Europe Plant-based Food Market Outlook, 2028

Europe Plant-based Food Market Outlook, 2028

Veganism is a contemporary and expanding societal phenomenon that has been lately growing in European countries, which is demonstrated by the steadily growing number of vegans and people following plant-based diets. In recent years, there has been a growing trend toward vegetarianism and veganism in Europe due to growing awareness of health, environmental concerns, and compassion for animals. The global shift towards plant-based diets has sparked a revolution in the food industry, with major food manufacturers and retailers embracing the change. In Europe, plant-based food retail sales have surged in recent years as new products and innovations have come to market, enabling more consumers to purchase next-generation plant-based meat, seafood, eggs and dairy that is competitive with animal products on taste, price and convenience. 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 fuelling 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 the vegan type of food products, making them accessible for consumers. Europe has seen the emergence of innovative plant-based meat alternatives. Brands are developing products that mimic the taste and texture of traditional meat, including plant-based burgers, sausages, and chicken substitutes. Also, Europe is home to numerous plant-based food start-ups that are bringing innovation and creativity to the market. These start-ups are developing unique plant-based products, including meat alternatives, dairy alternatives, and plant-based snacks, catering to diverse consumer preferences.

According to the research report, “Europe Plant-based Food Market Outlook, 2028” published by Bonafide Research, the market is anticipated to add over USD 8 Billion from 2023 to 2028. The market's expansion is primarily attributable to the region's growing vegetarian population, greater concern for animal rights, and an increase in the number of vegetarian eateries. A significant factor anticipated to fuel the expansion of the Europe plant-based food market during the projected period is the quick development in vegan dietary habits as a result of the expanding health concerns around the world. In addition, factors such as climate change, raising interest in a plant-based diet, and a decline in the consumption of meat and dairy products, along with expanding technological developments for the production of plant-based substitutes, are likely to spur the market's rapid expansion in the years to come. Increased launch of unconventional dairy alternative products, such as hemp, pea, and cashew milk, is an optimistic development for the market. This is expected to drive the market in the future, as most manufacturers are making developments in the sector. For instance, in July 2021, Linda McCartney's, one of the UK's darling meat-free brands, launched its plant-based milk line. Linda McCartney's range comprises a barista oat, barista coconut, soy, and rice milk. Furthermore, there is a significant improvement in media coverage, which is primarily in line with the increase in new product developments and the demand for products.

Based on the countries, Germany is expected to dominate the market by the upcoming time frame, growing with 9.45% CAGR by 2023-28.

Germany has a growing vegan and vegetarian population, with nearly 10% of the population sticking to a vegetarian diet, one of the highest rates in Europe. Germany has gone so far as to create legal definitions of vegan and vegetarian for food labeling. The increased availability of higher-quality, more varied meat and dairy alternatives on supermarket shelves is primarily responsible for the surge in the popularity of veganism and other plant-based diets. Due to the creativity and innovative product launches of major manufacturers and large food corporations, the quality, and accessibility of plant-based products have significantly increased in the country. For instance, in September 2022, LikeMeat launched its new product Like Bacon which it claims is a gluten-free and soy-based bacon variant, marking the German food brand’s first breakfast product. The company claims that the new product Like Bacon is produced in its own vegan production facility in the Netherlands. The fact that this trend could continue in the coming years is also shown by the increasing number of vegetarians and vegans in Germany. Moreover, manufacturers are also keen on launching new products owing to the demand. For instance, in January 2022, one of the largest oat beverage companies in the world, Oatly Group, established an extensive partnership with Deutsche Bahn (DB). As its first plant-based milk, the company began offering its oat beverage Oatly Barista on the onboard dining car of German ICE and Intercity trains on January 1, 2022.

On the other hand, the number of vegan start-ups in the United Kingdom has been steadily increasing. Brands such as Allplants Ltd and Little Bandits are launching new products into the market to cater to the increasing demand for innovative, plant-based food products. In March 2020, Quorn Foods partnered with Teesside University for testing and developing different methods of making mycoprotein, which is the main ingredient in Quorn’s products. The aim was to achieve a more viable production methodology and improved product quality. In 2020 and 2021, the British food tech company, Moving Mountains, extended its product line with plant-based options of fish fingers and tender beef strips. This shows that there is a high demand for plant-based foods in the UK market, which will drive its growth in the coming years.

Based on the product type, plant-based bar (Protein Bars, Energy Bars, Cereal Bars, Fruit & Nut Bars, etc.) segment is projected to cross USD 400 Million market size by 2028.

Europe has seen a surge in health-conscious consumers who are seeking healthier alternatives to traditional snacks and processed foods. Plant-based bars often feature natural and nutrient-dense ingredients, such as nuts, seeds, fruits, and grains, making them attractive to individuals focused on maintaining a healthy lifestyle. Plant-based bars offer a convenient, on-the-go snack option that aligns with the growing demand for healthier snacking choices. They provide a portable and nutritious solution for busy individuals seeking quick and wholesome sustenance. The growing number of individuals adopting plant-based, vegan, or vegetarian diets has driven the demand for plant-based bars. These bars cater to dietary restrictions and preferences by offering alternatives to animal-derived ingredients like dairy, eggs, and honey. Plant-based bars are also gaining traction within the sports and fitness community. Athletes and fitness enthusiasts are turning to plant-based options for their nutritional needs, seeking bars that provide adequate protein, energy, and other essential nutrients without relying on animal-based ingredients. In Europe, manufacturers have invested in improving the taste and texture of plant-based bars, addressing previous perceptions of blandness or inferior flavour. Through formulation advancements and ingredient innovations, plant-based bars now offer a more enjoyable eating experience, contributing to their growing popularity.

