Industry: Food and Beverages
Published Date: March-2025
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 339
Report ID: PMRREP31413
The global plant-based milk market is estimated to grow from US$ 17.4 Mn in 2025 to US$ 31.6 Mn by 2032. the market is projected to record a CAGR of 8.9% during the forecast period from 2025 to 2032.
According to Persistence Market Research (PMR), the market for plant-based milk is expected to grow due to improvements in flavor, texture, and nutritional content, as well as growing customer desire for healthier dairy substitutes. Innovations in protein enrichment, fortified formulations, and sustainable production techniques are driving the industry and bolstering trends toward lactose-free, allergy-friendly, and environmentally aware consumption.
Key Highlights of the Plant-based Milk Market
| Attributes | Key Insights |
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Market Size (2025E) |
US$ 17.4 Bn |
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Projected Sales of for Plant-Based Milk (2032F) |
US$ 31.6 Bn |
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Value CAGR (2025-2032) |
8.9% |
| Historical Market Growth (CAGR 2019 to 2024) | 7.5% |
The global plant-based milk market has witnessed significant growth in the historical period registering a CAGR of 7.5% during the historical period. The increasing health consciousness among the consumers along with the ongoing trend of non-dairy and plant-based beverages are some of the driving factors for the global market of plant-based milk. Plant-based milk is an emerging segment in the category of functional beverages.
Plant-based milk is also observed as a perfect milk alternative to dairy beverages due to amplified calorie concern, lactose intolerance, and the high prevalence of hypercholesterolemia among customers. Moreover, amplified preference for vegan diets is also influencing consumers to choose cow milk alternatives. Food and beverage manufacturers are also creating new and innovative products from plant-based ingredients to attract customers. The major demanding regions of plant-based milk are East Asia, followed by Europe. In both the regions, demand is expected to grow since these regions have well-established production facilities and an organized logistics and supply chain system.
Growing Demand for Dairy Alternatives Fueling Product Sales
Nowadays, customers are majorly concerned with dropping their consumption of animal-based foods for sustainability, health, and ethical reasons. Modern customers are aware of meat substitutes and perceive such products as safe and healthy for the ecosystem. Such consciousness has led to a growth outlook for plant-based milk products.
Moreover, growing health consciousness among customers, the rising inclination for dairy alternatives, and shifting dietary patterns have amplified the importance of plant-based options in the food industry. As a result, consumers’ buying patterns are going beyond milk, and this tendency is gaining grip among plant-based product fabricators.
Dilemma Regarding Nutrient Profile of Plant-based Milk Hindering Product Acceptance
Nowadays, modern consumers are looking for more nutritious food products, but there is a lack of understanding and awareness about plant-based food & beverages among consumers. There is a negative perception about plant-based milk, especially in Asian regions, where animal milk and milk products are part of traditional diets. Moreover, it is difficult for consumers to shift toward plant-based milk owing to some bottlenecks such as a lack of flavor when compared to dairy milk. Inactivation of inhibitors in plant-based milk when heated and shelf-life improvement are some major challenges faced by manufacturers. These challenges need to be solved for wider acceptance.
Animal milk is more nutritious as compared to plant-based milk, and most consumers depend on animal milk for essential nutrients. The growing negative perception and dilemma about plant-based milk and its uses in food products has a negative impact on the growth of the plant-based milk market.
Rising Consumer Preference for Sustainable and Vegan Diets
Over the past decade, there has been a significant shift toward vegan and plant-based diets, driven by growing consumer awareness of health benefits, animal welfare, and environmental sustainability. This changing preference is influencing purchasing behavior, particularly in developed markets, where demand for plant-based dairy alternatives like almond, oat, and soy milk is increasing due to their high nutritional value, including protein, vitamins, and fiber.
Additionally, consumers are becoming more conscious of sustainable food choices and ethical sourcing, further fueling the demand for dairy-free milk options. Companies in the plant-based milk market can capitalize on this trend by expanding their sustainable product offerings and innovating nutrient-rich formulations.
For instance, as per USDA report 2023, Germany has the highest rate of vegetarianism compared to its European neighbors and the number of vegans reached over 1.5 million people. Additionally, more than half of Germans describe themselves as flexitarians.
Growing Consumption of Lactose-free Milk
Given the increasing incidence of lactose intolerance, consumers are seeking alternatives for dairy milk. Moreover, the increasing cases of digestive disorders among the worldwide population are paving the way for several milk substitutes. Oat milk, coconut milk, and almond milk are ideal alternatives to animal milk, as these alternatives also contain vitamins, protein, fibre, and other nutrients.
Producers are catering to a wide range of plant-based milk varieties, and the growing demand for lactose-free beverages is anticipated to drive the sales of plant-based milk products.
According to the National Institutes of Health, 60-70% of the East Asian population shows lactose intolerance and digestive issues are on the rise in developed countries.
The U.S. dominates the North American plant-based milk market, experiencing a significant CAGR of 8.2%. The leads the North American plant-based milk market due to high consumer awareness and changing dietary preferences. The demand for dairy alternatives is fueled by health-conscious consumers, rising lactose intolerance, and the growing popularity of vegan and flexitarian diets. Major brands like Danone’s Silk, Califia Farms, and Oatly drive market growth through continuous product innovation.
Plant-based milk is readily available to customers in the U.S. due to strong distribution networks that include supermarkets, e-commerce platforms, and quick-commerce services. Furthermore, notable improvements in taste and nutrition are fueled by colossal market expansion due to intense regulatory support for sustainable and non-dairy alternatives and large expenditures in research and development.
Germany remains at the forefront of Europe's plant-based milk growth due to strong consumer demand, product innovation, and shifting dietary preferences. The country has one of Europe's largest vegan and flexitarian populations, driving demand for dairy-free alternatives like oats, almonds, and soy milk. Health-conscious consumers actively seek plant-based options due to concerns over lactose intolerance, sustainability, and ethical food sourcing. German brands and international players are continuously expanding their portfolios with fortified and functional plant-based milk to cater to evolving preferences.
Which Type of Plant-based Milk is the most demanded in the Global Market?
Based on the product type segment, soy-based milk is mostly in demand and consumed in the plant-based milk category. The plant-based milk market value share of the soy segment is 36.7%. The demand for soy-based milk in the retail sector is increasing due to its popularity among consumers and its convenience. It also provides numerous health benefits to the consumer.
Plant-based milk is becoming a staple in more homes.
Plant-based milk is rapidly becoming a staple in households as consumers shift toward healthier and more sustainable food choices. An increased understanding of plant-based diet, lactose intolerance, and dairy sensitivity drives this shift. Many families increasingly prefer almond, oat, soy, and coconut milk because of their alleged health advantages, which include reduced cholesterol and additional vitamins. Additionally, customers are choosing dairy-free options with a lower carbon impact due to the desire for ethical and eco-friendly products.
Key players in the global plant-based milk market are driving innovation through research and development, introducing exciting new flavors and enhancing product quality. Significant investments are being made to improve operational capabilities and expand global reach. Companies are particularly focused on creating nutritious plant-based milk for children, rich in protein and calcium. Strategic partnerships with food-tech startups and retailers are accelerating product innovation and market entry. Additionally, increased funding from venture capital and strategic investors is empowering brands to scale production and enhance sustainability, enabling them to connect with a wider audience.
Key Industry Developments
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Report Attributes |
Details |
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Historical Data/Actuals |
2019 – 2024 |
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Forecast Period |
2025 – 2032 |
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Market Analysis |
Value: US$ Mn Volume: Kilolitre |
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Geographical Coverage |
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Segmental Coverage |
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Competitive Analysis |
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Report Highlights |
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Customization and Pricing |
Available upon request |
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The global plant-based milk market is estimated to be valued at us$ 17,413.0 mn by the end of 2025.
The increasing demand for plant-based milk is fueled by rising health consciousness, lactose intolerance, and the growing adoption of vegan and flexitarian diets.
North America dominates the Global Plant-based Milk Market, accounting for approximately 29.7% of the total share. Within the region, the U.S. leads in Plant-based Milk consumption.
Soy milk is the most popular and in-demand product type in the Plant-based Milk market.
Danone, Oatly Group AB, Nestlé S.A., The Hain Celestial Group, Inc., SunOpta Inc., Vitasoy International Holdings Ltd, Califia Farms, LLC, and Ripple Foods are the leading players in the global plant-based milk market.
