Japan Dairy Alternatives Market Size

Japan Dairy Alternatives Market Analysis

The Japan Dairy Alternatives Market size is estimated at 1.39 billion USD in 2024, and is expected to reach 1.85 billion USD by 2029, growing at a CAGR of 5.93% during the forecast period (2024-2029).

Want to share this? Click here to share on social media or embed it on your website.

1.39 Billion

Market Size in 2024 (USD)

1.85 Billion

Market Size in 2029 (USD)

8.21 %

CAGR (2017-2023)

5.93 %

CAGR (2024-2029)

Largest Market by Category

90.43 %

value share, Non-Dairy Milk, 2023

The factors accumulated with the declining dairy consumption in Japan is largely propelling the consumption of dairy alternatives, especially plant-based milk products.

Largest Market by Distribution Channel

98.78 %

value share, Off-Trade, 2023

Product availability and assortment in major off-trade retail channels along with considerable discounts in these retail channels is largely driving the segmental growth.

Fastest-growing Market by Category

29.03 %

Projected CAGR, Non-Dairy Cheese, 2024-2029

The charecteristics of non-dairy cheese products which are created from nuts or seeds which has a perfect solid texture that will also melt, are encouraging the segment's growth.

Fastest-growing Market by Distribution Channel

5.96 %

Projected CAGR, Off-Trade, 2024-2029

The onset of the experimential economy and the rising social media platforms with increasing consumer reach in the market is driving the off trade channels through online channels

Leading Market Player

38.42 %

market share, Kikkoman Corporation, 2022

Kikkoman Corp's major focus on the quality and high standards of the products in plant-based beverages segment with products in wider range of brands made it market leader

Strong penetration of organized retail channels fueling the market growth

Japan Dairy Alternatives Industry Segmentation

Non-Dairy Butter, Non-Dairy Cheese, 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 holds a dominant position in the distribution channels of the Japanese dairy alternative market. Among the off-trade channels, supermarkets and hypermarkets occupied a significant value share of 71.9% in 2022. These channels benefit from their proximity to consumers, particularly in large and developed cities, influencing their purchasing decisions with the wide variety of products available. Furthermore, the adoption of an omnichannel approach by major supermarket and hypermarket retailers worldwide is driving the market for dairy desserts.
• The on-trade channels in Japan have a relatively small market presence and are still in the early stages of development. Consumers prefer to consume dairy alternatives at home and are less inclined to eat at restaurants or food service outlets. Plant-based milk and non-dairy butter are experiencing growth, with some restaurants in the region using plant-based milk as an ingredient option in cocktails, smoothies, coffees, and espresso-based drinks. Consequently, the sales value of plant-based milk through on-trade channels increased by 5.43% in 2022 compared to 2021.
• Within the off-trade segment, the online retail channel sub-segment is experiencing the fastest growth, projected to achieve a CAGR of 15.6% over the forecast period. The expansion of e-commerce has provided companies with the opportunity to reach a broader target market and effectively cater to customer needs. Convenience is the primary motivation for Japanese shoppers transitioning to online grocery shopping. Among all dairy alternative products, plant-based milk accounted for the majority share in off-trade channels. In 2022, plant-based milk represented over 90% of the value share.