Plant-Based Food & Beverages Market

Plant-based milk's insatiable demand will boost market growth.

Food and beverage manufacturers all over the world have been working hard to improve both existing and new products. The primary goal of various improvements in the food and beverage landscape is to better align with consumers' current dietary preferences, i.e. additional health benefits with no compromise in terms of taste. One such breakthrough is plant-based milk, which has been widely recognised by the majority of health-conscious consumers worldwide. The demand for plant-based milk is increasing at an alarming rate, creating untapped potential for plant-based beverage manufacturers. Thus, driving the market CAGR.

Beverages and drinks are no longer just thirst quenchers in the modern era. Instead, customers are constantly on the lookout for detailed functionality in the beverages they consume, which is a key factor driving the growth of the plant-based beverages market. Furthermore, rising cases of lactose intolerance are causing a massive shift towards plant-based milk; bode well for the growth of the plant-based beverages market revenue.

The increasing awareness of health and wellness among consumers appears to be a primary driver of the Global Plant-Based Food and Beverages Market Industry. As individuals seek to adopt healthier lifestyles, they are gravitating towards plant-based alternatives that offer nutritional benefits without the drawbacks associated with animal products. This trend is reflected in the projected market value of 26.5 USD Billion in 2024, indicating a robust demand for products that align with health-conscious choices. Moreover, the rise in chronic diseases linked to dietary habits further fuels this shift, as consumers actively seek out plant-based options to mitigate health risks.

The expansion of diverse product offerings within the Global Plant-Based Food and Beverages Market Industry is a notable driver of growth. Manufacturers are innovating to create a wide range of plant-based products, from meat substitutes to dairy alternatives, catering to various dietary preferences and restrictions. This diversification not only attracts a broader consumer base but also encourages trial and adoption among those who may have previously been hesitant. The increasing availability of these products in mainstream retail channels further enhances accessibility, contributing to the anticipated compound annual growth rate of 8.12% from 2025 to 2035.

The Global Plant-Based Food and Beverages Market Industry is witnessing remarkable growth projections, with expectations to reach a value of 62.5 USD Billion by 2035. This growth trajectory is underpinned by various factors, including rising health consciousness, environmental sustainability, and technological advancements. The market is anticipated to experience a compound annual growth rate of 8.12% from 2025 to 2035, indicating a robust expansion phase. Such projections highlight the increasing consumer demand for plant-based alternatives, which are becoming integral to modern diets. This growth not only reflects changing consumer preferences but also the industry's ability to innovate and adapt to market needs.

Technological advancements in food processing and production are playing a crucial role in shaping the Global Plant-Based Food and Beverages Market Industry. Innovations such as improved extraction methods and fermentation technologies are enabling the development of more palatable and nutritious plant-based products. These advancements not only enhance the sensory attributes of plant-based foods but also improve their nutritional profiles, making them more appealing to consumers. As a result, the market is poised for substantial growth, with an expected valuation of 26.5 USD Billion in 2024, driven by the continuous evolution of product quality and consumer preferences.

Concerns regarding environmental sustainability are increasingly influencing consumer choices within the Global Plant-Based Food and Beverages Market Industry. The production of plant-based foods generally requires fewer natural resources and results in lower greenhouse gas emissions compared to traditional animal agriculture. This awareness has led to a growing preference for plant-based diets, as consumers recognize the potential impact of their food choices on climate change. As a result, the market is expected to expand significantly, with projections indicating a value of 62.5 USD Billion by 2035. This shift towards sustainability reflects a broader societal movement towards eco-friendly practices.

Shifting consumer preferences towards plant-based diets are significantly impacting the Global Plant-Based Food and Beverages Market Industry. Younger generations, in particular, are more inclined to embrace plant-based options, driven by ethical considerations, health benefits, and environmental concerns. This demographic shift is fostering a culture of experimentation with plant-based foods, leading to increased demand for innovative products. As consumer preferences continue to evolve, the market is projected to experience a compound annual growth rate of 8.12% from 2025 to 2035, reflecting the growing acceptance and integration of plant-based diets into mainstream eating habits.

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Europe plant-based food & beverages market is expected to be a profitable location for plant-based food and beverage makers. The region's demand for plant-based food and beverages is increasing at an exponential rate. Customers increasingly prefer healthy and nutritious beverage options over high-calorie soft drinks. Over the projection period, technological advancements have a beneficial impact on the growth of the plant-based food and beverages market in European countries.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: PLANT-BASED FOOD & BEVERAGES MARKET SHARE BY REGION 2022 (%)

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

North American plant-based food & beverages market accounts for the second-largest market share due to factors like consumer awareness of the value of diets high in protein, rising health consciousness, a firmly established beverage sector, and higher adoption of technological advancements in the beverage and beverage industry, North America currently holds the top spot in the market for plant-based beverages. Further, the German plant-based food & beverages market held the largest market share, and the UK plant-based food & beverages market was the fastest growing market in the North American region

The Asia-Pacific plant-based food and beverage industry held the largest share of the worldwide market. China is the region's main country-level market, with the greatest market share throughout the review period. With over 60% of the world's population, or over 4.3 billion people, and strong vegetarian market domination, the area is expected to generate profitable prospects for plant-based food and beverage manufacturers during the projection period. Moreover, China plant-based food & beverages market held the largest market share, and the India plant-based food & beverages market was the fastest growing market in the Asia-Pacific region

Leading market players are spending a lot of money on R&D to increase their product lines, which will help the plant-based food & beverages market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market changes such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the plant-based food & beverages sector must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the plant-based food & beverages sector to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, plant-based food & beverages sector has provided medicine with some of the most significant benefits. The plant-based food & beverages market major player such as Tyson Foods Inc (Arkansas), Danone SA (France), Nestlé S.A. (Switzerland), General Mills Inc. (US), Clara Foods (US), Keystone Natural Holdings (US), Premier Foods Plc (UK) and others are Working to increase market demand by investing in research and development.

An American holding company for consumer-packaged goods with its headquarters in Chicago, Illinois, is Conagra Brands, Inc. (formerly ConAgra Foods). Conagra produces and marketing goods under numerous brand names that can be found in grocery stores, eateries, and other food-related businesses. The company's 2021 revenue placed it at position 331 on the 2022 Fortune 500. In May 2021, Conagra Brands added a new Suprême Plant-Based Burger to their lineup of Gardein meat substitutes in Canada.

Starbucks Company is a Seattle, Washington-based American chain of coffee shops and roasteries. It is the biggest chain of coffee shops in the world. Starbucks, which offered a larger range of coffee experiences, is often blamed for the growth of the second wave of coffee culture. Starbucks offers hot and cold beverages, espresso, caffe latte, full and loose-leaf teas, juices, Frappuccino drinks, pastries, and snacks. Whole-bean coffee, micro-ground instant coffee, juices, and pastries are also available. Certain products are available only during certain seasons or in a certain area.

The majority of locations offer free Wi-Fi Internet access, depending on the nation. In July 2021, Starbucks Canada boosted its selection of non-dairy products by introducing oat beverages as its newest plant-based item. Over the forecast period, it is predicted that the increasing use of plain plant-based milk in a variety of beverages will increase sales of plant-based beverages.