Vegan Food Market Share, Outlook, Size

Written by Neha Patil  »  Updated on: July 08th, 2024

Vegan Food Market Share, Outlook, Size

The global vegan food market is experiencing remarkable growth as veganism continues to gain momentum worldwide. This lifestyle movement, characterized by the exclusion of animal products, is attracting an increasing number of individuals and commercial establishments. The market's expansion is driven by the rising prevalence of chronic diseases, heightened globalization, and urbanization, which have led to greater availability and higher consumption of vegan products. Despite higher costs and limited variation, the market is poised for significant growth in the coming years.

Key Report Findings

Rising Accessibility of Non-Dairy Alternatives: The vegan food market is benefiting from the increasing availability of non-dairy alternatives, catering to the needs of lactose-intolerant individuals and those seeking healthier options.

Adoption of Healthier Lifestyles: The shift towards healthier lifestyles is creating new opportunities in the vegan food industry, with more consumers opting for vegan diets to manage weight and improve overall health.

Environmental Impact: The reduction of methane emissions, which increased by 50% between 1961 and 2018, is a crucial factor driving the market. Veganism significantly reduces greenhouse gas emissions, supporting environmental sustainability.

Lactose Intolerance: Approximately 65% of the global population is lactose intolerant, fueling the demand for vegan milk and other dairy alternatives.

Regional Dominance: North America is expected to maintain its dominant position in the vegan food market, driven by high adoption rates and growing awareness.

Growth Drivers

Increasing Adoption of a Vegan Lifestyle

The growing adoption of sedentary lifestyles has led to a rise in health complications such as obesity, diabetes, and cardiovascular disorders. This trend has driven the consumption of healthy, nutrition-rich food that promotes effective weight management. Many consumers are now switching to vegan diets due to the associated health benefits, including lower fat content, enhanced blood flow, and improved metabolism. Vegan food is also perceived to increase life expectancy and boost immunity, further driving its popularity.

GHG Emissions by Animal-Based Products under Scrutiny

The curbing of greenhouse gas emissions from dairy and meat livestock has become a significant concern. Methane emissions from livestock have increased substantially, and the demand for animal-based products is expected to exacerbate this issue. Adopting veganism helps prevent animal exploitation and significantly reduces GHG emissions, supporting environmental wellbeing. These factors are anticipated to have a major impact on the vegan food market's growth.

Vegan Milk Grows Popular Among Lactose-Intolerant Population

The increasing demand for dairy alternatives is largely driven by the growing number of lactose-intolerant individuals. According to the National Centre for Biotechnology Information (NCBI), about 65% of the global population is lactose intolerant. This has led to a surge in the consumption of vegan milk products derived from sources like oats, soy, and almonds. Health-conscious individuals are also opting for vegan milk due to its benefits, such as weight management and nutritional value. This rising demand is expected to significantly contribute to the market's growth.

Growth Challenges

Expensive Costs and Nutritional Deficiencies

The relatively young vegan food industry requires more research and development to create products with broader appeal. Currently, the high pricing of vegan products and differences in taste and texture compared to conventional foods slow adoption. Additionally, vegan food can be nutritionally deficient in certain areas, such as protein content, leading to potential health issues like hormonal imbalances and vitamin B12 deficiency. These challenges could hinder the market's growth prospects.

COVID-19 Impact

The COVID-19 pandemic imposed significant restrictions on the movement of people and goods, disrupting the supply of raw materials and operations. This led to a decline in revenues for many industries, including the vegan food sector. However, as restrictions eased post the pandemic's initial waves, the market rebounded, and exponential growth is projected in the near future.

Regional Growth Opportunities

North America to Flex Dominance

North America is expected to account for the majority share of the global vegan food market, driven by high adoption rates and increased awareness of veganism's benefits. According to the Vegetarian Resource Group (VRG), over 2% of the U.S. population is vegan, a number likely to rise. Higher GDP per capita in this region is also expected to boost vegan food consumption despite its higher costs.

Asia Pacific to Exhibit Significant Growth

The Asia Pacific region is anticipated to show substantial growth in the coming years. For example, India has the lowest meat consumption globally, with a rapidly growing vegan population. These trends are expected to create significant opportunities for industry players, driving growth in the global vegan food market.

Competitive Landscape

Key players in the market include DANONE S.A., Archer Daniels Midland Company, Conagra Inc., Axiom Foods Inc., Beyond Meat, Alpro, Tofutti Brands Inc., and Kellogg Company. These companies are focusing on new product launches, partnerships, and acquisitions to gain a competitive edge.

Recent Notable Developments

Danone S.A. Acquisition: In February 2021, Danone S.A. acquired Follow Your Heart, a plant-based pioneer, to enhance its capabilities in developing new vegan products.

Target's Plant-Based Sub-Brand: In May 2021, Target launched Good & Gather, a plant-based sub-brand with a portfolio of 30 products.

Nestle's Wunda: In May 2021, Nestle launched Wunda, a vegan milk brand, in Portugal, the Netherlands, and France.

Upfield's Violife: In July 2021, Upfield introduced Violife, a vegan cheese brand in the Middle East, offering allergen-free alternatives to dairy products.

Regional Classification of the Global Vegan Food Market

North America: U.S., Canada

Europe: Germany, France, Spain, U.K., Italy, Russia, Rest of Europe

Asia Pacific: China, Japan, India, Southeast Asia, Rest of Asia Pacific

Latin America: Brazil, Mexico, Rest of Latin America

Middle East and Africa: GCC, South Africa, Rest of Middle East & Africa

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