Vegan Food Market Size, Share, Forecast, & Trends Analysis by Type (Dairy Alternatives {Yogurt, Milk, Ice Cream, Cheese, Butter}, Meat Substitutes {Tofu, Nuggets}, Bakery Product), Distribution Channel (B2B, B2C {Convenience Store}) - Global Forecast to 2031

The Vegan Food Market was valued at $42.6 billion in 2023. This market is expected to reach $109.4 billion by 2031 from an estimated $48.2 billion in 2024, at a CAGR of 12.4% during the forecast period from 2024 to 2031.

Vegan Food Market Size & Forecast

The market's growth can be attributed to several key factors, including the expanding vegan population, increasing intolerance to animal proteins, rising R&D activities, significant investments, advancements in food technology, and heightened demand for protein-rich products. However, growth is moderated by a strong preference for animal-based products and consumer demand for soy and gluten-free alternatives.

On the other hand, the increasing adoption of vegan food in emerging markets and the rising interest in alternative proteins are likely to create growth opportunities for players operating in this market. Nonetheless, the relatively high cost of vegan food presents a substantial challenge to market growth.

Furthermore, a prominent trend in the sector is the growing frequency of mergers and acquisitions within the vegan food industry.

Vegan Food Market Growth Drivers

Growing Vegan Population

Shifts in global health and wellness concerns, ethical considerations, sustainability issues, and evolving dietary patterns are driving significant change. Over 1.5 billion people worldwide are now vegetarians (Source: Great Green Wall organization). Additionally, The World Animal Foundation (WAF) reports approximately 88 million vegans globally. In Europe, the number of vegans has surged from 1.3 million in 2016 to 2.6 million in 2020, according to the European Vegetarian Union, accounting for 3.2% of the total European population.

This rapid increase in the vegetarian population, combined with changing lifestyles, heightened industrialization, economic development, and growing health and wellness trends, has created substantial growth opportunities for vegan food manufacturers. Rising consumer awareness of the long-term health concerns associated with animal-sourced foods further supports this market GROWTH.

According to a 2022 survey by the Vegetarian Resource Group, approximately 6% of Americans abstain from meat and fish entirely, with this group evenly divided between vegetarians and vegans. Additionally, 12% of Americans typically consume vegetarian or vegan meals, while a larger segment, 45%, incorporate vegetarian or vegan options into their diet occasionally.

The following vegan growth statistics provide compelling evidence of the rising global demand for vegan food:

• In 2022, 629,000 people worldwide signed up for Veganuary, an annual challenge run by a UK nonprofit organization that promotes and educates about veganism by encouraging people to follow a vegan lifestyle for the month of January (Source: The Guardian; Veganuary).
• In 2022, the distribution of the vegan population globally was as follows: India 13%, China 6%, the U.S. 4%, Germany 3%, Brazil 2%, and Mexico 2% (Source: World Animal Foundation).

Planned vegetarian and vegan diets can be nutritionally adequate for all life stages, including pregnant women, children, and athletes. The Academy of Nutrition and Dietetics confirms that well-planned vegetarian and vegan diets are healthful and nutritionally sufficient. These diets are associated with a reduced risk of several health conditions, including ischemic heart disease, type 2 diabetes, hypertension, certain types of cancer, and obesity.

Amidst growing food security challenges, the vegan food trend is gaining traction and is expected to continue attracting interest in the coming years. As food demand rises, it will likely increase proportionally or even exceed current levels due to evolving food behaviors. Additionally, F&B manufacturers across various countries are innovating with plant-based ingredients, creating new product categories and transforming existing ones. Many countries are at different stages of nutritional transition. Consequently, the expanding vegan population and the health benefits associated with these products are driving increased demand in the vegan food market.

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Increasing Intolerance for Animal Proteins

Protein intolerance is a disorder caused by reactions to ingested food proteins arising from immunological, non-immunological, metabolic, genetic, and pharmacological mechanisms. It is frequently associated with gastrointestinal symptoms. While any protein has the potential to act as an allergen, the allergenic potential of animal food proteins depends on their evolutionary distance from human proteins.

According to the National Institute of Allergy and Infectious Diseases, 90% of food allergies are attributable to eggs, milk, fish, red meat, soy, and nuts. Additionally, a bite from the Lone Star tick can trigger an allergy to red meat, including beef and pork. This tick, which is primarily found in the Southeast U.S., from Texas to Iowa and extending into New England, has been linked to the development of red meat allergies. In infants, common allergens include cow's milk and hen's eggs, while fish and seafood are prevalent allergens in adults.

As of 2021, lactose tolerance is notably high in Northern European countries, with Sweden and Finland reporting tolerance levels of 74% and 82%, respectively. According to the European Federation of Allergy and Airways Diseases Patients Associations (EFA), 17 million Europeans experienced food reactions in 2020, including 3.5 million individuals under the age of 25. The most common allergens include cow’s milk, eggs, fish, and shellfish. Due to the prevalence of animal protein allergies, many meat consumers are increasingly turning to meat substitutes made from vegan proteins, which is driving growth in the vegan food market.

