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Potato Milk Market

ID: MRFR/FnB/10605-HCR
128 Pages
Pradeep Nandi
October 2025

Potato Milk Market Research Report Information By Consumer Group (Gen X, Gen Z, Millennials, and Baby Boomers) By Application (Hot Drinks, Smoothies, Bakery & Confectionery, Residential/Retail) By Distribution Channel (Store-Based and Non-Store Based) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) - Forecast Till 2035

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Potato Milk Market Infographic
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Potato Milk Market Summary

As per MRFR analysis, the Potato Milk Market Size was estimated at 3.157 USD Billion in 2024. The Potato Milk industry is projected to grow from 3.321 USD Billion in 2025 to 5.525 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 5.22 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Potato Milk Market is experiencing robust growth driven by health consciousness and sustainability trends.

  • North America remains the largest market for potato milk, reflecting a strong consumer preference for plant-based alternatives.
  • The Asia-Pacific region is emerging as the fastest-growing market, driven by increasing health awareness and dietary shifts.
  • Gen Z represents the largest consumer segment for potato milk, while Millennials are the fastest-growing demographic in this category.
  • Health benefits and sustainability concerns are key drivers propelling the adoption of potato milk, particularly in hot drinks and smoothies.

Market Size & Forecast

2024 Market Size 3.157 (USD Billion)
2035 Market Size 5.525 (USD Billion)
CAGR (2025 - 2035) 5.22%

Major Players

Oatly (SE), Alpro (BE), Danone (FR), PepsiCo (US), Nestle (CH), Ripple Foods (US), Califia Farms (US), Mooala (US), Potato Milk Co (CA)

Potato Milk Market Trends

The Potato Milk Market is currently experiencing a notable shift in consumer preferences towards plant-based alternatives. This trend appears to be driven by a growing awareness of health benefits associated with non-dairy options, as well as environmental considerations. As individuals increasingly seek sustainable and nutritious choices, potato milk emerges as a viable contender in the dairy substitute landscape. Its unique flavor profile and creamy texture may appeal to a diverse range of consumers, including those with lactose intolerance or dairy allergies. Furthermore, the versatility of potato milk in culinary applications enhances its attractiveness, potentially leading to increased adoption in various food products. In addition to health and sustainability factors, the Potato Milk Market seems to be influenced by innovations in food technology. Manufacturers are exploring new methods to enhance the nutritional profile and sensory attributes of potato milk, which could further bolster its market presence. The rise of social media and digital marketing strategies also plays a crucial role in promoting awareness and educating consumers about the benefits of potato milk. As the market continues to evolve, it is likely that collaborations between food producers and health organizations will emerge, fostering a deeper understanding of plant-based diets and their advantages. Overall, the Potato Milk Market appears poised for growth, driven by changing consumer behaviors and ongoing advancements in product development.

Health Consciousness

The Potato Milk Market reflects a growing trend towards health-conscious choices among consumers. Individuals are increasingly seeking alternatives that align with their dietary preferences, particularly those avoiding dairy. Potato milk, with its potential health benefits, is gaining traction as a nutritious option.

Sustainability Focus

Sustainability is becoming a pivotal factor influencing the Potato Milk Market. As environmental concerns rise, consumers are gravitating towards plant-based products that have a lower ecological footprint. Potato milk, being derived from a renewable resource, aligns well with this sustainability ethos.

Innovation in Product Development

Innovation plays a crucial role in shaping the Potato Milk Market. Manufacturers are actively exploring new techniques to enhance the flavor, texture, and nutritional value of potato milk. This focus on product development is likely to attract a broader consumer base.

