Plant-Based Food and Beverages Market - Size, Share and Forecast (2024-2031)

Market Overview

Global plant-based food and beverages Market reached US$ 24.20 billion in 2023 and is expected to reach US$ 48.25 billion by 2031, growing with a CAGR of 9.01% during the forecast period 2024-2031.

The plant-based food market is driven by growing consumer awareness about health, sustainability, and ethical concerns. Health-conscious individuals are turning to plant-based diets due to their association with reduced risks of chronic diseases and improved overall well-being. Environmental concerns, such as reducing greenhouse gas emissions, water usage, and deforestation, motivate consumers to choose plant-based options.

Younger generations, particularly Millennials and Gen Z, are driving adoption due to their values of sustainability and experimentation with global cuisines. Retailers and food service providers are expanding their plant-based offerings to cater to evolving preferences.  In 2022, the Good Food Institute reported that Plant-based food sales grew three times faster than total food sales, reaching $7.4 billion in 2021.

Asia-Pacific holds a significant share of the plant-based food and beverage market due to its large vegetarian population and traditional reliance on plant-based diets, particularly in countries like India and China.  A DuPont study predicts a 200% rise in plant-based meat demand in China and Thailand over the next five years, driven by health, taste, and sustainability concerns. Notably, 75% of Asia-Pacific consumers are willing to pay prices similar to meat for plant-based alternatives, reflecting a shift in food preferences.

Market Scope

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Market Dynamics

Growing Popularity of  Vegan Culture

With increased awareness about animal welfare, climate change, and the health benefits of plant-based diets, consumers are turning to plant-based alternatives in greater numbers. According to the World Animal Foundation, approximately 88 million people worldwide identify as vegans. This shift is fueling market innovation and expansion, with consumers seeking sustainable and healthier alternatives to animal-based products.

Furthermore, the rise of veganism is supported by a wider range of vegan-friendly products in retail, making plant-based foods more accessible to consumers.  A 2021 global survey by NSF revealed that 88% of food industry practitioners anticipate growing demand for plant-based products. They attribute this trend to consumer motivations, with 74% citing a healthier lifestyle and 60% emphasizing environmental benefits. 

Innovation and Product Availability

With advancements in food technology, companies are developing plant-based alternatives that mimic traditional meat and dairy products' taste, texture, and nutritional profile, making them more appealing to mainstream consumers.  For instance, in July 2024, Plantaway launched the Chick’n Fillet, a pea protein-based chicken alternative designed to replicate the taste and texture of real chicken. Offering 19g of protein per pack, it is soy-free, rich in dietary fiber, and free from trans fats, preservatives, artificial colorings, and flavorings. This innovative product caters to health-conscious consumers seeking a nutritious and sustainable protein source.

Similarly in August 2024, 1.5 Degree, a forward-thinking start-up, unveiled a diverse range of plant-based dairy alternatives to meet the growing demand for lactose-free options. The lineup includes oat and soy milk, cold coffee, flavored milkshakes, and gelato in unique flavors like paan, Belgian chocolate, and mocha almond fudge. Focused on taste and health, the brand aims to redefine dairy-free indulgence.

Taste and Texture Issues

Taste and texture issues are significant restraints for the plant-based food and beverage market, as many consumers find these products do not fully replicate the sensory experience of traditional animal-based foods. Despite advancements, plant-based alternatives often struggle to achieve the same mouthfeel, flavor complexity, and satisfaction that meat or dairy products provide.

Research presented at the Natural Products Expo West highlighted taste, texture, and quality as key unmet needs in plant-based meat and dairy alternatives, with plant-based cheese facing particular challenges. The study, conducted by 84.51° and the Plant Based Foods Association, revealed that younger consumers are less concerned about mimicking animal-based products, while older consumers prefer plant-based alternatives that closely resemble the taste and usage of traditional animal-based foods. These differences in consumer preferences present a challenge for the plant-based market to cater to diverse age groups. 

Market Segment Analysis

The global plant-based food and beverages market is segmented based on type, ingredient, distribution channel, end-user and region.

Rising Demand For Sustainable, Ethical, and Health-Conscious Dietary Options

Meat substitutes hold a significant share in the global plant-based food and beverages market due to the rising consumer demand for healthier, sustainable, and ethical dietary options. Increasing awareness about the environmental impact of meat production and animal welfare concerns has driven a shift toward plant-based diets. 

Growing investment by key players and startups has expanded product availability and innovation. In June 2021, Charoen Pokphand Foods PLC (CPF) introduced "MEAT ZERO," a plant-based meat product designed to mimic the taste, texture, and appearance of real meat using its innovative "PLANT-TEC" technology. Targeting health-conscious consumers, the product is both affordable and convenient, offered as ready-to-cook ingredients and ready-to-eat meals. "MEAT ZERO" is available through 7-Eleven stores and modern trade outlets across Thailand, aligning with the growing demand for sustainable and healthy food alternatives.

Market Geographical Share

Rising Plant-Based Product Adoption and Growing Vegan Population in Asia-Pacific

The Asia-Pacific region holds a significant share of the plant-based food and beverage market due to cultural, economic, and environmental factors.  According to NIH, 2021, in Asia, vegetarian and vegan diets are more prevalent, with 6.42% of men and 8.53% of women following such diets. This reflects a growing trend toward plant-based eating in the region. Similarly, according to the  World Atlas, India ranks first in the world with 38% of its total population identifying as vegetarians, highlighting the country's strong cultural and dietary preference for plant-based foods.

