US Dairy Alternatives Market Report 2025
The adoption of flexitarian eating habits has led to increased usage of many segments of dairy alternatives.
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EXECUTIVE SUMMARY
- What you need to know
- Outlook for dairy alternatives
- Opportunities
- Consumers move away from non-dairy milk, while trying new dairy alternatives
- Graph 1: trended household usage of select dairy alternative products, 2020, 2023, 2025
- Baby Boomers are dedicated to non-dairy milk, while Millennials and Gen Z go for variety
- Graph 2: household usage of select dairy alternatives, by generation, 2025
- Reassure parents about the ingredients and production of dairy alternatives
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THE MARKET
- Consumers and the economic outlook
- Consumers’ grocery budgets are strained
- Foundational dairy alternative ingredients face threats from climate change
- Formulations based around ‘simple ingredients’ could reach dairy alternative users and non-users
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THE CONSUMER, INNOVATIONS AND OPPORTUNITIES
- Consumer fast facts
- Dairy alternative consumption has been rising since 2020
- Dairy alternative consumption has increased 16% in the last five years
- Graph 3: trended household use of dairy alternative products, 2020, 2023, 2025
- Dairy alternative use is expanding by reaching flexitarian consumers
- Dairy alternatives outpace meat substitute launches in the last five years
- Graph 4: share of plant-based dairy, meat substitute, dessert and beverage launches*, by category, 2020-25
- Dairy alternative launches expand their base ingredients
- Since 2020, more consumers have tried new dairy alternatives, while moving away from category staples like non-dairy milk
- Graph 5: trended household usage of select dairy alternative products, 2020, 2023, 2025
- Since 2020, more consumers have tried new dairy alternatives, while moving away from category staples like non-dairy milk
- Dairy alternative innovations reimagine nostalgic favorites
- Dairy alternative users keep the products in regular rotation
- Non-dairy milk leads, but dairy alternative cheese is a new draw for consumers
- Graph 6: dairy alternatives or products used by you or someone else in your household, 2025
- Non-dairy cheese launches target snacking and cooking
- Most DA users rely on dairy alternatives weekly
- Graph 7: frequency of consumption of non-dairy foods, 2025
- Traditional dairy alternatives and convenience items enjoy a rise in once per week consumption between 2023 and 2025
- Graph 8: trended analysis of once per week consumption of select dairy alternatives, 2023 vs 2025
- Young consumers would like more DA innovation
- Graph 9: attitudes toward dairy and dairy alternatives – any agreement with the statement “I’d like to see a larger variety of dairy alternative products (eg in sauces, ready-to-drink beverages),” by gender and generation, 2025
- International dairy alternative launches provide inspiration for category expansion
- Parents are key dairy alternative users, but they want to learn more about how the almond is milked
- Parents appreciate dairy alternatives that are versatile and convenient
- Graph 10: household usage of select dairy alternatives, by parental status, 2025
- Non-dairy milks highlight nutrition, but miss an opportunity for versatility
- Reassure parents about the ingredients and production of dairy alternatives
- Graph 11: any agreement with select attitudes about dairy and dairy alternatives – ingredients and production, by parental status, 2025
- Answer questions about ingredients with quantification
- Mooala highlights trustworthiness
- Leverage Baby Boomer non-dairy milk users as ambassadors to expand usage to more of their peers
- The evolution of the category is on display in generational purchases
- Graph 12: household use of select dairy alternatives, by generation, 2025
- Non-dairy milk is a weekly staple for Gen X and Baby Boomers
- Graph 13: frequency of consumption or use of non-dairy milk, by generation, 2025
- Can Baby Boomers influence their peers to try non-dairy milk?
