Industry: Food and Beverages
Published Date: September-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 169
Report ID: PMRREP34820
The North America plant based milk market is estimated to increase from US$19.5 Bn in 2024 to US$ 33.1 Bn by 2031. The market is projected to record a CAGR of 7.8% during the forecast period from 2024 to 2031. North America plant based milk market is primarily driven by increasing health consciousness among consumers and a rising preference for dairy alternatives.
Key Highlights of the Market
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Market Attributes |
Key Insights |
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North America Plant Based Milk Market Size (2024E) |
US$19.5 Bn |
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Projected Market Value (2031F) |
US$33.1 Bn |
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Global Market Growth Rate (CAGR 2024 to 2031) |
7.8% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
6.9%. |
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Category |
Market Share in 2024 |
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Packaging Type- Cartons |
59.5% |
Cartons are anticipated to be the largest contributor to the North America plant based milk market, accounting for an impressive 59.5% market share. This dominance can be attributed to several factors including the convenience and portability of carton packaging, which appeals to on-the-go consumers seeking easy-to-use beverage options.
Cartons offer excellent preservation qualities maintaining the freshness and flavor of plant-based milk products while extending shelf life without the need for refrigeration prior to opening.
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Category |
Market Share in 2024 |
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Distribution Channel - Supermarkets/Hypermarkets |
41.3% |
Supermarkets and hypermarkets are projected to be the largest contributors to the North America plant-based milk market, accounting for 41.3% market share. This dominance is primarily due to their extensive product variety and the convenience they offer to consumers, who can easily access a wide range of plant-based milk options in one location.
Retail formats provide an ideal shopping experience allowing customers to compare different brands, flavors, and packaging sizes. Supermarkets and hypermarkets often feature promotional offers and discounts making plant-based milk products more appealing to price-sensitive consumers. The growing trend of health and wellness among shoppers has led these retailers to expand their offerings of plant-based alternatives, further driving sales.
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Category |
Market Share in 2022 |
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Product Type - Almond Milk |
52.1% |
In the North America plant-based milk market, segmentation by product type reveals distinct trends and preferences among consumers, with several categories maintaining significant dominance. Almond milk continues to lead the market favored for its light flavor, low calorie count, and versatility in various applications, from smoothies to baking.
Following closely is oat milk, which has surged in popularity due to its creamy texture and ability to froth well for coffee drinks, making it a preferred choice among baristas and consumers alike. Soy milk, one of the pioneers in the plant-based milk category, remains a staple especially for those seeking a protein-rich alternative.
North America plant based milk market has emerged as a dynamic sector within the broader food and beverage industry, driven by shifting consumer preferences toward healthy and more sustainable alternatives to dairy.
Trend analysis reveals several key factors influencing this market. Health consciousness among consumers has propelled demand for products perceived as healthy options such as those lower in calories and cholesterol. Oat milk in particular, has gained traction due to its creamy texture and high fiber content making it a popular choice for coffee drinks and cooking.
The rise of veganism and flexitarian diets has expanded the consumer base with more individuals seeking dairy alternatives that align with their dietary preferences. Additionally, innovations in product formulation such as fortified options with vitamins, minerals, and protein are enhancing the appeal of plant based milk.
E-commerce growth is transforming how consumers access these products, providing greater convenience and variety. North America plant based milk market is poised for continued expansion driven by health trends, dietary shifts, and evolving consumer preferences.
The North America plant based milk market has experienced remarkable growth over the past two decades evolving from niche products to mainstream alternatives. As consumer awareness around health, sustainability, and ethical eating practices grew, a broader range of options emerged, including cashew, coconut, oat, and rice milk catering to diverse dietary preferences and needs.
Almond milk continued held a significant market share in 2023 closely followed by oat milk, which has been embraced for its creamy texture and compatibility with coffee. The market's future growth is anticipated to be driven by increasing demand for plant-based diets, ongoing product innovations, and a heightened focus on sustainability.
Companies are likely to invest in enhancing flavors and nutritional profiles to better compete with traditional dairy products, while also emphasizing environmentally friendly practices. Furthermore, the expansion of e-commerce and direct-to-consumer channels will enhance accessibility allowing consumers to explore a variety of plant-based milk options positioning the market for sustained success in the years ahead.
Lactose Intolerance
Lactose intolerance is a significant driver for the North America plant based milk market, with about 65% of the global adult population affected by this condition. In the U.S. alone, millions suffer from lactose intolerance, making it essential for consumers to seek dairy alternatives. The inability to digest lactose, a key carbohydrate in dairy products causes uncomfortable symptoms like bloating, diarrhea, and gas.
