Global Plant-based Food Market Size, Share, Business Environment Analysis By Type (Dairy Substitute, Meat Substitute, Egg Substitute, Seafood Substitute, Others), By Category (Organic, Conventional), By Source (Soybean, Nuts, Wheat, Pea, Others), By Distribution Channel (Supermarkets/Hypermarkets, Departmental Stores, Convenience Store, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global Plant-based Food Market size is expected to be worth around USD 68.9 Bn by 2033, from USD 22.0 Bn in 2023, growing at a CAGR of 12.1% during the forecast period from 2024 to 2033.

The global plant-based food market has emerged as a dynamic and rapidly expanding sector, driven by growing consumer preferences for sustainable and health-conscious dietary options. Plant-based foods encompass a wide range of products derived from plant sources, including meat substitutes, dairy alternatives, snacks, beverages, and meal replacements. These products are designed to cater to the increasing demand for ethical and eco-friendly food choices, appealing to vegetarians, vegans, and flexitarians alike.

In 2023, approximately 10% of the global population identified as vegetarian or vegan, while nearly 42% of consumers worldwide reported actively reducing their meat consumption. This growth is supported by innovations in plant-based protein sources such as pea, soy, and wheat, which mimic the texture and flavor of traditional meat.

Key driving factors include heightened awareness of climate change and the environmental toll of animal agriculture, which accounts for 14.5% of global greenhouse gas emissions. Consumers are opting for plant-based foods as a sustainable alternative, reducing carbon footprints and water usage. Additionally, the rising prevalence of chronic diseases, such as obesity and heart disease, has fueled demand for healthier dietary options. Studies indicate that plant-based diets can reduce the risk of cardiovascular disease by 16% and lower cholesterol levels significantly.

Emerging trends in the plant-based food market include the rise of fermentation technology to enhance product taste, texture, and nutritional content. For instance, precision fermentation is being used to produce dairy proteins without cows, creating highly realistic cheese and yogurt alternatives. The market is also witnessing an increase in hybrid products that combine plant-based proteins with traditional meat or dairy, catering to flexitarians seeking familiar flavors with reduced environmental impact.

Future growth opportunities lie in the expansion of plant-based food options into new cuisines and regional flavors to attract a broader consumer base. Investments in affordable plant-based food production and scaling technologies are expected to make these products more accessible. Furthermore, the integration of plant-based ingredients in functional foods, targeting specific health benefits such as gut health and immunity, represents an untapped market potential.

Key Takeaways

• Plant-based Food Market size is expected to be worth around USD 68.9 Bn by 2033, from USD 22.0 Bn in 2023, growing at a CAGR of 12.1%.
• Dairy Substitute segment held a dominant market position, capturing more than a 43.2% share.
• Conventional products, which held a significant market share of over 68.1%.
• Soybean held a dominant market position in the plant-based food sector, capturing more than a 38.1% share.
• Supermarkets/Hypermarkets held a dominant market position in the distribution of plant-based foods, capturing more than a 53.4% share.
• Asia Pacific emerged as the dominating region, holding a 37.7% market share and generating USD 8.3 billion in revenue.

Business Environment Analysis

Consumer engagement with plant-based foods is notable, with 66% of the U.S. population incorporating these products into their diets. Additionally, 77% of consumers consider sustainability an important factor when selecting food, reflecting a shift towards environmentally friendly choices.

Despite the positive trajectory, challenges remain. In the U.S., companies like Beyond Meat have reported declining sales, with a 32.3% decrease in 2023 compared to the previous year. Conversely, the European market shows promise, with expanding distribution and supermarket support for plant-based products.

Environmental concerns continue to drive consumer choices. The livestock industry significantly contributes to global greenhouse gas emissions, prompting a shift towards plant-based alternatives. Unprocessed foods like beans and peas are recognized for their lower environmental impact compared to processed alternatives.

By Type

In 2023, the Dairy Substitute segment held a dominant market position, capturing more than a 43.2% share. This segment benefits from a wide range of products including plant-based milks, yogurts, and cheeses which have gained popularity due to their health benefits and the increasing number of consumers with lactose intolerance or dairy allergies.

