The global vegan food market was USD 23.31 billion in 2020 and is expected to expand from USD 26.16 billion in 2021 to USD 61.35 billion in 2028 at 12.95% CAGR. COVID-19 has had a favorable impact on demand worldwide. The global market grew 12.95% in 2020, compared to the average year-on-year growth from 2017 to 2019. After the pandemic, demand and growth will revert to pre-pandemic levels, raising CAGR.
Consumer demand for meat replacements and alternative dairy products should enhance product uptake. Consumers like soy, coconut, and almond milk alternatives. Youth acceptance of vegan products boosts industry growth. This has spurred companies to develop new products. New product styles and variety attract new customers and offer fresh user experiences.
COVID-19 Demand for vegan health products to Grow Market The COVID-19 epidemic changed consumer diets to vegan diets. Consumers initially stockpiled meat-based and meat-free foods. Stockpiling strained food production and supply. To accommodate vegan food demand, firms gradually increased output. Health and wellness drove their shopping behaviors, increasing vegan product sales worldwide. Food e-commerce platforms also expanded. During the COVID-19 epidemic, vegan food delivery increased due to a healthier lifestyle.
Sedentary lifestyles cause obesity and cardiovascular disease. Veganism reduces weight, increases blood flow, and lowers cardiovascular disease risk. Vegans live longer, according to a JAMA Internal Medicine Journal research. Fiber-rich vegan diets boost metabolism.
Health-conscious consumers increasingly prefer vegan diets. Food chains, fine dining restaurants, and food manufacturers like Amy’s Kitchen, Inc. are developing new vegan goods and recipes to meet market demand. Vegan dishes using pumpkin, avocado, and other healthy ingredients are introduced to health-conscious consumers who want to try new, wonderful meals.
Innovative Vegan Food Packaging to Grow Industry Vegan eating groups are environmentally concerned, therefore demand for sustainable food packaging materials for meat-free items is rising significantly. Vegan product makers like Oatly include carbon labeling because consumers value product labeling change. No Evil Foods Sacred Serve, a U.S. company, is also designing ecological packaging for its products.
Consumers are more mindful of animal cruelty. Thus, they adopt lifestyles and diets to limit animal cruelty and environmental damage from animal-meat consumption. Dairy and meat products account for 60% of agricultural greenhouse gas emissions, according to research journals. Veganism also prevents animal exploitation for food. Due to concerns about zoonotic illnesses, the COVID-19 pandemic increased vegan product demand. Consumers are investigating food goods to understand their health effects. According to Google Ad Words, vegan food searches increased by 47%.
Vegan Food’s High Cost and Deficits Hinder Market Growth Several firms produce plant-based alternatives and cruelty-free products, although they cost more than animal-based foods. Plant-based foods taste and feel different from animal-based foods, making them less enticing. The vegan food market expects gradual customer adoption. Vegan foods also lack nutrients. Low protein in vegan diets can induce anemia, hormonal imbalance, Vitamin B12 deficiency, and other health issues. Thus, customers should consult healthcare professionals for a vegan-food pyramid-based diet plan.
By Product Type Analysis
Vegan Milk Is Growing Due to Consumer Consumption Vegan meat, milk, and other products divide the market. Consumers are buying alternative dairy products faster than meat replacements. Vegan milk products include oats, almonds, soy, and others. These goods are lactose-free and weight-conscious. Health increasingly influences mu-chasing behavior.
By Distribution Channel Analysis
Vegan cuisine is sold in supermarkets, hypermarkets, convenience stores, and online. Supermarket sales dominate. Major supermarket chains are also offering plant-based food products. Supermarkets feature big displays announcing new plant-based product variations. Plant-based products’ niche shelf space in supermarkets attracts people and boosts sales. E-commerce has also grown due to the pandemic. Food sales are growing on these portals since customers may shop from home.
As the younger generation becomes more conscious about climate and its association with meat consumption, the demand for these products rises steadily in the Asia Pacific region. Cultural variations in countries such as India, China, and Japan significantly impact the rate of adoption among consumers. Although countries such as India have many vegetarians, adoption of an animal-free diet is still low. The increasing awareness among consumers plays a crucial role and propels the growth of the vegan market in the region.
North America is also one of the largest consumers of vegan food products apart from Europe. The consumers in both regions have depicted the same purchasing pattern. Manufacturers such as Beyond Meat are adopting partnership strategies with restaurant chains such as Panda Express to expand their distribution channels and make their products accessible to consumers present in other regions.
Europe is one of the major consumers of plant-based food products globally. Due to the rise in vegan consumers in the region, major food chains such as Domino’s and Starbucks have launched new products for consumers in the region. Due to rising climate awareness among consumers, vegan diet adoption is also increasing in the region. A few consumers are adopting a flexitarian diet, further fueling the region’s market growth. Thus, vegan food manufacturers in the region are competing to innovate and launch new products to bring down the price of the products and improve their overall quality. Additionally, supermarkets reserve specific shelf space for vegan type of food products, making them accessible for consumers.
South America and the Middle East & Africa are developing markets. Future Farms and other startups develop innovative vegan products for the changing market. Health drives regional demand for certain products. Innovative meat alternatives are being introduced in the rising market to attract consumers.
Danone S.A. is Increasing Product Capabilities by Acquiring a Plant-Based Food Company. Danone S.A. dominates the global vegan food business and acquires established market participants to extend its plant-based product line. The corporation bought Follow Your Heart in 2021. Conagra, Inc. and Hain Celestial Group, Inc. are other vegan food industry leaders. Startups are releasing vegan products alongside established businesses, fragmenting the market. To launch new vegan products, companies are investing in production and technology.
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