Plant-based Milk Market Size, Share, Forecast, & Trends Analysis by Type (Almond Milk, Soy Milk, Coconut Milk, Oat Milk, Rice Milk), Formulation (Flavored), Distribution Channel (B2B, B2C [Modern Groceries, Convenience Store]) - Global Forecast to 2031

The Plant-based Milk Market was valued at $21.96 billion in 2023. This market is expected to reach $52.54 billion by 2031, from an estimated $24.7 billion in 2024, at a CAGR of 11.4% during the forecast period 2024-2031.

Plant-based Milk Market Size & Forecast

In terms of volume, this market is projected to reach 18.26 billion Liters by 2031, at a CAGR of 9.2% during the forecast period of 2024–2031. The growth of the plant-based milk market is driven by the high prevalence of lactose intolerance & allergies to cow milk, the growing focus on health & well-being, changing eating habits & consumers’ drive toward sustainability, and increasing investments & government support for plant-based industries. However, the high preference for animal-based milk products and the growing consumption of soy-free & gluten-free products restrain the growth of this market.

Emerging economies in Asia-Pacific and Latin America are expected to generate market growth opportunities. However, the fluctuating raw material prices are a major challenge for market stakeholders.

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Plant-based Milk Market Growth Drivers

High Prevalence of Lactose Intolerance & Allergies to Cow Milk

Lactose intolerance is the inability of the body to digest lactose, the sugar present in milk. Lactose intolerance can be symptomatic or asymptomatic. In symptomatic populations, lactose intolerance can lead to diarrhea and stomach pain. According to the National Institutes of Health (NIH), lactose intolerance among adults is most common in East Asians, affecting 70–100% of the population. Encyclopedia Britannica adds that the condition affects 75 to 90% of Native American, African, Asian, Mediterranean, and Jewish populations. Only about 5% of Northern and Central Europeans have lactose intolerance.

With the high prevalence of lactose intolerance and allergies to cow milk, many consumers across the globe are switching to vegan diets, reducing milk consumption in some parts of the world. For instance, according to the United States Department of Agriculture (USDA) Economic Research Service (ERS) Food Availability (Per Capita) Data System, daily per capita fluid milk consumption in the U.S. has decreased over each of the past seven decades. The daily per capita fluid milk consumption in the U.S. decreased to 0.49 cups in 2019 from 0.62 cups, 0.69 cups, and 0.78 cups in 2010, 2000, and 1990, respectively. With the increasing prevalence of lactose intolerance and allergies to cow milk, most dairy consumers have started preferring dairy alternatives made from plant-based sources, which, in turn, is driving the growth of the plant-based milk market.

Growing Focus on Health & Wellbeing

Factors such as rapid urbanization, lifestyle changes, industrialization, economic development, health & wellness trends, and the rising awareness about health issues caused by the long-term use of animal milk have created immense growth opportunities for the manufacturers of plant-based milk globally.

A large share of the global population is struggling with weight management, cardiovascular diseases, and allergies. Moreover, there are other concerns related to animal milk, such as acne & dermatological problems and exposure to contaminants like hormones, pesticide residues, mycotoxins, metals, and antibiotics that can lead to allergies and poor health. Plant-based milks typically have a lower content of saturated fat and cholesterol compared to full-fat animal milk. They can, therefore, help control cardiovascular diseases by reducing blood pressure and cholesterol.

Plant-based dairy alternatives can be a solution for many of these health concerns and also provide nutrition. Plant-based milks are nutritionally adequate for everyone, from pregnant women to children to athletes. These products can reduce health issues, such as heart disease, Type 2 diabetes, hypertension, certain types of cancer, and obesity. Dairy alternative-based diets are high in fiber and provide all the necessary nutrients. Therefore, the growing focus on health & well-being is driving the demand for plant-based milk products.

Plant-based Milk Market Opportunity

Emerging Economies in Asia-Pacific and Latin America

Emerging economies in Asia-Pacific and Latin America, such as China, India, South Africa, Argentina, and Brazil, are some of the fastest-growing markets for plant-based milk. Growth in the vegetarian population, the rising popularity of dairy alternatives, increasing incomes, changing tastes and preferences, and improvements in food production technologies are boosting the demand for plant-based milk in these countries.

