Plant-based Food Market - Forecast(2023 - 2028)

Plant-based Food Market Overview

Plant-based Food Market size is forecast to reach $68.4 billion by 2026, growing at a CAGR of 14.3% during the forecast period 2021-2026. Plant-Based Food consists of minimally processed fruits, vegetables, whole grains, legumes, nuts, seeds, herbs and spices and excludes all animal products including red meat, poultry, fish, and eggs. The increasing awareness regarding cruelty towards animals and their health in the food industry has been encouraging people to shift their source of nutrition from animal-based to plant-based ingredients. According to The Vegan Society, from 2012 to 2019, the meat-free food demand grew by 990%. This in turn signifies the increasingly growing popularity of plant-based products across the globe. Countries like Canada, Israel, the U.S., Australia, the U.K., New Zealand, Sweden, Ireland, Austria, and Germany have the highest percentage of people turning to Pescatarian, Mediterranean, and vegetarian diet in the world. Plant-based products constitute of various vitamins and minerals like omega-3 that help maintain blood pressure levels and lower the risk of heart disease, stroke, prostate cancer, lactose intolerance, colorectal cancer, cholesterol, and premature death which is set to further enhance the overall market developments of the Plant-based Food Market for the period 2021-2026.

Report Coverage

The report: “Plant-based Food Market Forecast (2021-2026)”, by Industry ARC, covers an in-depth analysis of the following segments of the Plant-based Food Market.
By Product Type: Dairy Alternatives, Meat Substitutes, and Others
By Source: Fruits, Vegetables, Seeds and Nuts, Legumes, and Whole Grains
By Application: Food and Beverages, Bakery and Confectioneries, Animal Feed, Infant Food, and Dietary Supplement
By Distribution Channel: Supermarkets/Hypermarkets, Specialty Stores, Online Sales Channels, Others
By Geography: North America (U.S., Canada, Mexico), Europe (Germany, United Kingdom (U.K.), France, Italy, Spain, Russia, and Rest of Europe), Asia Pacific (China, Japan India, South Korea, Australia, and 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

• North America dominated the Plant-based Food Market in 2020 owing to increased concerns about animal cruelty in the food industry and its negative impact on the environment. The Plant-based Food Market scope for different regions will be provided in the final report.
• Growing awareness regarding health benefits of consuming plant-based food coupled with growing awareness regarding animal cruelty are likely to aid the market growth of the Plant-based Food Market report.
• Detailed analysis of the Strength, Weakness, and Opportunities of the prominent players operating in the market will be Plant-based Food Market report.
• Growing regulations surrounding labelling of plant-based products is poised to create the hurdles for the Plant-based Food Market.

Plant-based Food Market Revenue Share, By Geography, 2020(%)

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Plant-based Food Market Segment Analysis – By Product Type

The Dairy Alternatives segment held the largest share in the Plant-based Food Market in 2020 and is estimated to grow at a CAGR 12.8% during the forecast period 2021-2026. According to Medline Plus, around 30 million American adults have some degree of lactose intolerance by age 20, which is a key factor bolstering the growth of dairy alternative food items segment. Ease of availability of a various products, like yogurt, ice cream, cheese, and its associated snacks, has drawn inclination of consumers towards non-vegetarians thereby broadening the consumer base of this segment. Manufacturers are also innovating packaging solutions which is grabbing attention of consumers. This is also likely to contribute to segment growth. Over the recent past, meat substitutes has gained a lot of traction owing to growing awareness of consumers concerning animal cruelty. Meat substitutes segment is estimated to register the higher CAGR over the period 2021-2026.

Plant-based Food Market Segment Analysis – By Distribution Channel

The Hypermarkets/Supermarkets segment held the largest share in the Plant-based Food Market in 2020 and is estimated to grow at a CAGR 10.9% during the forecast period 2021-2026. This is owing to the wide range of products that hypermarkets can make available to consumers at the same time and place, which makes buying experience convenient for consumers. Furthermore, consumers like buying from stores due to easy access, availability of products, as well as coupons and discounts. However, online sales channels are gaining a lot of traction with internet penetrating rapidly a lot of sub-urban and rural areas of different economies. Consumers can procure their products from the comfort of their home and millennials and Gen Z are majorly attracted to online shopping than the more conventional ways. A lot of major retail chains like Walmart, worldwide has been investing significantly in online distribution channels. Online sales channels are estimated to register the higher CAGR over the period 2021-2026.

