Vegan Baking Flour Market Size (2024 – 2030)

The global vegan baking flour market was valued at USD 500 million and is projected to reach a market size of USD 614.94 million by the end of 2030. Over the forecast period of 2024–2030, the market is projected to grow at a CAGR of 3%.

The term vegan baking flour describes a range of plant-based flours that may be substituted for traditional flours produced from animals, such as wheat flour, in baking recipes. These flours have been specially selected to follow the rules of the vegan diet, which exclude the use of any animal products or byproducts. Typically, natural ingredients such as organic chickpeas, coconut, rice, potatoes, tapioca, and maize are used to make vegan baking flour. It works well for baking breads, cakes, cupcakes, and pizza bases. In the past decade, there has been significant growth in the commercialization of vegan products. This was because of the increasing awareness. Presently, the market has undergone a notable expansion owing to a greater percentage of vegans and brands. In the future, with a growing focus on product innovation and collaborations, this market is anticipated to witness good growth. During the forecast period, a considerable upsurge is predicted.

Key Market Insights:

Sales of plant-based baked goods and confections are predicted to reach 605 million US dollars in Europe by 2026. It is anticipated that the market for vegan baking ingredients will grow to US $3.6 billion by 2033. The Vegan Trademark has 16,439 products registered by the Vegan Society. Globally, there were 88 million vegans in 2023, which is 1.1% of the total population. Research indicates that 83% of vegans do not have enough vitamin B12, which might cause neurological problems and anemia. To tackle this, consumption of fortified foods that include plant-based milk, nutritional yeast, and vitamin B12 supplementations like cyanocobalamin and methylcobalamin is encouraged. Additionally, consumer education is essential to prevent future consequences.

Vegan Baking Flour Market Drivers:

Growing demand for vegan products has contributed to its success.

Veganism is the practice of incorporating plant-based diets. This diet has gained immense popularity owing to increasing health consciousness. Many articles have shown the cruelties that are faced by the animal industry. Animals are injected with many hormones and medications to increase the quantity of their byproducts, like eggs and milk. Animals like sheep, chickens, goats, fish, etc. are killed brutally for meat consumption. This has led to a lot of awareness about the consumption of vegan-based foods.  A comprehensive analysis of the effects of nutrition on health by BMC Medicine in 2023 indicated that substituting whole grains, legumes, nuts, and olive oil for meat and dairy may dramatically lower the risk of cardiovascular disease and type 2 diabetes. Baking flour is one of the most important ingredients in the bakery and confectionary industries. Cakes, chocolates, and other desserts are some of the favorite choices for many people. Due to changing consumer preferences, the demand for vegan baking flour has therefore increased. Besides, adopting vegan practices helps save money. The Office of Health Economics conducted research in 2023 that showed the NHS could save around £6.7 billion a year if plant-based diets were adopted 100% of the time in England. Over 170,000 additional quality-adjusted life years and 2.1 million fewer illness cases might be achieved by this in England. As these health and wellness trends continue, this market is experiencing a drastic elevation.

Rising allergies are accelerating the growth rate.

Over the years, there have been many changes in the standard of living. This has perhaps contributed to a change in the human body. As such, many people have experienced allergies and food intolerance. Traditional wheat flour contains gluten. Gluten intolerance has become a common issue. Consumption of gluten leads to blotting, digestive issues, skin rashes, and other such concerns in many people. These dietary restrictions have paved the way for alternatives that include vegan baking flour. This contains plant-based ingredients and other natural ingredients. Consumers are on the lookout for safe and suitable choices that are helping with market expansion.

Vegan Baking Flour Market Restraints and Challenges:

Limited adoption and availability, associated costs, performance variability, and nutritional imbalance are the main issues that the market is currently facing.

One of the major barriers to the market is its limited adoption. This is because this is a relatively emerging concept. Many people are unaware of the concept of veganism, especially in rural and underdeveloped areas. Additionally, many people might have reservations and prejudices due to misassumptions about the product. Secondly, a lot of distribution channels do not have these products. As such, people turn to traditional items, hindering the market. Thirdly, the manufacturing and production of vegan-based products require a lot of investment. This translates to higher costs when the product is commercialized. Moreover, certain brands can face complexities in maintaining the texture. Since unconventional ingredients are used, the same outcome in taste, thickness, and other necessary characteristics might not be achieved. Some vital minerals, such as vitamin B12, iron, and omega-3 fatty acids, are mostly found in foods produced by animals; thus, it might be difficult for vegans to consume enough of these elements from plant-based sources alone.

Vegan Baking Flour Market Opportunities:

Product innovation can provide the market with numerous possibilities. Almonds, chickpeas, coconut, rice, buckwheat, and quinoa are a few varieties that are used for making flour. A lot of culinary experts and chefs are constantly working on creative products. Secondly, expanding the portfolio can help with the generation of more revenue. This includes using this flour in applications other than bakery and confectionery. It is being experimented with in fried and other frozen foods to incorporate a unique taste. Thirdly, adding functional ingredients is beneficial. Vitamins, minerals, antioxidants, and other bioactive compounds can be included to provide health benefits. This helps in attracting a broader consumer base. Furthermore, online retail is a boon. Digitalization has become the new norm. By having a virtual presence, better sales are achieved.