In the last few decades, China has emerged as one of the world’s largest agri-food markets due to its large population base. Most people in China consume meat; however, in the last few years, a large section of consumers has embraced vegetarianism, motivated by health consciousness, animal welfare, and environmental concerns. According to Vegconomist, in 2020, China’s vegetarian population surpassed 70 million, accounting for around 5% of the country’s total population. Moreover, in recent years, most major food brands in China have increased their focus on plant-based beverages. For instance, in November 2021, Oatly Group AB (Sweden), an oat drink company, opened its first plant-based milk production facility in Ma’anshan, China. The company can potentially produce around 150 million liters of oat-based products annually at full capacity. The company also plans to open another plant-based milk production facility in China by 2026. These factors indicate growing opportunities for market stakeholders.

Moreover, with the rising demand for plant-based products and increasing awareness about the health benefits of plant-based milk, there is significant scope for market expansion in Brazil. Additionally, the Brazilian government’s initiatives to promote sustainable agriculture and reduce carbon emissions have created a favorable environment for the growth of the plant-based milk market. Growing veganism and flexitarianism in Brazil further contribute to the country’s market growth potential. In 2022, Nestlé S.A. (Switzerland) launched a plant-based oat drink in Brazil for both hot and cold applications. Also, in June 2019, Brazil-based Benni Alimentos launched a soluble cashew nut milk powder in the country. Such initiatives by major market players indicate market opportunities for the players operating in Brazil’s plant-based milk market.

According to ProCon.org, lactose intolerance is highly prevalent in India, with almost 61% of people being lactose intolerant in 2022. The rise in lactose intolerance and milk allergies among the population has also contributed to the surging demand for plant-based milk in India. As a result, many players in the plant-based milk market are implementing growth strategies to capitalize on the expanding dairy alternatives market in India. For instance, in December 2021, Better Bet (formerly known as Alt Foods), an Indian plant-based dairy start-up, launched its first plant-based milk made with ingredients such as sprouted sorghum, sprouted finger millets, amaranth, and oats in India. Furthermore, in May 2020, the Good Food Institute India (GFI India) partnered with AAK Kamani, a joint venture between AAK AB (Sweden) and Kamani Oil Industries Pvt Ltd. (India), for research and business promotion in India’s growing market for plant-based dairy alternatives.

In Argentina, rising urbanization has led to the increased use of dairy alternatives. In the past few years, plant-based food & beverage manufacturers have received investments from several investors and companies. For instance, in August 2021, Argentina-based Tomorrow Foods received USD 3 million in funding led by Grid Exponential. In November 2020, Vegan Nature (Argentina) announced the opening of its new production plant with an investment of USD 250,000 in San Martín (Argentina). Furthermore, in 2022, THENOTCOMPANY, INC. (Chile) launched the new NotMilk Sugar-Free in Argentina. Thus, the increasing investments, expanding production capabilities, and rising focus of key manufacturers on introducing new products in Argentina indicate growth opportunities for the market stakeholders in Argentina.

Plant-based Milk Market Analysis: Key Findings

By Type: In 2024, the Almond Milk Segment to Dominate the Plant-based Milk Market

Based on type, the plant-based milk market is mainly segmented into almond milk, soy milk, coconut milk, oat milk, rice milk, and other plant-based milk. In 2024, the almond milk segment is expected to account for the largest share of 59.9% of the global plant-based milk market. The large market share of this segment is mainly attributed to factors such as the increasing number of consumers switching to nut-based lactose-free milk, changing taste preferences, and increasing health & environmental concerns. Almond milk is entirely plant-based, making it a suitable choice for individuals following vegan or vegetarian diets. The production of almond milk generally has a lower environmental impact compared to dairy milk, as it requires less water and produces fewer greenhouse gas emissions.

