US$ 11.7 Billion Global Plant based Foods Market to Register 10.3% CAGR between 2019 and 2028, finds Bekryl
According to the recently released report by Bekryl, Global Plant based Foods Market was valued at US$ 11.7 billion in 2018 and will register 10.3% CAGR during the forecast period. It is estimated to reach US$ 12.9 billion by 2019 end. Plant based food products is increasingly gaining space in major retail store shelves primarily due to vegetarian and vegan becoming mainstream lifestyle choice. The trend has become quite popular in Western countries.
North America dominated the global plant based foods market, accounting for 36.8% revenue share in 2018. AS per the research, nearly nine million U.S. population eat solely vegetarian diet. While vegetarian is not going to become mainstream food habit anytime sooner, a large number of population add plant based proteins to their diet frequently. The trend has helped the industry players to generate revenue in double digit growth in the region. In the last few years, many companies including startups has emerged in the region to capitalize on growing plant based foods market. Bekryl estimates the competition to heighten in another five years, with established players opting for inorganic growth strategy and adopting new-to-market food products to meet taste preferences of local consumers. Direct supply chain model is also expected to become key focal point wherein companies might target food outlets engaged solely in vegetarian food products.
A number of key initiatives were seen in the North America region ranging from launching new products to expansion of production plant. Recently, in April 2019, Maple Leaf announced plans to build US$ 310 million plant based food processing facility in U.S. The plant is expected to double the production capacity and thereby gain significant market share in already well penetrated U.S. plant based proteins market. Similar developments were seen across range of companies in the region.
Few key Trends from Global Plant Based Foods Market:
Plant based Foods Industry Giants Focusing on Inorganic Growth and Regional Expansion to Boost Sales
Existing food and beverage companies are focusing on protecting and enhancing their positions in the market, both through internally driven product development and innovation and inorganic growth through the acquisition of the new disruptor brands and products locally or regionally.
For instance, in 2017, Danone S.A. acquired Alpro, a Belgium-based plant-based dairy manufacturer, in order to broaden its presence in the plant-based market. Further, in May 2019, Danone announced plans to expand its worldwide plant-based sales. In addition, the company will start selling plant-based yogurts under ‘Activia’, in countries such as Spain, France and the U.K. within the next 12 months.
Direct-to-Consumer Model is the New Trend in Global Plant based Foods Market
Direct-to-consumer has become the focal strategic point for many of the key players operational in the segment. Heightened competition, increased bargaining power of suppliers has led manufacturers to directly engage with client through various means. Digitization has played a very crucial role in overall development of direct-to-consumer model. The trend has helped the companies to understand the consumer perceptions as well as ensuring higher client retention. Various new entrants are already leveraging the model, though in a limited scenario. Online channel is the biggest means of reaching consumers for these companies.
In 2017, Daily Harvest raised US$ 43 million in Series B funding. The company offers build-your-box service that deliver orders to consumer doorstep. Similar initiatives were seen across other new entrants.
New-to-Market Food Products Will Continue to be Major Trend in the Industry
Key players in the plant based food market focus on launching new products in order to broaden their product offerings and cater to a wide gamut of consumers in the coming years. For instance, in June 2019, Tyson Foods, Inc. launched meat replacement products under its new ‘Raised & Rooted’ brand. In April 2019, Aloha launched plant-based protein drinks available in 3 flavors namely Chocolate Sea Salt, Coconut and Vanilla.
To purchase the report or know more about the industry, visit: https://bekryl.com/industry-trends/plant-based-food-market-size-analysis
Key companies covered in the report are:
Tyson Foods, Inc.
Wilmar International Ltd.
du Pont de Nemours and Company
Archer-Daniels Midland Co
Impossible Foods Inc.
Burcon Nutrascience Corporation
AGT Food & Ingredients, Inc.
Cosucra Groupe Warcoing
The Scoular Company
Ag Processing Inc.
Shandong Yuwang Ecological Food Industry Co., Ltd.
Gushen Group Co., Ltd.
Fonterra Co-operative Group
Omega Protein Incorporation