Plant Based Food & Beverages Market Forecasts to 2028 – Global Analysis By Source (Rice, Soy, Almond, Coconut, Cashew, Oats, Hemp, Pea, Hazelnut, Flax, Other Sources), Category (Conventional), Functionality (Lactose Intolerance, Cancer Prevention, Cardiov

Plant Based Food & Beverages Market Forecasts to 2028 – Global Analysis By Source (Rice, Soy, Almond, Coconut, Cashew, Oats, Hemp, Pea, Hazelnut, Flax, Other Sources), Category (Conventional), Functionality (Lactose Intolerance, Cancer Prevention, Cardiovascular Health, Bone Health), Product Type (Bakery & Confectionery, Plant-Based Milk & Derivatives, Plant-Based Meat, Plant-Based Drinks, Plant-Based Dressings, Plant-Based Ice-Cream), Distribution Channel (Non-Store-Based, Store-Based) and By Geography

According to Stratistics MRC, the Global Plant Based Food & Beverages Market is accounted for $18.84 billion in 2022 and is expected to reach $41.37 billion by 2028 growing at a CAGR of 14% during the forecast period. Beverages are frequently used in place of dairy milk. However, dairy milk and plant-based beverages are different kinds of food from a nutritional standpoint. Vegetables, fruits, whole grains, nuts, seeds, and legumes are included in the list of items that are considered to be plant-based foods. All animal products, such as red meat, chicken, fish, eggs, and dairy products, are excluded from these plant-based foods.

According to The Canadian government has also identified plant-based food and beverages as an important and developing industry. According to the federal government of the country has included the plant-based industry in its Super cluster Initiative, and invested $150 million towards its development.

Market Dynamics:

Driver:

Rising Prevalence of Lactose Intolerance

The prevalence of lactose intolerance has increased all across the world. The enzyme lactase, which converts lactose into simpler sugars, is absent in the small intestines of those who are lactose intolerant. An allergy to dairy products, a disaccharide deficiency, and a lactase deficiency are all symptoms of lactose intolerance. Lactose that is not fully or incompletely absorbed causes symptoms such as abdominal bloating, stomach pain, diarrhoea, fatigue, disturbed sleep, vomiting, and other health issues.

Restraint:

Poor Sensory Properties and Allergen Reaction

With a variety of uses in the food and beverage sector, soy and nut protein are two of the most important plant-protein sources. However, proteins made from plant sources frequently have a bad flavour and different amino acid compositions. Although they are all very well-liked forms of plant-derived protein, rice, pea, and chia each have their own distinct off flavours, bitter undertones, and vegetal aftertastes. This hinders customers' adoption of food and beverages made from plants.

Opportunity:

Increasing Adoption of Vegetarian and Vegan Diet

The developing trend of veganism, which is now mainstream, is a result of growing concern for the welfare of animals, human health, and the environment. Numerous positive health outcomes, including improved diabetes control, lower rates of obesity, and enhanced heart health are linked to veganism. The popularity of social media and the rise of vegan celebrities in recent years have both had a significant impact on influencing public opinion and serving as the primary catalyst for the vegan movement. Thus, the market for plant-based foods and beverages is expanding as more people choose vegetarian and vegan diets.

Threat:

High price

Since plant-based meat products are produced on a smaller scale, they are more expensive than beef, despite the production process requiring fewer grains, water, and energy than beef burger production. Moreover, animal agriculture subsidies ensure the affordability of animal products, thereby making them relatively cheaper. As a result, offering plant-based products at more affordable rates is a significant challenge.

Covid-19 Impact

The COVID-19 epidemic has negatively impacted the market for plant-based foods and beverages, forcing supermarkets, hypermarkets, convenience stores, and others to close their doors around the world. The pandemic has reduced the ability to produce goods made from plants. Since the outbreak, the entire plant-based food and beverage industry has been disrupted by required shutdown of manufacturing facilities. Transport issues brought on the lockdown limitations have ultimately affected the availability of sufficient workers and the delivery of raw goods.

The pea segment is expected to be the largest during the forecast period

Based on plant based food and beverages market it is classified into Rice, Soy, Almond, Coconut, Cashew, Oats, Hemp, Pea, Hazelnut, Flax and Other Sources. It is anticipated that the pea sector will represent the biggest share during the forecast period. Because they can fix nitrogen and require little in the way of agronomic input, peas are a favourite among vegans and are becoming more and more recognised as agriculturally sustainable crops. The use of pea protein in baking and sports nutrition is widespread.

The plant-based milk & derivatives segment is expected to have the highest CAGR during the forecast period

Based on product type the market is into Bakery & Confectionery, Plant-Based Milk & Derivatives, Plant-Based Meat, Plant-Based Drinks, Plant-Based Dressings and Plant-Based Ice-Cream. The majority of the market share was captured by the plant-based milk & derivatives segment under the product type category. While plant-based dairy products are primarily manufactured from the extracts of water-based plants, several plant-based dairy products are sourced from soy, almond, cashew, rice, and oats. Resisting dairy allergens, in addition to the demand for clean label products, the adoption of vegetarian, vegan, and flexitarian lifestyles, as well as sustainability concerns and animal welfare, are among the key factors augmenting the segment’s demand.

Region with highest share:

Europe region is estimated to have highest share during the forecast period. The region's demand for plant-based food and drink is increasing at an exponential rate. As opposed to high-calorie soft drinks, consumers are choosing more nutritional and healthier drinks. During the projected period, technological advancements will have a beneficial effect on the expansion of the market for plant-based foods and beverages in European nations. Also, expected to increase demand for plant-based food and beverages are rising consumer preferences for organic and supply chains free of genetically modified organisms as well as an increase in flexitarians, vegetarians, and vegans.

Region with highest CAGR:

The North America plant-based food & beverages market accounted for the highest CAGR of the global market in the projected period. Due to rising demand in significant economies, the region consumes the most plant-based goods.

Key players in the market

Some of the key players profiled in the Plant Based Food & Beverages Market include Nestlé S.A., Clara Foods, Greenleaf Foods, SunOpta Inc., Tyson Foods, Inc., The Campbell Soup Company, Keystone Natural Holdings, Danone SA, Amy’s Kitchen, Del Monte Fresh Produce NA Inc., PepsiCo Inc, Maple Leaf Foods, Beyond Meat Inc, The Hain Celestial Group Inc, Impossible Foods, Califia Farms, Daiya Foods Inc., Morningstar Farms, Wildwood Organic and The Whitewave Foods Company.

Key Developments:

In March 2021, Clara Foods launched the world’s first animal-free pepsin with Ingredion. This is 100% pig-free pepsin, an enzyme ingredient with several applications in food and pharmaceutical products.
In February 2021, Danone acquired Earth Island (US), a plant-based company, and its brand Follow Your Heart. They are manufactures of dairy-free cheeses, vegenaise spread, plant-based dressings, and vegan eggs.

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. This shows that there is an enhanced adoption of plant-based foods in the country. This will prove beneficial for the growth of the Canadian market in the years to come.

In January 2021, Tyson Foods, Inc. launched two new plant-based sandwiches under its brand Jimmy Dean. The new products include the Jimmy Dean plant-based patty, egg & cheese croissant sandwich, and Jimmy Dean Delights plant-based patty & frittata sandwich.

In November 2020, Tyson Foods Inc. expanded the line of five products to retail customers in Europe. The products are manufactured in the Netherlands and are made from locally sourced ingredients, and contain no artificial flavors, colors, or preservatives. These products are egg-free and non-GMO.

In January 2020, Nestle partnered with Winnipeg's Functional Foods and Vancouver's Burcon NutraScience to develop meat and dairy substitutes with a favourable environmental 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 2019, Nestlé S.A. announced the partnership with Loop, a subscription home delivery service for foods and household goods with reusable packaging. This will help the company in reducing packaging waste.

Sources Covered:
• Rice
• Soy
• Almond
• Coconut
• Cashew
• Oats
• Hemp
• Pea
• Hazelnut
• Flax
• Other Sources

Category’s Covered:
• Conventional
• Organic

Functionality’s Covered:
• Lactose Intolerance
• Cancer Prevention
• Cardiovascular Health
• Bone Health

Product Types Covered:
• Bakery & Confectionery
• Plant-Based Milk & Derivatives
• Plant-Based Meat
• Plant-Based Drinks
• Plant-Based Dressings
• Plant-Based Ice-Cream

Distribution Channels Covered:
• Non-Store-Based
• Store-Based

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements