Plant-based dairy market shows strong growth, but taste and availability remain key barriers, according to Roland Berger study

A new report from global consultancy Roland Berger outlines a robust growth trajectory for the plant-based dairy sector, driven by consumer interest in health, sustainability, and ethical food choices. According to the report, the combined retail market in Western Europe and North America reached €10.7 billion (US$11.6 billion) in 2023, up from €6.8 billion (US$7.4 billion) in 2019. This represents a compound annual growth rate of 12%.

Plant-based beverages are leading the segment, making up approximately 60% of total market value, followed by categories like yogurt and cheese. Despite this growth, plant-based dairy still accounts for only a fraction of the overall dairy market, valued at €33.6 billion (US$36.4 billion) in 2023.

While milk alternatives now have a 12% share of the traditional milk market, other categories such as yogurt, butter, and ice cream remain below 4%. However, the report points to significant untapped potential. For example, Finland’s per capita annual spending on plant-based dairy is €34.20 ($37.00), compared to just €5.90 ($6.40) in France – a sign that consumer preferences, brand availability, and market maturity vary widely.

According to a 2024 Roland Berger survey, 58% of consumers said they are open to switching to plant-based dairy. Yet major barriers remain: 57% of respondents cite poor taste and texture as key issues, 55% note limited in-store availability, and 37% believe the products are too expensive. Additionally, 29% are concerned about perceived over-processing.

Despite these hurdles, Roland Berger highlights the efforts of leading brands to address these concerns. Alpro (Danone) is expanding across categories, Oatly is focusing on oat milk, and Violife (Flora Food Group) is targeting cheese alternatives. These companies are investing in protein optimization, improving formulations, and expanding distribution to strengthen consumer recognition and appeal.

“The rise of plant-based dairy reflects a profound shift in consumer preferences towards sustainability and health, which paves the way for innovation and growth in the market,” said Alexander Belderok, Senior Partner at Roland Berger.

The report concludes that unlocking the full potential of the plant-based dairy market will require a targeted approach – focusing on recipe development, cost reduction, and broader consumer engagement to increase category penetration.