Based on the distribution channel, convenience stores are projected to have over 25% market share by 2028 in Europe plant-based food market.

Busy lifestyles, long working hours, and the rise of urbanization have led to a shift in consumer behaviour towards convenience-oriented food options. Plant-based food products that are readily available in convenience stores provide a convenient solution for individuals seeking healthier and more sustainable options while managing their busy schedules. The concept of flexitarianism, where individuals predominantly follow a plant-based diet but occasionally consume meat or animal products, is gaining popularity in Europe. Convenience stores are capitalizing on this trend by offering plant-based food options that appeal to flexitarians and those seeking to reduce their meat consumption. Convenience stores are increasingly partnering with plant-based food brands to expand their product range and enhance their offerings. These partnerships help convenience stores access a wider variety of plant-based products, including popular brands and innovative new options, to meet the demands of their customers. In addition to that, convenience stores excel in capitalizing on impulse purchases, where consumers make unplanned buying decisions. By strategically placing appealing and convenient plant-based options near the checkout counters or in high-traffic areas, convenience stores can capture the attention of consumers and encourage them to try plant-based products on a whim. 7-Eleven, BP Connect, Shell Select, Tesco Express, Spar, Co-op Food, EuroSpar, M&S Simply Food, Sainsbury's Local and Waitrose Convenience are some convenience store chains in Europe that have been expanding their plant-based food offerings.

Market Drivers

Increasing Availability in Retail and Foodservice: Plant-based food options are becoming more readily available in European retail stores and foodservice establishments. Major supermarket chains, restaurants, and cafes are expanding their plant-based product offerings to meet the rising demand from consumers. Tesco, one of the largest supermarket chains in Europe, offers an extensive selection of plant-based food products. They have dedicated sections for plant-based alternatives, including plant-based meat, dairy alternatives, and ready-made plant-based meals. Sainsbury's is another major supermarket chain in Europe that has expanded its plant-based offerings. They stock a variety of plant-based options, including meat alternatives, dairy-free products, and plant-based snacks and desserts. On the other hand, Pret A Manger, a popular international sandwich and salad chain, has expanded its plant-based offerings to include a range of plant-based sandwiches, wraps, salads, and snacks. They are known for providing fresh and healthy plant-based options. Also, Leon is a fast-food chain that focuses on providing healthy and sustainable food options. They have a dedicated menu section for plant-based options, offering plant-based burgers, wraps, salads, and sides.

Influential Vegan and Vegetarian Movements: Europe has been home to influential vegan and vegetarian movements that have shaped consumer attitudes towards plant-based diets. These movements have raised awareness about animal welfare, environmental sustainability, and health benefits associated with plant-based eating. The influential vegan and vegetarian movements in Europe have played a pivotal role in transforming the plant-based food market. They have increased awareness, driven market demand, fostered product innovation, and created a supportive environment for the growth and acceptance of plant-based diets and products. As these movements continue to gain momentum, their impact on the plant-based food market is expected to further expand and shape the future of food consumption in Europe. Influential vegan and vegetarian movements have contributed to a cultural shift and the re-evaluation of societal norms surrounding food choices. As plant-based diets become more widely embraced, they challenge traditional notions and habits related to meat consumption, leading to a broader acceptance and integration of plant-based food options in Europe.

Market Challenges

Growing Preference for Animal-based Products: Increasing preference for animal-based products in the region due to high presence of protein and other nutritional ingredients in meat products is major factor projected to hinder the growth of the regional market over the forecast period. Europe has a rich culinary heritage deeply rooted in animal-based products, such as meat, dairy, and seafood. These traditional eating habits and cultural preferences can make it challenging for plant-based food products to gain widespread acceptance, particularly among more conservative segments of the population. Also, some consumers still associate animal-based products with superior nutritional value and may be sceptical about the nutritional adequacy of plant-based alternatives. Overcoming this perception and effectively communicating the nutritional benefits of plant-based foods is crucial for wider acceptance and market growth. Plant-based food products can sometimes be priced higher than their animal-based counterparts due to factors like production costs, sourcing of quality ingredients, and economies of scale. Higher prices may deter some consumers, especially those on tighter budgets, from opting for plant-based options.

Food Waste and Shelf Life: Plant-based food products, particularly those with minimal preservatives or additives have shorter shelf lives compared to their animal-based counterparts. Managing inventory, minimizing food waste, and ensuring product freshness is important considerations for manufacturers and retailers in the plant-based food market. Plant-based products are more prone to spoilage compared to animal-based products due to their composition and lack of certain preservatives. This is a concern for both manufacturers and retailers, as it increases the risk of product spoilage and potential losses. Managing product freshness and ensuring optimal storage conditions become crucial to maintain product quality and reduce waste. In addition to that, packaging plays a crucial role in extending the shelf life of plant-based food products. However, balancing the need for sustainable packaging materials with the requirement for longer shelf life can be a challenge.

