Global Plant-based Food Market Overview, 2023-28

Plant-based food refers to a wide range of food products derived from natural plant ingredients. Plant-based food items have long been known for their importance in vital nutrition and human health. These products are typically prepared from fruits, vegetables, nuts, oils, whole grains, and legumes, with no animal ingredients. A plant-based diet has less cholesterol and saturated fat, is an excellent source of the vitamins B1, C, and E, folic acid, magnesium, and iron, and may help lower the risk of having certain types of cancer, diabetes, obesity, high blood pressure, heart disease, and metabolic disorders. The global sales of plant-based foods will rise rapidly due to rising concerns about the ecological footprint of several food products and escalating animal welfare issues. Subsequently, growing concerns about food insecurity is expected bode well for the market. Diets focused on plant-based foods have been found to benefit health, including a decreased chance of acquiring diabetes, high blood pressure, and coronary heart disease. These diets provide fiber and essential nutrients such as protein, lipids, carbs, vitamins, and minerals required for good health. International restaurant chains, including Taco Bell, Chipotle, Jamba Juice and Starbucks will be significant players in increased sales and consumption of plant-based alternatives. Large chains offering burger, sausage and milk-alternatives will encourage consumer habits to adjust to plant-based food products. The growth of this market is driven by factors such as the increasing intolerance for animal protein amongst consumers, the growing vegan population, and the rising number of venture investments in plant-based food companies. In addition, the increasing number of research & development and new product launches by plant and protein alternative manufacturers and emerging economies, such as Asia-pacific, South America, and the Middle East & Africa, are expected to create lucrative opportunities for players operating in this market. According to the research report, “Global Plant-based Food Market Overview, 2023-28” published by Bonafide Research, the market is expected to cross USD 75 Billion market size, increasing from USD 41.06 Billion in 2022. The global market is forecasted to grow with 10.95% CAGR by 2023-28. Veganism is an environmentally conscious, low-carbon lifestyle that is here to stay for a long time. The global market and its expansion are the best examples of this. The world has been looking for new and different foods to eat, and this has reflected in the growth of the global plant based foods market. We have always eaten plants and their products as food as humans. On the other hand, plant-based foods are a more refined version of plant products marketed for commercial use. The production of vegan food is comparatively high in price compared to animal-based food owing to the high cost of plant-based ingredients used for the production. This factor is expected to restrain the adoption of vegan edible products in low and middle-income countries. However, various key players are adopting advanced technology to make significant advancements in the flavors and textures of plant-based meals which are expected to present key growth opportunities. For instance, Motif FoodWorks, Inc., a food technology company is working with extrudable fat technology and prolamin technology to develop plant-based meat and plant-based cheese. In addition to that, climate change is recognized as a significant public health issue that will impact on food security. One of the major contributors to global warming is the livestock industry, and, relative to plant-based agriculture, meat production has a much higher environmental impact in relation to freshwater use, amount of land required, and waste products generated. Promoting increased consumption of plant-based foods is a recommended strategy to reduce human impact on the environment and is also now recognized as a potential strategy to reduce the high rates of some chronic diseases such as cardiovascular disease and certain cancers.

Based on the countries, Middle East & Africa region is expected to grow with more than 12% by 2023-28 in global plant-based food market. The Middle East and Africa region has a rich history of plant-based diets deeply rooted in cultural and religious practices. Vegetarian and vegan diets are prevalent among various communities, influenced by religious beliefs such as Islam, Hinduism, and Rastafarianism. These cultural practices have laid the groundwork for the acceptance and adoption of plant-based diets in the region. As the Middle East and Africa region undergoes rapid urbanization and lifestyle changes, there is an increasing emphasis on health and wellness. Consumers are becoming more conscious of their dietary choices and the impact on their health. Plant-based diets are perceived as a healthier alternative to animal-based diets, offering benefits such as reduced risk of chronic diseases, weight management, and improved overall well-being. Several countries in the Middle East and Africa region have recognized the importance of plant-based diets and sustainable food systems. Governments are implementing initiatives to promote plant-based food consumption and support the growth of the industry. This includes providing incentives for plant-based food companies, promoting research and development in the sector, and introducing regulations and guidelines for plant-based products. Based on the product types, plant-based creamer segment is growing with steady growth rate with around 4% contribution in the market share. The rise in plant-based diets, driven by factors such as health concerns, ethical considerations, and environmental awareness, has led to an increased demand for plant-based alternatives in various food categories, including creamers. As more consumers choose to adopt plant-based lifestyles, the demand for plant-based creamers as a non-dairy alternative to traditional creamers has been steadily growing. Many individuals have allergies or intolerances to dairy products, such as lactose intolerance or milk protein allergies. Plant-based creamers offer a viable solution for individuals who are unable to