Germany Dairy Alternatives Market Size

Germany Dairy Alternatives Market Analysis

The Germany Dairy Alternatives Market size is estimated at 2.1 billion USD in 2024, and is expected to reach 4.09 billion USD by 2029, growing at a CAGR of 14.28% during the forecast period (2024-2029).

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2.1 Billion

Market Size in 2024 (USD)

4.09 Billion

Market Size in 2029 (USD)

25.97 %

CAGR (2017-2023)

14.28 %

CAGR (2024-2029)

Largest Market by Category

63.27 %

value share, Non-Dairy Milk, 2023

The rise in the vegan population along with the increasing popularity of organic foods and the increasing prevalence of lactose intolerance is bolstering the demand for non-dairy milk in Germany.

Largest Market by Distribution Channel

97.38 %

value share, Off-Trade, 2023

Effective marketing strategies with the adoption of advanced technologies are helping the leading supermarket and hypermarket players to improve their revenue share.

Fastest-growing Market by Category

19.42 %

Projected CAGR, Non-Dairy Cheese, 2024-2029

The product enhancement and availability of plant-based cheese in various formats with an increased distribution network in the segment is largely driving the growth in the segment.

Fastest-growing Market by Distribution Channel

14.84 %

Projected CAGR, Off-Trade, 2024-2029

The market share from convenience stores and online retailers where shopping feasibility along with differentiated plant-based cheese offerings is driving the segmental growth.

Leading Market Player

18.20 %

market share, Danone SA, 2022

Selective expansion of Danone's presence in the market along with the wider brand presence and products offered with active portfolio rotation is making it the market leader

Strong penetration of organized retail channels fueling the market growth

Germany 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 off-trade segment dominates the distribution channels of the German dairy alternatives market. Among off-trade channels, the online retail sub-segment is the fastest-growing one, projected to record a CAGR of 15.6% over the forecast period. The growth of e-commerce has allowed companies to access a larger target market and effectively serve customer needs. Many people started ordering food items, particularly dairy alternatives, online due to their hectic schedules and the nationwide lockdown in 2020. The four main e-commerce channels for dairy alternatives were direct-to-consumer, click-and-collect, retail grocery delivery, and concierge services.
• The sales value of dairy alternatives through on-trade channels across the country declined by 2% in 2020 as foodservice outlets were shut down due to the pandemic. In the same year, Germany recorded only 65,090 functional restaurants, a decrease of 8.49% from 2019. Based on the data from all distribution channels, the overall consumption in Germany was around 5.03 kg per person in 2022, with a 3.4 kg rise in the consumption of dairy alternatives since 2017. The on-trade channel is likely to record a CAGR of 10.7% during the forecast period.
• Off-trade is projected to be the fastest-growing distribution channel, registering a CAGR value of 15.7% during the forecast period. This increase is anticipated in line with the rising demand for dairy alternative products, which are widely accessible at supermarkets and online retailers. The omnichannel approach adopted by major retailers across the globe is also driving the market for dairy desserts. Retailers such as REWE, Edeka, Aldi Süd, and Norma focus on omnichannel shopping, particularly expanding and integrating online capabilities into brick-and-mortar stores.