Meat Substitutes also showed robust performance, driven by innovations in texture and flavor that closely mimic real meat. This segment has been bolstered by the growing acceptance of plant-based diets among consumers who are reducing their meat consumption due to health, environmental, or ethical reasons. Products like burgers, sausages, and ground meat alternatives made from soy, peas, and other plant proteins have become staples in many households.

The Egg Substitute sector is smaller but rapidly growing, with products designed to replace eggs in cooking and baking. This segment caters to vegans and those allergic to eggs, offering alternatives derived from ingredients like mung beans and aquafaba which mimic the functional properties of eggs in recipes.

Seafood Substitutes are emerging as a significant area of innovation within the plant-based food market. Though a relatively newer segment, it is gaining traction due to the rising awareness of overfishing and the environmental impact of traditional seafood. Plant-based fish sticks, tuna, and shrimp made from seaweed, soy, and pea protein are starting to appear on supermarket shelves.

By Category

In 2023, the plant-based food market was largely dominated by conventional products, which held a significant market share of over 68.1%. This segment’s dominance can be attributed to its established manufacturing processes, widespread availability, and generally lower price points compared to organic options. Conventional plant-based foods are accessible in most retail channels, from supermarkets to restaurants, making them a go-to choice for consumers looking to explore plant-based diets without the premium cost associated with organic labels.

The Organic segment, while smaller in market share, is growing rapidly. Consumers are increasingly drawn to organic plant-based foods due to their perceived health benefits, environmental sustainability, and the absence of pesticides and genetically modified organisms (GMOs). Although these products command a higher price point, the demand is bolstered by rising health consciousness and ethical considerations among consumers. Organic plant-based foods are especially popular in markets where consumers have higher disposable incomes and greater awareness of food origins and production practices.

By Source

In 2023, Soybean held a dominant market position in the plant-based food sector, capturing more than a 38.1% share. This prominence is due to soybean’s versatility and established presence in the market as a primary source of plant-based protein. Products derived from soybean, such as tofu, tempeh, and soy milk, have been staples in various cuisines, particularly in vegan and vegetarian diets, due to their high protein content and ability to absorb flavors.

Nuts, another significant source, follow closely, appreciated for their nutritional value and the creamy texture they lend to plant-based products like nut butters and milks. Almonds, cashews, and walnuts are particularly popular, used in everything from dairy alternatives to meat substitutes, providing essential healthy fats, proteins, and a satisfying taste profile.

Wheat has been a traditional source of plant-based protein, especially seitan, which is made from gluten, the main protein in wheat. It is favored for its meat-like texture and is a popular choice for those seeking alternatives to soy or nuts due to allergies or dietary preferences.

Peas have risen in prominence as a source of plant-based protein, particularly in the production of newer meat substitutes. Pea protein offers a high protein content that is favorable for muscle growth and maintenance, making it a popular choice in health-oriented food products.

By Distribution Channel

In 2023, Supermarkets/Hypermarkets held a dominant market position in the distribution of plant-based foods, capturing more than a 53.4% share. This channel’s strength stems from its ability to offer a wide variety of plant-based products under one roof, catering to the growing consumer demand for convenience and variety. Supermarkets and hypermarkets have effectively utilized their large floor spaces to introduce dedicated sections for plant-based products, often highlighting new and innovative items that attract health-conscious consumers.

Departmental stores, although smaller contributors to the plant-based food market, play a significant role in urban areas where they cater to niche markets looking for premium plant-based products. These stores often stock unique or luxury plant-based items that are not commonly found in larger supermarket chains.

Convenience stores have also adapted to the rising trend of plant-based diets by stocking more on-the-go plant-based snack options and quick meal solutions. This segment has seen growth particularly in densely populated areas where consumers seek quick and healthy food options that fit their busy lifestyles.

