The Global Plant-Based Food Ingredients Market is projected to register a CAGR of 9.88% and reach a value of USD 21,351.90 million by 2030. Plant-based ingredients refer to ingredients that are sourced through plants and are used as a primary raw material in food and beverages that are marketed as plant-based. These ingredients include soy, rice, almond, cashew, coconut, and oats. These ingredients are either used in their raw form or further processed into forms such as flour, oil, and milk for their application in various food industries. The proteins extracted from these plant-sources are also used as primary ingredients in the plant-based food. The adoption of these ingredients is increasing tremendously in the food industry, owing to the rising demand for plant-based food and beverages among consumers across the globe. The various industries wherein the plant-based ingredients are applicable include plant-based milk & derivatives (which includes retail products such as plant-based milk, plant-based cheese, plant-based ice cream, plant-based yogurt, and plant-based butter), bakery & confectionery, sweet & savory snacks, meat substitutes, fats & oils, and RTE & RTC meals.
COVID-19 Impact Analysis
The rapid proliferation of the COVID-19 pandemic has resulted in a global crisis. Impacting over 195 countries, the pandemic has already created an economic downfall worldwide. The global pandemic is deemed to create a chaotic environment, resulting in a global recession. With the rapidly increasing number of cases, the Global Plant-Based Food Ingredients Market is getting affected in many ways.
COVID-19 caused a sudden increase in demand for plant-based substitutes across the globe. Amidst the outbreak of the pandemic, many slaughterhouses have shut down. For instance, one of the largest meat producers, Tyson Foods, shut down two of its biggest pork plants in the US. Other competitors are facing similar scenarios. This has resulted in a gradual shift in demand for plant-based ingredients. The demand for plant-based food products is increasing at an exponential rate. In some regions, the demand is anticipated to reach the triple-digit growth rate. However, this growth rate is anticipated to be only for a temporary basis, during the global pandemic crisis. Many plant-based food manufacturers and plant-based food ingredient processors are seeing this global crisis as an opportunity to popularize the plant-based foods across the globe. The rising awareness among individuals regarding the growth of harmful diseases from the wet markets is certainly anticipated to make a dent on the red meat consumption and surge the demand for plant-based food, which in turn is fueling the growth of global plant-based food ingredients market.
Market Dynamics
The global plant-based food ingredients market is growing at a rapid pace owing to the rising health consciousness among the consumers towards healthy eating habits. The growing prevalence of lactose intolerance among the population across the globe is leading to an increased demand for non-dairy products. This has increased the sales of plant-based milk and derivatives. Additionally, growing consumer preference for a vegan and vegetarian diet is driving the growth of the global plant-based food ingredients market. However, poor sensory properties and allergic reactions associated with certain plant protein sources are likely to hamper the market growth.
Drivers:
There has been an increase in the number of cases of lactose intolerance across the globe. Lactose intolerant individuals 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 a 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. The presence of lactose intolerance across the globe has forced people to opt for alternatives to dairy-based milk and milk products, which has led to an increased sale of plant-based milk and derivatives
Restraint:
Soy and nut are the major plant-protein sources with a wide range of applications in the food & beverage industry. However, unpleasant tastes are often associated with proteins derived from plant sources with varying amino acid profiles. 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 among consumers. Moreover, a notable segment of the population is allergic to certain varieties of nuts such as walnuts, almonds, hazelnuts, and Brazil nuts. The allergic reactions caused by the consumption of nuts can range from mild to severe symptoms such as itchiness, rashes, eczema, and difficulty in breathing. As per Food Allergy Research & Education (FARE), peanuts and tree nuts (walnuts, almonds, cashews, pistachios, and pecans) are among the eight foods that account for nearly 90% of all food-allergic reactions annually in the US. Moreover, the estimated prevalence of nut allergies in the US is approximately 0.4%–0.6%. Thus, the poor sensory properties and allergen reaction associated with certain plant protein sources is a key factor that is expected to hinder the growth of the global plant-based food ingredients market during the forecast period
Opportunities:
The global plant-based food ingredients market has seen many product line expansions in recent years. The increased R&D expenditures and technological advances have led to the emergence of innovative products in the market. The growing stability of the vegetarian population worldwide and the assurance of the steady and mature vegetarian market in developed countries such as the UK, the US, Germany, and France are prompting the food and beverage manufacturers to focus on different plant-based product options and developing products with plant-sourced flavors. Several companies are expanding their consumer appeal by focusing on plant protein ingredients and staying away from animal ingredients wherever possible. Even the meat companies are expanding their product line with meat alternatives to cater to the vegetarian sector and avoid the risk of shutting out a growing area of the market. Plant-protein ingredients are gaining acceptance in the food application industry, such as bakery & confectionery, breakfast cereals, snacks, RTD beverages, and RTE & RTC meals, among others. Moreover, athletes and bodybuilders are also inclining towards the consumption of protein supplements, which is increasing the application of plant-protein ingredients in sports nutrition as well. In January 2020, a staggering 1,200 new vegan products were launched across the globe.
