Australia Dairy Alternatives Market Size

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).

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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

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

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

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

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

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

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.