Australia Dairy Alternatives Market Size

The Australia Dairy Alternatives Market is experiencing significant growth, with its market size expanding rapidly over the forecast period. The dominance of off-trade channels, particularly supermarkets and hypermarkets, plays a crucial role in this expansion, offering a wide variety of products that influence consumer purchases. The online retail channel is emerging as the fastest-growing distribution method, driven by the increasing preference for online grocery shopping among modern consumers. Additionally, the on-trade segment is also witnessing substantial growth, fueled by a rising interest in vegan menus at restaurants and foodservice establishments.

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Market Size of australia dairy alternatives Industry

Australia Dairy Alternatives Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 625.1 Million
svg icon Market Size (2029) USD 930.6 Million
svg icon Largest Share by Distribution Channel Off-Trade
svg icon CAGR (2024 - 2029) 8.29 %
svg icon Fastest Growing by Distribution Channel Off-Trade

Major Players

Australia Dairy Alternatives Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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Australia Dairy Alternatives Market Analysis

The Australia Dairy Alternatives Market size is estimated at 625.1 million USD in 2024, and is expected to reach 930.6 million USD by 2029, growing at a CAGR of 8.29% during the forecast period (2024-2029).

625.1 Million

Market Size in 2024 (USD)

930.6 Million

Market Size in 2029 (USD)

5.44 %

CAGR (2017-2023)

8.29 %

CAGR (2024-2029)

Largest Market by Category

57.12 %

value share, Non-Dairy Milk, 2023

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The positive perception and high sensory acceptance towards plant-based milks has broaden avenues for serving the needs of diverse populations that harbour concerns with dairy.

Largest Market by Distribution Channel

88.96 %

value share, Off-Trade, 2023

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The wider availability of various brands, ease of reading product labels and convenience in comparing different products make it the preffered type among the dairy consumers.

Fastest-growing Market by Category

31.17 %

Projected CAGR, Non-Dairy Cheese, 2024-2029

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Growing awareness regarding animal cruelty and high acceptance of veganism are prompting consumers to opt for vegan foods such as plant-based cheese, captivating to segmental growth

Fastest-growing Market by Distribution Channel

8.51 %

Projected CAGR, Off-Trade, 2024-2029

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The rising preference to buy essential groceries online during the pandemic drove the off-trade channel. The growth is also assisted by better consumer reach through digital marketing

Leading Market Player

13.86 %

market share, Sanitarium Health and Wellbeing Company, 2022

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The exhaustive product portfolio of Sanitarium Health And Wellbeing Company with a wider distribution network is largely making it one of the leading market players in the segment, during the study period.

Rise in modern grocery retailing including hypermarkets and online stores fuels the sales through off-trade channels

  • The high market share of off-trade channels is primarily driven by hypermarkets and supermarkets. Supermarkets and hypermarkets have always maintained a strong lead in the sales of dairy alternatives in the Australian market. The proximity factor of these channels, especially in large and developed cities, provides them with an added advantage of influencing consumer purchases due to the wide variety of products available in the market. Supermarkets and hypermarkets registered 75.50% of dairy alternative sales value through off-trade channels in 2022.
  • The online retail channel is projected to be the fastest-growing off-trade distribution channel as modern consumers prefer online grocery purchases due to their busy lifestyles. Around 18% of Australians bought groceries online in 2021, up from 14% in 2019. The availability of online grocery stores specializing in vegan food, including dairy alternatives, is estimated to drive online sales during the forecast period. Sales through online channels are projected to register a CAGR of 11.85% during 2023-2029.
  • On-trade sales value of dairy alternatives is estimated to reach a market value of USD 142.40 million in 2029, registering a CAGR of 22.62% during the forecast period. Growing consumer interest in vegan menus at restaurants and other foodservice channels is anticipated to drive the market’s growth. In 2022, 63.5% of millennials in Australia were interested in consuming vegan food and drinks at restaurants. Plant-based milk and non-dairy butter were the key categories consumed in restaurants. In 2023, on-trade consumption of butter is expected to amount to 3,901.1 tonnes and register a CAGR of 2.02% during the forecast period.
Australia Dairy Alternatives Market

Australia Dairy Alternatives Industry Segmentation

Non-Dairy Butter, Non-Dairy Cheese, Non-Dairy Ice Cream, Non-Dairy Milk, Non-Dairy Yogurt are covered as segments by Category. Off-Trade, On-Trade are covered as segments by Distribution Channel.

