by Vegan food products including dairy alternatives, meat substitutes and other products are gradually gaining popularity worldwide as a healthier and more sustainable alternative to conventional animal-based food. Rising vegan population and increasing preference for plant-based protein sources have been driving the demand for vegan snacks, bakery and other food items in recent years. Vegan foods are free of animal products and are considered to offer several health benefits such as reduced risk of heart disease, lower cholesterol levels, improved gut health etc. The global vegan food market is estimated to be valued at US$20 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Rising health consciousness has been a key driver for the growth of global vegan food market. Changing consumer preferences towards healthy, sustainable and ethically produced food options without animal ingredients is compelling food manufacturers to innovate and launch more vegan products. Increasing vegan population worldwide and growing vegetarian demographics have augmented the demand for plant-based food items. Growing veganism as a lifestyle choice has propelled food companies to formulate dairy-free, egg-free, honey-free and other vegan food products. Increased awareness about environmental impacts of animal agriculture and animal welfare have also motivated consumers to shift to plant-based protein sources and vegan diets. Launch of innovative vegan meat analogues, dairy alternatives and other food items catering to various tastes and product formats are expanding the addressable market for vegan foods.
SWOT Analysis
Strength: Vegan food products are considered healthier as they do not contain meat, dairy or eggs. Consumers are increasingly becoming health conscious and preferring plant-based foods which do not harm animals. Vegans also cite animal welfare and environmental protection as major reasons for choosing vegan diets. Vegans have a sizable community today with growing numbers online providing advice and recipes.
Weakness: Vegan foods still need to work on variety, taste and nutritional equivalence to non-vegan alternatives. While options are growing, some essential nutrients need fortification in vegan products. The costs of vegan substitutes can also be higher compared to regular meat and dairy foods presently. Dependence on crops for raw materials also exposes the industry to price and supply risks of agricultural commodities.
Opportunity: Younger consumers especially millennials and Gen Z are more concerned with health, ethics and sustainability. This drives the demand for plant-based options. The market sees new companies launching innovative vegan products and alternatives daily. Global awareness on issues like climate change and concern for animal welfare is translating to increased vegan curiosity worldwide. Several restaurants and cafes now offer vegan choices on menus making adoption easier.
Threats: Traditional meat and dairy lobbies have started pushing back through marketing and regulations against purely plant-based food labels. Consumers also associate vegan products with restrictions rather than pleasure at times. Dependence on crops exposes the industry to externalities like agriculture price rises and supply disruptions due to weather changes too. Competition from hybrid flexitarian diets combining some meat with more plant items also poses a threat.
Key Takeaways
The Global Vegan Food Market Share is expected to witness high growth over the forecast period of 2024 to 2031 driven by increasing health, ethical and environmental concerns among consumers. From a market size of US$ 20 billion in 2024, it is projected to reach over US$ 50 billion by 2031, growing at a CAGR of 12%.
Regional analysis: North America currently dominates the vegan food market accounting for over 35% share in 2024. However, Asia Pacific is slated to emerge as the fastest growing regional market owing to rising living standards, growing health awareness and large vegetarian populations in countries like India. By 2031, APAC’s vegan food market value is forecasted to double and surpass that of Europe.
Key players: Key players operating in the vegan food market include Danone SA, Impossible Foods, Beyond Meat, Daiya Foods, Plamil Foods, Amy’s Kitchen and Tofutti Brands. These companies are investing heavily in research, production and distribution facilities to meet the growing global demand for plant-based meat and dairy alternatives through launched new innovative vegan product offerings on a regular basis.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
