Australia Dairy Alternative Market Report and Forecast 2024-2032

Australia Dairy Alternative Market Outlook

The Australia dairy alternative market size was valued at USD 536.48 million in 2023. The market is further projected to grow at a CAGR of 12.1% between 2024 and 2032, reaching a value of USD 1500.73 million by 2032.

Key Takeaways

• The amount of dairy and meat substitutes bought from Australian supermarkets and other food retailers increased by 14% in 2020–21, according to the Australian Bureau of Statistics (ABS).

• The per person consumption of dairy and meat substitutes was 20 grams per day in 2020-21, up 29% from 15 grams per day in 2018-19. Approximately 17 grams of this consumption per person per day came from dairy milk substitutes like soy milk or almond milk.

• The top 4 players occupying considerable market share are Nestle Australia Limited, Nutricia Australia Pty Limited, Blue Diamond Growers, PureHarvest, and Califia Farms, LLC.

The rise in dairy alternatives like almond milk from brands such as Almond Breeze and soy milk from Vitasoy is directly influenced by the increasing number of Australians with lactose intolerance or milk protein allergies.  Companies like Sanitarium Health Food Company offering products such as So Good soy milk are benefiting from the trend towards vegan and vegetarian diets in Australia. Moreover, innovative products like coconut milk yogurt from COYO and almond-based cheese from Botanical Cuisine are driving the Australia dairy alternative market growth.

Protein-fortified almond milk from brands like Australia's Own and soy milk enriched with pea protein from So Good target health-conscious consumers seeking additional protein in their diets. These formulations cater to fitness enthusiasts and individuals prioritising protein intake. Meanwhile, Oatly's oat milk fortified with vitamins and calcium and Vitasoy's soy milk enriched with Vitamin D or B12 exemplify dairy alternatives formulated with starch and essential nutrients. These products appeal to consumers looking for functional and health-promoting dairy substitutes with specific dietary requirements in mind.

Almond-based dairy alternatives, such as Almond milk, almond-based yogurt, almond cheese offered by Blue Diamond Growers and PureHarvest, hold a significant Australia dairy alternative market share due to their creamy texture and nutty flavor. Soy milk and cheese from brands like Vitasoy and Danone SA appeals to consumers seeking a good source of plant-based protein. As per industry reports, almond milk had a particularly rapid increase in apparent consumption, rising by 31% in the last two years, while soy milk increased by 16% over the same period.

Market Segmentation

Australia Dairy Alternative Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Source

• Almond

• Soy

• Oats

• Coconut

• Rice

• Hemp

• Others

Market Breakup by Formulation

• Plain

• Flavoured

Market Breakup by Nutrient

• Protein

• Starch

• Vitamin

• Others

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets

• Convenience Stores

• Online Channels

• Others

Market Breakup by Region

• New South Wales

• Victoria

• Queensland

• Australian Capital Territory

• Western Australia

• Others

Competitive Landscape

Market players are focused on expanding distribution channels, enhancing product quality, and addressing consumer preferences for clean-label and natural ingredients.

• Nestle Australia Limited 

• Nutricia Australia Pty Limited 

• Blue Diamond Growers 

• PureHarvest 

• Califia Farms, LLC 

• Others

Key Highlights of the Report