plant-based food & beverages market is projected to register a CAGR of 10.92% and reach a value of USD 40,697.2 million by 2028
Global plant-based food & beverages market is projected to register a CAGR of 10.92% and reach a value of USD 40,697.2 million by 2028. Plant-based food & beverages refer to foods consisting of or completely derived from plant-based ingredients such as fruits, vegetables, legumes, nuts, and grains. They do not contain any animal-based ingredients and are thus preferred by consumers adopting a vegetarian or vegan diet.
COVID-19 Impact Analysis
The advent of the pandemic COVID-19 has created a global crisis. It has created an economic backdrop worldwide. With over 2.7 million COVID-19 cases worldwide and 193,000 fatalities during the fourth week of April 2020, the pandemic is deemed to create a chaotic environment, thereby resulting in the advent of global rescission. With the rising cases, the global plant-based food & beverages market is getting affected many ways.
The outbreak of COVID-19 has hit the plant-based food & beverages market with mandatory closures of supermarkets & hypermarkets, convenience stores, and others selling plant-based foods and beverages across the globe. The pandemic has lowered the production capacities of plant-based foods and beverages. Since the outbreak, mandatory closures of manufacturing facilities impacted the entire plant-based food & beverages industry. Lockdown restrictions have resulted in transportation woes that have ultimately impacted the availability of adequate manpower and raw materials supply. Owing to panic buyingoffood, stockpile of plant-based food & beverages has become common across the globe. However, the lack of availability of plant-based food & beverages stocks in retail stores is currently the biggest concern worldwide. The supply chain of plant-based food & beverages comprises manufacturers, distributors, and consumers. Owing to COVID-19 pandemic many countries are under lockdown. They have sealed their borders to curb the spread of the virus impacting the supply chain. Stringent lockdown restrictions in various countries have significantly impacted transportation. The retailers, such as supermarkets and hypermarkets and convenience stores selling plant-based food & beverages, are experiencing acute shortages despite having demand in certain regions due to these restrictions.
The global plant-based food & beverages market is expected to register significant growth during the forecast period. Plant-based food & beveragesare vegan friendly, and the products manufactured by the company are certified as vegan friendly. There are several factors positively or negatively affecting the market growth.
There has been a rise in the number of cases of lactose intolerance across the globe. Lactose intolerant people lack the enzyme lactase in their small intestine, which breaks down lactose into simpler sugars. Lactose intolerance includes an allergy to dairy products, deficiency of disaccharides, and lactase deficiency. Undigested or partially digested lactose leads to abdominal bloating, stomach pain, diarrhea, tiredness, sleep disturbances, vomiting, and other health problems. Estimates for lactose intolerance vary by ethnicity. African, American, and Asian ethnicities see a 75% - 95% lactose intolerance rate, while northern Europeans have a lower rate at 18% - 26% lactose intolerance.
Growing concern for animal welfare, human health, and the environment has led to the rising trend of veganism which has become mainstream now. Veganism is associated with various beneficial health effects such as better heart health, improved diabetes, and lower rates of obesity. Israel, Sweden, Japan, Poland, the US, Germany, and the UK have the largest concentration of vegans. The prevalence of social media and the explosion of vegan celebrities in recent years has played a major role in influencing people and proved as the main driving force behind the vegan movement. Thus, increasing the adoption of a vegetarian and vegan diet is majorly driving the growth of the global plant-based food & beverages market.
Soy and nut protein are major plant-protein sources with a wide range of applications in the food & beverages industry. However, proteins derived from plant sources with varying amino acid profilesoften have unpleasant tastes. Rice, pea, and chia are all very popular sources of plant-derived proteins, but they all have unique, inherent off-tastes, bitter notes, and vegetative aftertastes. This acts as a restraint for the acceptance of plant-based food & beverages among consumers.
The global plant-based food & beverages market has seen many product line expansions in recent years. Increased R&D expenditures and technological advancements have led to the emergence of innovative products in the market. With the growing stability of the vegetarian population at the global level and the assurance of the steady and mature vegetarian market in developed countries such as the UK, the US, Germany,and France, the food & beverages manufacturers have started concentrating more on the different plant-based product options and developing products with plant sources flavors.
By Product Type
Based onproduct type, the global plant-based food & beverages market has beendivided into plant-based milk & derivatives, plant-based milk, plant-based meat, bakery & confectionery, sweet & savory snacks, plant-based juices, RTD tea & coffee, and others. The plant-based milk & derivatives segmentis further broken down into plant-based milk, plant-based cheese, plant-based yogurt, plant-based butter, and others. The plant-based meat is further sub-segmented into tofu & tofu products, sausages & patties, seitan, tempeh, and others.The plant-based milk & derivativessegment accounted for the largest market share in 2020.Plant-based milk & derivatives are often marketed as wholesome and appropriate substitutes for dairy products.