Vegan Food Market Trends

Growth in Mergers & Acquisitions

The vegan food industry is both fragmented and highly competitive, with numerous players active across various market segments. Recently, the industry has seen a surge in mergers and acquisitions as companies seek to capture a larger share of this expanding market.

A key reason for existing food and beverage companies pursuing mergers and acquisitions is to enter or expand within the rapidly growing protein alternatives market, which offers potentially higher returns compared to other food categories. Another significant trend is the consolidation within the alternative protein sector, as companies aim to capture a larger market share and accelerate revenue growth through synergies from expanded portfolios and entry into new markets or aligned products.

Given that the industry is still in its early stages, numerous start-ups and smaller businesses are seeking expansion capital. For instance, in 2024, Vegan Food Company (VFC) acquired TofuTown, a German organic alt-meat producer. Moreover, in 2023, VFC acquired Meatless Farm, a U.K.-based vegan meat company, and Nourish You (India) acquired One Good, an Indian vegan dairy brand.

Vegan Food Market Opportunity

Growing Adoption of Vegan Food in Emerging Economies

Emerging economies, particularly China, India, South Africa, Argentina, and Brazil, are projected to be the fastest-growing markets for vegan food. This growth is driven by the increasing popularity of vegan meat and dairy alternatives, rising demand for sports nutrition products, and a large base of vegetarians in Southeast Asia. These regions are experiencing significant expansion in vegan food products due to factors such as increased urbanization, heightened health awareness, rising disposable and per capita income, and growing consumption expenditure.

To capitalize on these opportunities, leading plant-based food manufacturers are pursuing strategies such as partnerships, acquisitions, investments, and expansions. For example, in January 2022, ADM partnered with Marfrig Global Foods to produce and market vegetable protein-based products in Brazil.

Vegan Food Market Analysis: Key Findings

The Dairy Alternatives Segment to Dominate the Vegan Food Market in 2024

Based on type, the vegan food market is segmented into dairy alternatives, meat substitutes, ready-to-eat meals, bakery products, confectionery, protein bars & snacks, and other vegan foods. In 2024, the dairy alternatives segment is expected to account for the largest share of 65.6% of this market. The major share of this segment can be attributed to several factors, such as the rising prevalence of lactose intolerance, growing consumer preference for vegan diets, the nutritional benefits provided by plant-based dairy products, increasing investments in dairy alternatives, and the expanding vegan and vegetarian population.

The Business-to-Consumer Segment to Dominate the Vegan Food Market in 2024

Based on distribution channel, the vegan food market is segmented into business-to-business (B2B) and business-to-consumer (B2C). In 2024, the business-to-consumer segment is expected to account for the largest share of 67.9% of this market. The significant market share of this segment is due to the rapid growth in vegan food sales at established supermarkets and hypermarket chains, increasing urbanization, rising per capita disposable income, consumers' preference for shopping at brick-and-mortar stores, and the growing consumer preference for vegan food products.

Geographical Analysis

Based on geography, the vegan food market is majorly segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, the Asia-Pacific region is anticipated to register the largest share of the market at 44.6%, followed by North America and Europe. The vegan food market in Asia-Pacific is projected to reach $21.74 billion in 2024. This large market share is driven by the growing awareness of the benefits of a plant-based diet, increased consumer concerns about the health risks associated with contaminated meat, rising health and wellness trends, higher investments in the vegan food sector, and substantial demand for a diverse range of food products from a large population base.

Moreover, this region is poised to register the highest CAGR during the forecast period. The rapid growth of this region is primarily due to accelerated urbanization, an increasing vegetarian population, the growing presence of both local and international manufacturers, and rising government support for the food industry.

Vegan Food Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years. Some of the key players operating in the vegan food market are The Archer Daniels Midland Company (U.S.), Hain Celestial Group, Inc. (U.S.), SunOpta, Inc. (Canada), Danone S.A. (France), Conagra Brands, Inc. (U.S.), Axiom Foods, Inc. (U.S.), Daiya Foods Inc. (Canada), Kellogg Company (U.S.), Beyond Meat, Inc. (U.S.), Impossible Foods, Inc. (U.S.), Tofutti Brands, Inc. (U.S.), Amy's Kitchen, Inc. (U.S.), Taifun-Tofu GmbH (Germany), Atlantic Natural Foods, LLC (Part of Aft Holdings, Inc.) (U.S.), VBites Food, Ltd. (U.K.), and Nutrisoy Pty, Ltd. (Australia).

Vegan Food Industry Overview: Latest Developments from Key Industry Players

• In April 2024, Alpine Bio (formerly Nobell Foods, Inc.) was granted a new U.S. patent for its vegan food product containing plant-expressed recombinant casein proteins.
• In February 2024, Heura Foods (Spain) secured EUR 40 million in Series B funding. This investment will support the company's efforts to enhance profitability and facilitate expansion into the U.K., France, and Italy.
• In September 2022, The Better Food Foundation (U.S.) introduced its canned vegan meat in the U.S., along with other products, including cold cuts, patties, and meatballs.

In June 2022, Tata Starbucks, a coffee chain, partnered with Imagine Meats (India) to offer vegan food options in India, including vegan sausage croissant rolls, vegan hummus kebab wraps, and vegan croissant buns.

Vegan Food Market Research Summary

Key questions answered in the vegan food market report: