Packaged Vegan Foods Market in India 2024-2028

Packaged Vegan Foods Market in India 2024-2028

Vegan food is crafted from plant-based ingredients, omitting all animal-derived elements such as meat, dairy, and eggs. It offers a diverse array of options, ranging from vibrant vegetable dishes to inventive plant-based substitutes for traditional items, reflecting both dietary and ethical considerations. In contrast, vegetarians abstain from meat but may include items like milk, cheese, and eggs, and might use non-food products derived from animals, differing from vegans who eliminate all animal products and by-products.

Market insights:

In 2023, the plant-based food market in India was valued at INR 38.68 Bn. It is expected to reach INR 98.56 Bn by 2028, expanding at a compound annual growth rate (CAGR) of ~20.14% during the 2024 ─ 2028 period. Despite a considerable segment of the Indian population still favoring animal protein consumption, an increasing curiosity surrounds the flexitarian diet, marked by a partly vegetarian approach. This shift is propelled by the pursuit of dietary diversity, health awareness, and a growing understanding of the significance of sustainable food systems. In response, various small and medium-sized enterprises (SMEs) and fast-moving consumer goods (FMCG) companies are entering India's plant-based food market, presenting substitutes for meat, poultry, seafood, dairy, and even vegan pet food.

Market drivers:

Innovative vegan food products expand the array of choices available to consumers, addressing a range of tastes, diets, and culinary inclinations. Products like vegan meat substitutes, dairy-free options, and plant-based cheeses not only attract new consumers but also inspire existing ones to venture into plant-based alternatives. The rise of veganism is driving a heightened demand for plant-based foods, resulting in market expansion, augmented investments, and a surge in innovation. Both startups and established companies are dedicating resources to research and development, aiming to enhance the taste and nutritional profile of vegan products.

Market challenges:

The pricing of plant-based meat products may surpass that of traditional meat, potentially impacting their affordability, particularly in a cost-sensitive market like India. Inadequate infrastructure and logistical challenges could result in supply chain disruptions, affecting the availability of plant-based products, particularly in remote or rural areas. Limited awareness and understanding of plant-based meat alternatives could hinder consumer adoption. It is essential to enlighten stakeholders about the advantages and nutritional value of plant-based products.