Plant-Based Food Market Size (2023 – 2030)

The Global Plant Based Food Market was valued at USD 49.91 billion and is projected to reach a market size of USD 108.28 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 11.70%. 

The Global Plant-Based Food Market is currently experiencing remarkable growth, driven by a notable shift in consumer preferences towards healthier and more sustainable dietary choices. Plant-based foods, derived from various sources such as vegetables, grains, legumes, and fruits, have gained substantial popularity as consumers increasingly opt for alternatives that align with their health and environmental concerns. This market's ascent is emblematic of the broader trend in the food industry, attracting the attention of professionals and researchers alike. As the demand for plant-based products continues to soar, industry leaders are adapting to evolving consumer dynamics, ensuring product quality, and fostering innovation to thrive in this dynamic landscape.

Key Market Insights:

Plant-based diets are gaining momentum, driven by compelling health and market trends. According to a study featured on the National Center for Biotechnology Information (NCBI), adopting a plant-based diet can reduce the risk of cardiovascular disease by as much as 28%. This health-conscious shift is mirrored in the marketplace, where plant-based food sales in the United States surged by 6.2% in 2022, outpacing the overall food market, as highlighted in the Good Food Institute's "The State of the Industry 2022" report. Furthermore, data from a 2022 report by the United States Department of Agriculture (USDA) reveals a remarkable uptick, with 10% of US adults now embracing plant-based diets, a significant increase from the 3% reported in 2012. These statistics underscore the growing consumer awareness and adoption of plant-based alternatives, presenting substantial opportunities for industry players within the Plant-Based Food Market.

Plant-Based Food Market Drivers:

Surging Health and Wellness Awareness Spurs the Growth of the Plant-Based Food Market:

The global shift toward healthier dietary choices has been a significant driver behind the growth of the Plant-Based Food Market. Increasingly health-conscious consumers are opting for plant-based diets to support their overall well-being. This trend is particularly pronounced in regions like North America and Europe, where consumers are becoming more aware of the health benefits associated with plant-based foods. In the United States, for example, there has been a substantial rise in the consumption of plant-based foods, with products like plant-based milk and meat alternatives gaining considerable popularity. This trend extends to Europe as well, with countries such as the United Kingdom and Germany experiencing a surge in plant-based food consumption, driven by heightened concerns about health and dietary choices. The demand for plant-based foods is expected to continue growing as consumers seek alternatives that align with their health and wellness goals. According to market statistics, the global plant-based milk market is projected to reach $21.52 billion by 2024.

Environmental Concerns Drive Adoption of Plant-Based Diets:

In Europe, the adoption of plant-based diets is not only motivated by health considerations but also by strong environmental consciousness. Scandinavian and Western European countries, in particular, are at the forefront of embracing plant-based diets as part of their efforts to reduce environmental impact. Sweden, for example, has seen a growing market for plant-based foods, with consumers actively choosing sustainable alternatives to reduce their carbon footprint. The plant-based protein sector in Europe is witnessing substantial growth, with the market projected to reach $13.35 billion by 2027, largely fueled by sustainability concerns.

Innovative Product Development and Diverse Offerings Energize the Plant Based Food Market:

North America, notably the United States, has emerged as a hub of innovation in plant-based food products. Companies such as Beyond Meat and Impossible Foods have been at the forefront of this movement, pioneering plant-based meat alternatives that have gained widespread acceptance. These companies have not only introduced innovative products but also expanded their product lines to include a variety of offerings, ranging from burgers and sausages to meatballs and more. As a result, the global plant-based meat market, valued at $8.96 billion in 2020, has experienced significant growth, with North America dominating a substantial portion of the market share. This trend indicates that the North American plant-based food market is set to maintain its momentum through further product innovation and diversification.

Retail Expansion and E-commerce Accessibility Boost Plant-Based Food Adoption:

The expansion of plant-based food offerings in mainstream retail outlets is making these products more accessible to consumers. Supermarkets, convenience stores, and online retailers are increasingly stocking plant-based food items, making it easier for individuals to incorporate them into their diets. The Asia-Pacific region, encompassing countries like China and India, is witnessing remarkable growth in the availability of plant-based food products through retail outlets. Furthermore, the proliferation of online retail platforms has played a pivotal role in making these products accessible to consumers across different regions. This expansion in retail presence is contributing significantly to the rapid growth of the plant-based food market in Asia-Pacific. By 2027, the Asia-Pacific plant-based meat market is estimated to reach $12.63 billion, reflecting the increasing accessibility and popularity of plant-based options.

Plant-Based Food Market Restraints and Challenges:

Challenges such as the higher price of plant-based foods compared to conventional animal-based foods, limited consumer awareness of plant-based foods, and the lack of product variety in some markets present significant constraints for the plant-based food market.

