Global Plant-Based Food and Beverages Market Grows at a Staggering CAGR of 11.20%

Introduction

Plant-based foods and beverages consist primarily or exclusively of plant-based ingredients, such as grains, legumes, nuts, fruits, and vegetables. Customers who follow a vegetarian or vegan diet prefer them due to the absence of animal-derived ingredients. The demand for healthy eating habits propels the rapid expansion of the global market for plant-based foods and beverages. Vegan culture is gaining popularity among consumers due to its numerous health benefits, including lowering cholesterol, stabilizing blood sugar, reducing inflammation, and boosting the immune system, increasing global demand for plant-based foods and beverages.

Market Dynamics

Advancement of Vegetarian and Vegan Diet Drives the Global Market

The trend among consumers is moving toward healthier lives. Consumers have been adopting more beneficial eating practices because of the surge in obesity, diabetes, and cardiovascular disease brought on by unhealthy lifestyles. The best strategy to achieve healthy eating is to follow a plant-based diet, commonly defined as a regimen that prioritizes whole, plant-based foods and beverages and opposes all meats, dairy products, and eggs, as well as any refined and processed foods. People are also growing more conscious of how their purchases and way of life influence the environment.

More people are switching to plant-based diets for several reasons, including concern for animal welfare, environmental conservation, general health issues, and changing taste preferences. The growing concern about the environment, human health, and animal welfare has given rise to the current trend of veganism. It offers a range of advantageous health outcomes, such as better heart health, reduced obesity rates, and better diabetes control. Israel, Sweden, Japan, Poland, the U.S., Germany, and the U.K. have the highest vegan populations.

Popularity of Plant-Protein Ingredients Among Food and Beverage Manufacturers Creates Tremendous Opportunities

There have been many product line expansions for plant-based meals and beverages in recent years. New products have started appearing on the market due to increased R&D spending and technological advancement. Food and beverage producers have started concentrating more on the variety of plant-based product options and developing products with plant-based flavors as a result of the assurance of a steady and established vegetarian market in developed countries like the U.K., the US, Germany, and France as well as the growing stability of the vegetarian population globally.

Businesses are expanding their customer bases by focusing on plant-based protein ingredients and avoiding animal products as much as possible. Even meat companies are expanding their product lines with meat alternatives to appeal to the vegetarian population to avoid alienating a growing market niche.

Regional Analysis 

Europe is the largest source of revenue and is anticipated to grow at a CAGR of 11.20% over the projected period. The public is switching from high-calorie soft drinks to more healthy options. Throughout the projected period, technological development advances will favor the expansion of the market for plant-based meals and beverages in European countries. Demand for plant-based foods and beverages is expected to rise as flexitarian, vegetarian, and vegan diets become more popular, as well as consumer preferences for organic and supply chains free of genetically modified organisms (GMOs). Additionally, the allure of varied cuisines has facilitated a movement in consumer behavior toward plant-based foods and beverages.

North America is anticipated to grow at a CAGR of 10.80% during the projection period. The increased demand for plant-based food and beverage products in North America is primarily due to the desire for nutrient-dense foods and healthy diets. The popularity of veganism and plant-based diets is rising across North America. The report shows that more than 9.5 million Americans eat and drink plant-based items. According to data from the Good Food Institute and the Plant-Based Foods Association, consumption of plant-based food and beverages, such as meat substitutes, fruit juices, plant-based eggs, and dairy substitutes, has surpassed that of conventional animal products in the U.S. It is also growing at a rate six times faster than that of animal products.

Key Highlights

• The global plant-based food and beverages market was valued at USD 21721.20 million in 2022. It is projected to reach USD 56471.18 million by 2031, growing at a CAGR of 11.20% during the forecast period (2023-2031).
• Based on product type, the global plant-based food and beverages market is bifurcated into plant-based milk and derivatives, plant-based meat, bakery and confectionery, sweet and savory snacks, plant-based juices, rtd tea and coffee, and others. The plant-based milk and derivatives segment is the highest contributor to the market and is estimated to grow at a CAGR of 10.90% during the forecast period.
• Based on the source, the global plant-based food and beverages market is bifurcated into soy, wheat, pea, coconut, almond, and cashew. The soy segment is the highest contributor to the market and is estimated to grow at a CAGR of 10.75% during the forecast period.
• Europe is the largest source of revenue and is anticipated to expand at a CAGR of 11.20% over the projected period.

Competitive Players

1. Tyson Foods Inc.
2. Nestle SA
3. Clara Foods
4. Keystone Natural Holdings
5. Premier Foods PLC
6. Danone S.A.

Recent Developments

• March 2021- With Ingredion, Clara Foods introduced the first pepsin made without using animals. This pepsin, an enzyme ingredient used in various food and pharmaceutical goods, is entirely pig product-free. Its first commercially successful offering will only be sold through Ingredion.
• January 2021- Under the Jimmy Dean brand, Tyson Foods, Inc. introduced two new plant-based sandwiches. The Jimmy Dean plant-based burger, egg, and cheese croissant sandwich and the Jimmy Dean Delights plant-based patty and frittata sandwich are two new items. This aided the business in satisfying the rising demand for meat alternatives.

Segmentation

1. By Product
   1. Plant-Based Milk and Derivatives
   2. Plant-Based Meat
   3. Bakery and Confectionery
   4. Sweet and Savory Snacks
   5. Plant-Based Juices
   6. RTD Tea and Coffee
   7. Others
2. By Source
   1. Soy
   2. Wheat
   3. Pea
   4. Coconut
   5. Almond
   6. Cashew
   7. Others
3. By Category
   1. Conventional
   2. Organic
4. By Distribution Channel
   1. Store-Based
   2. Non-Store-Based