By source, the global plant-based food & beverages market has been segmented as soy, wheat, pea, coconut, almond, cashew, and others. The peasegment is projected to exhibit the highest CAGR of11.46% during the forecast period.Peas are preferred vegan food sources and are increasingly known as agriculturally sustainable crops owing to theirnitrogen-fixing ability and low agronomic input requirements. Pea protein is largely used in bakery and sports nutrition.
By category, the global plant-based food & beverages market has been segmented as conventional and organic. The organicsegment is projected to exhibit a higher CAGR of 11.47% during the forecast period.This segment includes food & beverages produced with plant ingredients that are grown organically without the use of synthetic chemicals. These products are chemical-free as the ingredients are cultivated under stringent guidelines and supervision to maintain purity and low-to-zero chemical concentration.
By Distribution Channel
Based on distribution channel, the global plant-based food & beverages market has been segmented into store-based and non-store-based. The store-based segment is further bifurcated as supermarkets & hypermarkets, convenience stores, and others. The store-based segment accounted for a larger market share in 2020.The convenience of immediate delivery of the product through offline stores is aiding the segment growth.
Global Plant-Based Food & Beverages Market Share, by Region, 2020 (%)
Source: MRFR Analysis
By region, the global plant-based food & beverages market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World.Europeaccounted for the largest market share of 37.41% in 2020 and is also expected to register the fastestgrowth rate betweem 2021and2028. North Americawas the second-largest market in 2020 and is projected to exhibit a CAGR of 10.77% during the review period.
Europe is anticipated to be a lucrative region for manufacturers of plant-based food & beverages. The demand for plant-based food & beverages in the region is growing at an exponential rate. Consumers are increasingly opting for healthy and nutritious drink choices over high-calorie soft drinks. Advancement in technological upgrades positively impacts the growth of the plant-based food & beverages market in the European countries during the forecast period. Also, the increasing consumer preference towards organic and genetically modified (GM) free supply chains combined with an increasing number of flexitarians, vegetarian, and vegan diets are anticipated to boost the demand for plant-based food & beverages.
The Asia-Pacific plant-based food & beverages market accounted for the highest shareof the global market in 2020. China is the leading country-level market in the region, accounting for the largest market share during the review period. With over 60% of the world’s population that constitutes approximately 4.3 billion population, and strong dominance of the vegetarian market, the region is anticipated to create lucrative opportunities for plant-based food & beverage manufacturers during the forecast period.
The market comprises tier-1 players along with some local players with diverse product portfolios. Companies such as Tyson Foods, Inc, Danone SA, Nestlé S.A., General Mills, Inc., and Premier Foods Plc dominate the global market due to brand reputation, product differentiation, financial stability, and strong distribution network.The players focus on lowering their environmental footprint and investing in R&D along with strategic growth initiatives such as acquisitions and product launches to strengthen their market position and capture a large consumer base.
Prominent players in the global plant-based food & beverages market include 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), Del Monte Fresh Produce NA, Inc. (US), Amy’s Kitchen (US), and Blue Diamond Growers (US).
Few developments occurred in recent times, influencing the market growth of plant-based food & beverages are listed below:
Scope of the Report
Global Plant-Based Food & Beverages Market, by Product Type
Global Plant-Based Food & Beverages Market, by Source
Global Plant-Based Food & Beverages Market, by Category
Global Plant-Based Food & Beverages Market, by Distribution Channel
Global Plant-Based Food & Beverages Market, by Region
|Market Size||USD 40,697.2 Million|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Product Type, By Source, By Category, By Distribution Channel, and By Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||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), Del Monte Fresh Produce NA Inc. (US), Amy’s Kitchen (US)|
|Key Market Opportunities||Rising prevalence of Lactose Intolerance|
|Key Market Drivers||Increasing Adoption of Vegetarian and Vegan Diet|
Plant-Based Food & Beverages Market is expected to expand at 10.92% CAGR from 2021 to 2028
Plant-Based Food & Beverages Market Size is Expected to Reach USD 40,697.2 Million in 2028
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), Del Monte Fresh Produce NA Inc. (US), Amy’s Kitchen (US)
It is projected that the Europe Region will lead and drive market performance during the evaluation period.