Canada Dairy Alternative Market Research Report, 2030

The multicultural population and varied food tastes of Canada have had a significant influence on the development of dairy substitutes there. There has been an increasing need for plant-based alternatives that cater to lactose-intolerant people and those adhering to vegan, vegetarian, or religious dietary practices, since Canada's population is made up of a diverse range of ethnic backgrounds, many of which historically consume less dairy. In Asian and Middle Eastern societies, where soy, rice, and almond-based beverages were already culturally significant, early adoption was especially prominent. The market eventually expanded from specialized health shops to major grocery stores and cafes, providing a wider range of items like coconut yogurt, cashew milk, and oat milk. The introduction of plant-based dairy products in Canada has faced numerous obstacles, such as the stranglehold of the traditional dairy lobby, the intricacy of the regulatory environment, and the scarcity of unique ingredients. Due to excessive manufacturing expenses and restricted shelf space in major retail chains, small and medium-sized businesses (SMEs) have had difficulty competing effectively, necessitating careful branding and consumer education. In spite of these difficulties, a number of local companies have been able to gain traction thanks to innovation and strategic alliances. Government initiatives have been instrumental in promoting the market for dairy substitutes. The revised Food Guide from Health Canada, which treats plant-based proteins and drinks equally to animal-based alternatives, has greatly increased consumer trust. the expansion of this industry is aided by funding for agri-food innovation and sustainability programs. Due to greater urbanization and more health-conscious cultures, British Columbia and Ontario lead the way in plant-based consumption, while consumer patterns differ from province to province. There has been increasing curiosity in Quebec, especially among younger generations. The cultural adoption of plant-based substitutes is further aided by indigenous dietary practices, which historically included very little dairy intake. According to the research report, "Canada Dairy Alternatives Market Research Report, 2030," published by Actual Market Research, the Canada Dairy Alternatives market is expected to reach a market size of more than USD 1.93 Billion by 2030. Growing consumer demands for plant-based, allergen-free, and environmentally friendly goods, along with encouraging government laws, are the driving forces behind this expansion. In changing consumer tastes away from conventional dairy, the revised Food Guide by Health Canada, which focuses on plant-based proteins and liquids, has been essential. Increasing public understanding of lactose intolerance, moral questions about animal agriculture, and the environmental effects of dairy farming are pushing more Canadians to seek alternatives. The Canadian dairy alternatives market is dominated by a few major companies, such as multinational corporations like Danone (which owns the Silk and So Delicious brands) and local brands like Earth's Own and Natura. These businesses are increasing their market penetration by utilizing strategic product innovation, broad distribution networks, and aggressive marketing. Relationships with major retailers and online marketplaces have improved product availability nationwide. There are many opportunities for innovation, especially in the creation of novel tastes, functional components (such as fortified or protein-rich alternatives), and cutting-edge fermentation methods. The environmentally aware Canadian consumer is also increasingly interested in sustainable packaging and clean-label items. Market credibility depends heavily on certification and compliance. Labels like vegan, gluten-free, organic, and non-GMO certifications enable consumers to make educated choices. The Canadian Food Inspection Agency (CFIA) promotes consumer trust and transparency in the market by enforcing regulatory compliance, notably in the areas of food safety regulations and label accuracy. Growing trends include the growth of pea protein and oat-based products, the spread of plant-based alternatives in food service establishments, and the rising popularity of flexitarians.

