Global Plant Based Food Market Size is estimated to be valued over 12.9 billion in 2019 and will register a CAGR of above 10.3% to create high revenue opportunity during the forecast period 2019-2028. The industry is expected to create 2.4X higher sales revenue in 2028 than in 2019.
The food space is experiencing a major shift in recent years with processed and mass produced foods enriched with artificial ingredients, hormones, antibiotics and largely devoid of real nutrition are rapidly losing their appeal. Consumers are inclining towards plant-based protein over animal-based protein since consumers prefer green natural ingredients. As of 2019, the industry is still relatively in early stage and thereby offers immense growth prospective for engaged industry players. Key players are primarily focusing on taste innovation as product strategy and merger acquisition as go-to-market strategy. In last few years, there were series of mergers acquisition in the segment. For instance, in 2018, Unilever acquired The Vegetarian Butcher. Another major company, Danone acquired plant based dairy alternative company Alpro in 2017. As per the independent estimates, Danone accounted for 16% of global plant based food market share in 2018.
Global Plant Based Food Market Drivers and Challenges
Pant based food market revenue is expected to be driven by various factors. Some key macroeconomic factors expected to boost the sales and growth of the product are increased per capita income, changing lifestyle with rising consumer awareness and rise in GDP among developing economies along with rapid product innovation.
Moreover, the wave of health consciousness that is spreading over the developing countries is another factor of that increases global plant-based protein market in terms of revenue, so much so that nearly 60% of millennials consume plant-based meat.
Increasing demand for natural and organic products has further boosted the overall plant based food market in the world. These foods are deemed to be environmentally safe as it leads to lesser carbon credits compared to meat based counterpart. Making consumers shift from the acquired and traditional taste of dairy product in addition to change in the perception and substitute sources of protein such as animal based protein and synthetic protein create restrains to global plant-based protein market to grow.
Global Plant Based Food Market Analysis, By Product
On the basis of product type, the plant based food market size is segmented into plant based milk, plant based dairy, plant based meat, plant based meals, tofu and tempeh, plant based condiments, plant based eggs and others. Among these, plant based milk and plant based dairy market are expected to account for over 69% of overall global shares in 2019. Much of the demand is expected to generate from U.S. In 2019, milk alternative registered fastest growth compared to that in 2018. Sales of almond milk has gained considerable share due to wide scale popularity among consumers. Almond milk is expected to register 9.5% CAGR between 2018 and 2028.
Meat alternatives are the another key segment for industry players. In last ten years, many new startups has emerged in the segment citing increasing vegan population. Beyond Meat is one such startup that has successfully expanded its business reach in North America. As of 2019, the company has over 400 employees. The company focuses on taste innovation and new-to-market products in order to gain substantial consumers. For instance, the company uses 22 different ingredients in order to match the texture and taste of meat burger. Founded in 2009, consistent innovation has helped company to reach valuation worth over US$ 1 billion.
Global Plant Based Food Market Analysis, By Application
On the basis of application, plant based food market revenue is analyzed across food and beverage industry, feed industry, pharmaceutical industry and others. Food and beverage segment contributes highest revenue in the global plant-base protein market among all the application segments. The main revenue generating segments are non-dairy beverages (refrigerated and shelf stable), cheese alternatives, meat alternatives (frozen and refrigerated), and tofu products.
Global Plant Based Food Market Size and Forecast: Regional Analysis
Globally, North America plant based foods market dominated the global sales. The region generated US$ 4.3 billion sales revenue for plant based food players. US is the largest market in the region and to facilitate the trade, it has set up The Plant Based Foods Association which represents nearly 75 of the nation’s leading plant-based food companies. Favorable business scenario and growing consumer awareness towards meat based alternatives is expected to heighten the total sales.
Western Europe stands next to Western Europe with 378 basis point difference. Majority of the sales was derived from Germany and United Kingdom owing to higher per capita income and growing awareness related to green diets. This has led consumers to shift from meat based diets to plant based diets. There exists huge addressable market in Western Europe, however, only a fraction of the total potential is capitalized by the industry players. This is because plant based foods are generally marketed as premium products, which has limited the sales demand in few Western Europe countries witnessing slowdown in economy.
Global Plant Based Food Market Size and Forecast: Competition Landscape
Some of the key global plant based food market companies are Archer Daniels Midland Company, Cargill, Incorporated, E. I. du Pont de Nemours and Company, Fonterra Co-Operative Group, Kerry Group plc, Beyond Meat, Sun Brothers, LLC., Vega, Danone S.A., AMCO Proteins, Hilmar Cheese Company, Inc., and Omega Protein Corporation. Just this year, Healthcare firm Otsuka Pharmaceutical has signed a definitive agreement to purchase a 100% stake in Canadian plant-based foods manufacturer Daiya Foods for C$405m which is a clear indication of steady growth of the plant-based foods because of consumers shift away from animal products towards plant-based options and a complete change in market scenario.
A whole new food ecosystem is growing, fuelled by startups that are responding to consumer demand by offering more plant-based options but are also accelerating this shift towards healthy food habits. Vegan meals, dairy free yogurts, plant meats are the future market leaders of the food and beverage industry.
By Product Type:
- Plant based Milk Products
- Plant based Dairy Products
- Plant based Meat Products
- Plant based Meals
- Tofu and Tempeh
- Plant based Condiments
- Plant based Eggs
- Food and Beverage Processing Industry
- Pharmaceutical Industry
- Feed Industry
What Will You Discover in the Report?
- An in-depth analysis of the Plant based Foods market across regions – North America, Latin America, Western Europe, Central and Eastern Europe, Asia Pacific, Middle East, and Africa.
- How the Plant based Foods market revenue is expected to grow throughout the forecast period.
- How geopolitical policies and technological changes will affect the Plant based Foods market in near future
- Which current and upcoming technologies will shape up the Plant based Foods market?
- Where the stakeholders should invest to generate higher profit margins
- How consumers (end-users) will reflect to the Plant based Foods industry during the forecast period
- Who are the Plant based Foods industry leaders and what are the key initiatives taken by them for long term growth?
- Industry exclusive use cases
Who will benefit from the Report?
- Plant based Foods Manufacturer
- Plant based Foods Raw Material Supplier
- Plant based Foods Solution Providers
- Consultants and Analysts
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