Potato Milk Market Drivers

Health Benefits of Potato Milk

The Potato Milk Market is experiencing a surge in interest due to the health benefits associated with potato milk. Rich in vitamins and minerals, potato milk is perceived as a nutritious alternative to traditional dairy and nut-based milks. It is low in calories and fat, making it appealing to health-conscious consumers. Recent studies indicate that potato milk contains essential nutrients such as potassium and vitamin C, which contribute to overall well-being. As consumers increasingly seek plant-based options that align with their dietary preferences, the Potato Milk Market is likely to see continued growth. The rising awareness of lactose intolerance and dairy allergies further propels the demand for alternatives, positioning potato milk as a viable option for many individuals.

Innovation in Product Offerings

The Potato Milk Market is witnessing a wave of innovation as manufacturers explore new product offerings. Companies are developing flavored potato milk, fortified versions, and even ready-to-drink options to cater to diverse consumer preferences. This innovation is crucial in attracting a broader audience, particularly among younger consumers who seek variety and convenience in their dietary choices. Market data suggests that the introduction of innovative products can significantly boost sales and market share. As brands invest in research and development, the Potato Milk Market is expected to expand, with new entrants and established players alike striving to capture consumer interest through unique offerings.

Sustainability and Environmental Impact

The Potato Milk Market is gaining traction as consumers become more environmentally conscious. Potato cultivation generally requires less water and land compared to traditional dairy farming, making potato milk a more sustainable choice. The environmental impact of dairy production has come under scrutiny, leading consumers to seek alternatives that align with their values. Potato milk, being plant-based, offers a lower carbon footprint, which resonates with eco-friendly consumers. According to recent data, the plant-based milk segment is projected to grow significantly, with potato milk emerging as a key player. This shift towards sustainability is not merely a trend; it reflects a broader movement towards responsible consumption, which is likely to shape the future of the Potato Milk Market.

Increased Availability and Accessibility

The Potato Milk Market is experiencing increased availability and accessibility, which is driving consumer adoption. Retailers are expanding their plant-based product lines, making potato milk more accessible to a wider audience. This trend is supported by the growing presence of potato milk in supermarkets, health food stores, and online platforms. As consumers become more aware of the benefits of potato milk, the demand for easy access to these products is likely to rise. Market data shows that the convenience of purchasing potato milk online or in-store is a significant factor influencing consumer choices. This increased availability is expected to play a crucial role in the sustained growth of the Potato Milk Market.

Rising Vegan and Plant-Based Diet Trends

The Potato Milk Market is benefiting from the rising trend of veganism and plant-based diets. As more individuals adopt these lifestyles, the demand for dairy alternatives continues to grow. Potato milk, with its creamy texture and versatility, is becoming a favored choice among those seeking to eliminate animal products from their diets. Market Research Future indicates that the plant-based milk segment is projected to reach substantial growth, with potato milk playing a pivotal role. This trend is not just limited to dietary preferences; it reflects a broader cultural shift towards ethical consumption, which is likely to sustain the Potato Milk Market's expansion in the coming years.

Market Segment Insights

Potato Milk Market Consumer Group Insights

The Potato Milk Market segmentation, based on consumer group, includes gen x, gen z, millennials, and baby boomers. The Gen Z segment held the majority share in 2022 and is expected to be the fastest-growing segment during the forecast period. This is mainly owing to the increased Gen Z inclination towards potato milk food which in turn is contributing to its segmental growth. According to a Barclays study, Generation Z is ingesting 550% more plant-based milk than prior generations. Generation X, those born between the mid-1960s and the mid-1970s, are contrasted with this.

Born between 1996 and 2005, Generation Z is the post-millennial generation, and it appears that their choice for non-dairy over cow's milk may have something to do with their desire to be healthy. In addition to this finding, the study also discovered that, even in comparison to millennials, Generation Zen z are spending more time at the gym and less time in bars.

September 2023: The Swedish business Veg of Lund provides dairy-free options including milk beverages and smoothies. Additionally, it is creating meat substitutes. Products made by Veg of Lund are marketed under the name DUG. The company is swiftly launching its main product, the milk substitute DUG Potato drink, which was first offered in Sweden, and in several other nations.