Market Trends

Functional Plant-Based Products: There is a rising trend of incorporating functional ingredients into plant-based food products. Manufacturers are adding plant-based protein, fiber, vitamins, and minerals to enhance the nutritional profile of their offerings. Functional plant-based products, such as protein bars, energy drinks, and meal replacements, are gaining popularity among health-conscious consumers. Functional plant-based products that promote gut health and digestive wellness are on the rise in Europe. These include plant-based probiotics, fermented foods, and prebiotic-rich products that support a healthy gut micro-biome. The association between plant-based diets and improved gut health is driving the demand for such products. In addition to that, plant-based ingredients are also making their way into the beauty and skincare industry. Functional plant-based products, including plant-derived oils, botanical extracts, and natural ingredients, are used in skincare formulations for their nourishing, anti-aging, and skin-rejuvenating properties.

Expansion of Retail Offerings: Retailers across Europe are expanding their plant-based food offerings to meet the increasing consumer demand. Supermarkets, grocery stores, and online retailers are dedicating more shelf space to plant-based products, making them more accessible to a wider audience. This expansion includes a variety of product categories, such as plant-based meats, dairy alternatives, snacks, and ready-to-eat meals. Retailers are partnering with plant-based food brands to expand their product offerings. These partnerships often involve exclusive collaborations or the introduction of private label plant-based products, allowing retailers to offer unique or competitively priced options to consumers. The dairy alternative section in European supermarkets has expanded to include a wide range of plant-based milk, cheese, yogurt, and ice cream options. Retailers are increasingly stocking various plant-based dairy alternatives made from soy, almond, oat, coconut, and other plant sources to cater to different dietary preferences. Also, retailers are offering a greater selection of plant-based convenience foods and ready-to-eat meals to meet the needs of busy consumers. This includes plant-based sandwiches, salads, wraps, and microwaveable meals that provide quick and convenient plant-based options for on-the-go consumers.

Key Players

The plant-based food market has seen the emergence of several key players who have played a significant role in driving innovation, product development, and market growth. The plant-based food market major player such as the Kellogg Company, Danone S.A., Archer Daniels Midland Company, Blue Diamond Growers, Nestlé S.A., JBS S.A., The Kraft Heinz Company, Unilever plc, General Mills, Inc.,, Beyond Meat, Inc., Impossible Foods Inc, Bob's Red Mill, The Hain Celestial Group, Inc., Plamil Foods Ltd, and others are working on expanding the market demand by investing in research and development activities.

Recent Developments:
• In June 2021, Heura Food (Spain) raised USD 4.8 million through a crowd-funding campaign to fuel its R&D and launch new plant-based meat products.
• In September 2020, The Meatless Farm (U.K.) raised USD 31 million in funding to keep up with post-COVID demand.
• In July 2020, Follow Your Heart (U.S.) partnered with U.K.-based Tesco stores. As a part of this development, the company’s Vegenaise will be available in just over 550 outlets, and its Smoked Gouda and Medium Cheddar Slices in 300 outlets in the U.K.
• In September 2020, Nestlé SA introduced a meatier-tasting version of its flagship plant burger and launched an oats-and-peas version of its Nesquik cocoa drink in Europe. In 2020, vegetarian and plant-based sales posted strong double-digit growth, supported by new launches.
• In December 2019, Unilever PLC (U.K.) invested EUR 85 million in ‘The Hive,’ the innovation of a food center at Wageningen University (Netherlands) to support research into plant-based ingredients and meat alternatives, efficient crops, sustainable food packaging, and nutritious food.

Considered in this report
• Geography: Europe
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Europe Plant-based Food with its value and forecast along with its segments
• Country-wise Plant-based Food market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:
• Germany
• United Kingdom
• France
• Spain
• Italy
• Russia

By Product Type
• Plant-based Milk
• Plant-based Meat and Seafood (Tofu, Quorn, Seitan, Fish, TVP, Burger Patties, Tempeh, Hot Dogs and Sausages, Meatballs, Ground Meat, Nuggets, Crumbles, Shreds, Crab, shrimp, Others)
• Plant-based Cheese
• Plant-based Desserts (Cakes, Pastries, Custard, Pudding, etc.)
• Plant-based Ice Cream
• Plant-based Yogurt
• Plant-based Butter
• Plant-based Bars (Protein Bars, Energy Bars, Cereal Bars, Fruit & Nut Bars, etc.)
• Plant-based Bakery Snacks and Confectionery (Biscuit and Cookies, Bread and Rolls, Chocolate, etc.)
• Plant-based Creamer
• Plant Based Mayonnaise and Salad Dressing
• Others

By Distribution Channel
• Hypermarkets and Supermarkets
• Convenience Stores
• E-Commerce
• Others

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations and organisations related to the Plant-based Food industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

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