Dairy Free Products Market Size Worth USD 79.17 Billion by 2034 |Towards FnB
According to Towards FnB, the global dairy free products market size is calculated at USD 33.03 billion in 2025 and is forecasted to hit around USD 79.17 billion by 2034, expanding at a CAGR of 10.2% during the forecast period. The market is growing due to factors like rising lactose intolerance, environmental concerns, and increasing demand for plant-based options.
Ottawa, Sept. 12, 2025 (GLOBE NEWSWIRE) -- The global dairy free products market size stood at USD 29.97 billion in 2024, increasing from USD 33.03 billion in 2025 to around USD 79.17 billion by 2034, at a CAGR of 10.2% from 2025 to 2034, according to study published by Towards FnB, a sister firm of Precedence Research.
The market has experienced growth in recent periods due to the rise in the population of vegetarians and vegans following plant-based diets, as well as the increasing number of health-conscious customers seeking to reduce excess fat from their diets.
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Dairy Free Products Market Overview
The dairy free products market has been experiencing significant growth in recent periods due to changes in consumer dietary preferences and an increase in the population of health-conscious consumers. The rise in the population of vegans and vegetarians following a plant-based diet is another significant factor driving the market’s growth.
Rising cases of lactose intolerance and milk allergies are another major reason for the growth of the free products market. The sugar present in the lactose-related products is not suitable for many people, hence such products. Various other diverse options, such as health-related issues, environmental concerns, and ethical beliefs, are also some of the major factors for the growth of the market.
Key Highlights of the Dairy Free Products Market
- By region, the Asia Pacific led the dairy free products market in 2024, while North America is expected to experience growth during the forecast period.
- By type, the milk segment dominated the dairy free products market in 2024, whereas the ice cream segment is expected to grow in the expected timeframe.
- By form, the free segment dominated the dairy free products market in 2024, whereas the no-sugar segment is expected to grow in the foreseeable period.
- By category, the organic dairy free product segment led the dairy free products market in 2024, whereas the inorganic dairy free product segment is expected to grow in the foreseen period.
What Changes has AI brought to the Dairy Free Products Market?
Artificial intelligence (AI) is playing a key role in accelerating the growth of the dairy-free products market by driving innovation, improving quality, and enhancing consumer engagement. In product development, AI-powered algorithms analyze consumer health data, taste preferences, and nutritional needs to create plant-based dairy alternatives, such as almond milk, oat yogurt, or coconut-based cheese, that closely replicate the taste, texture, and nutritional profile of traditional dairy. Machine learning also helps identify the best ingredient blends and optimize formulations for improved creaminess, flavor stability, and shelf life. In manufacturing, AI-enabled sensors and computer vision systems strengthen quality control by detecting impurities or inconsistencies in raw plant-based materials, ensuring safe and consistent production. Supply chain operations benefit from AI-driven demand forecasting, inventory management, and cold chain optimization, reducing waste and ensuring the timely delivery of perishable dairy-free products.
New Trends in the Dairy Free Products Market
- Consumer awareness regarding animal cruelty and taking positive steps for the same has given rise to the population of veganism. Hence, such situations are a major factor for the growth of the free products market.
- Lactose intolerance is another major factor driving the growth of the dairy-free products market, which includes lactose-free products for consumers to enjoy their basic food items.
- The environmental impact observed due to traditional dairy farming is also a major cause for the growth of dairy free products market.
Recent Developments in the Dairy Free Products Market
- In September 2025, Strauss Group, one of Israel’s biggest food brands, announced the launch of its ‘cow-free’ drinks and cream cheese. The products are made from whey protein made by microbes rather than cows. (Source- https://agfundernews.com)
- In May 2025, Eclipse, a California-based dairy brand, launched its new milk free from traditional animal-derived options. The product is made from isolated proteins made from peas and chickpeas, which help replicate the molecular structure of dairy. (Source- https://plantbasednews.org)
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What are the Growth Drivers of the Dairy Free Products Market?
- Lactose Intolerance- One of the major drivers for the growth of dairy free products market is lactose intolerance. Many people are unable to digest the sugar present in lactose-related products and hence face digestive issues. Hence, dairy free products come to the rescue, allowing people to enjoy their basic dairy products but without lactose.
- Health Conscious Attitude- Another major factor helpful for the growth of the market is increased health benefits. Plant-based diet followers have lower cholesterol and lower risks of heart issues, hence it is a major market growth-enhancing factor.
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Environmental Impact- Another major factor contributing to the market's growth is the environmental impact associated with traditional dairy farming. Hence, it also allows the dairy free products market to grow.
Dairy Free Products Market Challenge
High Costs Restraining Market Growth
Costs involved in upfront investments, increased energy consumption, maintenance costs, production expenses, and various other costs are some of the reasons restraining the growth of dairy free products market. Such factors also affect the manufacturing expenses, further obstructing the market’s growth. Another cost-requiring factor for the production of lactose-free products, for controlling the temperature, time impacts on enzymes, extended hydroxylation duration, and increased storage are other major reasons blocking the growth of dairy free products market.
Dairy Free Products Market Opportunity
Fortified Dairy Free Products Easing Market’s Growth in Future
The fortification and enrichment process helps to prevent any diseases impacting dairy products. Hence, such procedures help to aid the growth of dairy free products market. The inclusion of vitamins and minerals in plant-based dairy products is another major factor driving the growth of the dairy free products market. Calcium, zinc, phosphorus, minerals, and vitamins, when added to plant-based dairy products, help enrich these products, which are beneficial for the market’s future growth.
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Dairy Free Products Market Regional Analysis
Asia Pacific Dominated the Dairy Free Products Market in 2024
Asia Pacific dominated the dairy free products market in 2024 due to the rising population of vegans and vegetarians in the region following a plant-based diet. The rising count of lactose-intolerant consumers is another major factor for the growth of dairy free products market in the region. Growing competitors stepping into dairy free products industry, manufacturing dairy products without lactose and no compromise in taste and texture, is another major factor for the growth of the market in the Asia Pacific. Countries like India and China significantly contribute to the market’s growth in the region.
North America Is Expected to Grow in the Foreseeable Period
The rising population of vegans, vegetarians, animal welfare-conscious people, and a health-conscious crowd are the major reasons aiding the growth of dairy free products market in North America in the expected timeframe. High demand for dairy free products such as dairy free vegan milk, yoghurt, cheese, and butter is another major factor helpful for the market’s growth, as such essentials form a part of a consumer’s routine diet. The US plays a vital role in the growth of dairy free products market in North America.
Dairy Free Products Market Report Scope
| Report Attribute | Key Statistics |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
| Growth Rate from 2025 to 2034 | CAGR of 10.2% |
| Market Size in 2024 | USD 29.97 Billion |
| Market Size in 2025 | USD 33.03 Billion |
| Market Size by 2034 | USD 79.17 Billion |
| Dominated Region | Asia Pacific |
| Fastest Growing Region | North America |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America and Middle East & Africa |
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Dairy Free Products Market Segmental Analysis
Type Analysis
The Milk Segment led the Dairy Free Products Market in 2024
High demand for lactose-free milk and milk products is one of the major reasons for the growth of dairy free products market. Various other products, such as lactose-free yoghurt, cheese, or flavored milk, are some of the highly demanded and basic products involved in the daily diet of a consumer. Lactose-free milk for vegans and vegetarians allows them to enjoy dairy products along with benefits such as less fat and other heart issues caused by high cholesterol. Easy availability of such products in supermarkets, hypermarkets, and online platforms also helps the growth of dairy free products market.
