South America Dairy Alternatives Market to Reach US$ 2,159.25 million at a CAGR of 11.3% in 2028

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Market Size (2022): US$ 1,135.72 Mn

Forecast Market Size (2028): US$ 2,159.25 Mn

CAGR (2023–2028): 11.3%

Primary Growth Drivers: Rise in lactose intolerance and veganism, Growing health-conscious consumer base, Increasing demand for plant-based beverages

Key Trends: Growth in dairy-free innovations, Focus on clean-label products

Growth Opportunities: Expansion in plant-based dairy alternatives, Technological advancements in plant-based processing, Increasing demand in emerging markets

Base Value (2022)

US$ 1,135.72 Mn

Projected (2028)

US$ 2,159.25 Mn

CAGR (2023-2028)

11.3%

At 11.3% CAGR, the SAM Dairy Alternatives Market is projected to be worth US$ 2,159.25 million by 2028, says The Insight Partners

According to The Insight Partners’ research, the SAM dairy alternatives market was valued at US$ 1,135.72 million in 2022 and is expected to reach US$ 2,159.25 million by 2028, registering an annual growth rate of 11.3% from 2022 to 2028. Surging demand for functional dairy alternatives and product innovation are the critical factors attributed to the market expansion.

Nowadays, consumers are increasingly seeking functional benefits from the products they consume. They are looking for products with high nutrient content to fulfill their daily nutritional requirements. Consumers are rapidly switching to plant-based food. However, some consumers are concerned about the lack of protein content in plant-based foods. The manufacturers of dairy alternatives are developing that product to meet the requirements of potential consumers. Further, the dairy alternatives manufacturers also include functional ingredients, such as antioxidants, collagens, adaptogens, and nootropics, in their products to meet the rising demand for functional dairy alternatives. A manufacturer of plant-based lattes launched a new line of functional oat milk lattes with added ingredients such as collagen, adaptogen, and antioxidants. The oats milk latte is cold brew and is certified organic. The addition of functional ingredients enhances the popularity of the products and boosts their adoption among consumers. Thus, the surging demand for functional dairy alternatives is expected to drive the growth of the dairy alternatives market over the forecast period across the region.

On the contrary, high product price hurdles the growth of SAM dairy alternatives market.

Based on product type, the SAM dairy alternatives market is segmented into milk, ice cream, yogurt, cheese, and others. The milk segment held 69.5% market share in 2022, amassing US$ 789.72 million. It is projected to garner US$ 1,494.05 million by 2028 to expand at 11.2% CAGR during 2022–2028.

Based on source, the SAM dairy alternatives market is segmented into soy, almond, coconut, oats, and others. The almond segment held 45.5% market share in 2022, amassing US$ 516.37 million. It is projected to garner US$ 997.59 million by 2028 to expand at 11.6% CAGR during 2022–2028.

Based on distribution channel, the the SAM dairy alternatives market is segmented into supermarkets & hypermarkets, convenience stores, online retail, and others. The supermarkets & hypermarkets segment held 62.7% market share in 2022, amassing US$ 711.74 million. It is projected to garner US$ 1,339.40 million by 2028 to expand at 11.1% CAGR during 2022–2028.

Based on country, the SAM dairy alternatives market has been categorised into Brazil, Argentina, and rest of SAM. Our regional analysis states that Brazil captured 66.9% market share in 2022. It was assessed at US$ 760.14 million in 2022 and is likely to hit US$ 1,449.72 million by 2028, exhibiting a CAGR of 11.4% during the forecast period.

Key players dominating the SAM dairy alternatives market are Blue Diamond Growers; Califia Farms, LLC; Danone S.A.; Nestlé SA; Oatly Inc.; and Valio Ltd among others.