Challenges:
Although there has been an increase in terms of consumption of plant-based food, the preference for taste as well as cultural reasons limits the sales of certain plant-based food. For instance, the majority of the population regard superior taste as an important factor while purchasing food. Hence, even though Asian consumers have been used to consuming plant-based protein such as tofu, it is a different matter when it is in the form of a beverage. As such, there remains a need for plant-based beverages to appeal to local consumer tastes. Moreover, traditionally consumers are used to the taste of dairy milk, and adoption of plant-based milk would not be easy among the consumers. Strong marketing and promotional activities are required to be carried out by the manufacturers to create influence among the consumers in favor of their products. Thus, customer preference is expected to create a challenge for the players operating in the global plant-based food ingredients market during the forecast period
Segment Overview
By Source
By source, the market has been divided Soy, Pea, Rice, Almond milk, Cashew, Oats, Coconut and others. The soy segment accounted for the largest market share of 19.56% in 2020 whereas the pea segment is projected to record a CAGR of 10.43% during the forecast period.
By Category
In terms of the category, the Global Plant-Based Food Ingredients Market has been classified as conventional and organic. The conventional segment accounted for the largest market share of 73.55% in 2020 and is expected to grow at a rate of 9.73% during the forecast period.
By Application
Based on application, the Global Plant-Based Food Ingredients Market has been segmented into Plant-based milk & derivatives, Bakery & Confectionery, Sweet & Savory Snacks, Meat Substitutes, RTE & RTC Meals and Others. The plant-based milk & derivatives segment accounted for the largest market share of 44.11% in 2020, whereas the meat substitutes segment is estimated to register the highest growth rate of 10.27% during the forecast period.
Global Plant-Based Food Ingredients Market Share, by Region, 2020 (%)
Sources: MRFR Analysis
Regional Analysis
By region, the Global Plant-Based Food Ingredients Market has been divided into North America, Europe, Asia-Pacific and Rest of the world. Europe accounted for the largest market share of 35.37% in 2020, with a market value of USD 3,910.5 million; the market is expected to register a CAGR of 9.97% during the forecast period. North America was the second-largest market in 2020, valued at USD 3,500.9 million; the market is projected to exhibit a CAGR of 9.67%. However, the market in Asia-Pacific is expected to register the highest CAGR of 10.14%..
Europe
Europe accounted for the largest market share of 35.37% of the plant-based food ingredients market in 2020. The plant-based food ingredients market in the region is expected to register 9.97% CAGR during the forecast period. The demand for plant-based food ingredients in the region is growing at an exponential rate. 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 the plant-based food ingredients market in Europe. Additionally, there is a shift in consumer behavior towards plant-based food products owing to the growing popularity of international cuisines. Plant-based food products are becoming so mainstream in Europe that retailers are promoting plant-based food products on the same shelves, along with traditional dairy and other conventional food products.
North America
North America accounted for a market share of 31.66% of the plant-based food ingredients market in 2020. The market in the region is expected to register 9.67% CAGR during the forecast period. The increasing demand for plant-based food ingredients products in the region is attributed mainly to the rise in demand for nutritional foods and healthy diets. The concept of veganism and plant-based diet interest and enthusiasm is growing across North America. According to MRFR analysis, more than 9.5 million individuals in the US currently consume plant-based food products. According to data published by the Good Food Institute and Plant-Based Foods Association, the consumption of plant-based food products in the US, such as meat alternatives, plant-based eggs, and dairy alternatives, has outpaced conventional animal products and is growing at a six-times faster rate compared to animal products consumption.
Competitive Landscape
The market comprises tier-1 players along with some local players with diverse product portfolios. Companies such as Ingredion Inc. (US), Archer-Daniels-Midland Company (US), DuPont de Nemours, Inc. (US), Cargill Inc. (US) and Puris Proteins, LLC (US), dominates the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence
Prominent players in the Global Plant-Based Food Ingredients Market include Ingredion Inc. (US), Archer-Daniels-Midland Company (US), DuPont de Nemours, Inc. (US), Cargill Inc. (US), Puris Proteins, LLC (US), BI Nutraceuticals, Inc. (US), Olam International (Singapore), SunOpta Inc. (Canada), Döhler GmbH (Germany), and The Scoular Company (US).
Recent Developments
Few developments that occurred in recent times influencing the market growth of Plant-Based Food Ingredients Market are listed below:
Scope of the Report
Global Plant-Based Food Ingredients Market, by Product Type
Global Plant-Based Food Ingredients Market, by Category
Global Plant-Based Food Ingredients Market, by Application
Global Plant-Based Food Ingredients Market, by Region
Intended Audience
| Report Attribute/Metric | Details |
|---|---|
| Market Size | USD 21,351.90 million |
| CAGR | 9.88% |
| Base Year | 2021 |
| Forecast Period | 2022 - 2030 |
| Historical Data | 2020 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Source, Category, Application |
| Geographies Covered | North America, Europe, Asia-Pacific, and Rest of the World (RoW) |
| Key Vendors | Ingredion Inc. (US), Archer-Daniels-Midland Company (US), DuPont de Nemours, Inc. (US), Cargill Inc. (US), Puris Proteins, LLC (US), BI Nutraceuticals, Inc. (US), Olam International (Singapore), SunOpta Inc. (Canada), Döhler GmbH (Germany), and The Scoular Company (US) |
| Key Market Opportunities | New product launches and R&D Amongst major key Players |
| Key Market Drivers | Healthy eating is contributing |
Plant Based Food Ingredients Market Highlights:
Frequently Asked Questions (FAQ) :
Plant-Based Food Ingredients Market forecasts a CAGR of 9.88% by the year 2030.
Europe is the global market leader of the Plant-Based Food Ingredients Market.
People adapting to a healthier lifestyle by eating right like dairy-free, meat-free, and a balanced diet the world has seen an increase in the Plant-Based Food Ingredients Market.
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