As awareness of lactose intolerance rises, many people are turning to plant-based milk options, such as almond, soy, and oat milk, as they are naturally lactose-free. Additionally, lactose-intolerant individuals face the risk of nutritional deficiencies particularly calcium and vitamin D. This has increased the demand for fortified plant-based milk, which provides these essential nutrients without the discomfort associated with dairy.
The growing prevalence of lactose intolerance, along with the need for nutritious alternatives, continues to fuel the plant-based milk market's expansion in North America.
Increasing Environmental Concerns
Environmental concerns have become a significant driver for the North America plant based milk market as consumers increasingly seek sustainable alternatives to dairy. Studies comparing the environmental impacts of various milk types show that plant-based milks are eco-friendly than traditional dairy.
Dairy milk production is associated with three times the greenhouse gas emissions and requires nine times more land compared to plant milks. Plant-based options like hemp, pea, and coconut milk have gained traction for their relatively low environmental footprint particularly in terms of water and land use. However, not all plant milks are equal in sustainability.
Almond and rice milks require substantial water, while soy and oat milks use more land. Despite these nuances, plant milks generally offer a more sustainable choice, helping consumers reduce their environmental impact while meeting their dietary needs. This shift in consumer preference toward environment-friendly products is a key factor driving the market growth.
Consumer Preferences for Creamy Mouthfeel
Consumers often expect plant-based alternatives to replicate the creamy, rich, and buttery profiles found in dairy milk, making it difficult for brands to meet these demands. Research shows that taste is the primary reason for consumer repurchase, and over a third of consumers express dissatisfaction with the taste of plant-based options due to off-notes like bitterness or "beaniness."
Achieving the same creamy mouthfeel that dairy provides is a major hurdle. While consumers increasingly seek low-sugar options, they still desire the sweetness and body of traditional milk, adding another layer of complexity for manufacturers. As a result, the inability to consistently replicate dairy's desirable sensory attributes poses a restraint to the broader adoption of plant-based milk alternatives in the market.
The Impact of Limited Knowledge about Plant Based Milk Adoption
Despite the growing popularity of plant-based milk (PBM), limited consumer awareness poses a significant restraint on its market expansion in North America. Many potential consumers remain unfamiliar with the environmental and health benefits of PBM compared to traditional dairy products.
While PBM options like oat, almond, and soy milk are increasingly available, a substantial segment of the population still harbors misconceptions about these alternatives particularly regarding their nutritional profiles and culinary applications.
Even though the health benefits such as being cholesterol-free and suitable for those with lactose intolerance, are well-documented, these advantages may not resonate strongly enough with consumers to influence their purchasing decisions. As a result, enhancing consumer education and awareness about the benefits of PBM is crucial for overcoming these barriers and fostering greater market adoption.
Growing Environmental Awareness
Increasing awareness of environmental issues including the need to reduce carbon footprints and improve animal welfare, presents a significant opportunity for the plant based milk market.
As consumers become more conscious of their dietary choices and their impact on the planet, they are increasingly opting for sustainable alternatives like plant-based milk. This shift not only supports market growth but also encourages brands to innovate and promote products that align with environmentally friendly practices, ultimately expanding their customer base.
Growing Market Potential for Fortified Plant Based Milk
Plant-based milks enriched with essential vitamins, minerals, and proteins are gaining traction as consumers increasingly seek healthy options. This shift is driven by growing awareness of nutritional needs and the desire for products that offer additional health benefits.
Fortified plant-based milks cater to diverse dietary preferences and restrictions making them appealing to a broad audience including health-conscious consumers and those with specific nutrient deficiencies.
Innovations in formulation are allowing brands to create products that not only meet nutritional demands but also enhance taste and texture addressing common consumer concerns. As the market for functional beverages expands, plant-based milk products with added nutritional value can position themselves as desirable alternatives further fueling growth and adoption in North America and beyond.
North America plant based milk market is witnessing significant growth as indicated by the market report, underscoring its dynamic nature. To capitalize on this promising market, industry players are introducing novel functions and leveraging innovative technologies to unlock new opportunities.
Key players are adopting vital business strategies such as diversifying their portfolios, expanding their market presence across regions, and investing in research and development. By embracing these initiatives, market players aim to stay competitive, meet evolving consumer demands, and drive further growth in the sector.
Recent Developments in the North America Plant Based Milk Market
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon request |
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The market is estimated to increase from US$19.5 Bn in 2024 to US$33.1 Bn by 2031.
Increasing health awareness, and environmental concerns drives market growth.
Nestlé, Symrise, Oatly, Ripple Foods are some of the leading industry players operating in the market.
The market is projected to record a CAGR of 7.8% during the forecast period from 2024 to 2031.
A prominent opportunity lies in the enhanced sustainability.