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The dairy alternatives sector in Canada is thriving, with consumer demand dictating product options from a variety of plant-based sources. One of the earliest and still most fundamental products in the industry is soy milk. Due to worries about allergens and GMOs, soy has maintained its appeal to health-conscious consumers, but its popularity has remained steady due to its great protein content and nutritional profile, which is quite similar to that of dairy milk. Due to its mild flavor, low calorie count, and widespread availability, almond milk has swiftly gained popularity among Canadian families. Almond milk is one of the most widely consumed dairy alternatives in the nation and is especially well-liked by city dwellers and those following weight management diets. But because almond farming uses water, there are sustainability issues that have caused some consumers to consider alternatives because of its creamy texture and tropical flavor, coconut milk is a favorite ingredient for cooking, particularly in Asian and Caribbean cuisines. It's also a crucial component of plant-based yogurts and sweets, giving them a creamy texture that mimics dairy. People adhering to ketogenic and paleo diets are drawn to it, even though it is high in saturated fat because it is one of the least allergenic alternatives, rice milk is a good choice for people who have allergies to nuts, soy, or gluten. Because of its sweet flavor and fine texture, it's less suited for coffee, but it's still a common ingredient in smoothies and cereals. It is frequently selected for kids and those with several dietary intolerances. In Canada, particularly among younger populations, oat milk has become a popular beverage in recent years. It has become a popular ingredient in homes and cafes due to its creamy texture, environmental advantages, and complementarity with coffee culture. The category of others encompasses novel sources like cashew, hemp, flax, and pea-based milks. The foundation of the market is made up of milk substitutes, with soy, almond, oat, and coconut milk being the most prevalent options available in stores. These plant-based milks are consumed by an increasing number of health-conscious consumers and flexitarians looking for low-cholesterol, low-fat alternatives, as well as by vegans and those who are lactose intolerant. Their usefulness in everyday diets is increased by their use in baking, cooking, and drinking. Due to innovations in texture, taste, and nutritional value, the market for yogurt substitutes has consistently expanded. These non-dairy yogurts, which are usually produced with an almond, coconut, or oat base, frequently contain extra probiotics and vitamins, providing health advantages akin to those of conventional yogurt. Customers who prioritize gut health and those who are looking for convenient, on-the-go breakfast alternatives are especially fond of them. Advances in fermentation technology that improve flavor and texture are helping plant-based cheeses make significant gains in the Canadian market. Nowadays, mainstream customers are more and more open to alternative cheese types like cream cheese, cheddar, and mozzarella. These cheeses appeal to vegans as well as those who are attempting to lower their saturated fat consumption without compromising taste. Particularly popular among millennials and Gen Z consumers, dairy-free ice creams are a rapidly expanding market. These frozen delights are created using coconut, almond, cashew, or oat milk and provide indulgence while having cleaner labels and frequently fewer allergens, making them a favorite snack for people with dietary restrictions. Creamers are also becoming popular, especially among the significant number of coffee consumers in Canada. There are many different flavors and formulations of plant-based creamers, including sugar-free options and functional mixtures with MCT oils or adaptogens added. The diverse change in Canadians' dairy consumption habits toward inclusive, plant-based choices is highlighted by the others category, which includes butter substitutes, sour cream alternatives, and whipped toppings. The majority of sales continue to be made through hypermarkets and supermarkets, which are still the primary distribution channels. Major shops such Metro, Loblaws, and Sobeys have made a lot of progress in growing their plant-based product lines, with whole sections devoted to dairy alternatives. The convenience of one-stop shopping, a large selection, and competitive pricing are what these outlets provide consumers. In addition, product visibility and in-store promotions are essential for raising brand awareness and encouraging impulsive purchases across a wide range of consumer demographics. Dairy substitutes are becoming more and more common in convenience stores to appeal to the busy lives of Canadians living in cities. These stores provide handy alternatives for customers searching for a quick dairy-free snack or drink, even though the selection is often less than at bigger retail establishments. This channel is especially vital in cities and transportation centers, where speed and convenience are paramount. In this industry, smaller packaging sizes and ready-to-eat formats such yogurt cups and single-serve milk cartons are particularly well-liked. The rise of e-commerce platforms such as Amazon, Instacart, and Walmart.ca has contributed to the exponential rise of online retail, which has been further fueled by the COVID-19 pandemic. With online purchasing, customers have unmatched convenience since they can browse product reviews, compare brands, and find a wider selection of niche and specialty items that aren't always offered in brick-and-mortar retailers. Direct-to-consumer (DTC) models from companies like Earth's Own or Silk, as well as subscription-based services, have become increasingly popular, offering consistent deliveries and fostering customer loyalty. Specialty health food shops, farmers markets, and foodservice establishments like cafes, restaurants, and institutional cafeterias fall under the category of others.

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Nikita Jabrela

Business Development Manager

Considered in this report • Historic Year: 2019 • Base year: 2024 • Estimated year: 2025 • Forecast year: 2030 Aspects covered in this report • Dairy Alternatives Market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Source • Soy • Almond • Coconut • Rice • Oats • Others

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By Product • Milk • Yogurt • Cheese • Ice Cream • Creamer • Others By Distribution Channel • Supermarket & Hypermarkets • Convenience Stores • Online retail • Others The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to this industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.