South America Plant-based Food Market Outlook, 2028

South America Plant-based Food Market Outlook, 2028

The South America region is experiencing a significant shift towards plant-based eating as consumers increasingly prioritize health, sustainability, and ethical considerations. With a rich agricultural landscape and diverse culinary traditions, South America is emerging as a promising market for plant-based food. South American countries are known for their diverse culinary traditions, and plant-based alternatives to traditional dishes are gaining popularity. For example, in Brazil, ""coxinha"" (a popular meat-filled pastry) now has a plant-based version made with soy-based fillings. Similarly, ""empanadas"" in Argentina are now available with plant-based fillings, appealing to those seeking sustainable and ethical options without compromising on taste. Governments across South America are increasingly recognizing the importance of promoting sustainable and healthy food options. They are implementing policies and initiatives to support the development and marketing of plant-based food products. Additionally, consumer awareness of the environmental, health, and ethical benefits of plant-based diets is growing, further driving the demand for plant-based alternatives. The South American nations are seeing developing urbanization and changing ways of life because of globalization. Purchasers are prepared to pay for wellbeing and health items, which is driving the development of proteins and different enhancements. Besides, the expanded buy power came to the upper-middle-class as of late is setting off the plant protein market development in South America. Moreover, hypersensitivity and bigotry identified with creature protein have expanded among the two people and pets. Consequently, the interest in plant-based protein ingredients in the market sees an ascent.

According to the research report, “South America Plant-based Food Market Outlook, 2028” published by Bonafide Research, the market is anticipated to add over USD 2100 Million market size from 2023 to 2028. South America, a land rich in the production of raw materials and food goods, presents great opportunities in the sector. In this continent, as in others, industrialisation and the use of new, more sustainable technologies are opening the way to providing responses and solutions across the food chain to the trend of growing more responsible and conscious consumption. These developments are being seen in particular at the processing and preservation stages of the food, as they ensure quality and safety and extend the shelf-life. Similarly, it offers more optimised, profitable and safe processes. One of the major drivers of the South America plant-based food market is the rising demand for plant-based protein. Traditional South American diets have long relied on plant-based protein sources like beans, lentils, quinoa, and soy. Building upon this foundation, companies are now developing innovative plant-based meat substitutes and protein-rich products that cater to the region's unique flavours and culinary preferences. The South America plant-based food market is witnessing the emergence of local start-ups focused on developing innovative plant-based products. These companies are tapping into regional ingredients and flavors to create unique offerings. Start-ups like NotCo from Chile, known for its plant-based milk and mayonnaise alternatives, and Fazenda Futuro from Brazil, known for its plant-based burgers, are gaining traction and capturing consumer attention.

Based on the countries, Brazil is dominating the market with more than 40% market share in 2022.

In recent years, owing to more sedentary lifestyles and the growing consumption of junk food, the prevalence of diabetes, obesity, and cardiovascular disease has increased significantly in the country. However, the last few years have seen Brazilians becoming more health-conscious. They are becoming increasingly aware of healthier dietary options, and many of them have even turned towards plant-based diets. Apart from health concerns, this shift toward a plant-based diet from animal meat is also driven by the growing deforestation caused by the meat industry, and a growing prominence of the animal rights movement. Also, the number of self-declared vegetarians has increased by nearly two times in Brazil over the period of last six years. The largest food tech start-ups and meat processors in Brazil have been increasingly investing in plant-based products to cater to the rising demand. Their product portfolio includes nuggets, sausages, hamburgers, and other plant-based frozen foods. Plant-based food start-ups in the nation have witnessed a soaring demand since 2019, when animal-based protein analogs first became widely available across restaurants and supermarkets. These instances show that the market for plant-based food and beverage in Brazil will flourish in the years to come.

Based on the product type, plant-based ice-cream market crossed USD 200 Million market size in 2022 in South America plant-based food market.

Plant-based ice cream has gained significant popularity in South America, with a growing number of consumers opting for dairy-free alternatives. This trend is driven by factors such as health consciousness, ethical considerations, and environmental concerns. Plant-based ice cream in South America offers a diverse range of flavours that cater to local tastes and preferences. Alongside traditional flavours like chocolate and vanilla, unique regional flavours like dulce de leche, passion fruit, coconut, and lucuma are commonly found in plant-based ice cream offerings. Coconut milk serves as a popular base for plant-based ice cream in South America. It offers a creamy texture and a rich, tropical flavour that complements various other ingredients. Coconut milk-based ice creams are often praised for their smoothness and indulgent taste. In addition to coconut milk, plant-based ice creams in South America also utilize other milk alternatives such as almond milk, soy milk, and oat milk. This variety of options allows consumers with different dietary preferences and allergies to enjoy plant-based ice cream. Also, many plant-based ice cream brands in South America prioritize artisanal production methods. They focus on small-batch production, using high-quality ingredients and handcrafted techniques to ensure the best flavour and texture in each scoop. This artisanal approach contributes to the unique and premium experience of plant-based ice cream in the region.

Based on the distribution channel, hypermarkets and supermarkets are occupying nearly half of the market in 2022 in South America plant-based food market.

The rising demand for plant-based food products in South America has compelled hypermarkets and supermarkets to expand their offerings. Health-conscious consumers, vegetarians, vegans, and those seeking sustainable and ethical food choices are actively seeking plant-based alternatives. As a result, retailers are responding by increasing the availability and variety of plant-based food products on their shelves. Hypermarkets and supermarkets offer a convenient one-stop shopping experience for consumers. These large-format stores have extensive product ranges, allowing shoppers to find a diverse selection of plant-based food options, including plant-based meats, dairy alternatives, snacks, and pantry staples. The accessibility of hypermarkets and supermarkets across urban and suburban areas makes it easier for consumers to access plant-based products. Many hypermarkets and supermarkets in South America are launching their own private label plant-based food products. These private label brands provide affordable alternatives to well-known plant-based brands, making plant-based options more accessible to a broader consumer base. Private label products often offer a range of plant-based staples such as dairy alternatives, canned legumes, and frozen plant-based proteins. Carrefour, Walmart, Pão de Açúcar (Brazil), Jumbo (Chile), Tottus (Peru), Éxito (Colombia), Lider (Chile), Supermercados DIA (Argentina), Supermaxi (Ecuador) and Supermercado Nacional (Dominican Republic) are some notable hypermarkets and supermarkets in South America that offer a wide range of plant-based food options.

Market Drivers

Sustainable Agriculture Practices: South America boasts vast agricultural lands, making it conducive to sustainable farming practices. This enables the region to produce a wide range of plant-based ingredients, including grains, legumes, fruits, and vegetables. Many South American plant-based food companies emphasize the use of locally sourced, organic, and non-GMO ingredients, aligning with consumers' desire for sustainably produced food. Sustainable agriculture practices in South America focus on preserving biodiversity and protecting natural resources. The region is home to diverse ecosystems, including the Amazon rainforest, which plays a crucial role in global biodiversity and climate regulation. By promoting plant-based diets, which have a lower environmental impact compared to animal-based diets, South America contributes to the conservation of natural resources and helps mitigate deforestation and habitat loss. Also, sustainable agriculture practices often involve supporting local farmers and promoting fair trade. The South America plant-based food market provides opportunities for small-scale farmers to participate in the production of plant-based ingredients. This not only strengthens local economies but also fosters sustainable agricultural practices, empowering farmers to adopt environmentally friendly methods and reduce reliance on industrial farming.

Growing Middle Class and Urbanization: South America is experiencing rapid urbanization and a growing middle class population. As a result, consumer lifestyles and dietary preferences are changing, with an increasing focus on health, convenience, and sustainability. Plant-based food products align with these shifting consumer values, offering healthy and environmentally friendly alternatives to traditional animal-based products. In addition to that, South America has a cultural connection to sustainable agriculture practices. Traditional farming methods, such as agroforestry and indigenous agricultural practices, emphasize the harmony between humans, nature, and agriculture. This connection to sustainable agriculture aligns well with the principles of plant-based food production, making it easier for consumers to embrace plant-based options that promote environmental sustainability.

Market Challenges

Limited Consumer Awareness: Despite the increasing popularity of plant-based diets, there is still a need for greater consumer awareness and education about the benefits of plant-based eating. Many consumers in South America may be unfamiliar with plant-based alternatives and their nutritional value. Building awareness through marketing campaigns, educational initiatives, and nutritional information can help address this challenge. While awareness of plant-based diets is growing, there is still a need for widespread education and awareness campaigns to inform consumers about the environmental, health, and ethical benefits of plant-based foods. Providing educational materials, hosting cooking demonstrations, and engaging with communities through social media and events can help increase consumer understanding and acceptance of plant-based options.

Economic Factors: Economic considerations pose challenges for the South America plant-based food market. In some regions, plant-based products may be perceived as premium or luxury items due to higher production costs and importation. Affordability plays a significant role in consumer choices, and bridging the price gap between plant-based and traditional products is essential to increase adoption rates in all socioeconomic segments. Unlike certain animal-based agricultural sectors, the plant-based food industry in South America does not receive the same level of subsidies or incentives. Agricultural policies and government support are often more focused on traditional livestock farming rather than the development and promotion of plant-based alternatives. This lack of financial support can impact the competitiveness and affordability of plant-based food products.

Market Trends

Convenience and On-the-Go Options: South American consumers, especially urban dwellers, are increasingly seeking convenient plant-based food options. Ready-to-eat plant-based meals, snacks, and grab-and-go products are becoming more prevalent in the market. Plant-based food companies are developing products that cater to busy lifestyles, offering convenient and nutritious options for consumers on the move. Quick-service restaurants, cafes, and specialty food outlets in South America are increasingly offering grab-and-go sandwiches and wraps with plant-based fillings. These options provide a convenient and portable meal option for consumer’s on-the-go. Plant-based proteins, such as tofu, seitan, tempeh, or plant-based deli slices, are commonly used as fillings, along with fresh vegetables, spreads, and dressings. Food trucks and mobile vendors are increasingly incorporating plant-based options into their offerings in South America. These mobile food establishments provide quick and convenient access to plant-based meals and snacks in urban areas, parks, and events. They often feature a variety of plant-based street foods, such as plant-based burgers, tacos, falafel, and other handheld options, catering to the growing demand for convenient and delicious plant-based fare.

Influence of Indigenous Communities: Indigenous communities in South America have long-standing traditions of plant-based diets. Their knowledge and practices are increasingly valued, and plant-based food companies are collaborating with indigenous communities to develop products that showcase their traditional ingredients and recipes. This trend not only supports the preservation of indigenous culture but also promotes sustainable agriculture and biodiversity conservation. Indigenous communities have a wealth of traditional recipes and culinary techniques that prioritize plant-based ingredients. These recipes often feature a variety of locally sourced fruits, vegetables, grains, legumes, and herbs. Plant-based food companies draw inspiration from these traditional recipes to develop authentic and culturally relevant plant-based food products. By doing so, they showcase the diversity of indigenous cuisine and contribute to the preservation of cultural heritage. Indigenous communities have a deep connection to their surrounding ecosystems and play a crucial role in biodiversity conservation. By promoting the use of native plant species and traditional agricultural practices, plant-based food companies contribute to the preservation of biodiversity in South America. This approach helps protect valuable ecosystems, maintain ecological balance, and safeguard the genetic diversity of native plant species.

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.,, Bob's Red Mill and others are working on expanding the market demand by investing in research and development activities.

Recent Developments:
• In September 2022, Verdali, a Brazilian plant-based meat manufacturer, partnered with supermarket behemoth Carrefour to sell its products in a separate vegan butcher department next to the fresh meat counters at one of the store's branches in So Paolo.
• On 29 Nov 2022, Nestlé has launched a powdered plant-based protein under its Mahler brand that consumers can add to egg dishes such as omelettes, allowing them to make dishes that are cheaper but still nutritious.
• In September 2021, Argentinian plant-based firm Tomorrow Foods raised USD 3 million in a round of funding for its expansion. Following the introduction of its vegan burger, the food technology company claimed that it would utilize the funding to increase its research and development efforts, expand its product line, and enter new markets to establish itself as a major player in South America's plant-based sector.
• In January 2021, Beyond Meat teamed up with Pepsico, a well-established player in the food industry. The strategy behind the partnership is to expand the business in the alternative meat sector. Also, this partnership helps the companies gain dominance over other players in the industry. As Brazil holds the most number of vegetarians worldwide, this partnership can help the companies offer new products to the consumers.
• Brazil’s Future Farm launches its US expansion with the mission to democratize plant-based meat on July 6, 2021.

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

Aspects covered in this report
• South 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:
• Brazil
• Argentina
• Colombia

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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