The Ice Cream Segment is expected to grow in the forecast period
The ice cream segment is expected to grow in the foreseen period due to high demand for ice creams that are low in calories, low in fat, without any compromise in taste. Hence, vegans and vegetarians following a plant-based diet, as well as lactose-intolerant consumers, can also savor diary free ice creams that are healthy and suitable for consumers with specific dietary preferences.
Form Analysis
The Lactose-Free Segment led the Dairy Free Products Market in 2024
The rise of vegans, vegetarians, and those following a plant-based diet is one of the major factors for the growth of dairy free products market in 2024. The products included in this segment are lower in cholesterol and, therefore, heart-friendly options. Hence, such products are also beneficial for heart patients. They are also loaded with calcium, minerals, and essential vitamins similar to dairy products, along with the same taste and texture of the products, which is helpful for easy consumption, further aiding the growth of dairy free products market. Prevalence of various health-related issues commonly observed and high demand for no sugar products also help the growth of the market.
The No Sugar Segment is observed to grow in the Foreseen Period
The no sugar segment is observed to grow in the foreseen period due to the growing population of health-conscious consumers avoiding sugar and calories for related health issues. Gen Z and patients with issues such as diabetes and heart problems form a huge base for growth of the no sugar segment, further attributing to the growth of dairy free products market.
Category Analysis
The Organic Dairy Free Products Segment led the Dairy Free Products Market in 2024
Increasing awareness about organic products, environmental consciousness, and consumer awareness regarding the health benefits of such products helps the growth of the free products market. Such products also aid environmental regulations, further enhancing the market’s growth. Practices performed by agriculturalists, such as rotational grazing, organic feed, and sustainable farming techniques, are other major factors for the growth of the free products market. Overall, sustainability is the basis of all factors promoting the growth of the market.
The Inorganic Dairy Free Products Segment is expected to grow in the forecast period.
The segment includes various types of dairy-free products easily available on different platforms, which is beneficial for the growth of the dairy-free products market. Such products can be easily purchased from retail stores and online platforms, making the market more accessible for vegans and vegetarians following a plant-based diet. Such products are economical, readily available, healthy, and low in cholesterol, further aiding the market’s growth.
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Additional Topics Worth Exploring:
- High-Protein Food Market: The global high-protein food market size is projected to grow from USD 56.69 billion in 2025 to USD 117.44 billion by 2034, expanding at a CAGR of 8.43% during the forecast period from 2025 to 2034.
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- Functional Food Ingredients Market: The global functional food ingredients market size is forecasted to expand from USD 127.48 billion in 2025 to USD 232.40 billion by 2034, growing at a CAGR of 6.9% during the forecast period from 2025 to 2034.
- Savory Ingredients Market: The global savory ingredients market size is forecasted to reach from USD 12.45 billion in 2025 to USD 18.99 billion by 2034, expanding at a CAGR of 4.8% during the forecast period from 2025 to 2034.
- Fortified Ingredients Market: The global fortified ingredients market size is projected to expand from USD 148.60 billion in 2025 to USD 242.66 billion by 2034, growing at a CAGR of 5.6% during the forecast period from 2025 to 2034.
- Mood Ingredients Market: The global mood ingredients market size is projected to witness strong growth from USD 252.06 million in 2025 to USD 471.25 million by 2034, reflecting a CAGR of 7.2% over the forecast period from 2025 to 2034.
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- Alcohol Ingredients Market: The global alcohol ingredients market size is rising from USD 3.17 billion in 2025 to USD 5.49 billion by 2034. This projected expansion reflects a CAGR of 6.3% during the forecast period from 2025 to 2034.
- Wheat Protein Ingredients Market: The global wheat protein ingredients market size is projected to witness strong growth from USD 6.44 billion in 2025 to USD 9.33 billion by 2034, reflecting a CAGR of 4.2% over the forecast period from 2025 to 2034.
- Food Ingredients Market: The global food ingredients market size is projected to expand from USD 368.70 billion in 2025 to USD 567.09 billion by 2034, growing at a CAGR of 4.9% during the forecast period from 2025 to 2034.