In the dynamic landscape of the plant-based food market, several hurdles demand strategic solutions. A notable challenge lies in the perception of higher prices associated with plant-based alternatives compared to conventional animal-based products. Bridging this cost gap while maintaining quality is pivotal for market expansion. Another area of concern is limited consumer awareness about the diverse range of plant-based options available and their associated health benefits. Elevating consumer knowledge through targeted education initiatives is essential for market growth. Furthermore, in some markets, a lack of product variety hinders growth potential. Meeting this constraint requires ongoing product innovation, catering to various tastes and dietary preferences. Throughout the projected period, these challenges collectively pose potential obstacles to the expansion of the Plant Based Food Market.

Plant-Based Food Market Opportunities:

The plant-based food market offers significant opportunities for innovative manufacturers. With growing consumer interest in healthier and sustainable diets, expanding into categories like plant-based seafood and dairy alternatives can attract a broader audience. The flexitarian trend, where people incorporate more plant-based meals into their diets, creates space for appealing options across culinary traditions. Regions like Asia-Pacific provide substantial growth potential. Partnering with food service providers and restaurants to offer plant-based dishes can expand market reach. Investing in R&D for taste, texture, and nutrition enhancement is crucial for winning over discerning consumers. These opportunities highlight the market's growth potential, provided industry leaders remain adaptable and consumer-focused.

PLANT-BASED FOOD MARKET REPORT COVERAGE:

Plant-Based Food Market Segmentation: By Product Type

• Non-Dairy Milk

• Dairy Products

• Bakery and Confectionery

• Sweet and Savoury Snacks

• RTE and RTC Meals

In the Plant-Based Food Market, Non-Dairy Milk stands out as the dominant segment, projected to reach $28.2 billion by 2028 with a CAGR of 12.1%. This prominence is driven by increasing lactose intolerance, dietary preferences, and the perception of health benefits. Concurrently, the Sweet and Savoury Snacks segment is the fastest-growing, outpacing the overall food market. This growth is fuelled by health-conscious consumers seeking convenient, plant-based snack options that align with both personal well-being and sustainability trends.

Plant-Based Food Market Segmentation: By Category

• Organic

• Conventional

At the forefront of the plant-based food market, Organic plant-based foods reign supreme, driven by their wholesome appeal and sustainable ethos. As health-conscious consumers increasingly seek cleaner, environmentally friendly options, the organic segment has surged ahead. In parallel, the Conventional plant-based foods segment, though growing at a slightly slower pace, is rapidly gaining ground, thanks to its affordability, widespread availability, and distinct flavor profile.

Plant-Based Food Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

The global plant-based food market is thriving in various regions. North America, led by the United States and Canada, contributes over 40% of the market, driven by health awareness and product diversity. Europe follows, with more than 30% market share, focusing on sustainability. The Asia Pacific region, led by China, India, and Japan, grows the fastest due to health-conscious consumers and innovative offerings. Latin America is an emerging market, while Saudi Arabia dominates the Middle East and Africa. These regions collectively fuel the global shift towards plant-based diets, driven by health and sustainability concerns.

COVID-19 Impact Analysis on the Global Plant-Based Food Market:

The COVID-19 pandemic cast a shadow of adversity across various sectors, impacting the global plant-based food market as well. The disruption of supply chains and worldwide transportation restrictions dealt a blow to the market's dynamics. The COVID-19 pandemic has led to a growing awareness of the importance of health and well-being. This has led to an increase in demand for plant-based foods, which are perceived as being healthier and more sustainable than animal-based foods. During the pandemic, there was a surge in demand for plant-based foods as consumers sought to stock up on healthy and non-perishable food items. This led to increased sales of plant-based milk, yogurt, and other plant-based products

Latest Trends/ Developments:

Plant-based meat alternatives are becoming increasingly popular, as consumers are looking for healthier and more sustainable alternatives to conventional meat. Plant-based meat alternatives are now available in a wide variety of forms, including burgers, sausages, chicken nuggets, and ground beef. Food scientists are constantly developing new plant-based ingredients that can be used to create a variety of plant-based food products. For example, pea protein is often used to create plant-based meat alternatives, and aquafaba is often used to create vegan mayonnaise. Major restaurant chains and fast-food outlets are expanding their plant-based offerings, making it easier for consumers to choose plant-based options when dining out. This trend is driven by increasing demand for meatless menu items. Lab-grown or cultured plant-based foods are on the horizon. These products aim to replicate the taste and texture of traditional animal-based foods more closely. While still emerging, they hold the potential to revolutionize the plant-based food market.

Key Players:

1. Beyond Meat Inc.

2. Impossible Foods Inc.

3. Danone SA

4. Garden Protein International, Inc.

5. Amy's Kitchen Inc.

6. Plamil Foods Ltd.

7. The Hain Celestial Group, Inc.

8. Sahmyook Foods

9. Sanitarium Health and Wellbeing Company

10. Axiom Foods