U.S. Dairy Alternatives Market To Witness Massive Growth By 2030

U.S. Dairy Alternatives Market Summary

The U.S. dairy alternatives market size was valued at USD 7.27 billion in 2024 and is anticipated to grow at a compound annual growth rate (CAGR) of 12.0% from 2025 to 2030. The market's expansion is primarily driven by the increasing number of health-conscious individuals and the widespread prevalence of lactose intolerance across the country. Additionally, the rising popularity of vegan and plant-based diets is contributing significantly to this growth. As reported by the World Population Review in 2024, approximately 36% of the U.S. population is lactose intolerant. The increasing availability of a wide variety of dairy alternative products that cater to diverse dietary preferences and needs is further accelerating market growth across the nation.

An increasing number of health-focused consumers are actively seeking substitutes for conventional dairy products, with preferences leaning toward options that are lower in calories, saturated fats, and cholesterol. According to the United Health Foundation, around 36.9% of Americans have reported high cholesterol levels. In response to these health concerns, plant-based dairy alternatives such as almond milk, oat milk, and soy milk have emerged as popular choices, viewed by many as healthier and more nutritious alternatives to traditional dairy.

Key Market Trends & Insights

• In terms of source, almond-based dairy alternatives dominated the U.S. market in 2024, accounting for a revenue share of 41.9%. Almonds are favored due to their nutritional advantages, mild flavor profile, and sustainable cultivation practices. Their wide applicability in various dairy-free products, including milk, yogurt, and creamers, makes them a leading ingredient within the industry.
• The dairy alternative milk segment held a dominant revenue share of 65.7% in 2024. This demand is driven by growing health awareness, concerns regarding animal welfare, and the environmental impact of traditional dairy farming. As more consumers become mindful of their health and ethical consumption, plant-based milk options continue to gain popularity, solidifying their position as the core of the dairy alternatives market.
• Sales through supermarkets and hypermarkets accounted for around 41.2% of the U.S. revenue in 2024. These retail channels remain essential to market growth due to their wide product offerings, in-store visibility, and ease of access. Supermarkets serve as a crucial point of entry for consumers new to plant-based diets, promoting trial and repeat purchases of dairy alternative products.
• The online retail channel for dairy alternatives is projected to grow at a CAGR of 12.8% from 2025 to 2030. This rapid growth is supported by rising consumer demand for convenient access to plant-based products. In addition to health and dietary concerns, ethical issues related to animal welfare and environmental sustainability are also motivating consumers to purchase dairy alternatives through digital platforms that offer diverse options and home delivery services.

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Market Size & Forecast

• 2024 Market Size: USD 7.27 billion
• 2030 Projected Market Size: USD 14.28 billion
• CAGR (2025 - 2030): 12.0%

Key Companies & Market Share Insights

Many brands in the U.S. dairy alternatives industry have identified untapped opportunities within their product lines and are taking steps to address these market gaps. This often involves developing new product designs or marketing campaigns to meet consumer needs and preferences better.

Key Players

• Chobani, LLC
• Danone S.A.
• Hain Celestial
• Daiya Foods
• Eden Foods
• SunOpta
• Melt Organic
• Oatly AB
• Blue Diamond Growers
• Ripple Foods
• Organic Valley
• Living Harvest

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Conclusion

The U.S. dairy alternatives market is experiencing robust growth driven by shifting consumer preferences toward health, sustainability, and ethical consumption. Rising lactose intolerance, increasing cholesterol concerns, and a growing adoption of vegan diets are compelling more Americans to choose plant-based options. Almond-based products and plant-based milk remain market leaders, supported by strong retail presence in supermarkets and expanding reach via online platforms. With continued product innovation and heightened health awareness, the market is set for significant expansion. As consumer behavior evolves, the dairy alternatives industry will play an increasingly central role in shaping the future of food consumption in the U.S.