VEGAN FOOD MARKET ANALYSIS

The global vegan food market size was valued at US$ 16,532.3 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 8.8% from 2023 to 2030. The vegan food market is projected to grow at a significant rate during the forecast period. The growing awareness regarding the health benefits of vegan diet and its increasing adoption across the globe are expected to drive market growth. Organic product sales in the United States are also increasing, as consumers are interested in purchasing more environmentally friendly products that don't contain chemicals and hormones which is again propelling market growth. The vegan diet is a healthy choice that improves cholesterol levels and helps reduce the risk of heart disease and stroke. It is also high in fiber, which can help reduce the risk of obesity and increase bone density.

Global Vegan Food Market: Regional Insights

Based on geography, the global vegan food market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

North America is expected to dominate the global vegan foods market over the forecast period as it has a significant population that does not consume meat or eggs. The region also has a high number of lactose intolerant people, which is driving the demand for alternative dairy products. This trend is further supported by increasing campaigns by celebrities on social media regarding their vegan diet, thereby boosting the sales of these products in this region.

Europe is another major market for vegan foods as it has a large consumer base. The region also has a strong awareness about animal cruelty, which is fuelling the demand for vegan products in this region. Additionally, the introduction of new plant-based product varieties by major supermarket chains is also contributing to growth of this market.

Asia-Pacific is an emerging market for vegan foods as it is a fast-growing region with rising per capita income. The region is also experiencing the rise of a number of vegan restaurants. The growing demand for healthier food options and the booming food manufacturing sector in this region are further expected to contribute to growth of the vegan foods market during the forecast period.

Figure 1. Global Vegan Food Market, By Region 2022

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Global Vegan Food Market Drivers:

Growth of obese population is fostering market growth

According to OECD, obesity levels are expected to be particularly high in the U.S., Mexico, and England, where 47%, 39%, and 35% of the population respectively are projected to be obese in 2030. Obese people are highly prone to lifestyle disorders such as cancer, cardiovascular disease, and diabetes. For this reason consumers are looking for vegan diet. According to recent studies, 30% of Americans are not only leaving meat off their plates but are also seeking out plant-based meat alternatives.

Rising environmental concern and growing awareness regarding animal welfare to propel market growth

The demand for vegan products has grown rapidly across the globe, as consumers are becoming aware of their health benefits and environmental implications.  The growing demand for healthy foods and the emergence of innovative plant-based products are expected to contribute to growth of the vegan food market during the forecast period.

Global Vegan Food Market Opportunities:

Growing concern among consumers about the ethical treatment of animals, wide availability of vegan products through different distribution channels, and the rising prevalence of chronic diseases are key factors expected to serve significant growth opportunities over the forecast period.

Increasing number of vegan restaurants are projected to bring lucrative growth opportunities. According to the HappyCow, at the end of 2019 a little over 2600 vegan restaurants listed; and by early 2022 the restaurant count had climbed up to 3400. That’s a 25% jump! In other words, every 4 restaurants, new one opened.

Global Vegan Food Market Trends:

Expanding e-commerce sector increasing sale of vegan food

The e-commerce sector witnessing strong growth due to growing trend of digitalization and increasing online shopping. This is increasing visibility of vegan food products. Moreover, key players are adopting various growth strategy to expand their distribution channel. According to the Invesp, online grocery sales in US are estimated to reach $59.5 billion by 2023 from $23.9 billion in 2018. 48% of US grocery shoppers currently purchase at least some of their groceries online and 59% intend to in 2019. Expansion of online grocery store will favor the market growth.

Growing popularity of flavored plant-based meals

For instance, in August 2021, Nestlé-owned brand freshly has launched its first fully vegan meal line. Under its new Purely Plant menu, the chef-prepared meal delivery service will offer six options developed to showcase the nutritional benefits and delicious possibilities of plant-based foods.

Global Vegan Food Market Restraints:

Wide availability of substitutes to hinder market growth

Substitute like low-fat meat are gaining popularity in the market. For instance, lean meat has gained prominence in the market owing to the growing health conscious consumer worldwide. This is expected to limit the adoption of vegan food among consumers, thus hindering market growth.

High price of vegan food

The prices of plant-based foods are comparatively high and hence, adoption is slow amongst consumers. This factor is expected to hamper the market growth. However, increasing disposable income of consumers along with the growing adoption of healthy lifestyle will provide significant growth opportunities for key players in the market.           

Figure 2. Global Vegan Food Market, By product Type 2022

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Global Vegan Food Market Segmentation:

The global vegan food market report is segmented into product type, distribution channel, and region

Based on product type, the market is segmented into Dairy Alternative, Meat Substitute, and Others. Out of which, Dairy Alternative is expected to dominate the global market over the forecast period and this is attributed to the fact that dairy alternative have low calorie and fat with no cholesterol content. They are prepared from almond, soy, rice, and other ingredients such as coconut, cashew, oat, hazelnut, and others.

Meat Substitute segment is also expected to witness significant growth in the near future and this is owing to the growing demand for plant-based and organic food products. They are gaining immense popularity among health conscious consumers.

Based on distribution channel, the market is segmented into online and offline. Out of which, online is expected to dominate the global market over the forecast period. The online channel enables consumers to order the vegan food products from their preferred destination.

Offline segment is also expected to witness significant growth in the near future and this is owing to the rise in number of supermarket and hypermarkets.

Global Vegan Food Market: Key Developments

In December 2022, GrownAs* Foods has announced the release of new vegan boxed mac and cheese that the company states is more nutritious, flavorful and eco-friendly than traditional boxed mac and cheese.

In October 2021, Mondelēz International launched a Cadbury Plant Bar, a plant-based vegan alternative, in the U.K. and Ireland starting next month, the company said in a statement. The product, which took more than two years to develop, retains its creamy taste by replacing the milk with almond paste.

Global Vegan Food Market: Key Companies Insights

The global vegan food market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global vegan food market are Hain Celestial, SunOpta Inc., WhiteWave, and Others

*Definition: Vegan food is plant-based alternatives which contain no meat or animal-derived ingredients and are a good source of protein, fiber, vitamins, minerals, and antioxidants. They help improve weight loss, increase energy levels, and reduce health risk factors associated with meat consumption.