United States Plant Based Food Market Assessment, By Product Type [Dairy, Meat, Seafood, Eggs, Desserts, Others], By Source [Vegetables, Fruits, Nuts & Seeds, Legumes, Grains, Others], By End-use [Domestic, Commercial], By Application [Food (Bakery, Confe

United States Plant Based Food Market Assessment, By Product Type [Dairy, Meat, Seafood, Eggs, Desserts, Others], By Source [Vegetables, Fruits, Nuts & Seeds, Legumes, Grains, Others], By End-use [Domestic, Commercial], By Application [Food (Bakery, Confectionery, Infant Food, Others), Beverage, Animal Nutrition, Dietary Supplements, Others], By Distribution Channel [Online, Offline- Hypermarket/Supermarket, Departmental Stores, Brand Stores/Kiosks, Others], By Region, Opportunities, and Forecast, 2017-2031F

United States plant-based food market is expected to witness a CAGR of 12.98% during the forecast period 2024-2031F and was valued at USD 11.51 billion in 2023. The market has experienced significant growth in recent years, fuelled by factors such as increasing awareness of the health and environmental benefits of plant-based diets, changing consumer preferences, and advancements in food technology.

The United States plant-based food market is a rapidly growing segment of the food industry, driven by a rising demand for healthier and more sustainable food options. Plant-based food products are made from ingredients that are derived from plants, such as vegetables, fruits, grains, legumes, and nuts. These products are typically free from animal products such as meat, dairy, and eggs, making them an appealing choice for consumers looking for vegan, vegetarian, or flexitarian options. Nearly 8 percent of the county’s population is vegetarian and 3 percent vegan. The plant-based food market includes a wide range of products such as meat alternatives, dairy alternatives, plant-based snacks, and plant-based beverages. As the demand for plant-based food products continues to rise, it is likely that the market will continue to expand and evolve, presenting opportunities for innovation and growth in the food industry.

The wider availability of plant protein ingredients such as flaxseed, quinoa, pea proteins, chia and oats are adding nutritional flavours in food making them a healthier alternative to milk, meat, and eggs. Consumer’s misconception of plant-based meals being more expensive than the regular meal options and accessibility to buy plant-based food and fresh produce, especially for the lower -income Americans hinders the market growth to a limited extent. Although, new entrants as well as existing players can tap this market potential by bringing in innovative solutions to provide easy accessibility of plant-based meals to this mass group. In March 2024, Yo Egg, an Israeli food technology firm, began selling its vegan poached eggs and sunny-side-ups at US retail locations, with the primary focus on Los Angeles. Yo Egg specialises in precooked frozen poached and sunny-side-up eggs that are ready to fry or boil. The products are composed primarily of soy protein, chickpeas, and sunflower oil.

Plant Based Meat Segment May Capture Similar Dollar Share as of Daily Alternatives

The United States plant-based food market is closely linked to the growing popularity of plant-based diets, which have become increasingly popular in recent years due to their numerous health benefits and environmental advantages. Dairy alternatives hold a prominent share in the plant-based food market in the United States mainly owing to a large lactose intolerant population. Nearly 36% of the country’s population is lactose intolerant. Plant based milk captures 15% of the total milk market in the US. Newly launched plant-based meat products, continuous product innovation and increasing consumer adoption of consuming food made of natural or organic food ingredients tend to open door of opportunity for meat substitutes segment to hold a wider market share during the forecast period. In March 2024,the first plant-based Oscar Mayer products and the first plant-based meat invention from the joint venture between The Kraft Heinz Company and TheNotCompany, Inc., were introduced by The Kraft Heinz Not Company LLC as NotHotDogs and NotSausages. Both the products provide smoky and savoury taste experience to the consumers with juicy and thick bites that they crave for.

Increasing Consumer Preference for Healthier Diets

The availability of plant-based food products has increased significantly in recent years in the United States, driven by growing consumer demand for healthier and more sustainable food options. Supermarkets and restaurants across the country have responded to this demand by increasing their offerings of plant-based products, including plant-based meat alternatives, dairy-free milk, and vegan cheese. Plant based alternatives offers various health benefits such as controlled blood sugar, and lowered cholesterol level. Moreover, large food companies have started to introduce plant-based alternatives to traditional meat and dairy products, further expanding the availability of plant-based options. For instance, in February 2024, Califia Farms launched a plant-based milk, Califia Farms Complete, which contains nutrients, protein, amino acid and lesser sugar as compared to dairy-based milk. The product is made using a mixture of chickpea, pea, and fava bean protein.

This trend is expected to continue in the coming years as consumers become more health and environmentally conscious and seek out alternative protein sources. As the availability of plant-based products continues to increase, it is likely that the plant-based food market will continue to grow in the United States. The US retail sales for plant-based foods was USD 8 billion in 2022 out of which the plant-based milk category accounted to USD 2.8 billion with more than 40 percent of the household penetration.

Impact of COVID-19

The COVID-19 pandemic has had a mixed impact on the plant-based food market in the United States. On the one hand, the pandemic has raised awareness among consumers about the importance of a healthy and balanced diet, which has led to increased interest in plant-based foods. As a result, sales of plant-based food products have generally remained strong throughout the pandemic. However, the pandemic has also disrupted supply chains and led to shortages of certain plant-based products, such as tofu and tempeh. In addition, the closure of restaurants and other food service establishments has led to a decline in demand for plant-based products in these sectors.

Key Players Landscape and Outlook

The market for plant-based foods in the United States is fragmented, with a number of small- and medium-sized businesses as well as recent entrants. Prominent players include Amy’s Kitchen, Inc., Beyond Meat, INC., Impossible Food, Inc., Boca Foods Company (Kraft Foods, Inc.), Hormel foods Corporation, Morning Star Farms (Kellogg Na Co.), and The Hain Celestial Group, Inc. among others. To increase their product offerings and worldwide footprints, these players put numerous tactics into practice. New product releases, collaborations, agreements, partnerships, and acquisitions are the primary business tactics used by the majority of enterprises in the market for plant-based foods. In March 2024, Beyond Meat, INC. announced the launch of a redesigned and extended range of Beyond Crumbles in the United States, available in three delicious flavours, with low saturated fat content, and satisfying the nutritional requirements of both the Better Choices for Life and Heart-Check Food Certification Programmes from the American Diabetes Association and the American Heart Association, respectively.