The Europe Plant-based Food Market is expected to grow at a CAGR of 10.1% from 2022–2029 to reach $16.7 billion by 2029. This market is driven by the growing vegetarianism, declining meat consumption, increasing preference for plant food, and increasing venture capital investment in animal alternatives. However, the comparatively higher price range for plant-based food products and significant preference for animal-based products are expected to hinder the growth of this market to some extent.
Impact of COVID-19 on the Europe Plant-based Food Market
As the COVID-19 pandemic conveyed the connection between public health and animal meat consumption and the rising awareness of the need for a healthy diet, the consumers in Europe preferred a plant-based diet. From a manufacturing and distributing point of view, this industry registered an unprecedented demand for some plant-based products such as meat analog and plant-based milk. To meet the sudden rise in demand during the pandemic, many companies in the plant-based food market started changing their strategies. Some of these strategies are as follows:
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In June 2021, Nestlé (Switzerland) launched vegan KitKat V in the U.K., Poland, Estonia, Latvia, and Lithuania.
- In May 2021, Unilever PLC (U.K.) partnered with ENOUGH (formerly 3F BIO) to bring new plant-based meat products to market.
- In December 2020, Plant & Bean (U.K.) opened a plant-based meat factory in Boston, Lincolnshire (U.K.), to serve the market across Europe. This facility has an initial capacity to produce 55,000 tonnes/year of plant-based meat.
- In November 2020, Beyond Meat (U.S.) partnered with Pizza Hut to launch Beyond Meat Pizzas in selected Pizza Hut delivery locations in London, Liverpool, and Luton.
- In September 2020, Danone SA (France) launched a range of plant-based yogurt drinks in the U.K.
- In July 2020, Follow Your Heart (U.S.) partnered with U.K.-based Tesco stores. As a part of this development, the company’s Vegenaise will be available in just over 550 outlets, and its Smoked Gouda and Medium Cheddar Slices in 300 outlets in the U.K.
- In January 2020, Beyond Meat (U.S.) opened a co-manufacturing facility in Zandbergen (Netherlands), engaged in the international protein supply chain, to increase production capabilities in Europe.
These developments further boost the growth of the plant-based product market in Europe.
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Preference for animal-based products to hinder the growth of the market
According to the OECD- FAO projection (2018), the average per capita meat consumption in Europe is expected to increase from 64.6 kg in 2018 to 66.8 kg in 2027, a growth of 0.2%. The rise in consumption is mainly attributed to population growth and rising affluence. Animal proteins are the proteins derived from animal sources, such as eggs, milk, meat, and fish. Animal-based products are usually called higher-quality proteins because they contain and supply adequate amounts of essential amino acids, whereas plant-based products have limiting amounts of some (but not all) amino acids. A large amount of animal protein is currently consumed in European diets. According to the European Environment Agency (2020), animal sources accounted for approximately two-thirds of dietary protein.
Key Findings in the Europe plant-based food market Study:
In 2022, the Dairy Alternatives Segment to Dominate the Europe Plant-based Food Market
Based on type, the dairy alternatives segment is expected to hold the largest share of the plant-based food market in Europe in 2022. The large share of this segment is mainly attributed to increased demand for dairy alternatives from the lactose intolerant population. Due to the issues like lactose intolerance and milk allergy arising from the consumption of cow’s milk, there has been an increased demand for plant-based alternative milk in Europe. However, the seafood substitute segment is expected to grow at the highest CAGR during the forecast period.
In 2022, the Soy Segment to Dominate the Europe Plant-based Food Market
Based on the source, the Europe plant-based food market is segmented into soy, almond, wheat, pea, rice protein, and others. The soy segment is expected to account for a major share of the plant-based food market in Europe in 2022. The dominant position of this segment is mainly attributed to the rising demand for soy ingredients due to its easy availability, high quality, cost-effectiveness, wider application areas, and higher consumer acceptance for soy-based food products. However, the pea segment is expected to grow at the highest CAGR during the forecast period.
In 2022, the B2C Segment to Dominate the Europe Plant-based Food Market
Based on distribution channel, the Europe plant-based food market is mainly segmented into business-to-business (B2B) and business-to-customers (B2C). The B2C segment is estimated to account for the largest share of the plant-based food market in Europe in 2022. The large share of this market is mainly attributed to increased shelf space for plant-based products in modern groceries, increased retail sales of plant-based food in supermarkets & hypermarkets, growing preference for shopping from brick-and-mortar grocers due to easy access & availability, and increasing consumer acceptance for vegan & vegetarian food products. This segment is also expected to grow at the highest CAGR during the forecast period.
- Europe B2C Plant-based Food Market
On the basis of type, the Europe B2C plant-based food market is segmented into modern groceries, convenience stores, specialty stores, online retail, and others. In 2022, the modern groceries segment is estimated to account for the largest share of the Europe B2C plant-based food market.
In 2022, Germany is Expected to Dominate the Europe Plant-based Food Market
Geographically, the Europe plant-based food market is segmented into Germany, the U.K., Spain, Italy, France, the Netherlands, Belgium, Austria, Poland, Portugal, and RoE. Germany is expected to account for the major share of the plant-based food market in Europe in 2022. This growth can be attributed to the growing vegetarian population, increased consumer awareness, increasing concern about animal welfare, and growth in vegan and vegetarian restaurants. Veganism in Germany is becoming a popular trend. Vegans have doubled from 1.3 million in 2016 to 2.6 million in 2020. Almost 75% of German households would like to see a larger variety of vegetarian products in supermarkets. Less than two-thirds buy such products intentionally.
Key Players
The Europe plant-based food market is fragmented in nature, with several small and medium-sized companies and new players. These players implemented various strategies to expand their product offerings and augment their market shares over the past 4 to 5 years. The key strategies followed by most companies in the Europe plant-based food market were new product launches; agreements, collaborations, & partnerships; expansions; and acquisitions.
The key players operating in the plant-based food market in Europe are Beyond Meat Inc. (U.S.), Danone S.A. (France), Amy’s Kitchen Inc. (U.S.), The Hain Celestial Group, Inc. (U.S.), Daiya Foods Inc. (Canada), Marlow Foods Ltd. (U.K.), Taifun –Tofu GmbH (Germany), Vbite Food Ltd (U.K.), Plamil Foods Ltd (U.K.), Plant & Bean Ltd (U.K.), Unilever PLC (U.K.), Berief Food GmbH (Germany), Nestlé S.A. (Switzerland), The Meatless Farm (U.K.), and Veganz Group AG (Germany).
Scope of the report
Europe Plant-based Food Market, by Type
- Dairy Alternatives
- Milk
- Cheese
- Yogurt
- Butter
- Ice Cream
- Creamer
- Others
- Meat Substitutes
- TVP
- Burger Patties
- Tempeh
- Hot Dogs and Sausages
- Seitan
- Meatballs
- Ground Meat
- Nuggets
- Crumbles
- Shreds
- Others
- Meals
- Baked Goods
- Confectionery
- RTD Beverages
- Egg Substitutes
- Seafood Substitutes
- Others
Europe Plant-based Food Market, by Source
- Soy
- Almond
- Wheat
- Pea
- Rice
- Others
Europe Plant-based Food Market, by Distribution Channel
- Business-to-Business
- Business-to-Customers
- Modern Groceries
- Convenience Store
- Specialty Store
- Online Retail
- Others
Europe Plant-based Food Market, by Country
- Germany
- U.K.
- Spain
- Italy
- France
- Netherlands
- Belgium
- Austria
- Poland
- Portugal
- Rest of Europe (RoE)
Key Questions Answered in the Report-