The South America Dairy Alternative Products Market is segmented by Type (Food and Beverages); Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, and Online Stores), and Geography (Brazil, Argentina, and the Rest of South America). The market size and forecasts for the dairy alternative market are provided in terms of value (USD million) for all the above segments.

In 2020, the value of the dairy alternatives market was estimated at **** billion U.S. dollars and it is expected to rise to **** billion U.S. dollars by 2025. Dairy alternatives encompass almond milk, soy milk, rice milk and other dairy substitute products.

South America Dairy Alternatives Market size was valued at USD 2.3 Billion in 2024 and is projected to reach USD 5.5 Billion by 2031, growing at a CAGR of 11.5% during the forecasted period 2024 to 2031.

The South America Dairy Alternatives Market is driven by increasing health consciousness among consumers, growing prevalence of lactose intolerance and dairy allergies, and rising adoption of plant-based diets. The market benefits from expanding urbanization, which boosts demand for convenient and healthier food options, as well as the increasing availability of diverse dairy alternative products such as almond, soy, and oat milk. Additionally, environmental concerns related to traditional dairy farming, coupled with promotional campaigns emphasizing the nutritional and ethical aspects of dairy-free products, further fuel market growth. Government initiatives supporting sustainable agriculture and plant-based industries also contribute to the market's expansion.

The size of the South America Dairy Alternatives Industry market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 5.20% during the forecast period. Dairy alternatives have gained popularity due to various dietary preferences and health considerations. These alternatives are primarily plant-based and cater to those who are lactose intolerant, vegan, or looking to reduce their environmental footprint. Common options include almond milk, which is low in calories and has a nutty flavor; soy milk, known for its high protein content and neutral taste; oat milk, which is creamy and rich in fiber; and coconut milk, recognized for its distinctive tropical flavor and high fat content. Rice milk is another option, offering a mild taste and hypoallergenic qualities. Each alternative has its own nutritional profile and culinary uses, making it important for consumers to choose based on their dietary needs and taste preferences. The dairy alternatives industry in South America has seen significant growth in recent years, driven by increasing consumer demand for plant-based products due to health, environmental, and ethical concerns. Key drivers for this market are: Increasing awareness and diagnosis of lactose intolerance and dairy allergies are driving consumers towards dairy alternatives. Potential restraints include: Dairy alternatives often come with a higher price tag compared to traditional dairy products. Notable trends are: Trend Towards products with added functional benefits.

South America dairy alternatives market to add over USD 1.20 billion by 2030, influenced by social media trends and rising awareness of dairy-free diets.

Latin America 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 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

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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 Dairy Alternatives Market Report is Segmented by Product Type (Non-Dairy Milk, Non-Dairy Cheese, and More), Packaging Type (PET Bottles, Cans, and More), Distribution Channel (On-Trade and Off-Trade), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

In Latin America 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%

South America's Plant-based milk Market will be USD 896.04 million in 2025 and is estimated to grow at a compound annual growth rate (CAGR) of 8.2% from 2025 to 2033. The market is foreseen to reach USD 1677.1 million by 2033 due to Policies promoting plant-based food and dairy alternatives to encourage market expansion.

The South American flavored milk market, valued at approximately $XX million in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 4.80% from 2025 to 2033. This expansion is driven by several key factors. Rising disposable incomes across the region, particularly in Brazil and Argentina, are fueling increased consumer spending on convenient and flavorful dairy and plant-based alternatives. The growing popularity of health and wellness trends is also contributing to market growth, with consumers increasingly seeking nutritious and flavorful options beyond plain milk. Furthermore, innovative product launches featuring unique flavor profiles and functional ingredients are attracting a wider consumer base. The market is segmented by type (dairy-based and plant-based) and distribution channels (supermarkets/hypermarkets, convenience stores, specialist stores, online stores, and other channels). Brazil and Argentina currently dominate the market, showcasing strong consumer demand and established distribution networks. However, opportunities exist for expansion within the "Rest of South America" segment as consumer preferences evolve and distribution channels expand. The presence of major players like Nestlé S.A., Arla Foods, and local brands like Mococa S.A. Produtos Alimenticios and CBL Alimentos S.A. (Betania) indicates a competitive yet dynamic market landscape. Challenges remain, including potential fluctuations in raw material prices and evolving consumer preferences towards healthier options which may require further innovation. The continued growth trajectory of the South American flavored milk market hinges on several factors. Maintaining competitive pricing while navigating raw material cost fluctuations will be crucial for sustained success. Companies must adapt to evolving consumer preferences, focusing on health-conscious options, organic products, and the increasing demand for plant-based alternatives. Further investment in efficient supply chain management and expansion into emerging markets within South America is essential for capturing untapped market potential. Market players are expected to leverage digital marketing and online sales channels to expand their reach, particularly in regions with less developed traditional distribution networks. The continuous introduction of novel flavors and functional ingredients, catering to specific dietary needs and preferences, will also be key to maintaining market momentum. Notable trends are: Growing Demand For Fortified Food And Beverages.

The South American free-from food market, encompassing gluten-free, dairy-free, and allergen-free products across bakery, confectionery, dairy alternatives, snacks, and beverages, is experiencing robust growth. A 7.00% CAGR from 2019 to 2024 suggests a significant market expansion, driven by increasing awareness of food allergies and intolerances, rising disposable incomes, and a growing preference for healthier lifestyle choices. This is further fueled by the expanding availability of free-from products in supermarkets, online retailers, and convenience stores across Brazil, Argentina, and the rest of South America. The increasing adoption of vegan and vegetarian diets is also contributing to the market's growth, particularly within the dairy-free and allergen-free segments. However, challenges remain, including the relatively higher price point of free-from foods compared to conventional alternatives, potentially limiting market penetration among lower-income segments. Furthermore, inconsistent regulatory frameworks across the region and a lack of awareness in certain areas can hinder widespread market adoption. Looking forward, the forecast period (2025-2033) anticipates continued expansion. Brazil, with its large population and burgeoning middle class, is expected to remain the dominant market. Argentina's growing health-conscious population also presents a significant opportunity. The “Rest of South America” segment, although smaller, holds potential for future growth driven by increased market penetration of free-from food brands and evolving consumer preferences. The market segmentation by product type (gluten-free, dairy-free, etc.) and distribution channel highlights strategic opportunities for businesses seeking to cater to specific consumer needs and market segments. This necessitates targeted marketing and distribution strategies that align with regional specificities and consumer preferences across South America. Notable trends are: Health Conscious Consumption Fosters Market Growth.

Dairy Alternatives Market Outlook

According to our latest research, the global dairy alternatives market size reached USD 29.7 billion in 2024, with a robust compound annual growth rate (CAGR) of 11.2% from 2025 to 2033. The market is projected to achieve a value of USD 76.7 billion by 2033, driven primarily by increasing consumer awareness of health, rising lactose intolerance, and a significant shift towards plant-based diets. The dairy alternatives market is experiencing strong momentum, supported by both demand-side and supply-side drivers, as consumers globally seek healthier, sustainable, and ethical food options.

One of the primary growth factors for the dairy alternatives market is the escalating prevalence of lactose intolerance and dairy allergies worldwide. As per the latest data, nearly 65% of the global population experiences some degree of lactose malabsorption, leading to a surge in demand for non-dairy milk and related products. This medical necessity, combined with growing awareness about the potential health risks associated with excessive dairy consumption—such as increased cholesterol and saturated fat intake—has prompted consumers to explore plant-based alternatives. Furthermore, the increasing availability of fortified dairy alternatives, which are enriched with calcium, vitamin D, and other essential nutrients, has helped bridge the nutritional gap, making these products more appealing to health-conscious individuals and families.

The evolving consumer preference towards ethical and sustainable food choices is another critical factor fueling the growth of the dairy alternatives market. Environmental concerns associated with traditional dairy farming, including high water usage, greenhouse gas emissions, and land degradation, have led many consumers to seek out plant-based options. Major brands are capitalizing on this trend by launching innovative products that cater to diverse tastes and dietary requirements. The proliferation of veganism and flexitarian diets, particularly among millennials and Gen Z, has further accelerated market expansion. Additionally, the increasing presence of dairy alternatives in mainstream retail channels and foodservice outlets has made these products more accessible, supporting broader market penetration.

Technological advancements in food processing and ingredient sourcing have also played a pivotal role in shaping the dairy alternatives market landscape. Manufacturers are leveraging cutting-edge technologies to enhance the texture, taste, and nutritional profile of plant-based milk and related products, thereby narrowing the sensory gap between dairy and non-dairy options. The expansion of product portfolios to include a wide range of flavors, formulations, and applications—such as yogurts, cheeses, creamers, and desserts—has contributed to sustained market growth. Moreover, strategic collaborations and investments in research and development have facilitated the introduction of novel ingredients, such as pea protein and hemp, further diversifying consumer choices and driving market competitiveness.

