Vegan Food Market Size, Share & Trends Analysis Report By Product Type (Dairy Alternatives, Vegan Milk, Vegan Cheese, Vegan Yogurt, Others, Meat Substitutes, Egg Substitutes, Bakery and Confectionery, Vegan Cakes and Pastries, Vegan Cookies, Vegan Chocolates, Snacks and Convenience Foods, Vegan Chips and Crackers, Vegan Ready Meals, Vegan Bars, Beverages), By Distribution Channel (Retail Stores, Supermarkets and Hypermarkets, Specialty Stores, Convenience Stores, Online Channels, E-commerce Platforms, Direct-to-Consumer Websites, Foodservice, Restaurants, Cafes, Fast Food Outlets), By Ingredient Type (Soy-based Products, Almond-based Products, Oat-based Products, Wheat-based Products, Coconut-based Products, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global vegan food market size was valued at USD 22.3 billion in 2023. It is projected to reach USD 57.6 billion by 2032, growing at a CAGR of 11.2% during the forecast period (2024-2032). 

The vegan diet has gained tremendous popularity in recent years. Environmental and ethical concerns are the primary factors driving the uptake of this diet. Vegans do not consume meat, eggs, and dairy products as well as avoid products produced or manufactured using animal-origin raw materials. They even exclude products with trace amounts of animal products, such as some types of wines and white sugar refined with animal byproducts. The National Health Portal India claims a vegan diet offers several health benefits over an omnivorous diet, such as a reduced risk of heart attacks, strokes, and cancer. Some consumers are switching to a vegan diet in light of its perceived health benefits. The rising prevalence of obesity and associated health risks have also seen people turn to a vegan diet.

Market Dynamics

What are the Primary Factors Driving the Vegan Food Market?

Rising Awareness about Animal Cruelty

Consumer awareness of animal cruelty is growing. In order to lessen animal cruelty and stop the negative environmental effects of eating animal products, they adopt lifestyles and diets. According to reports in a scientific journal, dairy and meat products account for about 60% of the greenhouse gas emissions produced by agriculture. Adopting a vegan diet also lessens the use of animals for the production of food. Organizations such as PETA (People for the Ethical Treatment of Animals) are constantly channelizing efforts to raise awareness regarding animal rights and animal cruelty, which has increased the number of people shifting to a vegan diet. This shift is translating into a demand for vegan foods. As per the Vegan Society, the demand for vegan food has grown by over 980% in the last decade. The global vegan food market is currently in the growth stage and is expected to witness steady growth during the forecast period.

Growing Adoption of Sustainable Food Packaging

Due to the environmental consciousness of vegan food groups, there is a rising demand for sustainable food products for products without meat. Consumer interest in product labeling changes is growing; such vegan product manufacturers like Oatly now include carbon labeling on their packaging. No Evil Foods Sacred Serve, a U.S.-based business, is also investing in the creation of fresh and cutting-edge sustainable food packaging that can be used on its products.

What are the Main Factors That Will Slow Down the Vegan Food Market?

High Cost of Vegan Products

Plant-based alternatives are created and launched by a number of manufacturers, but their costs are generally higher than those of foods made from animals. This aspect is anticipated to limit the uptake of edible vegan products in low- and middle-income nations.

What are the Future Opportunities for Vegan Food Market?

Rising Health Consciousness and Living Standard

People who lead sedentary lifestyles experience health problems like obesity and cardiovascular disease. Adopting a vegan diet helps to lose weight, improve blood circulation, and lower the risk of cardiovascular disease. According to a study in the JAMA Internal Medicine Journal, adopting a vegan lifestyle increases a person's life expectancy more than doing the same with a meat-based diet. Adopting a vegan diet, which is high in fiber, aids in improving the body's metabolism. Therefore, among consumers who are concerned about their health, the demand for a vegan diet is gradually rising. With the growing demand in the market in mind, food chains, fine dining establishments, and food manufacturers like Amy's Kitchen, Inc. are releasing new products and vegan food recipes. Pumpkin, avocado, and other nutritious ingredients are used in vegan food recipes that are introduced to the market in an effort to draw in consumers who are interested in trying out new, delicious foods that are also healthy.

