Plant-based Food and Beverages- Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Plant-based Food and Beverages- Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Plant-Based Food and Beverages is projected to register a CAGR of 9.28% during the forecast period, 2022-2027.

Consumers are more aware of their health nowadays, and vegan culture is growing more popular among consumers due to various health benefits such as lower cholesterol, stabilizing blood sugar, reducing inflammation, and supporting the immune system i.e., demand for plant-based food and beverages has been increased across the globe. Additionally, companies from all sectors are making significant investments in acquiring and developing new plant-based products. This is primarily due to the increasing demand for plant-based products. For example, In June 2021, Nestle launched plant-based Pea milk in the United Kingdom Stores. The product is made up of protein-packed yellow peas.

Thus, this growing preference for plant-based diets and the major meat processors and manufacturers announcing their intentions to join this competition with their line of meat alternatives present a massive opportunity for plant-based food and beverage consumption. This trend is expected to keep growing in the forecast period.

Key Market TrendsGrowing Popularity of Vegan Culture

The emergence of the food and beverage substitute market clearly demonstrates a shift in customers’ demands, from animal-based products to plant-based products. This incremental shift toward a plant-based diet is primarily influenced by ecological concerns, health consciousness, ethical or religious beliefs, and awareness about environmental issues and animal rights.

Furthermore, consumer awareness of allergies, hormones, and unethical animal husbandry practices utilized in the dairy industry has led to an increase in the popularity of veganism. Therefore, the demand for plant-based food and beverages is constantly increasing mainly due to consumers' perception that they are healthier and safer than conventional foods, along with this dairy alternative hold wide scope for product development, pulling significant attention of manufacturers to contribute to the market. As a result, food companies are increasingly investing to cater to the appeal of novel flavors and taste profiles, For instance, in 2020, Upfield, a Dutch plant-based company, expanded its reach in major supermarket chains across Middle East, including the United Arab Emirates, Saudi Arabia, Bahrain, Kuwait, Qatar, Oman, Jordan, and Lebanon, and in North Africa, such as Morocco, by launching its plant-based butter and cream, to achieve a significant market share with its plant-based dairy alternatives​ in the region.

Asia-Pacific Holds the Largest Share

Plant based food and beverages is becoming increasingly popular in Asia-Pacific countries such as China, Thailand, Vietnam, Japan, Australia, among others. According to the recent study conducted by DuPont, over 75% of APAC consumers are willing to spend a similar price that they spend on meat for plant-based alternatives. Meanwhile, protein has been rated as an essential element by 83% of respondents behind consuming plant-based food and beverages.

Plant-based burgers, meats, and dairy alternative beverages have been well accepted by Asians. Furthermore, consumers look forward to plant-based Asian cuisines and beverages with a clean label, as they value health and nutrition with convenience. Moreover, Soy is currently the most widely consumed plant-based beverage in Asia with China, Taiwan, Japan, and Thailand leading the growth of dairy alternative beverages, which include almond milk, oat milk, hemp milk, pea milk, and rice milk, to name a few.

Competitive Landscape

The market is highly competitive with the presence of small-scale and global companies such as Danone SA, The Hain Celestial Group, Inc., Conagra Brands, Inc, Nestle SA, Vitasoy International Holdings Limited, Blue Diamond Growers, among others. These companies have been the front runners in terms of expansion of their production capacity and product launches in order to cater to the increasing demand for plant-based food and beverage around the world. Owing to the rapidly developing market, product innovation in terms of packaging, advertisement, and infusion of healthy ingredients is the major strategy adopted by companies.

Furthermore, Companies, such as Conagra Brands Inc., Unilever, and Danone SA, are also focusing on partnerships and mergers and acquisitions in order to expand their market shares and product portfolios by leveraging on the expertise of the acquired companies.

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• The market estimate (ME) sheet in Excel format
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