Plant Based Food Market Analysis and Global Forecast 2023-2033

Plant Based Food Market Overview

The Plant Based Food Market Size is expected to reach USD 43.96 Billion by 2033. The Plant Based Food Market industry size accounted for USD 12.50Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 13.40% from 2023 to 2033. The plant-based food market refers to the sector of the food industry that focuses on producing and selling food products derived from plants rather than animal-based sources. These products are designed to provide alternatives to traditional animal-based foods, catering to the growing demand for plant-based options driven by various factors such as health, environmental concerns, ethical considerations, and lifestyle choices. This market has experienced significant growth in recent years as consumers become more conscious of their food choices and seek healthier, more sustainable options. Major food companies, startups, and established brands have entered the plant-based food space, contributing to the availability and diversity of plant-based products in grocery stores and restaurants worldwide.

Global Plant Based Food Market Synopsis

COVID-19 Impact Analysis

The COVID-19 pandemic has had both positive and negative impacts on the plant-based food market. The pandemic has heightened public interest in health and wellness, leading many consumers to seek out plant-based food options known for their health benefits. The pandemic has highlighted the interconnectedness of human health and the environment, encouraging more people to adopt plant-based diets due to their lower environmental impact. With lockdowns and restrictions on restaurants and foodservice establishments, the demand for plant-based options in these venues might have been affected. While the plant-based food supply chains were relatively resilient, there were still some disruptions, affecting production and distribution. Economic uncertainties and changes in consumer spending patterns during the pandemic could have influenced the purchasing decisions of some consumers, impacting the plant-based food market.

Plant Based Food Market Dynamics

The major factors that have impacted the growth of Plant Based Food Market are as follows:

Drivers:

Ø  Increasing awareness in Health and wellness

Increased awareness of the health benefits associated with plant-based diets, such as reduced risk of certain chronic diseases like heart disease and diabetes, has motivated consumers to adopt plant-based food options. Growing awareness of the environmental impact of conventional animal agriculture, including greenhouse gas emissions, deforestation, and water usage, has led consumers to seek more sustainable plant-based alternatives. Advances in food technology and innovation have led to the development of more realistic and flavorful plant-based alternatives, making them more appealing to a wider audience. Many consumers are adopting flexitarian or reducetarian diets, where they reduce their consumption of animal products and incorporate more plant-based foods into their meals. The growing number of vegans and vegetarians has created a larger customer base for plant-based food products, leading to increased demand and market growth. The expansion of plant-based options in grocery stores, restaurants, and fast-food chains has made it more convenient for consumers to access and incorporate plant-based foods into their diets.

Restraint:

• Perception of Price and Affordability

Plant-based food products, especially meat substitutes and dairy alternatives, can sometimes be more expensive than their animal-based counterparts. This price differential may deter price-sensitive consumers from fully embracing plant-based diets. In some regions, plant-based food options may not be as widely available as traditional animal-based products, limiting consumer access and choice. While many plant-based foods are rich in nutrients, certain products may not provide the same level of essential nutrients found in animal-based foods, leading to concerns about meeting nutritional needs. Despite increasing awareness, some consumers may still associate plant-based foods with a limited variety or lack of appeal, which could hinder their adoption. The traditional meat and dairy industries have a well-established presence and marketing power. They may compete against the plant-based food market and resist its growth. Ensuring a stable and reliable supply chain for plant-based ingredients can be complex, especially for new or less common ingredients.

Opportunity:

⮚      Growing demand for Growing Health Consciousness

As consumers become more health-conscious, there is an opportunity for plant-based food companies to position their products as healthier alternatives to traditional animal-based foods. Plant-based options are often lower in saturated fats and cholesterol and can appeal to consumers looking to improve their diets. With increasing awareness of the environmental impact of animal agriculture, there is a significant opportunity for plant-based food companies to promote their products as more sustainable choices. Marketing plant-based foods as eco-friendly and environmentally responsible can attract environmentally conscious consumers. Plant-based food companies have an opportunity to expand their presence in retail stores, supermarkets, and online marketplaces to make their products more accessible to a broader customer base. Expanding the variety of plant-based food products beyond meat and dairy alternatives, such as plant-based seafood, eggs, and ready-to-eat meals, can tap into new market segments and attract a wider audience. Plant-based food companies can explore partnerships with established food companies and meat/dairy processors to introduce their products through traditional channels, reaching a broader consumer base.

