Plant-based dairy products market to reach US$34B by 2030

GLOBAL – The global plant-based dairy products market, valued at USD 20 billion in 2024, is projected to reach USD 34 billion by 2030, expanding at a CAGR of 9% during 2025–2030, according to the MarkNtel Advisors.

The adoption of vegan diets, increased cases of lactose intolerance, and growing environmental concerns are pushing consumers to choose dairy alternatives such as plant-based milk, cheese, butter, and yogurt.

With major food chains like Starbucks, Taco Bell, and Baskin Robbins integrating vegan offerings into their menus, plant-based dairy products have entered the mainstream.

According to a 2023 survey, over 87.95 million people worldwide identified as vegan, creating a global consumer base fueling long-term industry growth.

A key driver of the market is the rising demand for lactose-free dairy alternatives. Globally, nearly 68% of people suffer from lactose malabsorption, making lactose-free diets more of a necessity than a lifestyle choice.

In the United States alone, about 36% of the population is lactose-intolerant. This widespread condition accelerates the shift to almond, soy, and oat milk, which are naturally lactose-free and widely available.

Second is the Growing Adoption of veganism and ethical consumerism. The popularity of veganism has surged across North America, Europe, and Asia-Pacific.

Documentaries, NGO campaigns, and heightened awareness of animal welfare are driving consumers to choose ethical dairy alternatives. Brands such as Oatly and Alpro capitalize on this by positioning themselves as sustainable and cruelty-free options.

Third is the concern for health and sustainability that fuels dairy alternatives. Plant-based dairy is increasingly perceived as healthier, with many products fortified with calcium, Vitamin B12, and proteins.

Oat milk, for instance, is rich in beta-glucans, which help manage cholesterol. Environmentally, oat and soy require significantly less water compared to conventional dairy, aligning with climate-conscious consumer values.

By nature, the organic segment dominates with around 65% market share, reflecting consumer demand for clean-label and chemical-free products.

By product Type, milk leads with about 50% share due to its versatility in daily consumption. Yogurt and cheese are gaining momentum as consumers seek substitutes for traditional dairy-based meals.

By region, Asia-Pacific leads with 35% share, driven by rising disposable incomes in China and India, and growing awareness of lactose intolerance. North America and Europe remain innovation hubs, supported by café culture and regulatory support.

 A major challenge in the global plant-based dairy products market is the high costs compared to conventional dairy.

Plant-based milk often costs more than double traditional dairy milk (USD 3.50 vs USD 1.50 per half-gallon in the U.S.). This price barrier slows adoption in emerging economies, where affordability drives consumption.

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