Key Market Segments

By Type

• Dairy Substitute
• Meat Substitute
• Egg Substitute
• Seafood Substitute
• Others

By Category

• Organic
• Conventional

By Source

• Soybean
• Nuts
• Wheat
• Pea
• Others

By Distribution Channel

• Supermarkets/Hypermarkets
• Departmental Stores
• Convenience Store
• Others

Drivers

Government Initiatives Boosting Plant-Based Food Industry

In 2023, one of the most significant driving factors for the growth of the plant-based food market was the support from government initiatives, particularly in the United States. This support is encapsulated in the introduction and backing of legislation such as the PLANT Act by Congressman Jim McGovern. This legislation is designed to bolster the plant-based food industry by providing more opportunities for farmers and food manufacturers, and by ensuring federal support for the production and export of plant-based foods.

The PLANT Act aims to make plant-based foods more accessible and affordable, which is crucial as these foods often come at a premium compared to their animal-based counterparts. The act recognizes the role of plant-based diets in sustainable agriculture, health, and climate change mitigation. By integrating support for plant-based foods into the Farm Bill, the government is making a clear statement about the importance of transitioning towards more sustainable food options. This move is expected to encourage further investment and innovation in the sector, making plant-based foods a more integral part of American agriculture.

Moreover, the USDA has also been involved in promoting plant-based food options through various programs, which not only supports the industry but also aligns with broader environmental goals. The initiatives reflect a significant shift towards recognizing and supporting the environmental benefits of plant-based diets at a policy level.

These government actions are instrumental in driving the market for plant-based foods by enhancing the infrastructure, funding, and regulatory support needed to scale up production and make these products more competitive and mainstream. As a result, consumers are likely to see more diverse and economically priced plant-based options on the shelves, which could further accelerate the shift away from animal-based products.

Restraints

Price Sensitivity and Economic Factors

A significant restraining factor for the plant-based food market is the price sensitivity among consumers, especially in light of broader economic pressures. In 2023, the market faced challenges due to inflation and rising food costs, which made the typically higher-priced plant-based alternatives less appealing to budget-conscious consumers. This issue is compounded by the fact that plant-based foods, especially meat and dairy alternatives, often command a premium over their animal-based counterparts, making them a tougher sell in economically tight times.

The economic impact is evident in the slowed growth rates for plant-based foods in major markets like the United States, where consumer spending habits have become more conservative due to inflation. Companies within the sector have had to adjust their expectations and strategies in response to these economic headwinds. For instance, despite their health and environmental benefits, the higher cost of plant-based products relative to traditional options has led to a noticeable decline in sales growth, particularly for plant-based meats.

Moreover, the challenge is not just about the higher price but also value perception. Consumers are increasingly scrutinizing the health claims of plant-based foods, questioning their nutritional content and the level of processing involved. This scrutiny affects consumer trust and willingness to pay a premium, particularly when economic conditions push them to prioritize basic needs and affordability over other factors.

Addressing these price and perception issues is crucial for the future growth of the plant-based food market. Strategies may include improving cost efficiencies, enhancing product offerings to better align with consumer expectations for taste and health, and leveraging innovative technologies to lower prices.

Opportunity

Expanding Global Consumer Base for Plant-Based Foods

One of the primary drivers of this growth is the expanding consumer base that includes not only vegans and vegetarians but also a significant number of flexitarians who are reducing their meat consumption due to health and environmental reasons. The demand for diverse plant-based products is increasing, from dairy and meat alternatives to novel products like plant-based eggs and seafood, which cater to a broader audience looking for healthier and more sustainable dietary options.

Innovative product development is also a key factor contributing to market expansion. Companies are increasingly focusing on improving the taste, texture, and nutritional profiles of plant-based foods to better meet consumer expectations and compete directly with traditional animal-based products. This includes leveraging new technologies and ingredients to enhance the sensory experience of plant-based foods, making them more appealing to a wider range of consumers.

Moreover investments by major food companies and startups alike indicate a strong confidence in the long-term viability of the plant-based food sector. These investments are not only enhancing product offerings but are also improving the supply chain and production processes, making plant-based foods more accessible and affordable to consumers globally.

