The dairy alternatives market is projected to reach $14.36 billion by 2022 - up from $7.37 billion in 2016.
According to a report by Reportlinker, the market is being driven by 'inclination toward a vegan diet' - as well as the increasing health consciousness among consumers and growing lactose intolerance.
The study claims that the market has been 'restrained' by the cost of raw materials.
Coconut milk is projected to be the quickest-growing segment during the outlook period.
According to the report: "One of the main drivers for the increase of the coconut milk segment is attributed to its increased application areas-ranging from confectionery, snacks, and yogurt to frozen dessert.
"Commercially, newer varieties of coconut milk in the form of coconut milk powder are being introduced, which further supports its development in the dairy alternatives market.
"Also, it is a good source of energy and offers nutrients including minerals, vitamins, and electrolytes."
When it comes to formulation, growing health concerns among consumers is driving the growth of flavored and unsweetened dairy alternatives.
These items will be aimed at health conscious people who refuse the usage of added artificial or natural sweeteners in their products.
North America is projected to be the fastest-growing region for dairy alternatives during the forecast period.
According to the report: "The North American dairy alternatives market is led by wide applications in food and beverage products, along with their health benefits.
"Growing health consciousness among consumers and the rising number of cases of lactose intolerance and milk allergies are fueling the market for dairy alternatives in this region."