United Kingdom Dairy Alternatives Market Size

United Kingdom Dairy Alternatives Market Analysis

The United Kingdom Dairy Alternatives Market size is estimated at 1.81 billion USD in 2024, and is expected to reach 4.08 billion USD by 2029, growing at a CAGR of 17.70% during the forecast period (2024-2029).

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1.81 Billion

Market Size in 2024 (USD)

4.08 Billion

Market Size in 2029 (USD)

17.72 %

CAGR (2017-2023)

17.70 %

CAGR (2024-2029)

Largest Market by Category

42.48 %

value share, Non-Dairy Milk, 2023

Plant-based milk consumption in United Kingdom is increasing across all age groups with lactose intolerance and allergen to cow or buffalo milk consumers adopting plant-based dairy products.

Largest Market by Distribution Channel

97.04 %

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

23.66 %

Projected CAGR, Non-Dairy Cheese, 2024-2029

Non-dairy cheese products, which are created from nuts or seeds and have a perfect solid texture that will also melt, are encouraging the segment's growth in the country.

Fastest-growing Market by Distribution Channel

19.26 %

Projected CAGR, Off-Trade, 2024-2029

The feasible localities of off-trade retail channels like convenience stores allows consumers to shop within minimal distances, making it karger segment in the market.

Leading Market Player

30.08 %

market share, Danone SA, 2022

Due to its rising revenue, Danone has the opportunity to invest its revenue in R&D which increases the number of products, leading to it gaining a competitive edge in the market.

Market is driven by sustainable growth in sales of non-dairy products led by online retail channels

United Kingdom 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 UK dairy alternatives market. Hypermarkets and supermarkets primarily drive the high market share of off-trade channels. Supermarkets and hypermarkets have always maintained a strong lead in the sales of dairy alternatives in the market studied. The proximity factor of these channels, especially in large and developed cities, provides them with an added advantage of influencing the consumer’s decision to purchase among the large variety of products available in the market. In the United Kingdom, supermarkets and hypermarkets held 72% of dairy alternatives sales, by value, in 2022.
• The sales value of dairy alternatives through on-trade channels across the country increased by 31% during 2021-2022. Based on the distribution channel, the consumption in the United Kingdom was around 0.15 kg per person in 2023, with 0.13 kg/per capita consumption of dairy alternatives in 2021. The on-trade channel is likely to record a growth rate of 60% during 2024-2027.
• The online retail channel is projected to be the fastest-growing distribution channel as modern consumers prefer online grocery purchases due to their busy lifestyles. Online sales of dairy alternatives are expected to grow by 56.8% during 2021-2023 to reach a market value of USD 33.4 million in 2023. In 2022, the share of households with internet access was recorded at 93%, up from 72% in 2011. The United Kingdom, along with other countries, has a high penetration of internet users. For instance, the key online cheese retailers include FROMAGES.COM, The East London Cheese Board, La Gourmeta, Love Cheese, Italia Regina, and Frank and Sal. The online retail channel's sales value is anticipated to register a growth rate of 87% during 2024-2027.