North America Plant-based Food Market Outlook, 2028

North America Plant-based Food Market Outlook, 2028

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. Adoption of a vegan diet has spiked in recent years as around 6% of the consumers in the U.S. have adopted a vegan lifestyle. The millennials account for the majority of the consumers, accounting for 40% of the total consumers. The increased awareness about veganism is also spurring the revenue of vegan restaurants in the region. It is expected to positively impact the growth of the vegan market in the coming years. Due to shifting consumer demand, rising concern over the climate impacts of meat production, food innovations from start-ups, rising investment, consumer preferences for variety, and worries about the environmental impacts of food production, plant-based diets are quickly gaining ground in North America. For instance, the number of vegetarian and vegan restaurants in the U.S. and Canada rose from 55 in 1993 to more than 4,300 in 2021. Despite the fact that animal protein-based foods remain predominate in North America, plant-based foods have become increasingly popular in recent years. Plant-based milk has wide application in the food and beverage industry. Various plant milk types like soya, almonds, coconuts, oats, and rice milk are present in the market. Americans prefer plant milk over any other dairy or animal milk because of its high nutrition value, Omega-3 fatty acid and vitamins. There has been phenomenal growth in the number of people who are turning vegan and preferring a plant-based diet. Due to this, many full services restaurants in the United States also offer varieties of plant-based products depending upon their customer's preferences and needs.

According to the research report, “North America Plant-based Food Market Outlook, 2028” published by Bonafide Research, the market was valued at USD 10 Billion in 2022. The rising concern regarding the environmental impacts of livestock production and meat availability has led many American people to shift to plant-based meat substitutes. Besides, lactose intolerance among infants and adults in the United States is a foremost issue boosting plant-based milk market growth. Whereas the popularity of gluten-free and low carbs diet helps increase the demand for Tofu among both vegans and non-vegan people. Moreover, increasing obesity and health consciences among the people of the United States is increasing demand for plant-based food items as they are natural and low in fat and calorie content. For instance, in January 2020, Nestlé partnered with Winnipeg’s Functional Foods and Vancouver’s Burcon NutraScience to develop meat and dairy substitutes with a favourable environment footprint. In April 2020, Daiya Foods, which is among the founding members of The Plant-Based Foods Association of the United States and Canada, launched an extensive range of innovative plant-based food products, including a pizza crust made with spinach, cauliflower, and sweet potato. In January 2021, Greenleaf Foods, SPC, which owns Field Roast Grain Meat Co, in collaboration with Pizza Nova, launched Field Roast Plant-Based Pepperoni across all of Pizza Nova’s locations.

Based on counties, United States is dominating the North America plant-based food market with more than 80% market share in 2022.

Plant-based food sales across the USA are projected to rise at an impressive pace during the forecast period. This growth is due to the rising vegan and flexitarian population in the country and strong presence of leading plant-based food manufacturing companies. The United States remains at the forefront when it comes to the production and consumption of plant-based foods. In addition to that, heavy presence of leading plant-based food companies such as Beyond Meat Inc, and Amy’s Kitchen along with penetration of new plant-based food start-ups is positively impacting plant-based food sales in the USA. The American plant-based food market is currently booming, and investment in this sector is rising steadily. For example, the US Company Greenleaf Foods, a subsidiary of Canadian Maple Leaf Foods Inc., recently announced a US$ 310 million investment in a new production facility, and plant-based producer Tofurky is being backed by further private investment. However, Canada is home to some of the leading plant-based food manufacturers, such as Daiya Foods Inc, Maple Leaf Foods Inc, and McCain Foods. The Canadian government has also identified plant-based food and beverages as an important and developing industry. The federal government tof the country has included the plant-based industry in its Supercluster Initiative, and invested $150 million towards its development.

Based on the product type, plant-based meat and seafood (Tofu, Quorn, Seiten, Fish, TVP, Burger Patties, Tempeh, Hot Dogs and Sausages, Meatballs, Ground Meat, Nuggets, Crumbles, Shreds, Crab, shrimp, Others) holds the second highest market share of around 20%.

The environmental impact of animal agriculture, including greenhouse gas emissions and deforestation, has raised concerns among consumers. Plant-based meat and seafood provide a more sustainable alternative, requiring fewer resources and generating fewer carbon emissions. In addition to that, significant advancements in food technology have led to the development of plant-based meat and seafood products that closely mimic the taste, texture, and appearance of their animal-based counterparts. Companies like Beyond Meat and Impossible Foods have achieved remarkable success in creating plant-based burgers, sausages, and other meat substitutes that have gained widespread acceptance. The rise of flexitarian and vegan diets has also contributed to the growth of plant-based meat and seafood. As more individuals adopt these dietary patterns, there is an increased demand for plant-based alternatives to traditional meat and seafood products. However, plant-based cheese is becoming more readily available in grocery stores, specialty shops, and online platforms. The increased accessibility of plant-based cheese has made it easier for consumers to incorporate it into their diets. The endorsement and promotion of plant-based cheese by celebrities, social media influencers, and health advocates have helped raise awareness and drive its popularity. Influencers and celebrities often share their positive experiences with plant-based cheese, influencing consumer choices and generating interest in these products.

Based on the distribution channel, e-commerce segment is getting a big boost in North American Plant-based Food market with over 12% CAGR by 2023-28.

North America has vast and diverse geographical areas, including rural and remote regions. E-commerce platforms enable consumers across these regions to access a wide range of plant-based food products without the need to rely solely on local brick-and-mortar stores. Many North Americans lead fast-paced lives with busy schedules, making it challenging to find time for grocery shopping. E-commerce provides a convenient solution, allowing consumers to order plant-based food products online and have them delivered to their homes or workplaces. North America has high internet penetration rates, with a significant portion of the population having access to the internet. This widespread connectivity provides a solid foundation for the growth of e-commerce in the region. Also, North American consumers, especially the younger demographic, are often tech-savvy and comfortable with online shopping. They embrace digital platforms and are more likely to explore and purchase plant-based food products through e-commerce channels. The market has seen the emergence of specialized online retailers and marketplaces that focus specifically on plant-based products. These platforms curate a wide selection of plant-based food items, providing a dedicated space for consumers to explore and purchase products. Based on this factor, the rise of direct-to-consumer plant-based food brands has been facilitated by e-commerce. These brands can connect with consumers directly through online platforms, bypassing traditional retail channels. This direct interaction allows brands to build a loyal customer base and gather feedback to improve their products.

Market Drivers

Health and Wellness Consciousness: Increasing awareness about the health benefits of plant-based diets has driven the demand for plant-based food products in North America. Consumers are seeking healthier options that are lower in saturated fats, cholesterol, and calories, and plant-based foods provide an alternative to traditional animal-based products. Also, consumer preferences are evolving, with many individuals seeking innovative and diverse food options. Plant-based foods provide a range of choices, allowing consumers to explore new flavours, textures, and culinary experiences. Plant-based foods, such as fruits, vegetables, whole grains, legumes, and plant-based protein sources, are perceived as healthier choices due to their lower levels of saturated fat, cholesterol, and higher fiber content. Also, plant-based diets have been associated with a reduced risk of chronic diseases, including heart disease, diabetes, and certain types of cancer. As individuals become more aware of the potential health benefits of plant-based diets, they are motivated to incorporate more plant-based foods into their daily meals. Many plant-based foods are considered functional foods and super-foods due to their potential health benefits beyond basic nutrition. Examples include plant-based sources of omega-3 fatty acids (like chia seeds and flaxseeds), antioxidant-rich berries, and nutrient-dense leafy greens. Health-conscious consumers seek out these foods to optimize their health and well-being.

Influence of Millennials and Generation Z: Younger generations, such as Millennials and Generation Z, are driving the demand for plant-based foods. These consumer segments prioritize sustainability, health, and ethical considerations, and their purchasing power and preferences have a significant impact on the market. These younger generations are more open to trying new foods and exploring different dietary options. They actively seek out plant-based alternatives to traditional animal-based products, driven by a desire for culinary adventure, health consciousness, and a commitment to reduce their environmental impact. These generations place a strong emphasis on transparency and authenticity in the brands they support. They seek out plant-based food brands that align with their values and demonstrate a commitment to sustainable practices, ethical sourcing, and clean ingredients. Brands that effectively communicate their values and mission resonate with this consumer segment. Also, millennials and Generation Z have influenced culinary trends, including the rise of plant-based cuisine. Their demand for diverse and exciting plant-based options has driven culinary innovation, resulting in a broader range of plant-based alternatives, such as plant-based meats, cheeses, and desserts.

Market Challenges

Competition from Established Brands: The plant-based food market is becoming increasingly competitive, with both large food companies and start-ups entering the space. Established animal-based product brands are also introducing their own plant-based alternatives, intensifying competition and making it challenging for smaller or newer plant-based brands to gain market share. Established brands typically have larger marketing budgets and resources, enabling them to invest in extensive marketing campaigns and advertising. This can create challenges for smaller plant-based brands with limited marketing budgets to compete effectively in terms of brand awareness and consumer reach.

Limited Menu Options in Foodservice: While plant-based options are increasingly available in retail settings, the variety and availability of plant-based choices in foodservice establishments such as restaurants, cafes, and fast-food chains are still limited. This poses a challenge for consumers seeking plant-based options when dining out or ordering takeout. Foodservice establishments that lack plant-based options are perceived as out-dated or less accommodating to dietary preferences and emerging food trends. This can negatively impact their reputation among health-conscious and plant-based consumers, potentially leading to a loss of business. As the demand for plant-based foods continues to grow, consumers are actively seeking out restaurants and eateries that cater to their dietary preferences and establishments without sufficient plant-based options lose potential customers.

Market Trends

Regional and Ethnic Plant-Based Cuisine: Plant-based food options are expanding to encompass a wide range of regional and ethnic cuisines. Consumers are seeking plant-based alternatives to traditional dishes from various cultures, such as plant-based Mexican, Indian, Asian, Mediterranean, and Middle Eastern cuisines. The availability of plant-based alternatives allows individuals to explore and enjoy a wide range of flavours and culinary traditions while adhering to their plant-based lifestyle. Plant-based alternatives that capture the flavours and textures of regional and ethnic dishes are gaining popularity. Consumers are looking for plant-based options that offer an authentic experience and replicate the taste and essence of traditional cuisine. This trend encourages innovation and creativity in developing plant-based alternatives that satisfy diverse taste preferences. Plant-based restaurants and food trucks specializing in regional and ethnic cuisine are emerging across North America. These establishments offer a wide variety of plant-based dishes that showcase the flavours, spices, and cooking techniques unique to different cultures. This trend allows consumers to enjoy authentic plant-based meals while supporting businesses that cater to their specific culinary preferences.

Collaboration with Celebrity Chefs and Influencers: Celebrity chefs and social media influencers are playing a significant role in promoting and popularizing plant-based foods. Many are developing their own plant-based recipes, hosting cooking shows or events, and partnering with plant-based food companies to create signature products or endorse existing offerings. Collaborations between plant-based food brands and celebrity chefs/influencers often involve the development of new plant-based recipes or culinary collaborations. This is resulting in unique and exciting plant-based dishes, cookbooks, cooking shows, and online content that inspire and guide consumers in incorporating plant-based options into their diets. Celebrity chefs and influencers often host culinary events, pop-ups, and cooking demonstrations that showcase plant-based cuisine. These events provide an opportunity for consumers to experience plant-based dishes firsthand, fostering interest, and generating excitement around plant-based food options.

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.,, Conagra Brands, Inc., Beyond Meat, Inc., Maple Leaf Foods Inc, Vitasoy International Holdings Limited, Impossible Foods Inc, Bob's Red Mill, SunOpta, Inc., Amy's Kitchen, Inc., JUST, Inc., The Hain Celestial Group, Inc and others are working on expanding the market demand by investing in research and development activities.

Recent Developments
• In January 2022, PlantPlus Foods LLC, created by two food processing giants, ADM, and Marfrig Global Foods S.A., acquired Sol Cuisine Ltd. (Canada) to accelerate its portfolio expansion in North America.
• In February 2021, The Very Good Food Company (Canada), a plant-based meat manufacturer, acquired plant-based cheese company The Cultured Nut Inc. (Canada). This acquisition enabled The Very Good Food Company to enter the dairy alternatives space.
• In January 2020, Nestlé S.A. (Switzerland) partnered with Canadian plant-based protein companies Merit Functional Foods and Burcon NutraScience to develop meat and dairy substitutes with a favorable environmental footprint.
• In August 2019, Beyond Meat, in collaboration with Subway, launched its meat-free Beyond Meatball Sub in the U.S. and Canada.
• In August 2019, Impossible Foods Inc. partnered with Burger King (U.S.) to sell its meatless Impossible Whopper (a burger made with a plant-based protein-filled patty) in more than 7,000 locations across the U.S. through Burger King.

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

Aspects covered in this report
• North America 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:
• United States
• Canada
• Mexico

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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