat-based products, including oat milk, and frozen non-dairy dessert pints and novelties in Los Angeles and New York City through popular food delivery apps.. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

The Europe flavored dairy market is projected to reach a value of XX million by 2033, growing at a CAGR of 5.10% from 2025 to 2033. The market growth is driven by the increasing popularity of flavored dairy products among consumers, particularly in countries such as France, Germany, Italy, and the United Kingdom. Flavored dairy products, including flavored milk, yogurt, and cheese, offer a wider variety of taste options and cater to the changing consumer preferences for convenient and flavorful food options. The demand for plant-based flavored dairy alternatives is also expected to contribute to market growth. Consumers are increasingly opting for plant-based alternatives due to factors such as health concerns, environmental awareness, and veganism. Major market players, such as Nestle S A, DML Group, and Danone S A, are investing in the development and marketing of innovative plant-based flavored dairy products to meet the evolving consumer needs. The expansion of distribution channels, including supermarkets/hypermarkets, convenience stores, and online retailers, is also expected to bolster market growth by providing wider access to flavored dairy products. Key drivers for this market are: Growth In Foodservice Expenditure and Tourism Sector, Premiumization with the Growth of Fortified and Flavored Water. Potential restraints include: Concerns Regarding Plastic Waste and the Rising Inclination Toward Tap Water. Notable trends are: Growing Demand For Chocolate Milk Flavor.

The Europe Non-Dairy Milk Market Report is Segmented by Product Type (Almond Milk, Cashew Milk, and More), Flavor (Flavored, Unflavored), Packaging (PET Bottles, Cans, Cartons, Others), Distribution Channel (Off-Trade, On-Trade), and Geography (United Kingdom, Germany, France, Italy, Spain, Russia, Sweden, Belgium, Poland, Netherlands, Rest of Europe). The Market Forecasts are Provided in Terms of Value (USD) and Volume (Liters).

The global Dairy Alternatives market is poised for significant expansion, projected to reach an estimated $50,000 million by 2025, with a robust Compound Annual Growth Rate (CAGR) of 12% during the forecast period of 2025-2033. This remarkable growth is fueled by a confluence of factors, primarily driven by increasing consumer awareness of health and wellness, coupled with growing concerns about the environmental impact of traditional dairy farming. The rising prevalence of lactose intolerance and dairy allergies globally further bolsters demand for plant-based alternatives. Consumers are actively seeking healthier lifestyle choices, and dairy alternatives offer a compelling solution that aligns with these evolving preferences. This shift is not merely a niche trend but a fundamental change in consumer behavior, pushing manufacturers to innovate and expand their product portfolios to meet this burgeoning demand. The market is characterized by a dynamic segmentation strategy, with Milk Alternatives leading the charge, followed by significant contributions from Butter Alternatives, Cheese Alternatives, and Yogurt Alternatives. The "Others" category, encompassing a range of innovative products, is also expected to witness considerable growth as new applications and product formats emerge. Geographically, the Asia Pacific region is anticipated to emerge as a dominant force, driven by large populations, increasing disposable incomes, and a growing adoption of Western dietary trends, particularly in countries like China and India. North America and Europe, already established markets, will continue to exhibit steady growth, supported by strong consumer preference for sustainable and healthy food options. Key players such as Danone, Oatly, and Blue Diamond Growers are actively investing in product development, marketing, and strategic partnerships to capture a larger market share, further accelerating innovation and competition within this rapidly expanding sector. This report provides an in-depth analysis of the global Dairy Alternatives market, spanning the historical period of 2019-2024, a base year of 2025, an estimated year of 2025, and a comprehensive forecast period from 2025 to 2033. The study will offer critical insights into market dynamics, key players, and future trajectories, enabling stakeholders to make informed strategic decisions. The estimated market size for Dairy Alternatives is projected to reach $XX million in 2025 and is expected to grow at a Compound Annual Growth Rate (CAGR) of XX% during the forecast period.