consume dairy-based creamers, allowing them to enjoy a similar creamy texture and taste in their beverages without the negative side effects. On the other hand, the rise of plant-based diets and the growing consumer interest in plant-based alternatives have propelled the demand for plant-based mayonnaise and salad dressing. Many individuals are adopting plant-based lifestyles for health, environmental, and ethical reasons, and they seek plant-based options for commonly used condiments like mayonnaise and salad dressing. Plant-based mayonnaise and salad dressing provide alternatives for individuals with dietary restrictions or allergies. Traditional mayonnaise often contains eggs, which can be problematic for those with egg allergies or who follow a vegan diet. Plant-based versions, made without eggs, offer allergen-friendly options that cater to a wider range of dietary needs. Plant-based food companies have made significant advancements in developing plant-based mayonnaise and salad dressing options that closely mimic the taste, texture, and creaminess of traditional varieties. These innovations have improved the overall appeal of plant-based alternatives, making them more acceptable and desirable to consumers who are seeking a comparable taste experience. Based on Distribution channel, hypermarkets & supermarkets segment is dominating the market with over USD 17 Billion in 2022. Plant-based food products are no longer limited to specialized health food stores. They have become main-stream and are now readily available in the aisles of hypermarkets and supermarkets. This integration reflects the growing acceptance and popularity of plant-based diets among a broader consumer base. Hypermarkets and supermarkets offer a diverse range of plant-based food products across different categories. This includes plant-based alternatives to meat, dairy, eggs, as well as plant-based snacks, condiments, and ready-to-eat meals. The wide array of options allows consumers to find plant-based alternatives for their favourite foods and explore new flavours and culinary experiences. Hypermarkets and supermarkets frequently collaborate with plant-based brands and start-ups to bring exclusive products to their shelves. This partnership facilitates product development, distribution, and promotion, enabling both established and emerging plant-based brands to reach a wider consumer base through these retail channels.

Market Drivers Rising Demand for Animal Cruelty-Free Products: Consumers are becoming more aware of animal cruelty. Thus, they adopt lifestyles and diets that aim to reduce animal cruelty and prevent adverse environmental impacts caused by animal-meat consumption. As per reports published in a science journal, dairy and meat products generate around 60% of the greenhouse emission from agriculture. Adopting a vegan diet also helps prevent the exploitation of animals for developing food products. Furthermore, the outbreak of the COVID-19 pandemic further propelled the demand for vegan products due to rising concerns among consumers about zoonotic infections. Consumers are becoming aware of the food products they consume and thus, researching to understand their health implications. For instance, as per data provided by Google AdWords, there was growth of 47% on searching vegan type of food products. Rise of the Flexitarian Lifestyle: The growth of flexitarian consumers is no longer a surprise in the F&B industry. And now, it’s become much more than a mere trend. That is certainly reflected in the surge of flexitarianism that accounts for almost 42% of consumers on a global level. Considering flexitarianism and plant-based foods go hand in hand, it’s no surprise that this surge has resulted in a surge for the plant-based market to a certain extent. One of the reasons why plant-based foods are appealing to all kinds of consumers, particularly the flexitarians, is their taste and flavour. Whether it’s plant-based meat, dairy products, or seafood, the more these foods are able to mimic their alternatives, the more consumers are drawn towards them. Nailing the taste and flavour aspects make it easier for new flexitarians or vegetarians to stay true to their dietary change. Plus, compromising on the taste and flavour of food is something consumers have been conscious about. The more plant-based foods lower the need for this compromise, the more success they could see. Market Challenges The inability of plant-based seafood to mimic original seafood taste: One of the challenges in the development of plant-based seafood products is the difficulty in replicating the exact taste and texture of original seafood. While advancements have been made in creating plant-based alternatives for meat and dairy products, seafood presents unique challenges due to its distinctive flavours and textures. Seafood has a complex flavour profile that comes from a combination of factors such as the specific type of fish or shellfish, the ocean environment, and the specific cooking methods used. Replicating this complexity using plant-based ingredients is a difficult task, as it involves recreating the unique blend of flavours and aromas that give seafood its distinct taste. Seafood is a rich source of omega-3 fatty acids, particularly eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA), which are important for brain health and cardiovascular function. Plant-based alternatives typically do not contain these specific omega-3 fatty acids naturally, and attempts to incorporate them may require additional processing or fortification. Contradictions and regulations surrounding labelling: 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. The terminology used to describe plant-based products can be a point of contention. There is on-going debate about whether terms like "meat," "milk," or "cheese" should be used exclusively for animal-derived products. Some argue that the use of these terms for plant-based alternatives can be misleading to consumers, while others believe that consumers understand the distinctions and that these terms can be used as long as the plant-based nature of the product is clearly indicated. In some cases, industry organizations and associations develop their own labelling standards and guidelines for plant-based