While Asia has the biggest market revenue share due to its sheer population size, Europe and North America will see steeper growth in terms of average revenue per capita, as plant based milks continue to gain popularity worldwide.
According to the USDA, the per-person supply of cow’s milk has been declining steadily. Between 2010 and 2017, per capita availability fell at an average rate of almost 2.5% per year. Plant-based milk alternatives, including almond-based products, are contributing to this shift. Weekly purchases of cow’s milk declined, while purchases of almond, soy, and other plant-based options increased.
Globally, the market share of plant-based milk rose from below 10% in 2015 to over 13% by 2018. Approximately 45% of consumers who currently consume plant-based products plan to increase their consumption in the next three years.
In terms of growth of plant milk substitutes however, none looks more promising than the Asia market. According to data from Statista’s Market Insights, the region was estimated to pull in a revenue of USD 13.4 billion in 2023. This was mostly led by China, which had an estimated revenue of USD9.5 billion that year alone. Other major markets in Asia included Japan (USD 1.8 billion), South Korea (USD 0.4 billion) and India (USD 0.4 billion).
Following some way behind is North America, with the United States as the region’s major market (USD 3.6 billion). Europe places in third position in the regional ranking, with an estimated revenue of USD 3.9 billion in 2023. There, the major players were Germany (USD 0.8 billion), the United Kingdom (USD 0.6 billion) and Spain (USD 0.6 billion). The regional markets in South America and Africa were substantially lower in 2023, at USD 0.7 billion and USD 0.2 billion, respectively.
According to Statista analysts, the milk substitutes market will continue to expand in the coming years, reaching a global revenue of over USD 35 billion by 2028.
While Asia will remain the market with the biggest revenue due to its sheer population size, Europe and North America will see steeper growth in terms of average revenue per capita, as milk substitutes continue to gain popularity in both regions.
Interestingly, plant based milks perform differently in each market, which is largely determined by cultural food preferences. For example, in China, soy drinks are traditionally the most popular of the plant-based milks due to a tradition of soy consumption and the plant’s availability, according to Mordor Intelligence. In Sweden, oat milk is particularly popular, while in the United States, almond milk is the most consumed.
Furthermore, Global Data reports that the market for plant-based beverages (including grain, nut, rice, soya, and seed milk) in Asia stood at 14.9 billion litres in 2019, expanding at a compound annual growth rate of 6.9% from 2014 to 2019.
Innovative plant-based dairy firms in the Asia Pacific region are exploring unique sources beyond soy and almond too. They’re creating dairy alternatives using diverse plant-based ingredients and formats to attract consumers
Dairy producers are actively adapting to the rise of plant-based milk consumption, primarily through product diversification.
Many dairy companies now offer their own plant-based alternatives alongside traditional dairy products. They’ve expanded their portfolios to include almond milk, oat milk, soy milk, and coconut milk.
Manufacturers are also investing in research and development to enhance the taste, texture, and nutritional profiles of plant-based milks. Advances in food technology allow them to create alternatives that closely mimic the creaminess of cow’s milk.
Some dairy producers are also exploring sustainable practices, recognizing the environmental impact of dairy farming and are exploring ways to reduce it. This aligns with consumer preferences for eco-friendly options.
However, consumer market sentiment challenges remain asplant-based dairy products tend to cost higher than dairy options.