However, the oat milk segment is projected to witness the highest growth rate of 12.7% during the forecast period of 2024–2031. Oat milk contains vitamins and minerals, including vitamin B2 (riboflavin), vitamin B3 (niacin), phosphorus, and manganese, which contribute to overall health. Oat milk is often fortified with essential nutrients like calcium, vitamin D, and vitamin B12, providing similar nutritional benefits to cow's milk. The growth of this segment is mainly driven by consumers’ increasing preference for soy-free, low-fat, and gluten-free products; the high nutritional properties of oat milk; and rising awareness about the health benefits of oats.

By Formulation: In 2024, the Unflavored Segment to Dominate the Plant-based Milk Market

Based on formulation, the plant-based milk market is segmented into unflavored and flavored plant-based milk. In 2024, the unflavored segment is expected to account for the larger share of 64.4% of the global plant-based milk market. The large market share of this segment is mainly attributed to factors such as the increased consumer demand for naturally dairy-free & sugar-free products and the clean taste and smooth texture of unflavored dairy-free products, which allow for their seamless incorporation into various food and beverage recipes.

However, the flavored segment is projected to register the highest CAGR of 13.6% during the forecast period of 2024–2031. The rapid growth of this segment is mainly driven by the increasing demand for ready-to-drink beverages and changing consumer taste preferences.

By Distribution Channel: In 2024, the Business-To-Business (B2B) Segment to Dominate the Plant-based Milk Market

Based on the distribution channel, the plant-based milk market is mainly segmented into business-to-business (B2B) and business-to-consumer (B2C). In 2024, the business-to-consumer (B2C) segment is expected to account for the larger share of 67.4% of the global plant-based milk market. The large market share of this segment is attributed to the increased retail sales of plant-based milk in supermarkets & hypermarkets, increased shelf space for plant-based products in modern groceries, growing preference for shopping from brick-and-mortar grocers due to easy access & availability and increasing consumer acceptance for vegan & vegetarian dairy alternatives, especially plant-based milk.

Geographical Analysis

Asia-Pacific Dominates the Overall Plant-based Milk Market, Also Leads in Growth

Based on geography, the global plant-based milk market is majorly segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of 49.7% of the global plant-based milk market, followed by Europe and North America. Asia-Pacific plant-based milk market is estimated to be worth USD 28.07 billion in 2024. The large share of this market is mainly attributed to consumers’ rising awareness about the benefits of protein-rich foods, increasing health consciousness, the growing adoption of advanced technologies in the F&B industry, and the region’s large vegan & vegetarian population base.

Moreover, this region is slated to register the highest CAGR of 12.6% during the forecast period of 2024–2031, mainly due to the region’s increasing vegan & flexitarian populations, the rising popularity of Western diets, and increasing investments in the plant-based milk industry.

Plant-based Milk Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the plant-based milk market are Hain Celestial Group, Inc. (U.S.), SunOpta Inc. (Canada), Sanitarium Health and Wellbeing Company (Australia), Axiom Foods, Inc. (U.S.), Earth's Own Food Company, Inc. (Canada), Sunrise Soya Foods (Canada), Campbell Soup Company (U.S.), Danone S.A. (France), Plamil Foods Ltd. (U.K.), Sahmyook Foods (South Korea), Nestlé S.A. (Switzerland), Natura Foods (Canada), Blue Diamond Growers (U.S.), and Oatly Group AB (Sweden).

Plant-based Milk Industry Overview: Latest Developments from Key Industry Players

• In March 2024, Oatly Group AB (Sweden) partnered with Barry’s (U.S.), a boutique fitness brand, to launch its Unsweetened Oatmilk in fitness studios across the U.S.

• In July 2023, Sahmyook Foods (South Korea) launched Light Sahmyook Soy Milk C, which mixes the savory taste of the existing Samyuk Soymilk A with the sweet taste of the sweet Samyuk Soymilk B.

• In October 2023, Oatly Group AB (Sweden), in collaboration with Coffee Fellows (Germany), made its Oatly Barista available in 275 locations of Coffee Fellows across Germany, Austria, Belgium, Luxembourg, and the Netherlands.
• In March 2023, Nestlé S.A. (Switzerland) launched a plant-based milk alternative by combining oats and fava, which has 5g of protein per serving and all the amino acids.

Plant-based Milk Market Research Summary

Key questions answered in the plant-based milk market report: