Plant-Based Beverages Market - Forecast(2023 - 2028)

Plant-Based Beverages Market Overview

Plant-Based Beverages Market size was estimated at $13.2 billion in 2020, projected to grow at a CAGR of 9.7% during the forecast period 2021-2026. Buyers are more likely to embrace vegan and cruelty-free goods, and there is an increase in lactose intolerance or milk protein intolerance, as well as food allergies, in the plant-based beverage sector. Plant-based beverages, often known as "plant-based milk" or "plant milk," are created by extracting plant material in water, such as seeds or grains. They're commonly used as a dairy milk replacement. A huge movement toward plant-based drinks is being driven by consumer choices for health, ethics, and sustainability. Plant-based drinks include soy milk, coconut milk, almond milk, cashew milk, flax milk, rice milk, and oat milk. For individuals who cannot handle or refuse to eat cow's milk, plant-based beverages are a welcome alternative. Food allergies, sensitivities, and intolerances affect a significant portion of the population in the United States. Plant-based alternatives help those who can't consume dairy to maintain their regular eating patterns. Lactose malabsorption affects around 36% of persons in the United States, according to the National Institute of Diabetes and Digestive and Kidney Diseases. Lactose intolerance is caused by lactose malabsorption, however not everyone with lactose malabsorption has lactose intolerance. Large food companies have opted to spend money on costly marketing efforts, many of which are aimed at those born between the 1980s and the early 2000s. Millennials and Generation Z make up the greatest proportion of customers that choose plant-based beverages, proving that their constant promotion is beneficial. Owing to the increased reported levels of food allergies and dietary sensitivities, this marketing may especially appeal to these generations. Younger generations are also more likely than earlier generations to identify as primarily vegan or vegetarian.

Plant-Based Beverages Market Report Coverage

The report: “Plant-Based Beverages Market Forecast (2021-2026)”, by Industry ARC, covers an in-depth analysis of the following segments of the Plant-Based Beverages Market.

By Product Source: Soy, Rice, Almond, Coconut, Hemp, Oats and Others
By Flavor: Plain, Flavored
By Product Type: RTD, Tea & Coffee, Plant-Based Milk, Juices
By Distribution Channel: Hypermarkets/Supermarkets, Speciality Store, Online Stores and Others
By Geography: North America (U.S., Canada, Mexico), Europe (Germany, U.K., France, Italy, Spain, Russia and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia & New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina and Rest of South America), and Rest of the World (Middle East and Africa)

Key Takeaways

• Protein Supplements Made from Plants is projected to expand owing to the growing trend of vegan diets, as well as new product introductions with high fiber content, which are boosting market growth.
• Lactose intolerance is becoming more common, which is driving the market's growth. Lactose intolerance, for example, is most frequent in persons of East Asian descent, with more than 90% of adults in particular of these groups suffering from the illness, according to the US National Library of Medicine.
• Market growth is being accelerated by increasing product releases with novel ideas and tastes. Koia, for example, debuted three plant-based beverage brands in 2019: Koia Core, Koia Keto, and Koia Coffee. Plant-based protein, coconut milk, and MCT oil make up the new product range. Vanilla Latte, Mocha Latte, and Salted Caramel are among the three varieties of Koia coffee.
• However, affordability is a major issue for consumers, the high cost of plant-based beverages is limiting their adoption in developing countries.

Plant-Based Beverages Market: Market Share (%) by Region, 2020

Plant-Based Beverages Market Segment Analysis – By Product Type:

Based on Product Type, in 2020, Plant-Based Milk has the largest market share. One of the primary driving reasons is the growing number of people who are lactose intolerant. Lactose intolerance caused by milk protein is driving the rise of plant-based beverages such as soy milk and coconut milk owing to its dietary benefits. In terms of symptoms and treatment, a true milk allergy differs from both milk protein intolerance and lactose intolerance, although in both cases, removing milk from the diet is typically recommended. Furthermore, demand for plant-based drinks is expected to be driven by the need for healthy, nutritional, beverages. Plant-Based Juices Segment is predicted to grow with the fastest CAGR of 10.2% in the forecast period 2021-2026. As Vegetables are becoming more essential in nutrition as the movement toward veganism grows. Even when it comes to beverages, pressed veggies become a celebrity, whether it's a blended smoothie or a juice. Many important companies have responded to this trend by expanding their company by selling vegetable juices made on their own production line, in addition to traditional fruit processing and flavor creation.

Plant-Based Beverages Market Segment Analysis – By Product Source:

Based on Product Source, Plant-Based Beverages Market is segmented into Soy, Rice, Almond, Coconut, Hemp, Oats and Others. Soy based beverages has the greatest market share in 2020. Owing to its numerous health advantages, soy milk is one of the most popular beverages worldwide. Protein, vitamin A, vitamin B-12, potassium, and isoflavones are all abundant in this food. It is also thought to be the greatest option for people with lactose-intolerant with milk protein. Consumer demand for plant-based beverages is rising, therefore major producers are releasing new products to meet it. For example, The Hershey Company introduced soy milk under the brand name "SOFIT" in the United States in January 2018. Soy milk is inherently cholesterol-free and low in saturated fat because it originates from plants. It is also lactose-free. Protein is abundant in soybeans and soy milk. It has a high potassium content and can be supplemented with vitamins A, B-12, and D, as well as calcium. It has the same amount of protein as cow's milk but has less calories than whole milk. It has a low saturated fat content. Coconut based beverages Segment is predicted to grow with the fastest CAGR of 10.5% in the forecast period 2021-2026. The inherent electrolytes in coconut water make it a good complement for sports beverages like Gatorade. Many individuals use coconut water as a more natural performance drink since it contains no added sugar, food coloring, or artificial sweeteners. Coconut water has been demonstrated in studies to keep you hydrated and restore fluids after a run just as effectively as a typical sports drink. Coconut water is an excellent replacement for higher calorie drinks like sodas or juice, according to the Academy of Nutrition and Dietetics, with just 45 calories in a cup. Most juices have more sugar and carbs than coconut water. There are also more minerals and electrolytes, such as sodium, in it. As coconut milk is a more diluted product than the sort of coconut milk used in cooking, which is generally marketed in cans, coconut milk is more appropriately referred to as "coconut milk beverage." Coconut milk, like other plant-based milk substitutes, frequently contains thickeners and other chemicals. Most people with nut allergies can safely consume coconut milk.

Plant-Based Beverages Market Segment Analysis – By Geography

Based on Geography, Asia-Pacific Plant-Based Beverages Market accounted for the 43% revenue share in 2020. Owing to the rising food trend of embracing vegan-diets and beverages for health concerns among consumers, the Asia-Pacific region is expected to lead the market over the forecast period. In addition, the Asia-Pacific region's demand is being boosted by the rising acceptability of plant-based beverages like soy milk, coconut milk among the populace. In Asian nations such as China, India, and Japan, prominent producers provide a variety of vegan drinks. Owing to the greatest coconut farming in the region, the region has a huge market potential. Indonesia, the Philippines, and India, the primary coconut-producing countries in Asia Pacific, account for more than 70% of worldwide coconut output. As a result, new players in the region have a lot of chances to get into the production of cooking coconut milk and export it all over the world. North America is poised to grow with the fastest CAGR in the forecast period 2021-2026 owing to the improved knowledge of the need of a healthy diet, rising vegan diet trend and affluence. According to The Vegan Society's research, the vegan population in America rose by 600 percent from 2014 to 2019, creating new opportunities for plant-based products throughout the predicted period. Vegans account for 3-4% of the US population, depending on their age group. With so many well-known sportsmen embracing vegan dietary trends, the role of vegan supplements in boosting endurance is expected to play a role in market expansion. The Academy of Nutrition and Dietetics reported an increase of over 8% in the use of plant-based supplements in prescription diets aimed at decreasing deficiency issues in the United States between 2018 and 2019. Even when the covid-19 pandemic is past, this trend is anticipated to remain.

Plant-Based Beverages Market Segment Analysis-Drivers

Increasing Demand for Plant-Based Protein Supplements:

Consumers are more ready to choose plant-based items over animal-based ones, indicating a shift to plant-based meals and beverages. Consumers are looking for plant-based protein supplements as a result of the shift toward a plant-based diet, generating long-term potential for plant-based beverage manufacturers. For example, rather of purchasing whey-based protein powders, the majority of customers choose plant-based protein powders such as rice and pea. Plant-based protein supplements are also gaining momentum in the sports nutrition market, with athletes choosing plant-based proteins as an important element of their training regimen. As a result of the rise of the conscientious consumer, food allergies several changes have happened in the food and beverage industry. The supplement industry, in particular, has witnessed a lot of innovation. Vegan supplements have piqued people's interest, thanks to the rising popularity of veganism and the vegan diet. Vegan supplements are usually seen to be safer and healthier than supplements derived from animals. In addition, ethical concerns regarding the use of animal products are driving growth. According to the Vegan Society, the number of vegans in the UK increased by approximately fourfold between 2014 and 2019.

Plant-Based Beverages Market Segment Analysis-Challenges:

High Cost of Processing:

On the negative side, the expense of manufacturing plant-based drinks may reduce their average sales. Critics point out that significant investments in processing are especially important in the case of plant-based dairy substitutes, such as soy milk, coconut milk, oats milk and others as they typically require huge amounts of oil, lipids, and added minerals to mimic the taste of their animal-based equivalents. This constraint, however, can be overcome if manufacturers find ways to reduce the amount of time and money spent on processing.

Plant-Based Beverages Market Segment Landscape:

Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Plant-Based Beverages Market. Plant-Based Beverages Market top 10 companies are WildWood, PBC, Califia Farms LP, The WhiteWave Foods Company, Good Karma Foods, Inc., Ripple Foods, Koia, Blue Diamond Growers, Harmless Harvest Inc., Want China Holdings Limited, Pureharvest,

Acquisitions/Product Launches:

• In 2020, California Farms LP intended to increase its plant-based beverage range and provide customers with high-nutrition beverage alternatives.
• In May 2020, Danone announced the commercial release of its Vega One plant-based protein products in China, with the Vega One Sport specifically tailored for athletes. This food combines proteins from a variety of sources, including pumpkin seeds, alfalfa, sunflower, and peas.

Related Reports:

Plant Based Protein Supplements Market 

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Dairy Alternative Beverages Market-Forecast (2021-2026)

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