United States Dairy Alternatives Market Size

United States Dairy Alternatives Market Analysis

The United States Dairy Alternatives Market size is estimated at 9.25 billion USD in 2024, and is expected to reach 13.9 billion USD by 2029, growing at a CAGR of 8.48% during the forecast period (2024-2029).

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9.25 Billion

Market Size in 2024 (USD)

13.9 Billion

Market Size in 2029 (USD)

6.81 %

CAGR (2017-2023)

8.48 %

CAGR (2024-2029)

Largest Market by Category

45.10 %

value share, Non-Dairy Milk, 2023

The preference for plant-based milk is largely driven by the growing intend towards different taste stimuli coupled with health consciousness among the consumers in the country

Largest Market by Distribution Channel

91.48 %

value share, Off-Trade, 2023

The availability of a wide range of products with several brand options in dairy alternatives and the ease of free checkout and delivery options are aiding the segmental growth.

Fastest-growing Market by Category

15.65 %

Projected CAGR, Non-Dairy Cheese, 2024-2029

Non-dairy cheese is a healthier alternative to cheese and is considered to reduce risk of heart disease due to its lower content of fat, largely driving the segmental growth

Fastest-growing Market by Distribution Channel

8.76 %

Projected CAGR, Off-Trade, 2024-2029

Among the off-trade channels, the increased adoption of e-commerce platform among the consumers and growing presence of online retailers is anticipated to drive the segment in the forecasted period

Leading Market Player

13.13 %

market share, Danone SA, 2022

The presence of exhaustive product offerings along with larger distribution network and a wider presence throughout the country has made it a leading market player.

Market is driven by sustainable growth in sales of plant-based milk led by off-trade retail channels

United States 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.

• Consumers purchased more plant-based dairy through retail groceries (off-trade) than ever in 2020, resulting in a 14% increase in sales. All categories of dairy alternatives showed growth, which was able to hold steady after recording significant growth in 2020. This demonstrates the incredible opportunities available for brands in every part of the store and across online platforms. In 2021, 42% of households purchased plant-based milk, and 76% of plant-based milk buyers made multiple purchases.
• The country currently has a nascent market for on-trade channels, as consumers prefer to consume dairy alternatives at home rather than at restaurants or food service outlets. Approximately 93% of meals or snacks that include milk alternatives are consumed at home, while only 7% are consumed at a restaurant or food service outlet. Within the food service industry, plant-based foods account for less than 1% of all foods shipped through broadline foodservice distribution to commercial and non-commercial food service outlets.
• Off-trade remains the primary outlet for sales of plant-based dairy across all product categories. For example, plant-based milk occupies 16% of all retail milk dollar sales in conventional channels and 40% in the Natural Enhanced Channel. The latter represents over 50 retailers and approximately 2,000 natural retail stores.
• The online channel is expected to be the fastest-growing distribution channel in the off-trade segment, with a projected Y-o-Y growth rate of 32% from 2023 to 2025. Convenience is the primary motivation for 61.1% of shoppers who have transitioned to shopping for groceries online. This growth can be attributed to the increasing number of smartphone users, which saw an increase of 11 million between 2020 and 2021.