Dairy milk is a staple in many dietary guidelines for healthy eating. However, plant-based milk alternatives are increasingly emerging as substitutes. These products cater to a segment of the population that either cannot or chooses not to consume dairy milk. Consumers may view plant-based milk alternatives as direct substitutes or even as healthier options compared to dairy milk. Research from the U.S. National Library of Medicine (2020) indicates that 65% of the global population experiences reduced lactose digestion. Lactose intolerance is particularly prevalent in East Asia, affecting 70–100% of the population. It is also common among West African, Arab Jewish, Greek, and Italian populations.
By Priyanka Fulzele
Industrial dairy production is linked to significant land and water consumption, animal welfare issues, eutrophication, and greenhouse gas emissions. In response, companies in the dairy alternatives sector are positioning their products to address consumers' increasing concerns about environmental impact, health, and animal welfare. Through strategic branding, labeling, and marketing, these alternatives are often promoted as more "wholesome" options. Recent advancements in the sector include emerging categories like cell-based and fermentation-derived dairy, which utilize advanced bioengineering techniques. While these innovations hold promise, they face technical challenges in scaling production and have yet to secure regulatory approval.
According to Goof Food Institute (2023), trends suggest that plant-based milk (PBM), the largest category of dairy alternatives, is beginning to challenge the dominance of traditional fluid dairy. Between 2020 and 2022, unit sales of PBM in Europe increased by 20%, while sales of conventional milk declined by 9%, signalling a potential shift away from fluid dairy.
The global dairy alternatives market is on a growth trajectory, projected to reach USD 43.6 billion by 2028, as stated in the MarketsandMarkets report,"Dairy Alternatives Market Global Forecast to 2028". Within this market, the milk and cheese segments are estimated to contribute approximately 49% and 7%, respectively, by 2024.
The major players in the market include Danone North America Public Benefit Corporation (US), The Hain Celestial Group, Inc. (US), Blue Diamond Growers (US), SunOpta (Canada), Sanitarium (New Zealand), among others. Companies are heavily investing in research and development to create innovative dairy alternatives that enhance the texture, flavor, and shelf life of plant-based products. They are focusing on developing clean-label solutions using natural ingredients to meet consumer demand for healthier options.
According to a review article published in Pubmed 2023, among the plant-protein ingredients studied for application in alternative cheese products, pulses are considered to be a valuable source of macronutrients with functionality of relevance in such applications. In particular, chickpeas are very nutritious and represent an important source of dietary protein, with a content of 20–25%, as well as having high contents of fat, starch and fibre, minerals, and vitamins. Indeed, dairy proteins are largely responsible for the unique nutritional, physicochemical, and sensorial attributes of cheese products. Currently, commercially available plant-based cheese alternatives rely strongly on non-protein ingredients (i.e., starch and coconut oil) to deliver functionality to the final product, resulting in low protein and high saturated fat content.
The major dairy company invests in fermented plant-based cheese. The Cocagne project, spearheaded by the Bel Group—owner of brands like The Laughing Cow and Babybel—is a new initiative aimed at developing fermented and ripened plant-based cheese alternatives. The project is supported by companies including Lallemand Specialty Cultures, Avril (focused on vegetable oils and proteins), Protial (an agri-food service provider), and Bpifrance, a French public investment bank, through the France 2030 program. The initiative involves an investment of approximately USD 9.45 million over three years.
Companies in the dairy alternatives market are following several trends to meet consumer demands and expand their market presence.
1. Product Innovation: Product development strategies focus on creating alternatives that closely mimic dairy products. Oatly Group AB (US) developed a specialized enzymatic process to break down oats, creating a milk alternative that froths and behaves like dairy milk in coffee applications. Perfect Day (US) has pioneered precision fermentation technology to produce real dairy proteins without animal source, enabling products that are molecularly identical to dairy but animal-free.
2. Research & Development: Major companies are focusing on several key areas of development. Danone (US) has R&D centers spread across multiple continents to work on improving the nutritional equivalency of plant-based products to dairy, particularly focusing on protein content and calcium bioavailability. Nestle (Switzerland) research facilities are pioneering work in hybrid products, creating innovations that combine dairy and plant proteins. Their R&D teams have developed technologies to mask the off-notes commonly found in plant proteins while enhancing the desired dairy-like flavors. The company has invested significantly in texture research, working to replicate the unique mouthfeel of dairy products.
3. Sustainability Focus: Companies such as Miyoko's Creamery (US) have implemented a "Dairy Farm Transition" program, helping traditional dairy farmers convert their operations to plant-based agriculture. SunOpta (Canada) has invested in water recycling systems and solar power for their production facilities, while Alpro (owned by Danone) has committed to carbon neutrality by 2025. Companies are also innovating in packaging, with NotCo (Chile) and Ripple Foods (US) using recycled and recyclable materials to reduce plastic waste.
Rise in health awareness and lifestyle changes have stimulated growth in the dairy alternatives market. A substantial increase in the vegan population has been seen in many major economies, such as the US and the UK. Consumers in developed economies accept plant-based milk since dairy alternatives provide energy, improve health, help in weight management, and increase food palatability. According to The Vegan Society, avoiding consuming meat and dairy products is a major way to reduce the environmental impact on the planet in terms of carbon emissions. Presently, the livestock industry contributes an estimated 18% to the total greenhouse gas emissions from the five major sectors for greenhouse gas reporting. However, in the agriculture sector, farmed animals constitute nearly 80% of all emissions. This has led consumers concerned about the environment to shift to dairy alternative products. In 2021 alone, The Vegan Society registered 16,439 products with The Vegan Trademark. Over 82% of their product registrations have been registered in the last five years. The Vegan Trademark is present in 87 countries worldwide. Considering the rapid growth of the vegan population, various dairy manufacturers are shifting toward producing plant-based milk products, which is projected to impact the dairy alternatives market positively.
Lactose intolerance Industrial dairy production Plant-based milk alternatives
