The sector, which was valued at $9.8 billion in 2017 is forecast to grow at a CAGR [Compound Annual Growth Rate] of 12.4 percent until 2025.
The sharp rise in veganism is one of the reasons for the sector's growth, as well as lactose intolerance, dairy allergies, and the general growth of the beverage market.
This latest prediction is one of a slew of reports highlighting the growing shift towards non-dairy products. Research published last year suggested the alternative market is set to grow as teens increasingly turn away from milk. According to the research by Barclays in the UK, people between the ages of 16 and 24 (Generation Z) are consuming 550 percent more vegan milk than their older counterparts.
Traditional dairy companies would do well to learn from the success of the younger industry, according to a report by Rabobank, with Tom Bailey, Senior Analyst - Dairy, saying: "Global demand for dairy is expected to grow by 2.5 percent for years to come, with demand for non-fluid categories offsetting weak fluid milk sales.
"While it's not essential to diversify into dairy alternatives, it would be wise for the dairy industry to at least learn one thing from the success of dairy alternatives, which may be putting the consumer first and trading in the old grass-to-glass model for glass-to-grass."