products. These self-regulatory measures aim to provide clarity and consistency in labelling practices within the industry. They may involve defining specific terms and establishing voluntary labelling standards to ensure transparency and avoid misleading consumers. Market Trends Expansion of Product Offerings: The plant-based food market is witnessing a significant expansion of product offerings across various categories. Beyond traditional plant-based alternatives like meat and dairy, there is a growing variety of plant-based options for cheese, ice cream, yogurt, snacks, desserts, condiments, and more. This expansion is driven by consumer demand for a wider selection of plant-based alternatives to replace animal-based products. There is on-going innovation in plant-based food ingredients and formulations to improve the taste, texture, and nutritional profile of products. Companies are utilizing new plant sources, such as pea protein, soy protein, jackfruit, and mung bean, to develop innovative plant-based alternatives. Additionally, advancements in food technology have allowed for better mimicry of animal-based products, resulting in plant-based options that closely resemble the taste and texture of their animal counterparts. Clean Label and Natural Ingredients: Consumers are increasingly demanding transparency in food products. They seek plant-based foods made with clean label ingredients, free from artificial preservatives, colors, and flavours. Plant-based food manufacturers are responding by prioritizing natural and recognizable ingredients, using minimal processing methods, and providing clear and informative labeling. Clean label plant-based foods are often associated with health and nutrition. Consumers are seeking natural, whole food ingredients that offer nutritional benefits and contribute to a well-balanced diet. They are looking for plant-based alternatives that are lower in saturated fats, added sugars, and sodium, and higher in fiber, vitamins, minerals, and plant-based protein. Clean label plant-based foods also cater to consumers with specific dietary restrictions or allergies. Products that are free from common allergens like dairy, eggs, gluten, soy, or nuts are sought after by those with food sensitivities or dietary preferences. Clean label plant-based alternatives provide options for individuals looking for allergen-friendly choices. Covid-19 Impact The Covid-19 pandemic has enabled that global plant-based food industry to capture a significant market share. The Covid-19 pandemic likewise prompted some best practice models for the plant-based food industry. The pandemic has highlighted the association between public health and animal meat utilization, which has brought about customers switching to a vegan diet. Shopping patterns during the pandemic showed that shelf-stable foods were in huge demand as consumers stocked up for months-long quarantines. However, Covid-19 pandemic seriously affected the traditional meat processing industry, prompting the closure of various slaughterhouses because of disturbances in supply chains. From the above fact, Covid-19 pandemic has a positive impact on the global plant-based food market. Key Players The plant-based food market has seen the emergence of several key players who have played a significant role in driving innovation, product development, and market growth. The plant-based food market major player such as the Kellogg Company, Danone S.A., Archer Daniels Midland Company, Blue Diamond Growers, Nestlé S.A., JBS S.A., The Kraft Heinz Company, Unilever plc, General Mills, Inc.,, Conagra Brands, Inc., Beyond Meat, Inc., Maple Leaf Foods Inc, Vitasoy International Holdings Limited, Impossible Foods Inc, Bob's Red Mill, SunOpta, Inc., Amy's Kitchen, Inc., JUST, Inc., The Hain Celestial Group, Inc., Plamil Foods Ltd, and others are working on expanding the market demand by investing in research and development activities. Recent Developments • In December 2022, The Hain Celestial Group Inc announced the completion of the divestiture of its Westbrae Natural® brand, which is now taken over by Bush Brothers & Company. • In September 2022, ADM acquired Comhan, a major South African flavor distributor, facilitating the development of novel products that respond to regional preferences and needs. • In August 2022, ADM and New Culture, a pioneer in animal-free dairy, collaborated to create products that will benefit from New Culture’s advances in new ingredients and animal-free dairy products. Also, this is expected to promote the development and commercialization of plant-based dairy products. • In May 2022, Danone launched the new Dairy & Plants Blend baby formula to meet parents’ demand for feeding options suitable for vegetarian, flexitarian, and plant-based diets, while still meeting their baby’s specific nutritional requirements. • 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 plantbased sector. PRO2FIT produces plant-based food such as vegan protein powder and retails across India. Considered in this report • Geography: Global • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • Global Plant-based Food with its value and forecast along with its segments • Region-wise Plant-based Food market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Regions covered in the report: • North America • Europe • Asia-Pacific • South America • Middle-East & Africa By Product Type • Plant-based Milk • Plant-based Meat and Seafood (Tofu, Quorn, Seitan, Fish, TVP, Burger Patties, Tempeh, Hot Dogs and Sausages, Meatballs, Ground Meat, Nuggets, Crumbles, Shreds, Crab, shrimp, Others) • Plant-based Cheese • Plant-based Desserts (Cakes, Pastries, Custard, Pudding, etc.) • Plant-based Ice Cream • Plant-based Yogurt • Plant-based Butter • Plant-based Bars (Protein Bars, Energy Bars, Cereal Bars, Fruit & Nut Bars, etc.) • Plant-based Bakery Snacks and Confectionery (Biscuit and Cookies, Bread and Rolls, Chocolate, etc.) • Plant-based Creamer • Plant Based Mayonnaise and Salad Dressing • Others By Distribution Channel • Hypermarkets and Supermarkets • Convenience Stores • E-Commerce • Others The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations and organisations related to the Plant-based Food industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.