Global Fermented Plant-Based Alternatives Market Worth USD 527.74 million With a CAGR of 4.8%

Introduction

Historically, fermentation was utilized to preserve both plant-based and animal-based foods. Various fermented animal and plant products are on the market today, all manufactured using diverse raw materials, microorganisms, and processes. Fermentation may improve the sensory, nutritional, and functional qualities of the most recent wave of plant-based foods due to the popularity of dairy and meat alternatives. Fermented plant-based food alternatives are foods and beverages used as plant-based substitutes for dairy or meat-based products. These products contain beneficial bacteria that reduce the likelihood of allergy development by enhancing digestion and immunity. Numerous consumers seek plant-based milk alternatives for environmental, health, lifestyle, and dietary reasons, resulting in abundant products derived from nuts, seeds, and beans.

Market Dynamics

Changing Dietary Patterns (such as Veganism and Flexitarianism) Drive the Global Market

Veganism is the predominant trend in the global food and beverage industry due to changing consumer eating habits and the health benefits of plant-based foods. In recent years, veganism has increased in several countries, particularly the United States, the United Kingdom, and Canada. From 1993 to 2018, the number of vegan restaurants in the United States and Canada increased from 55 to 971. The percentage of vegans in the United States exceeds 3% of the total population. Other trends indicate consumers' evolving dietary patterns, such as flexitarianism. Individuals who consume less meat and are occasionally vegetarian fall under this category. Globally, the flexitarian movement has been bolstered by activities such as Veganuary and Meatless Mondays, contributing to the rise of flexitarianism. In the United Kingdom, 34% of the population was flexitarian in 2018, up from 28% in 2017.

Growing Demand for Plant-Based Meat Creates Tremendous Opportunities

Consumers are becoming increasingly interested in plant-based meat alternatives because they are a significant source of protein and have a similar flavor and texture to meat. Consumers are now interested in plant-based alternatives to meat, such as soy-based, pea-based, and other ingredients that mimic the flavor of original meat, as a result of a growing awareness of wildlife conservation and animal welfare. In 2020, global sales of plant-based meat reached USD 4.2 billion, up from USD 3.4 billion in 2019. Additionally, leading food manufacturers have invested in the plant-based meat category, which is anticipated to increase consumer interest in plant-based meat. As companies introduce plant-based meat products to the Indian market, the demand for plant-based meats has increased. For instance, Blue Tribe Foods introduced plant-based chicken nuggets made from soy and peas; such initiatives by food companies have shifted consumer focus toward other healthier alternatives to meat products.

Regional Analysis

Europe is the most significant global fermented plant-based alternatives market shareholder and is anticipated to exhibit a CAGR of 5.4% during the forecast period. The rising tide of plant-based food consumption in European nations is the primary factor driving the expansion of the fermented plant-based market in the region. In 2018-2020, the plant-based food industry in Europe experienced a remarkable growth of 49%. The categories experiencing the greatest increase in demand are yogurt, milk, meat, etc. In addition, Europe has witnessed an extraordinary increase in the consumption of plant-based foods; consequently, numerous food and beverage companies are investing in the region. Due to massive investments and numerous market participants, the industry environment is extremely competitive, posing a significant challenge for new entrants.

North America is projected to exhibit a CAGR of 4.7% over the forecast period. The growing vegan population in North America is the primary factor driving the expansion of North America's fermented plant-based alternatives market. The demand is anticipated to increase soon due to rising consumer concerns about dairy product allergies. According to data from the National Institute of Health (NIH) for the year 2020, 75 to 90 percent of Americans suffer from lactose intolerance because consumers increasingly turn to fermented plant-based products to avoid the negative effects of dairy products. In addition, the United States dominates the North American fermented plant-based alternative market due to the high concentration of manufacturing companies and suppliers, which results in a substantial market size. Additionally, U.S.-based companies have invested in plant-based alternatives, such as Tesco's 2019 launch of plant-based alternatives.

Key Highlights

• The global fermented plant-based alternatives market size was valued at USD 346.08 million in 2022. It is estimated to reach USD 527.74 million by 2031, growing at a CAGR of 4.8% during the forecast period (2023–2031).
• Based on product, the global fermented plant-based alternatives market is divided into fermented plant-based dairy, pickles and vegetables, sauces and seasonings, bakery, meat, and others. The fermented plant-based dairy segment is responsible for the most significant market share and is anticipated to exhibit a CAGR of 4.7% over the forecast period.
• Based on application, the global fermented plant-based alternatives market is segmented into supermarkets/hypermarkets, convenience stores, online, and specialty stores. The supermarkets/hypermarkets segment owns the highest market share and is estimated to exhibit a CAGR of 4.7% during the forecast period.
• Europe is the most significant global fermented plant-based alternatives market shareholder and is anticipated to exhibit a CAGR of 5.4% during the forecast period.

Competitive Players

Competitive Players

The key global fermented plant-based alternatives market players are AngelYeast Co., Ltd, Chr. Hansen Holding A/S, Cargill, Incorporated, DuPont, Yofix Probiotics Ltd., Evonik Industries AG, Arla Foods, Danone, General Mills, Inc, Field Roast Foods, Impossible Foods Inc., Perfect Day, The Hain Celestial Group, Inc., Nestle, and Tesco PLC.

Recent Developments

Market News

• In January 2023, US-based, The Living Green Company started constructing a precision fermentation division to replace animal, synthetic, and ultra-processed products with plant-based substitutes. Using its artificial intelligence (AI) platform, the company will enhance the functionality and sustainability of the goods it develops and provide F&B players with new possibilities beyond the present ingredients and fungal hosts.
• In April 2022, Chr. Hansen unveiled its new culture selection for plant-based meat substitutes. The biotechnology company is expanding the Vega Culture Kit portfolio with a fermentation-enabled product designed to preserve the freshness of alternative meats.

Segmentation

Global Fermented Plant-Based Alternatives Market: Segmentation

By Product

• Fermented Plant-Based Dairy
• Fermented Plant-Based Pickles and Vegetables
• Fermented Plant-Based Sauces and Seasonings
• Fermented Plant-Based Bakery
• Fermented Plant-Based Meat
• Others

By Applications

• Supermarkets/Hypermarkets
• Online
• Convenience Stores
• Specialty Stores

By Regions

• North America
• Europe
• The U.K.
• China
• Asia-Pacific and Japan
• South America
• The Middle East and Africa