VEGAN BAKING FLOUR MARKET REPORT COVERAGE:

Vegan Baking Flour Market Segmentation: By Type

• Soy Flour

• Oat Flour

• Quinoa Flour

• Nut-based Flour

• Cereal-based Flour

• Others

Based on type, oat flour is the largest-growing type. Made from whole oats pounded into a powder, oat flour is a gluten-free kind of whole-grain flour. It tastes toasted and nutty with a touch of caramel. Compared to all-purpose flour, oat flour may provide more flavor and a chewier, crumblier texture to baked items. Moreover, it may provide tenderness to cakes and chewiness and thickness to biscuits. However, nut-based flour, especially almond flour, is the fastest-growing type. Ground almonds are used to make almond flour, a fine powder. It's frequently used to create gluten-free recipes for baking and cooking. Compared to wheat flour, almond flour is higher in fiber and protein and lower in nutrients. It is also appropriate for someone following a ketogenic diet because it is heavy in fat and low in carbs.

Vegan Baking Flour Market Segmentation: By Nature

• Organic

• Conventional

Based on nature, the conventional segment is the largest. This is because the raw materials and ingredients that are needed are readily available. This makes manufacturing and production easier. Besides, they are widely available through many distribution channels. Furthermore, they are a cost-effective option, which draws a lot of customers. The organic segment is the fastest-growing. There has been a lot of demand for this category since the crops produced use no fertilizers or other chemicals. This positively affects human health and our environment. A lot of companies are coming up with innovative organic products that are more beneficial compared to the normal ones. Apart from this, rising demand due to awareness is creating an elevation.

Vegan Baking Flour Market Segmentation: By Application

• Bakery Products

• Soups, Sauces & Dressings

• Confectionaries

• Functional Foods

Based on application, bakery products are the largest growing segment. Baking flour is used in these products as it helps provide structure to baked goods. It forms a framework that stretches to contain the expanding leavening gases while rising. Bakery products include cakes, muffins, pastries, cookies, etc. This category is popular owing to the widespread adoption, availability, and versatility of these products. The market for functional foods—such as protein bars, energy bites, meal replacement shakes, and fortified cereals—is expanding at the fastest rate as a result of rising consumer demand for goods that provide more health advantages than just basic nourishment. Functional meals can benefit from the addition of vegan baking flour to improve their nutritional profile and attract customers who are looking for plant-based, health-conscious solutions.

Vegan Baking Flour Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

Based on region, North America is the largest growing market. This is mainly because of the economy. This makes it easier to invest in companies and spend on innovations. Besides, this area has a growing adoption of vegan-based diets, which is boosting growth. Many prominent companies are present in this area that have a global presence. Major key players include Bob's Red Mill Natural Foods, King Arthur Baking Company, Simple Mills, and Pamela's Products. The United States and Canada are the two leading countries. Asia-Pacific is the fastest-growing region. Countries like India, Japan, and South Korea are at the top. The economy of this area has seen tremendous growth. Urbanization has led to a rising middle class and an increasing disposable income. People can afford a wide range of products. Furthermore, e-commerce has helped a lot. Many varieties are available on this platform. Asian countries have one of the highest vegan populations in the world. This shift in dietary preference has played a vital role in the expansion.

COVID-19 Impact Analysis on the Global Vegan Baking Flour Market:

The outbreak of the virus had a mixed impact on the market. Lockdowns, movement limitations, and social isolation became the new standards. Transportation, logistics, and the supply chain were all affected by this. As a result, import-export operations deteriorated. All restaurants and hotels were closed to stop the virus from spreading. Production and other operations were stopped as a result. Because of the unpredictability of the economy, layoffs began in several industries. Numerous people experienced job losses. The majority of the funds were simply used for necessities and basic utilities. All funds were directed toward medical applications, such as PPE kits, hospital beds, oxygen tanks, masks, and vaccinations. Launches and partnerships were delayed as a result. However, on the positive side, the pandemic played a crucial role in spreading awareness about the animal industry. The number of vegans rose significantly during this period. As per a survey conducted by Mintel, 25% of young British millennials found vegan diets to be more attractive. Online retail helped with the sale of products. Besides, cooking became a passion for many due to boredom. This resulted in the experimentation with vegan-based foods. Furthermore, a lot of meat products had a risk of the virus, according to many studies. Post-pandemic, the market has picked up rapidly owing to the increasing demand. Additionally, a lot of eateries are offering many vegan options, which has fueled the growth.

Latest Trends/ Developments:

Businesses in this sector are driven to grow their market share through a variety of tactics, such as investments, joint ventures, and acquisitions. Companies are investing a significant amount of money in developing strategies to maintain competitive pricing. This has led to more growth.

Demand for vegan baking flour products with clear labels and organic ingredients that are minimally processed and free of artificial chemicals and preservatives is rising. Producers may benefit from this trend by providing vegan baking flour choices that are sustainably produced, organic, and non-GMO, appealing to consumers who care about their health and the environment.

Key Players:

1. Bob's Red Mill Natural Foods

2. King Arthur Baking Company

3. Arrowhead Mills

4. Blue Diamond Almonds (Almond Breeze)

5. Nature's Path Foods

6. Simple Mills

7. Pamela's Products

8. Bob's Red Mill Natural Foods

9. Hodgson Mill

10. Namaste Foods

In October 2023, Dawn Foods, a leading manufacturer and distributor of baked goods worldwide, announced the introduction of a vegan sponge cake mix. Like the rest of the Dawn vegan line, the Balance Vegan Sponge Cake Mix is V-label-approved and offers the same flavor, texture, and functionality as a conventional sponge cake mix.

In June 2022, six new products from Renewal Mill, a pioneer in the recycled food sector, were available at Whole Foods Market locations around the country. For the past few years, Renewal Mill has been promoting their gluten-free repurposed flours, which are created from the wholesome pulps left over after making oat milk and soymilk. Three flours—the signature Organic Okara Flour, Oat Milk Flour, and 1-to-1 Gluten-Free Baking Flour—as well as three baking mixes—Dark Chocolate Brownie, Oat Chocolate Chip Cookie, and Sugar Cookie—are among the products that Whole Foods is offering in all 11 of its areas.