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Specialty Food Ingredients Market: The global specialty food ingredients market size is projected to witness strong growth from USD 113.01 billion in 2025 to USD 179.87 billion by 2034, reflecting a CAGR of 5.3% over the forecast period from 2025 to 2034.
Top Companies in the Dairy Free Products Market:
- Gujarat Cooperative Milk Marketing Federation – Offers a diverse range of dairy-free beverages and plant-based alternatives, focusing on traditional and innovative products.
- Valio LTD – Specializes in lactose-free and plant-based dairy alternatives, with a strong emphasis on quality and innovation.
- Danone Company S.A. – Provides a wide portfolio of dairy-free products including plant-based yogurts and beverages targeting health-conscious consumers.
- Nestlé – Delivers a broad array of dairy-free and plant-based nutrition products across multiple categories worldwide.
- The Coca-Cola Company – Expands its portfolio with plant-based dairy alternatives and dairy-free beverages to meet rising consumer demand.
- Johnson & Johnson Services, Inc. – Focuses on nutrition and wellness products with plant-based and dairy-free options in health-focused segments.
- General Mills, Inc. – Offers dairy-free snacks, cereals, and plant-based alternatives emphasizing natural ingredients and sustainability.
- Lifeway Foods, Inc. – Specializes in probiotic and dairy-free fermented beverages and products.
- Lala U.S., Inc. – Provides dairy-free milk alternatives and plant-based dairy substitutes for the North American market.
- Organic Valley – Offers certified organic dairy-free and plant-based products emphasizing natural and sustainable farming practices.
- Dairy Farmers of America, Inc. – Expands its portfolio to include plant-based dairy-free products alongside traditional dairy.
- Dean Foods – Develops and markets a variety of dairy-free milk substitutes and plant-based beverages.
- Shamrock Foods – Supplies dairy-free and plant-based ingredients and products for foodservice and retail sectors.
- Saputo Inc. – Invests in dairy-free product lines, focusing on plant-based cheese and milk alternatives.
- Prairie Farms Dairy – Diversifies with dairy-free and plant-based beverages, catering to changing consumer preferences.
- Agri-Mark, Inc. – Introduces plant-based dairy substitutes alongside traditional dairy offerings.
- SmithFoods, Inc. – Provides dairy-free alternatives with an emphasis on innovation in plant-based nutrition.
- Granlatte Societa Cooperativa Agricola ARL – Offers a range of dairy-free products developed with cooperative farming principles.
- Meggle – Produces dairy-free dairy substitutes including creamers and milk alternatives.
- Drums Food International Pvt Ltd (India) – Focuses on plant-based dairy-free products to cater to the growing vegan and lactose-intolerant population in India.
Segments Covered in the Report
By Type
- Milk
- Ice creams
- Yogurt
- Probiotic
- Cheese
- Cheddar
- Cottage
- Hard
- Soft
By Form
- Lactose-free
- No added sugar products/ reduced sugar claims
- Reduced lactose products
By Category
- Organic
- Inorganic
By Region
North America
- U.S.
- Canada
Asia Pacific
- China
- Japan
- India
- South Korea
- Thailand
Europe
- Germany
- UK
- France
- Italy
- Spain
- Sweden
- Denmark
- Norway
Latin America
- Brazil
- Mexico
- Argentina
Middle East and Africa (MEA)
- South Africa
- UAE
- Saudi Arabia
- Kuwait
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About Us
Towards FnB is a global consulting firm specializing in the food and beverage industry, providing innovative solutions and expert guidance to elevate businesses. With an in-depth understanding of the dynamic F&B sector, we deliver customized market analysis and strategic insights. Our team of seasoned professionals is committed to empowering clients with the knowledge needed to make informed decisions, ensuring they stay ahead of market trends. Partner with us as we redefine success in the rapidly evolving food and beverage landscape, and together, we’ll navigate this transformative journey.
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