  • The high market share of off-trade channels is primarily driven by hypermarkets and supermarkets. Supermarkets and hypermarkets have always maintained a strong lead in the sales of dairy alternatives in the Australian market. The proximity factor of these channels, especially in large and developed cities, provides them with an added advantage of influencing consumer purchases due to the wide variety of products available in the market. Supermarkets and hypermarkets registered 75.50% of dairy alternative sales value through off-trade channels in 2022.
  • The online retail channel is projected to be the fastest-growing off-trade distribution channel as modern consumers prefer online grocery purchases due to their busy lifestyles. Around 18% of Australians bought groceries online in 2021, up from 14% in 2019. The availability of online grocery stores specializing in vegan food, including dairy alternatives, is estimated to drive online sales during the forecast period. Sales through online channels are projected to register a CAGR of 11.85% during 2023-2029.
  • On-trade sales value of dairy alternatives is estimated to reach a market value of USD 142.40 million in 2029, registering a CAGR of 22.62% during the forecast period. Growing consumer interest in vegan menus at restaurants and other foodservice channels is anticipated to drive the market’s growth. In 2022, 63.5% of millennials in Australia were interested in consuming vegan food and drinks at restaurants. Plant-based milk and non-dairy butter were the key categories consumed in restaurants. In 2023, on-trade consumption of butter is expected to amount to 3,901.1 tonnes and register a CAGR of 2.02% during the forecast period.
Category
Non-Dairy Butter
Non-Dairy Cheese
Non-Dairy Ice Cream
Non-Dairy Milk
By Product Type
Almond Milk
Cashew Milk
Coconut Milk
Hazelnut Milk
Oat Milk
Soy Milk
Non-Dairy Yogurt
Distribution Channel
Off-Trade
Convenience Stores
Online Retail
Specialist Retailers
Supermarkets and Hypermarkets
Others (Warehouse clubs, gas stations, etc.)
On-Trade
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Australia Dairy Alternatives Market Size Summary

The Australia Dairy Alternatives Market is experiencing significant growth, driven by a shift in consumer preferences towards plant-based products. This trend is largely influenced by the increasing number of vegans and vegetarians in the country, as well as the rising awareness of health and sustainability issues. Supermarkets and hypermarkets dominate the off-trade sales channels, benefiting from their strategic locations and extensive product offerings. However, online retail is emerging as the fastest-growing channel, catering to the modern consumer's preference for convenience. The on-trade sector is also expanding, with a growing interest in vegan options at restaurants and foodservice establishments. This shift is supported by the presence of vegan celebrities and chefs who are mainstreaming plant-based diets in Australia.

The market is characterized by a diverse range of products, including plant-based milk and non-dairy butter, which are gaining popularity due to dietary restrictions and lifestyle choices. The consumption of these alternatives is further bolstered by the increasing number of consumers looking to reduce their intake of animal products. Despite the growth in certain categories, others like yogurt, cheese, and ice cream are still developing. The market is fragmented, with major players such as Danone SA, Nestlé SA, and Vitasoy International Holdings Ltd holding significant shares. Recent strategic moves by these companies, including acquisitions and product launches, highlight their commitment to expanding their presence in the dairy alternatives sector.

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Australia Dairy Alternatives Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Category

      1. 1.1.1 Non-Dairy Butter

      2. 1.1.2 Non-Dairy Cheese

      3. 1.1.3 Non-Dairy Ice Cream

      4. 1.1.4 Non-Dairy Milk

        1. 1.1.4.1 By Product Type

          1. 1.1.4.1.1 Almond Milk

          2. 1.1.4.1.2 Cashew Milk

          3. 1.1.4.1.3 Coconut Milk

          4. 1.1.4.1.4 Hazelnut Milk

          5. 1.1.4.1.5 Oat Milk

          6. 1.1.4.1.6 Soy Milk

      5. 1.1.5 Non-Dairy Yogurt

    2. 1.2 Distribution Channel

      1. 1.2.1 Off-Trade

        1. 1.2.1.1 Convenience Stores

        2. 1.2.1.2 Online Retail

        3. 1.2.1.3 Specialist Retailers

        4. 1.2.1.4 Supermarkets and Hypermarkets

        5. 1.2.1.5 Others (Warehouse clubs, gas stations, etc.)

      2. 1.2.2 On-Trade

Australia Dairy Alternatives Market Size FAQs

The Australia Dairy Alternatives Market size is expected to reach USD 625.08 million in 2024 and grow at a CAGR of 8.29% to reach USD 930.64 million by 2029.

In 2024, the Australia Dairy Alternatives Market size is expected to reach USD 625.08 million.

Australia Dairy Alternatives Market Report Snapshots

Australia Dairy Alternatives Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029