Potato Milk Market Application Insights

The Potato Milk Market segmentation, based on application, includes hot drinks, smoothies, bakery, confectionery, and residential/retail. The hot drinks segment held the majority share in 2022 concerning the potato milk industry revenue. This is mainly owing to the increasing consumption of hot drinks such as tea and coffee across the globe. For instance, according to private consumer polling conducted by the National Coffee Association (NCA), coffee consumption in the United States has increased to a two-decade high as people brew up new post-COVID routines.

More Americans than any other beverage, including tap water, now consume coffee every day (66%), the highest percentage since NCA started keeping track of data. Since January 2021, coffee consumption has increased by over 14%. Americans' coffee consumption outside the home has climbed by 8% since January 2021, according to the Dig Insights/NCA Spring 2022 National Coffee Data Trends (NCDT) report. Coffee consumption at home is still higher than it was before the outbreak. Currently, 84% of coffee users had coffee at home the day before, up from 80% in January 2020.

Since the beginning of the pandemic, the consumption of espresso-based beverages, which are frequently prepared away from home, has increased by 30%, indicating both recovery from the COVID-19 pandemic and new growth.

Potato Milk Market Distribution Channel Insights

The Potato Milk Market segmentation, based on distribution channels, includes stored-based and non-store-based. The store-based segment dominated the potato milk industry revenue during the forecast period owing to increased consumer preference to purchase through stores as well as the wide availability of the products, which in turn would contribute to its segmental growth. As a part of this, in February 2022, The Swedish potato milk company Dug increased its market share in the UK, with the addition of three dairy substitutes in Waitrose.

Following an online debut with the retailer, its Barista, Original, and Unsweetened potato milk will roll out to 220 locations. The product also includes chicory fibre and pea protein, and according to the manufacturer, it is the first plant-based dairy substitute fortified with folic acid, with 15% of the daily necessary amount. Additionally included are calcium, vitamin D, riboflavin, and vitamin B12.

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Get more detailed insights about Potato Milk Market

Regional Insights

North America : Market Leader in Innovation

North America is the largest market for potato milk, holding approximately 45% of the global share. The region's growth is driven by increasing consumer demand for plant-based alternatives, health consciousness, and sustainability trends. Regulatory support for plant-based products further catalyzes market expansion, with initiatives promoting alternative dairy options. The U.S. and Canada are the primary contributors to this growth, with a strong focus on innovation and product development. The competitive landscape in North America is robust, featuring key players like Oatly, Ripple Foods, and Califia Farms. These companies are leveraging their established distribution networks and brand recognition to capture market share. The presence of major retailers and e-commerce platforms enhances accessibility, driving consumer adoption. As awareness of the environmental benefits of potato milk grows, more brands are entering the market, intensifying competition and innovation.

Europe : Sustainable Choices on the Rise

Europe is the second-largest market for potato milk, accounting for approximately 30% of the global share. The region's growth is fueled by a shift towards sustainable and healthy dietary choices, with consumers increasingly opting for plant-based alternatives. Regulatory frameworks in the EU support the development of sustainable food products, encouraging innovation in the dairy alternatives sector. Countries like Germany and the Netherlands are leading this trend, with significant market penetration. The competitive landscape in Europe is characterized by established brands such as Alpro and Danone, which are expanding their product lines to include potato milk. The presence of local startups also adds dynamism to the market, as they introduce innovative flavors and formulations. Retailers are increasingly stocking potato milk products, responding to consumer demand for diverse plant-based options. This competitive environment fosters continuous product development and marketing strategies aimed at health-conscious consumers.

