Australia Non-Dairy Milk Market Outlook

According to a report by Expert Market Research (EMR), the Australia non-dairy milk market size attained a value of USD 351.28 million in 2023. Propelled by an increasing preference for plant-based diets, heightened awareness of lactose intolerance, and rising environmental concerns, the market is projected to grow at a compound annual growth rate (CAGR) of 9.1% between 2024 and 2032, reaching an estimated value of USD 773.49 million by 2032.

Non-dairy milk refers to milk alternatives made from plants, such as almonds, soy, oats, and coconuts. These alternatives have gained significant popularity as consumers increasingly seek options that align with their health and ethical values. In Australia, non-dairy milk has become a mainstream choice among health-conscious consumers, people with lactose intolerance, and those adhering to vegan or flexitarian diets. As sustainability concerns and the desire for clean-label products grow, the non-dairy milk market continues to expand, with a variety of options available to cater to diverse consumer preferences.

Health-Conscious Consumers and Rising Lactose Intolerance

One of the key drivers of the Australia non-dairy milk market is the rising awareness of health and wellness among consumers. Many people are turning to plant-based milk as a source of nutrients without the cholesterol and saturated fats associated with cow’s milk. Plant-based milks often contain fewer calories and are rich in essential vitamins, minerals, and antioxidants, making them an attractive alternative for those looking to maintain a balanced diet.

Lactose intolerance is also widespread among Australians, contributing significantly to the demand for non-dairy milk. Individuals with lactose intolerance lack the enzyme lactase, which is necessary for digesting lactose, the sugar found in dairy milk. Non-dairy milk provides an ideal solution, offering a lactose-free option that is gentler on the digestive system. With an estimated 4-6% of Australians affected by lactose intolerance, the availability of various plant-based milks has created more accessible choices for people seeking a dairy-free lifestyle.

Furthermore, the rising incidence of allergies to milk proteins, including casein and whey, has spurred the market. For individuals with dairy allergies, non-dairy milk provides a safe and nutritious alternative, particularly as it is fortified with calcium and other essential nutrients.

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Veganism, Flexitarianism, and Ethical Consumption

The rise of veganism and flexitarian diets in Australia has fueled the growth of the non-dairy milk market. Veganism has steadily gained traction, with an increasing number of Australians choosing plant-based diets for health, ethical, and environmental reasons. Flexitarianism, which encourages a predominantly plant-based diet with occasional inclusion of animal products, is also popular in Australia. Both dietary movements have contributed to the popularity of non-dairy milk, as consumers look for sustainable and ethical choices that align with their values.

Environmental awareness is another important factor driving the non-dairy milk market. Conventional dairy production has significant environmental impacts, including greenhouse gas emissions, deforestation, and high water usage. In contrast, plant-based milks, particularly those made from almonds, oats, and soy, have a comparatively lower environmental footprint. This shift toward environmentally friendly products is particularly relevant among younger consumers, who are more likely to support brands and products that prioritize sustainability. As environmental concerns continue to shape consumer behavior, the non-dairy milk market in Australia is poised for steady growth.

Diverse Product Offerings and Innovation

The Australia non-dairy milk market is characterized by a broad range of products tailored to meet diverse consumer needs. Almond milk and soy milk are among the most popular options, thanks to their versatility and nutrient profile. Almond milk is known for its low-calorie content and high vitamin E levels, while soy milk is rich in protein, offering a nutritious alternative to dairy milk. Additionally, oat milk has gained popularity in recent years due to its creamy texture, environmental benefits, and suitability for coffee-based beverages, particularly in cafes and specialty coffee shops.

Innovations within the non-dairy milk sector continue to drive market expansion. Manufacturers are developing fortified plant-based milks enriched with essential nutrients, such as calcium, vitamin D, and vitamin B12, to address any potential nutritional gaps for those who avoid dairy. Additionally, unsweetened and sugar-free versions have become more common as consumers demand options with minimal added sugars and preservatives.

Flavored non-dairy milks, such as vanilla, chocolate, and matcha, have also seen a rise in popularity, particularly among younger consumers. This trend towards product diversity has allowed manufacturers to cater to a wide range of taste preferences, dietary restrictions, and nutritional requirements, thereby driving market growth.

Growing Adoption in Foodservice and Retail Channels

The foodservice sector in Australia non-dairy milk market, particularly as consumer demand for plant-based options has increased. Cafes, restaurants, and fast-food chains now commonly offer plant-based milk options for coffee, smoothies, and other beverages. This shift is largely attributed to Australia’s vibrant coffee culture, where milk-based beverages such as lattes and flat whites are a staple. As consumers increasingly request plant-based alternatives for their coffee, foodservice providers have responded by expanding their non-dairy milk offerings.

The retail sector is also witnessing significant growth in the availability of non-dairy milk. Supermarkets and grocery stores have expanded their selection of plant-based milks, often devoting entire sections to non-dairy alternatives. This increased visibility in retail settings has made non-dairy milk more accessible to mainstream consumers and has driven greater brand awareness. Major brands and private labels alike have expanded their offerings to include a range of non-dairy milk options, from conventional almond and soy to newer options such as cashew, macadamia, and hemp milk.

Additionally, the COVID-19 pandemic has accelerated demand for non-dairy milk in the retail sector as more consumers turned to home cooking and healthier dietary choices. This trend is expected to continue post-pandemic as consumers prioritize health, wellness, and sustainable options in their everyday lives.

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Australia Non-Dairy Milk Market Segmentation

The market can be divided based on by type, end-use, distribution channel and region.

Market Breakup by Type

• Soy Milk
• Almond Milk
• Coconut Milk
• Cashew Milk
• Hazelnut Milk
• Oat Milk
• Hemp Milk
• Others

Market Breakup by End Use 

• Yoghurt 
• Ice Creams 
• Milk 
• Creamers
• Cheese
• Others

Market Breakup by Distribution Channel

• Hypermarkets/Supermarkets
• Convenience Stores 
• Online Channels
• Others 

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Western Australia
• Australian Capital Territory
• Others

Competitive Landscape

Some of the major players explored in the report by Expert Market Research are as follows:

• Fortune Soy Manufacturer Pty Ltd.
• Q.S.F (Qld) Pty Ltd.   
• Chobani Global Holdings, LLC 
• Inside Out Nutrients Goods Pty Ltd.  
• Califia Farms, LLC    
• Australian Health and Nutrition Association Ltd. 
• Noumi Trading Pty Ltd
• Others 

Challenges and Market Outlook

Despite its robust growth trajectory, the Australia non-dairy milk market faces several challenges. One major challenge is the higher cost of plant-based milk compared to traditional dairy milk. This price disparity can make non-dairy options less accessible for some consumers, particularly as inflationary pressures impact food prices. However, as production processes become more efficient and competition among brands intensifies, prices may decrease over time, making non-dairy milk more affordable.

Another challenge is the potential for allergenic reactions to certain plant-based milks, such as almond milk and soy milk. Manufacturers must address these concerns by offering a variety of non-dairy options to cater to individuals with specific allergies or dietary restrictions. Furthermore, the taste and texture of plant-based milk may not fully replicate that of dairy milk, which can deter some consumers from making the switch. However, ongoing advancements in food technology are improving the taste and texture of non-dairy milks, helping them to more closely mimic the characteristics of dairy.

Overall, the outlook for the Australia non-dairy milk market remains positive. As health trends, environmental awareness, and dietary preferences continue to shift toward plant-based options, non-dairy milk is expected to remain a popular choice among Australian consumers. Continued innovation, greater availability, and increased consumer education about the benefits of plant-based diets will likely drive sustained market growth in the coming years.

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