Plant-Based Food Market: Current Analysis and Forecast (2022-2028)

Plant-based food not only includes fruits and vegetables, but also nuts, seeds, oils, whole grains, legumes, and beans. Eating plant-based foods is the single biggest way we can reduce our impact on the environment as individuals. Plant-based food is a tool that will help us to reverse climate change. In addition, animal welfare rights groups have gained significant traction and the ways in which animals are treated in the production of products have caused a switch in consumer preferences towards plant-based food.

Further, the major factor in the growth of the plant-based food industry is the increased ethical focus of the consumer. This is partly led by the millennial generation and the emergence of the 'flexitarian' consumer. Also, certain ingredients in plant-based foods are often identified to provide the consumer with high levels of protein and nutritional value such as soy, oat, coconut, almond, rice, hemp etc.

Moreover, the plant-based food market is expected to grow at an accelerating rate owing to rising demand for innovative products has driven a significant increase in new product development across chilled, ambient, and frozen segments. Therefore, gives the consumer a wider choice of products and brands, and allows the plant-based food industry various opportunities to grow in the coming years.

Based on the product, the plant-based food market is segmented into plant-based dairy & dairy alternatives, plant-based nutrition, and plant-based meat substitutes. The plant-based dairy & dairy alternative segment caters to a significant market share. Plant-based dairy alternatives such as almond milk, and oats milk demand is growing among the consumer owing to their texture, which is thicker and creamier than other plant-based products, making them suitable for both beverages and food products. In addition, consumers with lactose intolerance are also adopting plant-based dairy products such as animal-free yoghurts, desserts, and cheese coupled with a growing number of launches of blended milk products, bringing new nutritional profiles, tastes, and textures for toddlers are also driving the market size of plant-based food. For instance: On 5 July 2022, Danone announced the launch of the first-ever Dairy and Plants Blend baby formula, for vegetarian and flexitarian options for babies.

Based on application, the plant-based food market is categorized into supplements & nutritional powders, beverages, bakery & snacks, breakfast cereals, infant nutrition, and others. The beverages segment acquired the highest share in the plant-based food market. As plant-based beverages are low in calories and a good source of protein. Further, plant-based beverages offer healthy nutrients in dairy milk products which can be beneficial for consumers with milk allergies or lactose intolerance.

Based on source, the plant-based food market is segmented into soy, pea, wheat, and others. The soy segment acquired the highest share in the plant-based food market. Soy and soy foods are common nutritional solutions for vegetarians, due to their high protein content and versatility in the production of meat analogs and milk substitutes. Further, soy is valuable for plant-based products as it is rich in protein and contains unsaturated fat, iron, and vitamin B1. Also, various key players are launching 100% soy snacks, and beverages in the plant-based food market which in turn would create opportunities in the market. For instance: In March 2022, Otsuka Pharmaceutical Co., Ltd. (Otsuka) announced the launch of SOYJOY Plant-Based, a new series in the SOYJOY line of delicious, convenient whole-soy nutrition bars in two flavors (white chocolate and banana), nationwide in Japan.

For a better understanding of the market adoption of the plant-based food market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Mexico, and the Rest of North America), Europe (Germany, U.K., France, and Rest of Europe), Asia-Pacific (China, Australia, India, Singapore, and Rest of Asia-Pacific), Rest of World. North America is anticipated to grow at a substantial CAGR during the forecast period. This is mainly attributed to the growing consumer acceptance of plant-based food items as a result of the development and popularity of novel products such as egg substitutes, plant-based milk, and plant-based meat substitute are accentuating the market size of plant-based foods in the region. In addition, the rising vegan and flexitarian population in the U.S. and the strong presence of leading plant-based food manufacturing companies are driving market growth. For instance, According to a study done by Vegetarian Times, 9.7 million Americans follow a vegetarian diet, with almost one million of those being vegan. 59% of plant-based food eaters in the United States are female, with 41% being male.

Some of the major players operating in the market include: Amy's Kitchen Inc. , Atlantic Natural Foods LLC , Beyond Meat Inc, Danone SA, Garden Protein International Inc., Impossible Foods Inc., Light life Foods Inc. (Maple Leaf Foods Inc.), Nestle S.A., Tyson Foods Inc., V bite Food Ltd.