The global market for plant-based dairy products is on pace to grow rapidly by 2028 and exceed $51.5 billion in sales, with plant-based yogurt and soy products leading the way, according to a report from The Insight Partners.
The report found the market for alternative dairy products, which are made from soy, almond, coconut, oat and more, is growing at a rate of over 10%, with sales reaching over $28 billion in 2022 alone.
Of the categories included in the study (milk, ice cream, yogurt, cheese), plant-based yogurt is expected to register the highest CAGR during the forecast period, as consumers seek more functional capabilities from food, and plant-based products in particular.
Of the major plant-based substitutes in the dairy alternatives category, soy is the most popular, and is expected to grow the most during the period.
“Soy-based products are becoming popular, especially among women, including isoflavones, lowering the risk of heart disease and breast cancer,” the report explained. “Soy milk is one of the most popular and easiest-to-find non-dairy milk. Moreover, the increasing adoption of soy-based dairy alternatives among professional athletes and fitness enthusiasts further boosts the growth of the soy segment.”
Consumers seeking functional and healthy products seem to be the main driver in the popularity of plant-based dairy products.
“People widely consume yogurt to improve their gut health due to its natural prebiotic content,” wrote The Insight Partners. “Plant-based yogurts have low fat and cholesterol content, thereby boosting their popularity among health-conscious consumers. (Consumers) are looking for products with high nutrient content to fulfill their daily nutritional requirements. The dairy alternatives manufacturers are incorporating functional ingredients, such as antioxidants, collagens, adaptogens, and nootropics, in their products to meet the rising demand for functional dairy alternatives.”