The global plant-based food market is poised for substantial growth, with a projected value of US$54.15 billion by 2023, marking a remarkable compound annual growth rate (CAGR) of 17.60% during the forecast period from 2022 to 2027.
Plant-based foods constitute a diverse range of food products crafted from natural plant ingredients. These foods are derived primarily from fruits, vegetables, nuts, oils, whole grains, and legumes, with the notable absence of animal-derived ingredients. A plant-based diet is celebrated for its lower cholesterol and saturated fat content, along with higher levels of folic acid, magnesium, and iron. Additionally, it is associated with a reduced risk of various health conditions, including certain cancers, diabetes, obesity, high blood pressure, heart disease, and metabolic disorders.
The plant-based food market is currently witnessing rapid growth, with a spectrum of producers, from startups to major consumer packaged goods (CPG) corporations, swiftly emerging. Plant-based alternatives to meat, eggs, and dairy products are gaining popularity due to their taste, price competitiveness, and wider accessibility. Factors such as concerns about animal-borne illnesses, increased health consciousness, and the preference for clean label and natural products are driving consumers toward plant-based food choices.
Segment Coverage
- By Type: The plant-based food market is categorized into four main segments based on type: Dairy, Meat, Egg, and Others. The dairy segment holds the largest share of the plant-based food market, driven by the increasing prevalence of milk allergies and lactose intolerance cases. The plant-based egg market is expected to grow at the highest CAGR, with plant-based eggs gaining popularity for being cholesterol-free and allergen-free, making them appealing to consumers with health-related concerns. Within the plant-based dairy segment, six product types are recognized: Milk, Cheese, Ice-cream, Butter, Yogurt, and Others. Among these, milk represents the dominant category, holding the highest market share. The plant-based dairy milk category further includes four product segments: almond, soy, rice, and others. The plant-based meat market is divided into six product segments: burgers, sausages, crumbles, nuggets, meatballs, and others.
- By Distribution Channel: The global plant-based food market is segmented by distribution channel into four categories: Supermarkets & Hypermarkets, Online, Convenience Stores, and Other Store-Based Retailers. Supermarkets & hypermarkets currently dominate the market with the largest share. However, the online segment is expected to exhibit the highest CAGR during the forecast period, driven by time-saving convenience for both consumers and retailers, along with the added comfort it offers to shoppers who can avoid traffic and the need to physically prepare for shopping.
Geographic Coverage
The report provides a comprehensive analysis of the plant-based food market based on geographical regions, including Asia Pacific, North America, Europe, and the Rest of the World (RoW). North America encompasses the US, Canada, and Mexico, while Europe includes the UK, Germany, France, Italy, Spain, and the Rest of Europe. Asia Pacific covers China, Japan, India, South Korea, and the Rest of Asia Pacific.
The Asia Pacific region currently dominates the market with the largest market share. The adoption of innovative technologies for product innovation, collaborations between domestic and international food companies, and increased government research and development (R&D) investments in the food sector are key factors propelling the Asia Pacific plant-based food market.
The North America plant-based food market is expected to grow at a significant CAGR, with the US leading the market due to concerns about the environmental impact of livestock production and the availability of meat alternatives. In the US market, plant-based foods are further segmented into eight categories: Milk, Meat, Creamer, Ice-cream, Butter, Cheese, Eggs, and Others.
Top Impacting Factors
Growth Drivers:
- Growing Vegan Population: The global rise in the vegan population, characterized by individuals who abstain from consuming meat, dairy products, eggs, honey, and other animal-derived ingredients, is a key driver for plant-based foods. A vegan diet is increasingly associated with health benefits, such as reduced risk of heart diseases, cancer, and other illnesses, driving the demand for plant-based products.
- Growing Grocery E-commerce Sales: The surge in grocery e-commerce sales, particularly during the COVID-19 pandemic, has played a significant role in the accessibility and availability of plant-based food products, further driving market growth.
- Favorable Government Initiatives: Government initiatives promoting healthy dietary choices and sustainability, along with the introduction of policies and regulations favoring plant-based food production and consumption, are contributing to market expansion.
- Emergence of Flexitarians: The emergence of flexitarian consumers, who are primarily omnivores but consciously incorporate plant-based foods into their diets, is expanding the consumer base for plant-based products.
Challenges:
- Comparatively Higher Price Range: Plant-based products often come with a price premium compared to their animal-based counterparts, which can be a deterrent for price-sensitive consumers.
- Significant Preference for Animal-Based Products: Many consumers still prefer animal-based products due to factors such as taste, nutritional profile, and protein content, posing a challenge to the widespread adoption of plant-based foods.
Trends:
- Increasing Usage of Artificial Intelligence (AI): Artificial intelligence is being used to develop plant-based products that closely mimic the taste and texture of animal-derived foods, addressing the taste barrier and driving consumer adoption.
- Rise in Social Media Marketing: Plant-based food companies are increasingly using social media marketing to create awareness and promote their products, reaching a wider audience and driving demand.
- Rising Popularity of Plant-Based Meat and Seafood: Plant-based meat and seafood alternatives are gaining popularity, driven by environmental concerns, health considerations, and the desire to reduce overfishing and ocean habitat impact.
- Emergence of 3D Printing Plant-Based Meat: Innovations in 3D printing technology are enabling the production of plant-based meat products with realistic textures, contributing to the growth of the market.