Plant Based Food Market Segment Overview

By Type

Based on Type, the market is segmented based on Plant-Based Milk and Derivatives, Bakery and Confectionery, Sweet and Savory Snacks, Plant-Based Juices and RTD Tea and Coffee. Plant-based milk alternatives, such as almond milk, soy milk, oat milk, coconut milk, and rice milk, have gained popularity as dairy alternatives. The demand for plant-based milk is driven by lactose intolerance, health-conscious consumers, and those seeking more sustainable and ethical choices. The bakery and confectionery segment has seen a rise in the availability of plant-based alternatives to traditional products. Plant-based sweet and savory snacks have seen increased demand as consumers seek healthier and more sustainable snacking options. Plant-based snacks, like protein bars, granola bars, veggie chips, and fruit-based snacks, appeal to health-conscious and on-the-go consumers.

 By Distribution Channel

Based on Distribution Channel, the market has been divided into the store based and non-store based. Traditional supermarkets and grocery stores are significant players in the plant-based food market. They offer a wide variety of plant-based food products, including plant-based meat substitutes, dairy alternatives, snacks, and beverages. Consumers can find these products in dedicated plant-based sections or alongside conventional products.Specialized health food stores often have a more extensive selection of plant-based food items, catering to health-conscious consumers and those following plant-based diets. Online platforms have become increasingly popular for purchasing plant-based food products. Dedicated e-commerce websites, as well as online marketplaces like Amazon and specialty plant-based food delivery services, offer a wide range of plant-based options with the convenience of home delivery. Many plant-based food companies have adopted a direct-to-consumer model, selling their products online through their websites. This allows them to build direct relationships with consumers and offer unique product ranges.

Global Plant Based Food Market Regional Analysis

Based on region, the global Plant Based Food Market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Plant Based Food Market followed by the Asia-Pacific and Europe regions.

Plant Based Food North America Market

North America holds a dominant position in the Plant Based Food Market. The region’s dominance can be attributed to various factors. North America, particularly the United States and Canada, has been a major driver of the plant-based food market. The region has seen a surge in demand for plant-based meat substitutes, dairy alternatives, and other plant-based products. Factors driving growth include health consciousness, environmental concerns, a rise in vegetarian and flexitarian diets, and the presence of well-established plant-based food companies. Plant-based food startups and established brands have launched numerous innovative products to cater to the region’s diverse consumer preferences.

Plant Based Food Asia-Pacific Market

The Asia-Pacific region has indeed emerged as the fastest-growing market for the Plant Based Food Market industry. The Asia-Pacific region includes countries such as China, India, Japan, South Korea, and Southeast Asian nations. The Asia-Pacific region is home to over half of the world’s population, with a significant number of young and health-conscious consumers. The sheer size of the market presents enormous growth opportunities for plant-based food companies. The region has seen a rise in the middle-class population and urbanization, leading to changing dietary preferences and an increasing demand for healthier and sustainable food options. The region’s rich culinary traditions and diverse plant-based ingredients offer opportunities for plant-based food companies to develop products that align with local tastes and preferences. Numerous plant-based food startups and established international brands have entered the Asia-Pacific market, introducing a wide range of plant-based products and creating more awareness and availability.

Competitive Landscape

The global Plant Based Food Market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.

Prominent Players:

• Nestle SA
• RiceBran Technologies
• Mead Johnson & Company LLC.
• Medifast Inc.
• Premier Nutrition Corporation
• TOOTSI IMPEX Inc.
• US Spice Mills Inc.
• Health Food Manufacturers’ Association
• NOW Foods
• Glanbia PLC

Key Development

In March 2022, Good mylk, the plant-based dairy company, has acquired the nutrition brand PRO2FIT in one of the first M&As in India’s growing plant-based sector. PRO2FIT produces plant-based food such as vegan protein powder and retails across India.

Scope of the Report

Global Plant Based Food Market, by Type

• Plant-Based Milk and Derivatives
• Bakery and Confectionery
• Sweet and Savory Snacks
• Plant-Based Juices
• RTD Tea and Coffee

Global Plant Based Food Market, by Distribution Channel

• Store-Based
• Non-Store-Based

Global Plant Based Food Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of SouthAmerica
• Middle East &Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • SouthAfrica
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: $43.96Billion
CAGR	13.40% CAGR (2023-2033)
Base year	2022
Forecast Period	2023-2033
Historical Data	2021
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Type, Distribution Channel
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	Nestle SA, RiceBran Technologies, Mead Johnson & Company LLC., Medifast Inc., Premier Nutrition Corporation, TOOTSI IMPEX Inc., US Spice Mills Inc., Health Food Manufacturers’ Association, NOW Foods, Glanbia PLC.
Key Market Opportunities	• The growing demand for Growing Health Consciousness
Key Market Drivers	• Increasing awareness in Health and wellness

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Plant Based Food Market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Plant Based Food Market historical market size for the year 2021, and forecast from 2023 to 2033
• Plant Based Food Market share analysis at each product level
• Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Plant Based Food Market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.