- Graph 14: top two reasons for not using dairy alternative products, by generation, 2025
- Marketing can reach Baby Boomers by defying ‘old’ stereotypes
- Taste and health benefits of dairy alternatives entice users, but non-users still need convincing
- Taste and health are primary drivers for dairy alternative users
- Graph 15: reasons for using dairy alternative products, 2025
- Black and Hispanic households who use DAs see advantages in the products
- Graph 16: select reasons for using dairy alternatives, by race or ethnicity, 2025
- More dairy alternatives can put protein in the spotlight
- Taste helps to offset some of the perceived drawbacks of dairy alternatives
- Graph 17: any agreement to select attitudes towards dairy and dairy alternatives – flavor and satisfaction, by gender and age, 2025
- Dairy alternative innovations highlight texture and ‘satisfaction’
- Health desires help dairy alternatives appeal to specific groups
- Dairy alternative brands can encourage people with lactose intolerance or dairy allergy to try more alternatives
- Graph 18: types of dairy alternatives consumed by lactose intolerance or dairy allergy as a reason for using alternative products, 2025
- Dairy alternative ice cream can address a top topic among people posting about dairy allergy or lactose intolerance on social media
- European innovations showcase how dairy-free ice cream does not need to skimp on indulgence
- Nutrition messaging is paramount to retain current users and win over new ones
- Dairy alternative users are boosted by health claims
- Graph 19: select attitude towards dairy and dairy alternatives – any agree with the statement, “Health claims (eg reduced fat, vegan) make me feel better about my dairy alternative purchases,” by gender and age, 2025
- Develop dairy alternatives with the nutrition expectations of users in mind
- Graph 20: select types of dairy alternatives used in the household, by motivations to purchase a dairy alternative, 2025
- Blue Diamond Almond Breeze promotes almond milk as an ‘obvious choice’ when compared against whole milk
- Dairy alternatives have to prove nutrition to stand out to the general consumer
- Silk’s ‘Feel Planty’ good ads encourage people to swap milk for Silk
- Nutrition is a key message that could help non-users take another look at dairy alternatives
- Get to know the most dedicated dairy alternative users
- Two thirds of DA users use two or more types of DAs
- Variety, rather than veganism, motivates most of dairy alternative users who use four or more types
- Dairy alternatives are in frequent rotation for 4+ DA users
- Graph 21: dairy alternative consumption frequency, by repertoire of dairy alternatives consumed, 2025
- The most frequent usage is among those who use many types of DAs
- Graph 22: dairy alternative frequency (NET), by repertoire of types of dairy consumed, 2025
- Graph 23: consumption frequency of dairy alternatives exlcuding non-dairy milk (net), by repertoire of types of dairy consumed, 2025
- The advantages are clear to consumers who use 4+ types of DAs
- Graph 24: reasons for purchasing dairy alternative products, by repertoire types of dairy alternatives consumed, 2025
- The more types of dairy alternatives a user buys, the more likely they are to buy them from any type of store
- Graph 25: dairy alternative shopping behaviors, by repertoire of types of dairy alternatives consumed, 2025
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APPENDIX
- Market definition
- Consumer research questions
- Consumer research methodology
- Repertoire analysis methodology
- US generations
- Abbreviations and terms
The adoption of flexitarian eating habits has led to increased usage of many segments of dairy alternatives. Overall dairy alternative usage increased to 56% of US consumers who have someone that uses dairy alternatives in the household in 2025 from 40% in 2020.
Dairy alternative users are exploring the variety of available dairy alternative products. The top segment of non-dairy milk has seen a decline in consumption to 50% of dairy alternative users in 2025 from 74% in 2020. Instead, US consumers with someone in the household that uses dairy alternatives are using more non-dairy cheese on its own or as an ingredient in prepared meals or pizza. Reflecting flexitarian eating habits, these could be mixed and matched with animal products, such as topping a beef burger with dairy alternative cheese. Dairy alternative consumers also are buying newer dairy alternative products, including prepared meals made with a dairy alternative, desserts and nutrition drinks.
Further success will require continued commitment to products that taste good, are nutritious and share details about how they are made. Consumers expect nutritional parity at best – if not, superiority – with dairy. Protein will be a key asset as well as clean formulations that use simple, recognizable ingredients.
Consumers who are open to flexitarian diets are driving a rise in dairy alternative usage by exploring the range and convenience of dairy alternatives.
Adriana Chychula, Analyst
Market Definitions
This Report investigates household use of dairy alternatives which include:
- non-dairy milk (eg soy milk, oat milk) and non-dairy creamer
- non-dairy ice cream (eg Ben & Jerry’s non-dairy, Coconut Bliss) and other non-dairy dessert (eg Daiya frozen cheesecake)
- non-dairy yogurt (eg Kite Hill, So Delicious)
- non-dairy cheese shreds, slices or sauce (eg Daiya, Follow Your Heart, Siete Foods Cashew Queso)
- prepared meal containing a dairy alternative (eg Amy’s Vegan Lasagna)
- frozen pizza made with non-dairy cheese alternatives (eg Daiya, Tofurky)
- non-dairy nutrition meal replacement drink (eg Koia, Soylent)
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