Asia-Pacific : Emerging Market Potential

Asia-Pacific is an emerging powerhouse in the potato milk market, currently holding about 15% of the global share. The region's growth is driven by increasing health awareness, rising disposable incomes, and a growing trend towards plant-based diets. Countries like Australia and Japan are at the forefront, with consumers seeking healthier alternatives to traditional dairy products. Regulatory support for plant-based innovations is also gaining traction, further boosting market potential. The competitive landscape in Asia-Pacific is evolving, with both international and local brands entering the market. Companies like PepsiCo and Nestle are expanding their portfolios to include potato milk, while local startups are innovating with unique flavors and formulations. The region's diverse consumer preferences present opportunities for tailored marketing strategies, driving the adoption of potato milk products across various demographics. As awareness of the benefits of plant-based diets increases, the market is expected to grow significantly in the coming years.

Middle East and Africa : Growing Awareness and Adoption

The Middle East and Africa region is gradually emerging in the potato milk market, currently holding about 10% of the global share. The growth is primarily driven by increasing health consciousness and a shift towards plant-based diets among consumers. Countries like South Africa and the UAE are witnessing a rise in demand for dairy alternatives, supported by regulatory initiatives promoting healthier food options. The region's market is expected to expand as awareness of the benefits of potato milk grows. The competitive landscape in the Middle East and Africa is still developing, with a mix of local and international players entering the market. Companies are focusing on educating consumers about the nutritional benefits of potato milk, while also innovating with new flavors and formulations. Retail channels are expanding, making potato milk more accessible to consumers. As the market matures, competition is expected to intensify, leading to more diverse product offerings and marketing strategies.

Potato Milk Market Regional Image

Key Players and Competitive Insights

Major market participants are spending a lot of money on R&D to increase the range of their products, which will drive the Potato Milk Market's future expansion. Market participants are also launching new goods, concluding contracts, purchasing companies, raising funds, and collaborating with other organizations to increase their global reach. To grow and survive in a more cutthroat and competitive market climate, Potato Milk Market business competitors must provide affordable products.

One of the primary business strategies adopted by manufacturers in the global Potato Milk industry to benefit clients and expand the market of potato milk sector is to manufacture locally to reduce operating costs. In recent years, Potato Milk Market has provided enormous benefits to its consumers.

Key Companies in the Potato Milk Market market include

Industry Developments

July 2023:  Haofood Shanghai Food Technology Co., Ltd. and Veg of Lund has been signed a letter of intent ("LOI"). During the first quarter of 2024, the businesses will collaborate with the aim of marketing, selling, and distributing Veg of Lund products in China and a few other countries in the region under the DUG brand.

Future Outlook

Potato Milk Market Future Outlook

The Potato Milk Market is projected to grow at a 5.22% CAGR from 2024 to 2035, driven by rising plant-based consumption, sustainability trends, and innovative product development.

New opportunities lie in:

  • Expansion into ready-to-drink potato milk beverages
  • Development of fortified potato milk products targeting health-conscious consumers
  • Partnerships with food service providers for exclusive potato milk offerings

By 2035, the Potato Milk Market is expected to achieve substantial growth and market penetration.

Market Segmentation

Potato Milk Market Application Outlook

  • Hot Drinks
  • Smoothies
  • Bakery
  • Confectionery
  • Residential/Retail

Potato Milk Market Consumer Group Outlook

  • Gen X
  • Gen Z
  • Millennials
  • Baby Boomers

Potato Milk Market Distribution Channel Outlook

  • Store-Based
  • Non-Store Based

Report Scope

MARKET SIZE 20243.157(USD Billion)
MARKET SIZE 20253.321(USD Billion)
MARKET SIZE 20355.525(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)5.22% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesGrowing consumer demand for plant-based alternatives drives innovation in the Potato Milk Market.
Key Market DynamicsRising consumer demand for plant-based alternatives drives innovation and competition in the potato milk market.
Countries CoveredNorth America, Europe, APAC, South America, MEA

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FAQs

What is the projected market valuation of the Potato Milk Market by 2035?

The Potato Milk Market is projected to reach a valuation of 5.525 USD Billion by 2035.

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