Plant-Based Food & Beverages Market Size

Plant-Based Food & Beverages Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The global plant-based foods and beverages market is valued at USD 24.3 billion in 2023 and is expected to reach USD 40.6 billion by the end of the forecast period. This growth is attributed to the growing trend of consumers to opt for a healthy and sustainable diet. The rising awareness about the detrimental effects of animal agriculture and the health benefits of a plant-based diet has also led to the growing demand for plant-based food and beverages. The demand for plant-based products is also increasing due to the growing health awareness among consumers. There are several factors that have led to this growth, including the advancement in food technology, which has led to the improvement in the taste and texture of plant-based alternatives. Moreover, several key players, such as Beyond Meat and Impossible Foods, are launching new products and establishing strategic alliances in order to expand their market reach. Also, major food corporations are investing heavily in plant-based innovations, which reflects their growing interest in the sector. The integration of plant-based products into the mainstream food industry is also expected to grow in the coming years.

Regional Market Size

Regional Deep Dive

The plant-based food and beverage market is growing significantly in many regions, mainly due to a growing awareness of health and the environment and a trend towards sustainable food habits. In North America, the market is characterized by a wide range of products and the strong presence of innovative companies. Europe is characterized by a well-developed legal framework that supports plant-based initiatives. In Asia-Pacific, the demand for plant-based products is growing strongly due to changing dietary habits and urbanization. Middle East and Africa are gradually embracing plant-based products, while Latin America is using its agricultural advantages to produce plant-based alternatives for both local and export markets.

North America

• In recent years, the market for plant-based meat substitutes has been boosted by the growth of such companies as Beyond Meat and Impossible Foods, which have expanded their range of products and distribution channels, making these products more easily available to consumers.
• Recent regulatory changes, such as the FDA’s guidance on labeling of plant-based foods, are shaping market dynamics by ensuring transparency and consistency in product labeling, which is expected to boost consumers’ trust.
• The growing trend of the flexitarian diet has forced traditional meat companies like Tyson to diversify into plant-based products, thus indicating a shift in the strategy of the market that may lead to more competition and innovation.

Europe

• The Green Deal and the Farm to Fork strategy of the European Union aim at sustainable food systems, including plant-based food production, and encourage innovation and investment in this sector.
• In Europe, a Plant-Based Foods Association was established, whose aim is to promote the interests of the plant-based food industry and to raise the visibility of its products.
• The Mediterranean diet, which has always been based on a vegetable diet, is influencing the preferences of consumers, and there is a growing demand for plant-based dairy and meat alternatives.

Asia-Pacific

• The emergence of urbanization and the rising level of per capita income in countries like China and India has accelerated the development of plant-based food, and companies like Green Commons and GoodDot have sprung up to meet the needs of the market.
• The ‘Eat Right India’ programme is encouraging consumers to adopt a vegetarian diet, which will have a significant impact on the market growth.
• Vegetarianism and vegetarianism are in the ascendancy in India, and a new field of marketing is opening up in which the old vegetarian dishes are being reworked and repackaged for younger consumers.

MEA

• Among the Arabs, the tendency to a healthier diet is increasing, and there is a growing demand for vegetarian food. Several companies have stepped into the field, such as Alpro and Oatly.
• Moreover, the food diversification and the sustainable development of the economy, a growing need in the United Arab Emirates, are encouraging the local industry to diversify into the field of vegetable products and to diversify their range of products.
• Culture is also a factor, and in this respect the Mediterranean diet has a considerable influence. Similarly, the local cuisines are becoming more and more influenced by the plant foods.

Latin America

• Latin America is using its rich agricultural resources to produce a range of plant-based products, with NotCo and Fazenda Futuro enjoying success in the market, using local ingredients.
• The growing awareness of the population in the region about health and the environment is driving a demand for plant-based alternatives, and the Green and Healthy programme in Brazil is promoting a diet based on these alternatives.
• Culture is a powerful factor in the acceptance of vegetable products, such as the popularity of traditional vegetarian dishes. This leads to the development of new products that are suitable for the local consumers.

Did You Know?

“In the United States, the sale of vegetarian foods in 2022 exceeded $ 7 billion, reflecting a growing consumer preference for healthier and more sustainable eating habits.” — Plant Based Foods Association

Segmental Market Size

Plant-based foods and beverages are experiencing a rapid growth, largely driven by the growing demand for healthier and more sustainable foods. This segment plays an important role in the overall market, catering to a broad audience, including vegetarians, flexitarians and vegans. The demand for plant-based foods is being driven by a rising awareness of the importance of healthy and sustainable diets, as well as government regulations promoting sustainable farming. In addition, technological advancements in the food industry have improved the taste and texture of plant-based products, making them more appealing to a wider audience.

The market is now in its second phase of expansion, with leaders such as Beyond Meat and Impossible Foods leading innovation in the field of plant-based meat alternatives. Product categories such as oat milk and meat-free burgers are gaining in popularity. Moreover, macro trends such as the COVID pandemic are accelerating the move to plant-based diets as consumers seek healthier options. Sustainability and government mandates to reduce carbon footprints are also driving the market. The emergence of precision fermentation and plant-based protein extraction are also reshaping the market, enabling the development of more sophisticated and appealing products.

Future Outlook

The Plant-Based Food and Beverages Market is expected to grow at a CAGR of 9.01% from 2023 to 2030. This growth will be driven by the growing consumer demand for healthier and sustainable dietary choices, and the increasing awareness of the environmental impact of animal agriculture. Plant-based products are expected to represent approximately 15% of the total food and beverage market by 2030, compared with an estimated 8% in 2023. This substantial growth in penetration and acceptance is due to the growing popularity of plant-based diets and the increasing availability of plant-based products.

Plant-based foods are becoming more popular, especially with consumers who are becoming more health-conscious. The government's policy of promoting sustainable food systems will also help to increase the market. Also, flexitarianism, the growing interest in plant-based diets, and the increasing presence of plant-based foods in the foodservice sector will all be important in influencing consumers' preferences. Plant-based food is a growing trend and the market will continue to develop. Brands that are clear about their origin, sustainable and nutritionally based will likely take the lead in the market.