Regional Analysis

The global vegan food market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America region is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period. The market is primarily driven by growing environmental and animal welfare concerns related to the food industry. The prevalence of lactose intolerance in the U.S. is another factor that increases demand for dairy alternatives. 48% of Americans are lactose intolerant, according to a University of Alabama at Birmingham article. It is anticipated that the dominance in the U.S. and Canada will continue due to consumers' favorable attitudes toward plant-based meals as a result of an increase in social media campaigns and satellite television channels.

Europe is expected to witness dynamic growth in the vegan food market during the forecast period. Europe is one of the world's largest consumers of plant-based food products. Due to the increasing veganism in the region, major food chains such as Domino's and Starbucks have introduced new vegan products for regional consumers. Veganism is gaining popularity in the region as a result of consumers' growing climate consciousness. Few individuals are adopting a flexitarian diet, contributing to the region's market expansion. Therefore, vegan food companies in the region are innovating and introducing new products in order to lower prices and improve overall product quality. In addition, supermarkets arrange specific shelf space for vegan food products, making them readily available to consumers.

Asia-Pacific is expected to witness significant growth in the vegan food market during the forecast period. India is a prominent market for vegan foods, as a significant share of the country's population does not consume meat and eggs. The country's large population further provides a large consumer base to target. China and Australia are also witnessing a change in eating habits, primarily due to the health benefits associated with a vegan diet. The region's rising per capita income also contributes to the growth momentum. Harvest Gourmet, a brand of vegan food from Nestlé, debuted in China in December 2020. The company offers a wide variety of plant-based goods, such as mince, burgers, sausages, and nuggets. Sales are predicted to increase as a result of the Asia Pacific region's expanding demand for vegan bakery and confectionery products. The three main forces driving regional growth are China, Japan, and Australia.

The LAMEA region is expected to witness moderate growth in the global vegan food market during the forecast period. Startups like Future Farms enhance their capacity to produce novel vegan goods in the shifting market. One of the key elements driving this region's demand for these products is health and fitness. To increase consumer attraction and the consumer base, advanced meat substitutes are being introduced in the expanding market.

Segmental Analysis

The global vegan food market is segmented by product type and distribution channel.

Based on the distribution channel, the global vegan food market is bifurcated into supermarkets & hypermarkets, convenience stores, e-commerce, and others.

The supermarket & hypermarkets segment is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period. Many plant-based food products are being introduced by large supermarkets & hypermarket chains for consumers. The supermarkets' prominent display signs inform shoppers about the newly released plant-based product varieties. In supermarkets, plant-based products occupy a specific shelf space that attracts customers' attention, which also helps their sales increase. Due to accessibility and availability, consumers prefer shopping at physical grocery stores. Additionally, a variety of domestic and foreign brands' products are widely available, and consumers can physically check a product's specifications before making a purchase.

Impact of covid-19

Various vendors in the market have used the pandemic situation to offer their solutions to the healthcare industry users to expand their positions in the market. For instance, in October 2020, Medialogix started working with the Royal Preston Hospital to reduce patient contact while still delivering media imagery across all departments. The company's focus is to be the leader in offering DAM solutions in law enforcement and healthcare.

Similarly, in October 2020, FotoWare's DAM software was used to increase the impact of infection control measures without compromising patient care and safety at Royal Preston Hospital. Such trends were observed worldwide, where DAM solutions were used to tackle the pandemic effectively.

During the pandemic, the closing of businesses induced by the lockdown had led to a significant slump in the market; however, digital consumption businesses are shifting to digital-first strategies, owing to which the demand for DAM solutions is expected to have a positive outlook.

Recent Developments

• In October 2022, Beyond Meat is entering the Indian Market. It ties up Allana Consumer Products Pvt. Ltd. For proper distribution throughout Indian Market.
• In June 2022, Eden Brew raised USD 5 million to develop cow-free dairy products and Ice-cream.