From a regional perspective, Asia Pacific remains the largest and fastest-growing market for dairy alternatives, accounting for a significant share of global consumption. The region's growth is underpinned by a large lactose-intolerant population, rising disposable incomes, and increasing urbanization. North America and Europe are also witnessing substantial growth, supported by strong consumer advocacy for plant-based diets and favorable regulatory frameworks. Latin America and the Middle East & Africa are emerging as promising markets, driven by changing dietary patterns and the proliferation of international brands. Overall, the global dairy alternatives market is poised for sustained expansion, driven by a confluence of health, environmental, and technological factors.

Product Type Analysis

The dairy alternatives market is segmented by product type into soy milk, almond

Dairy Alternative Market size worth at USD 29.19 Billion in 2023 and projected to USD 68.82 Billion by 2032, with a CAGR of around 10% between 2024-2032.

The surge in health-conscious consumers and the demand for sustainable dairy alternatives drive market expansion in South America by 2028.

Plant-Based Milk Alternatives Market Outlook

The plant-based milk alternatives market size was valued at $14.3 billion in 2023 and is projected to reach $30.8 billion by 2032, growing at a compound annual growth rate (CAGR) of 8.7% during the forecast period. This remarkable growth is driven by increasing consumer awareness about health, sustainability, and lactose intolerance issues. The shift towards vegan and vegetarian diets is a significant contributor to this upward trend. Furthermore, the rising prevalence of lactose intolerance and various dairy-related allergies has spurred the demand for plant-based milk alternatives across the globe.

One of the primary growth factors of the plant-based milk alternatives market is the increasing consumer awareness regarding the health benefits associated with these products. Plant-based milk alternatives are free from cholesterol and low in saturated fats, making them a healthier choice compared to traditional dairy milk. Additionally, these alternatives are fortified with essential vitamins and minerals, such as calcium and vitamin D, which further enhance their nutritional profile. The growing trend of health and wellness is encouraging consumers to opt for plant-based milk, thereby driving market growth.

Another significant driver of the market is the rising demand for sustainable and environmentally friendly food options. The production of plant-based milk alternatives has a lower environmental impact compared to dairy milk production. It requires less water, land, and energy, and generates fewer greenhouse gases. As consumers become more conscious of their environmental footprint, they are increasingly turning to plant-based options. This shift is further supported by various environmental campaigns and initiatives promoting sustainable consumption patterns.

The increasing prevalence of lactose intolerance and dairy allergies is another key factor propelling the growth of the plant-based milk alternatives market. Lactose intolerance affects a significant portion of the global population, particularly in regions such as Asia and Africa. As a result, consumers are seeking lactose-free alternatives to traditional dairy milk. Plant-based milk alternatives, being naturally lactose-free, offer a suitable option for individuals with lactose intolerance. Moreover, the growing awareness of dairy allergies and the associated health risks are driving consumers to switch to plant-based milk options.

The emergence of the Plant Based Drink category has further diversified the market, offering consumers a wide array of choices beyond traditional plant-based milk options. These drinks often incorporate unique ingredients and flavors, appealing to consumers seeking novelty and variety in their dietary habits. The Plant Based Drink segment includes beverages made from nuts, seeds, grains, and legumes, each offering distinct nutritional benefits and taste profiles. As consumers continue to explore plant-based diets, the demand for innovative and flavorful Plant Based Drinks is expected to rise, contributing to the overall growth of the plant-based milk alternatives market.

Regionally, North America and Europe are the dominant markets for plant-based milk alternatives, driven by high consumer awareness and increasing adoption of vegan diets. The Asia Pacific region is expected to witness significant growth during the forecast period, primarily due to the rising prevalence of lactose intolerance and the growing popularity of plant-based diets. Latin America and the Middle East & Africa are also anticipated to experience steady growth, supported by increasing urbanization and the rising disposable incomes of consumers in these regions. North America's market size in 2023 was valued at $5.2 billion and is expected to grow at a CAGR of 7.8% to reach $9.8 billion by 2032.

Product Type Analysis

The plant-based milk alternatives market is segmented by product type into soy milk, almond milk, coconut milk, rice milk, oat milk, and others. Soy milk has traditionally been the most popular choice among consumers, owing to its rich nutritional profile and affordability. Soy milk is high in protein and contains all essential amino acids, making it a complete protein source. Its widespread availability and versatility in various culinary applications have solidified its position in the market. Moreover, soy milk is often fortified with vitamins and minerals, further enhancing its nutritional benefits.