Plant-based Food Market by Type (Dairy Alternatives, Plant-based Meat, Meals, Confectionery, Beverages, Egg Alternatives, Seafood), Source (Soy, Wheat, Pea, Rice), Distribution Channel (B2B, B2C [Convenience Store, Online Retail]) - Global Forecast to 2031

The Plant-based Food Market was valued at $44.4 billion in 2023. This market is expected to reach $113.1 billion by 2031, from an estimated $50.1 billion in 2024, at a CAGR of 12.3% during the forecast period 2024-2031.

Plant-based Food Market Size & Forecast

This market's growth is driven by the increasing intolerance for animal-derived protein amongst consumers, the growing vegetarian population, the rising number of venture investments in plant-based food companies, innovation in food technology, and the growing focus on animal welfare and sustainability. In addition, the increasing number of research & development and new product launches by plant and protein alternative manufacturers and emerging economies, such as Asia-Pacific, Latin America, and the Middle East & Africa, are expected to create lucrative opportunities for players operating in this market.

However, factors such as the comparatively higher price range of meat substitutes, significant preference for animal-based products, and consumer preference for soy and gluten-free products are expected to hinder the growth of this market to a notable extent.

Plant-based Food Market: Competitive Analysis

The report includes a competitive analysis based on an extensive assessment of the key growth strategies adopted by leading market players in the past three to four years and the benchmarking of key players' product offerings by type. The key players profiled in the plant-based food market are Beyond Meat Inc. (U.S.), Impossible Foods Inc. (U.S.), Danone S.A. (France), Garden Protein International, Inc. (Canada), Amy's Kitchen Inc. (U.S.), Plamil Foods Ltd. (U.K.), The Hain Celestial Group, Inc. (U.S.), Sahmyook Foods (South Korea), Sanitarium Health and Wellbeing Company (Australia), Daiya Foods Inc. (Canada), Earth's Own Food Company Inc. (Canada), Lightlife Foods, Inc. (U.S.), Taifun –Tofu GmbH (Germany), Atlantic Natural Foods LLC (U.S.), VBIte Food Ltd (U.K.), Nutrisoy Pty Ltd. (Australia), Nestlé S.A. (Switzerland), Unilever PLC (U.K.), Sophie’s Kitchen (U.S.), and Eat Just, Inc. (U.S.).

Focus on New Product Launches by Plant-Based Food Manufacturers Supporting Market Growth

Plant-based products are trending and have marked serious growth in vegan product development. Across the food value chain, companies are looking to generate growth through innovation and product development in plant-based products, both within their legacy brands and by creating new product offerings. Some plant-based product developments in the global market are as follows:

• In March 2024, Gosh! Food Limited (U.K.), a plant-based food brand, launched street food and glaze & grill BBQ kits.
• In March 2024, Califia Farms, LLC (U.S.) launched plant-based creamers in three flavors: lavender, brown sugar, and vanilla.
• In December 2023, Konscious Foods (Canada) launched frozen plant-based sushi, poke bowls, and onigiri in 4,500 retailers across North America.
• In September 2022, The Better Food Foundation (U.S.) launched its canned vegan meat in the US, along with other products such as cold cuts, patties, and meatballs.
• In October 2021, Nestlé S.A. (Switzerland) launched Garden Gourmet vEGGie, a plant-based alternative to eggs, and Garden Gourmet Vrimp, a plant-based alternative to shrimp.
• In July 2021, Beyond Meat (U.S.) launched Beyond Meatballs in the Netherlands and Switzerland. These meatballs are available at 450 Albert Heijn stores throughout the Netherlands and purchased through the online supermarket Picnic. In Switzerland, Beyond Meatballs are found across 120 COOP stores.
• In April 2020, Daiya Foods (Canada) launched veggie crust pizzas or plant-based frozen pizzas with a vegetable-blend crust of cauliflower, sweet potato, and spinach. As a part of this development, the company introduced cutting-board cheese shreds, gluten-free thin-crust pizzas, veggie crust pizzas, and burritos in the market.

Likewise, many food innovators are exploring new formulations to impact the existing protein supply chain, showcasing the opportunity for vendors in the global plant-based food market.

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Venture Investments in Plant-based Food Companies Accelerating the Expansion of Plant-based Food Market

In recent years, the plant-based foods industry has witnessed an influx of investments aimed at capitalizing on the veganism trend and the surging demand for sustainable foods. Alongside the growing risk profile of livestock production, well-established meat and dairy players are increasingly under attack by animal welfare groups. Protein diversification has the potential to transform a food company’s core business and value proposition.

The growing trend of millennials adopting flexitarian and meat-free diets signals a change in purchasing habits that significantly shift from earlier generations. However, the plant-based movement is bigger than any one generation. Everyone, from celebrities to athletes to entire companies, including Google, and countries as big as China, are supporting the movement to eat more plant-based foods. The key players across the food value chain, from producers to retailers, are already investing in these opportunities.

Some companies are hedging against or preparing for the decline of demand for animal products by investing in other companies producing alternatives. The market has received investments and funding from several high-profile individuals, financial investors, and companies in the past few years. According to the Good Food Institute, in 2022, the alternative proteins industry received USD 2.9 billion in disclosed investments. In the same year, plant-based meat, egg, and dairy companies received USD 1.9 billion in investments, a significant increase over USD 693 million raised in 2019. Plant-based meat, seafood, egg, and dairy companies have raised USD 6.3 billion in investments since 2010.

Some of these investments are as follows:

• In January 2023, No Meat Factory, a Canadian plant-based meat manufacturer, secured USD 42 million in Series B funding. The funding round was led by Tengelmann Growth Partners and Emil Capital Partners.
• In July 2022, Meati (U.S.), a plant-based meat manufacturer, raised USD 150 million in Series C funding to increase its output.
• In July 2021, NotCo (Chile), a plant-based meat and dairy substitute manufacturer, raised USD 235 million in a Series D funding round. With roots in both Latin America and North America, NotCo had raised USD 370 million in total as of 2022.
• As of January 2021, Sweden-based milk alternative business Sproud (founded in 2018) had received GBP 4.8 million (USD 6.5 million) in funding from venture capital investor VGC partners from London. The company produces a range of plant-based milks using split yellow peas.
• In March 2020, Impossible Foods Inc. (U.S.) raised USD 1.3 billion in venture capital from noteworthy investors, including Bill Gates.
• In February 2020, Alpha Foods (U.S.), a vegetarian prepared food manufacturer, raised USD 28 million in financing for its portfolio of vegetarian burritos, tamales, nuggets, pizzas, burgers, patties, and sausages.

Thus, growing venture capital investments in plant-based product companies are expected to drive the global plant-based food market.

Key Findings in the Global Plant-based Food Market Study:

In 2024, the Dairy Alternatives Segment is Expected to Account for the Largest Share of the Plant-based Food Market

Based on type, the plant-based food market is segmented into dairy alternatives, meat substitutes, plant-based meals, plant-based baked goods, plant-based confectionery, plant-based beverages, egg substitutes, fish and seafood alternatives, and other plant-based foods. In 2024, the dairy alternatives segment is expected to account for the largest share of the plant-based food market. The large market share of this segment is attributed to factors such as the increasing number of lactose intolerant people, the growing ethical concerns amongst consumers about animal abuse in modern dairy farming practices, and the nutritional benefits offered by plant-based dairy products.

However, the egg substitute segment is expected to register the highest CAGR during the forecast period. The rapid growth of this segment is attributed to the increasing consumer demand for egg alternatives, the rising number of investments and food innovations in egg alternatives, the increasing number of new product launches, and the low cholesterol levels provided by egg substitutes.

Pea Segment is Projected to Witness Significant Growth in the Market During 2024–2031

Based on source, the plant-based food market is segmented into soy, almond, wheat, pea, rice protein, and other sources. In 2024, the soy segment is expected to account for the largest share of the plant-based food market. The large market share of this segment is attributed to factors such as the easy and wide availability of raw materials, lower cost compared to other sources, significant demand from meat alternatives manufacturers, higher consumer acceptance level, and its wide range of applications in numerous food & beverage sectors, including meat, dairy alternative, and bakery.

However, the pea segment is expected to register the highest CAGR during the forecast period. The rapid growth of this segment is attributed to the increasing desire amongst consumers to find sustainable and good-tasting alternatives to animal-based proteins, the rising number of investments from leading manufacturers to increase pea protein production, and the growing adoption of pea protein in plant-based foods. In addition, peas are allergen-free, gluten-free, and lactose-free, which further increases the demand for pea-based food.

In 2024, the Business-to-Consumer Segment is Expected to Account for the Largest Share of the Plant-based Food Market

Based on distribution channel, the plant-based food market is segmented into business-to-business and business-to-consumer. In 2024, the B2C segment is expected to account for a larger share of the plant-based food market. This segment's large market share is attributed to factors such as the increased sales of plant-based food in well-established supermarkets and hypermarket chains, consumer preference for shopping from brick-and-mortar grocers due to easy access and availability, and the increasing consumer expenses on vegan food products.

Additionally, this segment is also expected to grow at the fastest CAGR during the forecast period due to the rapidly growing online retail sector. The rapid growth of this segment is mainly attributed to the faster accessibility, convenience, and cost-effectiveness offered by the online retail sector.

Asia-Pacific: The Dominating Regional Market

Based on geography, in 2024, Asia-Pacific is expected to account for the largest share of the plant-based food market. The leading position of Asia-Pacific in the plant-based food market is attributed to factors such as collaborations between international and domestic food companies, increasing protein-rich diet awareness, booming food & beverages industry, growing economy, rapid urbanization, and the large base of vegan and vegetarian population. Additionally, this country is expected to grow at the fastest CAGR during the forecast period due to increasing investment in the plant-based sector and the growing adoption of emerging technologies for product innovation.

Plant-based Food Market Report Summary:

Key questions answered in the report: