Global Plant-Based Food Market Set to Exceed $75 Billion by 2028, Fueled by Health and Sustainability Trends - ResearchAndMarkets.com

The "Global Plant-based Food Market Outlook, 2028" report has been added to ResearchAndMarkets.com's offering.

The global plant-based food market is expected to witness robust growth, crossing USD 75 billion in market size by 2028, up from USD 41.06 billion in 2022. The market is projected to grow at a compound annual growth rate (CAGR) of 10.95% during the period from 2023 to 2028, driven by various key factors.

Key Drivers:

1. Rising Demand for Dairy and Meat Alternatives: The global market for plant-based foods is being fueled by the increasing need for dairy and meat alternatives. The growing trends of veganism and flexitarianism are contributing to the surge in demand for plant-based foods as consumers seek healthier and more sustainable dietary choices.
2. Health and Environmental Benefits: Plant-based foods are gaining popularity due to their advantages for human health and the environment. These products are considered more eco-friendly and are associated with lower carbon footprints compared to animal-based diets, appealing to environmentally conscious consumers.
3. Growing Awareness: The growing awareness of the benefits of consuming plant-based foods, driven in part by social media and the internet, is also contributing to market growth. Major players are using these platforms to reach a wider audience and boost sales, further propelling the industry's growth.
4. Investments in Research and Development: Numerous plant-based food producers are investing heavily in research and development to create innovative products that closely mimic the taste and texture of dairy and animal-based foods, addressing consumer expectations.

Regional Insights:

• Asia-Pacific: Dominating the market with a CAGR of 11.35% by 2023-28, the Asia-Pacific region is witnessing strong growth. Factors contributing to this growth include the adoption of emerging technologies, collaborations between international and domestic food companies, government investments in R&D, and the presence of key players. Urbanization, a growing middle-class population, rising income levels, and increased awareness of protein-rich diets also support market expansion.
• Europe: Expected to be the second-largest market during the forecast period, the European plant-based food market is driven by consumer preferences for sustainable and healthy food options. Sales of plant-based meat and seafood substitutes have increased significantly in Europe, according to the European Union (Europa.eu).

Product Types:

• Plant-Based Milk: Dominating the market with over 40% market share in 2022, plant-based milk is favored by lactose-intolerant individuals and those concerned about animal welfare and environmental sustainability. Manufacturers are launching new products, contributing to the segment's growth.
• Plant-Based Yogurt: Expected to grow at the fastest CAGR during the forecast period, plant-based yogurt is gaining popularity among health-conscious consumers. It offers various health benefits, including lower saturated fats, lactose-free options, and essential nutrient fortification.

Distribution Channels:

• Hypermarkets & Supermarkets: Dominating the market with over USD 17 billion in 2022, this segment benefits from increased sales of plant-based foods. Consumers prefer shopping from brick-and-mortar grocers due to easy access, availability, and attractive discounts.

Market Challenges:

• Taste and Texture Expectations: Meeting consumer expectations for taste and texture remains a challenge for plant-based foods. Consumers often compare these alternatives to their animal-based counterparts, and any perceived differences can impact acceptance.
• Cost and Affordability: Some plant-based foods, especially meat alternatives and specialty products, can be more expensive than their animal-based counterparts. Achieving cost competitiveness is challenging.

Market Trends:

• 3D Printing Plant-Based Meat: 3D printing technology is gaining traction in the plant-based food market, particularly for meat alternatives. It allows for precise control over composition and structure, potentially reducing food waste and enhancing sustainability.
• Technological Integration: Technology plays a crucial role in innovation and efficiency in the plant-based food market. Techniques for extracting and enhancing plant-based ingredients are being explored. Augmented Reality (AR) and Virtual Reality (VR) are used to enhance consumer experiences.

Key Players

The plant-based food market has seen the emergence of several key players who have played a significant role in driving innovation, product development, and market growth. The plant-based food market major player such as the Kellogg Company, Danone S.A., Archer Daniels Midland Company, Blue Diamond Growers, Nestle S.A., JBS S.A., The Kraft Heinz Company, Unilever plc, General Mills, Inc.,, Conagra Brands, Inc., Beyond Meat, Inc., Maple Leaf Foods Inc, Vitasoy International Holdings Limited, Impossible Foods Inc, Bob's Red Mill, SunOpta, Inc., Amy's Kitchen, Inc., JUST, Inc., The Hain Celestial Group, Inc., Plamil Foods Ltd, and others are working on expanding the market demand by investing in research and development activities.

Recent Developments

• In April 2023, Beyond Meat announced the restaurant launch of Beyond Pepperoni and Beyond Chicken Fillet. The promise of Beyond Meat to provide plant-based proteins with the additional health & environmental advantages of plant-based meat is met by these products.
• In November 2022, Beyond Popcorn Chicken and Beyond Chicken Nuggets were launched by Beyond Meat, Inc. The latest additions are available in 5000 Kroger and Walmart stores nationwide and few selected Albertsons and Ahold divisions.
• In 2022, a new Diary & Plant Blend baby formula was launched by Danone to meet parents' desire for feeding their babies vegan and plant-based diets.
• In September 2022, to expand its portfolio of sustainable, delicious, and nutritious plant-based meat products, Beyond Meat launched the Revolutionary Plant-Based Steak.

Key Attributes:

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