The Shift Towards Plant-Based Dairy Alternatives: Key Developments
Chobani’s Bold Move into Oat-Based Products
In a significant step forward for plant-based options, Chobani made its first foray outside the traditional dairy category by launching oat-based products in 2019. Fast forward to May 2025, and the company boasts over ten SKUs under its Chobani Oatmilk brand. This innovative approach has positioned Chobani as a key player in the growing oat milk market, catering to consumers seeking lactose-free alternatives.
Acquisition Trends: Chobani and Daily Harvest
In May 2025, Chobani announced its acquisition of Daily Harvest, a US-based frozen-food company known for its range of smoothies, breakfast bowls, and savory meals. Founded in 2015, Daily Harvest is pioneering the retail frozen food space with its plant-based offerings and innovative pea-protein powder, allowing customers to easily create organic and vegan-friendly smoothies at home.
Danone’s Strategic Investments in Plant-Based Nutrition
French dairy giant Danone has been actively courting the dairy-alternative space for years. Recent moves include the acquisition of a majority stake in Kate Farms, a US-based business specializing in organic plant-based nutrition. Established in 2011, Kate Farms delivers nutritional shakes and tube-feeding products, making substantial strides in the health and wellness sector.
Danone’s investment history is extensive. The company first entered the plant-based mobility scene in 2016, acquiring WhiteWave Foods for $12.5 billion—this deal incorporated brands like Alpro and Silk into its portfolio. By 2018, Danone set an ambitious target to triple its plant-based business, aiming for €5 billion in sales by 2025. Investments in production capacity and product innovation have been key strategies to meet this goal, evidenced by their new building in DuBois, Pennsylvania, earmarked for plant-based food products.
Recent Ventures: From Nutrition to Innovation
In 2023, Danone took another step toward broadening its plant-based offerings by investing in Imagindairy, an animal-free dairy startup employing precision fermentation technology. This cutting-edge technique could redefine dairy alternatives, providing dairy proteins without animal sources. In November 2023, Danone also announced a collaboration with Else Nutrition, enhancing its specialized nutrition portfolio with plant-based infant formula options.
Other Major Players in the Dairy-Alts Sector
Dairy alternatives are not exclusive to Chobani and Danone. Companies like Arla, Lactalis, and General Mills are also making significant strides.
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Arla entered the plant-based drinks market in 2020 with its Jörd brand and ventured into plant-based spreads with Lurpak Plant Based in 2024. However, by January 2025, they decided to streamline their offerings by removing some branded products from the UK retail market.
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Lactalis, known for its Siggi’s yogurt, has been expanding into plant-based markets since announcing its commitment to plant-based products in 2019. They have also converted a Canadian milk production facility to produce plant-based alternatives.
- General Mills has explored the plant-based sector primarily through its Yoplait brand. Innovations include a coconut dairy alternative that became a first premium option in its market and recent tests of animal-free cream cheese made via precision fermentation.
Collaborations and Innovations Across the Industry
Key developments are emerging from various global players:
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Nestlé launched its Cowabunga line of animal-free dairy drinks in 2022 and has collaborated with Perfect Day to explore innovative dairy alternatives.
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Müller has invested in Yofix and is also planning to launch its first vegan product lineup.
- Kerry Group, with its Pure range, has been a leader in offering dairy-free products since 1994, showcasing long-term commitment.
A Collective Future in Dairy Alternatives
The dairy landscape is changing. As per trends, larger organizations are not just focusing on traditional dairy but are increasingly investing in plant-based alternatives. The convergence of health consciousness and sustainability is pushing consumers towards alternatives, and companies like Valio and Granarolo are pioneering localized plant-based offerings.
As these longtime dairy giants pivot to capitalize on this soaring demand, the shift toward alternative dairy products seems more than a trend; it’s quickly becoming fundamental to how we consume and experience food. For another layer of insight on your investment journey in this evolving market, stay tuned to the Extreme Investor Network for expert analysis and tips on emerging sectors in finance.