The U.S. dairy alternatives market size was valued at USD 7.27 billion in 2024 and is anticipated to grow at a compound annual growth rate (CAGR) of 12.0% from 2025 to 2030. The market's expansion is primarily driven by the increasing number of health-conscious individuals and the widespread prevalence of lactose intolerance across the country. Additionally, the rising popularity of vegan and plant-based diets is contributing significantly to this growth. As reported by the World Population Review in 2024, approximately 36% of the U.S. population is lactose intolerant. The increasing availability of a wide variety of dairy alternative products that cater to diverse dietary preferences and needs is further accelerating market growth across the nation.

An increasing number of health-focused consumers are actively seeking substitutes for conventional dairy products, with preferences leaning toward options that are lower in calories, saturated fats, and cholesterol. According to the United Health Foundation, around 36.9% of Americans have reported high cholesterol levels. In response to these health concerns, plant-based dairy alternatives such as almond milk, oat milk, and soy milk have emerged as popular choices, viewed by many as healthier and more nutritious alternatives to traditional dairy.

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Key Market Trends & Insights

1) In terms of source, almond-based dairy alternatives dominated the U.S. market in 2024, accounting for a revenue share of 41.9%. Almonds are favored due to their nutritional advantages, mild flavor profile, and sustainable cultivation practices. Their wide applicability in various dairy-free products, including milk, yogurt, and creamers, makes them a leading ingredient within the industry.

2) The dairy alternative milk segment held a dominant revenue share of 65.7% in 2024. This demand is driven by growing health awareness, concerns regarding animal welfare, and the environmental impact of traditional dairy farming. As more consumers become mindful of their health and ethical consumption, plant-based milk options continue to gain popularity, solidifying their position as the core of the dairy alternatives market.

3) Sales through supermarkets and hypermarkets accounted for around 41.2% of the U.S. revenue in 2024. These retail channels remain essential to market growth due to their wide product offerings, in-store visibility, and ease of access. Supermarkets serve as a crucial point of entry for consumers new to plant-based diets, promoting trial and repeat purchases of dairy alternative products.