Nut Milk Market Outlook

According to the latest report by Expert Market Research (EMR), the global nut milk market size is expected to maintain a strong growth trajectory, driven by consumer preference shifts, technological advancements, and the rising popularity of plant-based dairy alternatives. The market was valued at USD 25.5 billion in 2023 and is projected to grow at a CAGR of 8.3% from 2024 to 2032, reaching an estimated value of USD 45.5 billion by 2032.

Nut milk, derived from a variety of nuts like almonds, cashews, hazelnuts, pistachios, and others, has gained significant traction in recent years due to its health benefits, versatility, and role as an alternative to traditional dairy products. Increasing concerns about lactose intolerance, rising consumer demand for plant-based diets, and growing awareness of sustainable food choices have been pivotal in shaping the market's demand dynamics. Additionally, nut milk has penetrated a diverse range of applications across the food and beverage industry, from beverages to bakery and dairy-free products, further broadening its market prospects.

The nut milk market is poised for expansion as consumers across the globe are increasingly incorporating plant-based alternatives into their diets, driven by environmental concerns, animal welfare, and health benefits. The market is also supported by innovation, with companies focusing on product diversification, the addition of nutritional supplements, and sustainable packaging solutions.

Nut Milk Market Size and Share

The global nut milk market reached a valuation of USD 25.5 billion in 2023 and continues to experience robust growth. The market's competitive landscape is marked by the presence of various nut milk categories, including almond milk, cashew milk, hazelnut milk, pistachio milk, and other regional varieties. Among these, almond milk dominates, holding the largest market share due to its affordability, versatility, and well-established consumer preference.

Almond milk accounted for approximately 42% of the market share in 2023, with other nut milk types like cashew and hazelnut milk also gaining traction due to their unique flavors and nutritional benefits. The market share distribution reflects the growing preference for a variety of plant-based alternatives as consumers explore diversification in their plant-based diets.

Regionally, North America is the leading market for nut milk, accounting for a significant market share driven by a high adoption rate of plant-based products and a well-developed retail distribution network. Europe follows closely behind, supported by consumer trends toward veganism, sustainability, and dairy alternatives. Meanwhile, Asia-Pacific is expected to witness the fastest growth during the forecast period, driven by the region's growing health-conscious consumer base, urbanization trends, and the popularity of plant-based diets.

The demand for nut milk in the Middle East and Africa (MEA) is also projected to grow steadily due to increasing awareness about lactose intolerance and the convenience of plant-based alternatives. Similarly, Latin America is likely to contribute to the market's growth, driven by the adoption of sustainable and innovative food solutions.

Drivers of Growth

Rising Demand for Dairy Alternatives: A significant driver of nut milk consumption is the global shift toward plant-based dairy alternatives. Lactose intolerance and milk allergies are becoming increasingly prevalent, leading many consumers to seek nut milk options as alternatives to traditional dairy.

Health-Conscious Consumer Behavior: The increasing consumer focus on health and wellness is driving demand for plant-based, low-fat, and nutrient-rich alternatives like nut milk. These beverages are considered heart-healthy, low in cholesterol, and beneficial for managing weight and cholesterol levels.

Environmental Sustainability: Growing consumer awareness about environmental sustainability is prompting demand for nut milk, which has a lower environmental footprint than traditional dairy farming. Nut milk production requires significantly less water and land compared to traditional dairy production, contributing to its adoption.

Innovation and Product Diversification: Nut milk manufacturers are continuously innovating by introducing fortified and flavored variations to cater to changing consumer preferences. Examples include adding calcium, vitamin D, and other nutritional supplements to meet health trends, as well as incorporating unique flavorings to appeal to diverse taste profiles.

Increasing Vegan and Plant-Based Diets: The global popularity of vegan, vegetarian, and plant-based diets is a strong growth driver for nut milk. These products are compatible with plant-based dietary patterns, making them an attractive choice among environmentally conscious and health-focused consumers.

Rising Distribution Channels: The development of efficient distribution networks has facilitated the availability of nut milk in both developed and emerging economies. The growth of e-commerce platforms and the expansion of retail channels have made it easier for consumers to access and purchase these products.

Nut Milk Market Trends

Functional and Fortified Nut Milks: Consumers are increasingly looking for functional beverages that offer additional health benefits. This has led to the development of nut milk fortified with essential nutrients such as vitamins (e.g., vitamin D and B12) and minerals (e.g., calcium) to support a balanced diet and improve overall health.

Plant-Based Innovation: Innovation continues to lead the nut milk market, with companies launching new flavors, blends, and formulations. Consumers are now opting for diverse nut milk varieties, including blends like almond-cashew milk, hazelnut-almond milk, and pistachio-coconut combinations, offering both taste and nutritional value.

Sustainability in Production and Packaging: Sustainability is a dominant trend in the nut milk market. Companies are focusing on sustainable sourcing, environmentally responsible production methods, and eco-friendly packaging to minimize their ecological impact. Biodegradable packaging solutions and plant-based cartons are gaining popularity.

Growth of Online Retail Channels: The digital transformation has enabled the online retail space to become a major distribution channel for nut milk. With the growing demand for home deliveries and the convenience of shopping, companies are investing in e-commerce platforms to expand their consumer base.

Convenient and Ready-to-Drink Options: There is a notable demand for convenient, ready-to-drink (RTD) nut milk products. Busy consumer lifestyles are driving the market for single-serve, on-the-go nut milk options in convenient formats like bottles and tetra packs.