November 7, 2025 – In the Asia Pacific market, dairy and dairy alternatives are evolving, based on changing consumer preferences and values. As health and wellness continue to grow as important concerns for consumers, specialized and wholesome nutrition, as well as functional ingredients are increasingly incorporated into products to address various health and lifestyle goals. Ethical and sustainability issues are also top of mind for consumers globally, and innovations in dairy and dairy milk alternatives can build trust and loyalty by addressing these issues. Innova’s “Overview in Dairy & Dairy Alternatives in Asia Pacific” report explores the latest trends in dairy and dairy alternatives in the Asia Pacific food and beverage market.
Deliver Quality and Inclusivity
Diverse product bases, with their distinct physical and functional properties, are one avenue brands can explore to enhance sensory perception for consumers. In the Asia Pacific market, these bases can include soy, coconut, bovine, oat, almond, and goat. Each of these can be adjusted by formulators to achieve desired mouthfeel and flavors, catering to differing tastes and dietary preferences of consumers. Quality can also be elevated through advanced processing techniques, including UHT and low-temperature pasteurized milk. Sterilized, dried, and concentrated are other methods brands are exploring to enhance product appeal. Additionally, tailoring dairy products to different segments and their own specialized needs is another opportunity to support specific nutritional needs. These can include groups like children, older age, and intolerant individuals.
Balance Wholesome Nutrition & Sensory Satisfaction
40-45% of consumers in the Asia Pacific market would like to see creamy and rich textures across plant-based yogurts, milk, and cheeses. Enhancing these textures can help strengthen elements of indulgence and competitiveness of plant-based dairy products by mirroring the sensory appeal of traditional dairy products. Real ingredients and protein are also important claims that are driving purchasing decisions for Asia Pacific consumers. Highlighting these attributes not only tailors to consumers’ desires but also reinforces the trust and wholesomeness of product offerings.
Leverage Functional Ingredients & Ethical Practices
Incorporating functional ingredients like vitamins, minerals, and collagen emphasizes the shift towards functional indulgence, where dairy and dairy products can help consumers address their health and well-being concerns without compromising taste. For example, calcium, vitamin D, and collagen can help support bone and joint health, while the inclusion of vitamins, B6, and zinc targets immune health. Developing gut-focused dairy and dairy alternatives, with probiotic, prebiotic, and fiber, also boosts functional appeal. In addition, the clear communication of functional claims and health messaging also strengthens product positioning and supports transparency. In fact, 96% of consumers in Asia Pacific say that the communication of health benefits is a driver of their food and beverage choices.
Build Trust by Highlighting Ethical Practices
1 in 5 consumers in Asia Pacific cites animal protection as a major concern related to the protection of nature. As a result, emphasizing responsible dairy sourcing aligns with consumers around the ethical treatment of animals and climate impact. For example, Arla in the Philippines highlights its quality control guidelines and animal welfare values that communicate responsible practices for consumers.
Explore Flexible & Sustainable Formats
According to Innova’s food and beverage trends research, brands can enhance functionality and appeal with flexible, versatile packaging options. For example, spouted pouches, squeezable tubes, and resealable pouches are a few approaches brands are taking to amplify convenience and the overall user experience for consumers in the Asia Pacific market. Regarding format considerations, sustainable solutions are also consequential to brand appeal, as they help build credibility and trust. Recycled materials, compostable formats, and plant-based plastics help to support circular economy goals. For example, in Korea, Starbucks is testing plant-based plastic straws as paper alternatives.
Expand Flavor Innovation
Comforting and nostalgic flavors, such as vanilla, almond, and coffee, can be used in dairy and dairy alternative products to build emotional connections. The incorporation of popular flavors into product lines can be an effective strategy to enhance product attractiveness, as well as connect with consumers on a deeper level. In the Asia Pacific market, diversifying sweet profiles can also enhance appeal and product depth across categories. For instance, exploring dessert and bakery-inspired tastes, brown flavors, or nut and superfruit combinations can help brands broaden their offerings to address a wide spectrum of sweet profiles that cater to different consumer preferences. Herbal and floral flavors can also offer distinctive and fresh taste experiences, from the inclusion of botanical, spices, or floral notes.
What’s Next for Dairy and Dairy Alternatives in Asia Pacific?
Brands can extend plant-based offerings through bio-fermentation techniques. Beyond traditional nuts and grain bases, new innovative protein sources, such as yeast, can help expand the category and meet sustainability and novelty demands. There are also opportunities for brands to fortify dairy products with nutrients like omega-3 to help support holistic health goals. Dairy products are also evolving past traditional nutrition to include better-from-within benefits that support skin health.
This article is based on Innova’s Overview in Dairy & Dairy Alternatives in Asia Pacific report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more.