This growth is supported by a favorable regulatory environment and increasing government support for sustainable food solutions, further encouraging the adoption of plant-based diets across different regions and demographics. The integration of ethical and environmental benefits with health advantages positions the plant-based food market on a promising path for continued expansion and innovation.

Trends

Clean Label Plant-Based Foods

plant-based food industry as of 2023 is the rising demand for “clean label” products. This trend reflects a growing consumer preference for simplicity and transparency in food ingredients. Plant-based food options are increasingly being designed to contain fewer additives, focusing on whole and recognizable ingredients. This shift is driven by health-conscious consumers who scrutinize product labels to better understand what they are consuming and to avoid artificial ingredients and additives.

The push for clean label plant-based foods is influencing both the development and marketing strategies of leading food companies and startups alike. For example, industry players are focusing on creating plant-based meat and dairy alternatives that not only match the taste and texture of their animal-based counterparts but do so with simpler, more natural ingredients. This effort aligns with broader consumer trends towards health and wellness, particularly as individuals seek diets that support long-term health and environmental sustainability.

The clean label trend is not just about removing unwanted ingredients; it involves enhancing the nutritional profile of plant-based foods to appeal to health-focused consumers. This approach includes fortifying products with additional vitamins, minerals, and other beneficial nutrients to make them as nutritious as they are ethical and environmentally friendly.

This trend towards clean, health-focused food choices is expected to continue growing, driven by consumer demand for transparency and a deeper connection to the food they consume. As plant-based diets gain popularity for their health and environmental benefits, the industry sees a clear path forward in refining product offerings to meet these evolving consumer expectations.

Regional Analysis

In 2023, the plant-based food market exhibited varied growth dynamics across different global regions, reflecting diverse consumer preferences, economic conditions, and levels of market maturity. North America, particularly the United States and Canada, continued to be a strong market for plant-based foods, driven by a well-established vegan and vegetarian community and growing consumer interest in health and sustainability. This region has seen substantial innovation in plant-based dairy and meat alternatives, supported by both start-ups and established food companies.

Europe also showed significant growth in the plant-based food sector, with countries like Germany, the United Kingdom, and the Netherlands leading in market penetration. European consumers have shown a high level of acceptance due to strong health and environmental awareness, coupled with supportive government policies promoting sustainable agriculture and food security.

Asia Pacific emerged as the dominating region, holding a 37.7% market share and generating USD 8.3 billion in revenue. The growth in this region is propelled by increasing awareness of plant-based diets’ health benefits, rising disposable incomes, and the cultural prevalence of vegetarian diets in countries like India. Moreover, the expansion of retail infrastructures and the introduction of local flavors in plant-based food products have significantly contributed to the market’s growth.

In contrast, the Middle East & Africa and Latin America experienced slower growth but showed promising potential. These regions are gradually adopting plant-based diets due to the rising middle class and urbanization. Efforts to improve distribution channels and the availability of plant-based products are expected to drive future growth in these areas.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

Top Key Players

• Amy’s Kitchen
• Atlantic Natural Foods LLC
• Beyond Meat Inc
• Daiya Foods Inc.
• Danone S.A.
• Earth’s Own Food Company Inc.
• Eat Just, Inc.
• Garden Protein International, Inc.
• Impossible Foods Inc.
• Lightlife Foods Inc
• Nestlé S.A.
• Nutrisoy Pty Ltd.
• Plamil Foods Ltd.
• Profiled
• Sahmyook Foods
• Sanitarium Health and Wellbeing Company
• Sophie’s Kitchen
• Taifun -Tofu GmbH
• The Hain Celestial Group, Inc.
• Tyson Foods Inc
• Unilever PLC
• Vbite Food Ltd

Recent Developments

In 2023, Amy’s Kitchen, a prominent name in the plant-based food sector, emphasized its commitment to sustainability and community support. Throughout the year, the company invested significantly in renewable energy projects, achieving a 35% annual reduction in greenhouse gas emissions.

In 2024, Atlantic Natural Foods, LLC (ANF), a key player in the plant-based food sector, made a significant strategic decision by withdrawing from a planned acquisition by Above Foods, choosing instead to revert to private ownership.

Report Scope