Global Plant-based Food Market ‘Set for Substantial Growth’
The global plant-based food market is poised for significant expansion, says a new report, indicating it will reach US$113bn by 2031.
The report, from Meticulous Research, reveals that the market, valued at US$44.4bn in 2023, is also expected to grow to US$50.1bn by 2024.
This increase is attributed to several factors, including an increasing number of consumers who are intolerant to animal-derived proteins, a growing vegetarian population and higher levels of venture investments in plant-based food companies.
Innovations in food technology and a heightened focus on animal welfare and sustainability are also contributing to the market's expansion.
However, the report notes that high costs of meat substitutes, a preference for animal-based products and demand for soy and gluten-free options are constraining growth.
Regional market trends driving plant-based food growth
The report says the Asia-Pacific region is expected to dominate the global plant-based food market, accounting for 44.5% of the market share in 2024, and projects this will reach US$54.31bn by 2031.
It adds China is likely to hold the largest share of the Asia-Pacific market, at 46.5% in 2024.
It attributes this to rising interest in vegetarian diets, rapid population growth and urbanisation, evolving consumption patterns and advancements in food production technologies.
Meanwhile, North America is expected to lead the global market.
The report cites rising health awareness and shifting consumer preferences as key drivers of the US plant-based food market.
It also notes that although the preference for animal protein-based products remains high, plant-based foods have gained significant traction in recent years.
Germany is projected to be the fastest-growing market in Europe, with growth said to be driven by strong innovation and investment in plant-based products, modernisation of the food and beverage industry and increased consumer awareness of the benefits of plant-based diets.
Product innovations and market players
The report highlights several key players in the global plant-based food market, including Beyond Meat and Impossible Foods, plant-based food companies from the US, Danone, dairy and nutrition company from France and Nestlé, global food and beverage leader, from Switzerland.
These companies are implementing various strategies to expand their product offerings and global footprints.
Nestlé says: “Studies have shown that up to 40% of people are already moving to a diet with less or even no animal products. It's one of the most effective ways any of us can help fight climate change.”
Recent developments in the industry include the launch of new products such as plant-based creamers by Califia Farms, LLC in March 2024 and frozen plant-based sushi by Konscious Foods in December 2023.
The report also notes partnerships and acquisitions, such as Unilever’s collaboration with ENOUGH, a UK-based food-tech company, to bring new plant-based meat products to market.
Meanwhile, the dairy alternatives segment is expected to account for the largest share of the plant-based food market in 2024 at 65.6%.
However, the report predicts that the seafood substitute segment will register the highest CAGR of 13.4% during the forecast period of 2024-2031.
"The vegan food trend is gaining momentum and is expected to remain prominent in the coming years," the report states.
"Advances in food technology have led to the development of a wide range of plant-based products that closely replicate the taste and texture of traditional animal-based foods."
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