Plant-based Food Market Segment Analysis – By Geography

North America dominated the Plant-based Food Market with a major share of 40.4% in 2020. This is attributed to the factors like growing concerns regarding animal cruelty in the food industry and its negative impact on the environment. Additionally, the U.S. has a large number of lactose intolerant people, which fuels the demand for alternative dairy products. In 2019, Cal-Maine Foods, Inc. reported a loss of more than USD 75 million because of growing preference for plant-based alternatives.

However, Asia Pacific is estimated to grow at a higher CAGR during the forecast period 2021-2026 owing to rising health consciousness among consumers. Moreover, increasing per capita income levels across developing countries like Taiwan, China, India, Thailand, and Bangladesh will contribute to market growth. Key manufacturers in the market have been focusing on expanding business in APAC due to high growth opportunities.

Plant-based Food Market Drivers

Increasing awareness regarding health benefits of consuming plant-based food is driving the market growth

Consumers across the globe have become very well aware with the help of different government initiatives in the form of awareness campaigns and publicity, regarding the bad effects of overconsumption of meat. Different health ailments such as high cholesterol, blood sugar, obesity, high blood pressure, thereby leading to cardiac arrest, are all caused due to excessive meat consumption. According to Sudden Cardiac Arrest Foundation, there were more than 356,000 out-of-hospital cardiac arrests (OHCA) in 2020 in the U.S., out of which nearly 90% of them fatal. This cautiousness is compelling consumers to switch to vegan products which are significantly healthy and equally nutritious. Vegetarian diets offer several health benefits such as reduce the chances of obesity, reduce the risk of heart disease, lower blood pressure and lower the risk of type-2 diabetes. Thus, increasing the growth of the Plant-based Food Market during the forecast period 2021-2026.

Growing awareness regarding animal cruelty is poised to increase the growth of the market

Consumers have been increasingly aware regarding animal cruelty in the recent past. Every year in the U.S., hens across many industrial farms are compelled to lay up to 30 times more eggs than they would naturally. On the other hand, numerous new-born calves are forcefully separated from their mothers within 12 hours so that they start lactating. This kind of practise is torturing to both the mother and her calf. They end up calling for each other for days at a stretch. Pertaining to issues like, animal activists all over the globe are trying hard to inflict knowledge among consumers, so that they are convinced enough to switch to vegan diet. Thus, increasing the growth of the Plant-based Food Market during the forecast period 2021-2026.

Plant-based Food Market Challenges

Contradictions and regulations surrounding labelling of plant-based products  is likely to challenge the market growth

With the industry trying to capitalize on the ethical sentiments of consumers, the underlying concern is regarding the clarity of claims that various market competitors are posing. There has been widespread media coverage regarding contamination of vegan products with animal sources, over the recent past. Plat-based products require a strong regulatory framework in order to keep the confidence of consumers in check or else it is set to hinder the growth of the market during the forecast period 2021-2026.

Plant-based Food Market Landscape

Product launches, mergers and acquisitions, joint ventures, and R&D activities are key strategies adopted by players in the Plant-based Food Market. In 2020, the Plant-based Food Market share is fragmented by the top ten players present in the market. The Plant-based Food Market, top 10 companies are:

• Beyond Meat
• Califia Farms
• Dream
• Gardener Cheese Company
• Impossible Foods Inc.
• Kite Hill
• Mason Co.
• Oatly
• So Delicious Dairy Free

Plant-based Food Market Developments:

• In 2019, Grill'd, an Australian food chain focusing on innovation in burgers, introduced plant-based burger called Beyond Burger owing to an increasing demand for plant-based burgers.
• In April 2019, Linda McCartney Foods, a British food brand, launched meat-free sausages made from pea protein. In the same month, Veggie Grill, a U.S.-based restaurant chain, which serves only plant-based foods, planned to open 50 more outlets across the nation.

Relevant Titles:

Diabetic Food Market: Industry Analysis, Market Size, Share, Trends, Growth and Forecast 2021 - 2026
Report Code: FBR 0045

Meat Substitutes Market: by Type (Tempeh, Textured Vegetable Protein, Tofu, Seitan, QuorN), by Source (Mycoprotein, Wheat, Soy), by Category (Refrigerated Meat Substitutes, Frozen Meat Substitutes) & Geography - Forecast(2021 - 2026)
Report Code: FBR 0062

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