The growing popularity of meat reduction reflects a shift in dietary preferences towards more sustainable and health-conscious choices. According to  Food Frontier, 2024, in 2024, 21% of Australians identify as 'meat reducers,' and 79% go meat-free weekly, highlighting a significant shift towards plant-based diets. Sales of plant-based meat in Australia have surged by 47% between 2020 and 2023. These trends underscore a rising demand for plant-based alternatives.

The region's diverse culinary heritage fosters the development of unique plant-based offerings tailored to local tastes. For instance, in July 2024, Spice Grill Flame (SGF), a popular vegetarian restaurant chain in India, introduced a new vegan menu featuring two categories: 100% Plant-Based Protein and Vegan. The first category includes high-protein soy-based dishes, while the second offers wholesome meals with SGF's signature flavors. The move caters to the growing demand for healthier, plant-based options in India.

Sustainability Analysis

The plant-based food and beverage market is experiencing significant growth, driven by increasing consumer demand for sustainable, ethical, and health-conscious alternatives to traditional animal-based products. This shift is fueled by concerns over environmental sustainability, as plant-based products typically have a lower carbon footprint, reduced water usage, and less land required compared to animal farming. 

A study published in Nature Communications reveals that replacing 50% of meat and milk products with plant-based alternatives by 2050 could cut agriculture and land-use-related greenhouse gas emissions by 31%. This shift would also help prevent further degradation of forests and natural land. The findings highlight the significant environmental benefits of adopting plant-based diets.

Governments are increasingly supporting this shift through policies, subsidies, and regulations that promote plant-based diets to reduce greenhouse gas emissions and improve public health. In October 2024, the Plant-Based Foods Association (PBFA) announced the launch of The Plant-Based Foods Institute (PBFI), a sister non-profit organization. PBFI's initiatives include influencing U.S. policy to support the transition to a sustainable plant-based food system, focusing on key efforts like the U.S. Dietary Guidelines for Americans and the upcoming Farm Bill. The institute aims to drive systemic change for a more sustainable food future.

The plant-based food and beverage market is expanding as companies launch innovative products that cater to sustainability-conscious consumers, offering lower environmental impacts than traditional animal products. For instance, in September 2024, vEEF, Australia’s first carbon-neutral plant-based brand from The Aussie Plant Based Co., launched four new plant-based meat products, including beef mince, chorizo sausages, and classic sausages. The innovative range, crafted by 3-Hatted Chef Alejandro Cancino, offers sustainable, eco-conscious alternatives that achieve price parity with conventional meat.

Consumer Analysis

The plant-based food and beverage market has seen significant growth driven by rising consumer demand for healthier, sustainable, and ethical alternatives to animal-based products. Millennials and Gen Z are leading this shift, with increasing concerns about health, environmental sustainability, and animal welfare.

Consumers are increasingly encouraged to shift towards a more sustainable diet, with a focus on 60% plant-based and 40% animal-based protein sources, as proposed by ProVeg International, WWF, and the Green Protein Alliance. Retailers are urged to adopt ambitious targets aligning with the Planetary Health Diet for balanced food sales. This trend reflects the growing awareness of environmental and health benefits.

Plant-based foods are experiencing rapid growth in grocery stores, with vegan-related searches reaching an all-time high due to increasing global interest, especially post-pandemic. Consumers are becoming more aware of the health benefits of plant-based diets, and in India, there is a growing adoption of both Western plant-based products like salamis and native options like jackfruit meat and coconut milk. A recent GFI survey revealed that 77% of Indian consumers are open to trying plant-based meat, with early adopters showing particularly strong enthusiasm.

Importance of Clean Labels

The plant-based food and beverage market is increasingly embracing clean-label trends, where products emphasize transparency and simplicity in ingredients. Consumers are seeking items with fewer, recognizable ingredients, free from artificial additives, preservatives, and GMOs. This shift is driven by rising health consciousness and sustainability concerns. 

A study by GFI India on plant-based dairy consumers revealed that 90% of them carefully check product labels, focusing on packaging dates, nutrition facts, protein content, and ingredient lists. This attention to detail may stem from plant-based protein being relatively new compared to animal-derived alternatives. The study also highlighted that using the term "plant-based" instead of "vegan" or "mock meat" is crucial to appeal to a broader audience, as it is perceived as more inclusive and aligned with food trends like "farm to table." This terminology resonates well with consumers, making plant-based products more accessible and less alienating.

Major Global Players

The major global players in the market include Beyond Meat Inc., Danone, Conagra, Inc., Nestle, Tyson Foods, Inc., Tofutti Brands, Inc., Impossible Foods Inc., Kellogg NA Co., Amy's Kitchen, Inc., and Atlantic Natural Foods.

Market Segments

By Type

• Plant-based Dairy
  • Yogurt
  • Cheese
  • Frozen Desserts and Ice-Cream
  • Others
• Meat Substitutes
  • Tofu
  • Tempeh
  • Textured Vegetable Protein
  • Others
• Plant-Based Nutrition/Snack Bars
• Plant-Based Bakery Products
• Plant-Based Beverages
  • Milk
  • Smoothies
  • Coffee
  • Tea
  • Others
• Others

By Ingredient

• Fruits
  • Coconut
  • Mango
  • Banana
  • Others
• Seeds and Nuts
  • Almond
  • Cashew
  • Flaxseed
  • Others
• Vegetables
• Grains
  • Oats
  • Rice
  • Others
• Legumes
  • Peas
  • Soy
  • Fava Beans
  • Others
• Others

By Distribution Channel

• Business-to-Business (B2B)
• Business-to-Consumer (B2C)
  • Supermarkets/Hypermarkets
  • Convenience Stores
  • E-Commerce
• Others

By End-User

• Household Consumers
• Food Service Industry
  • Restaurants
  • Cafes and Coffee Shops
  • Hotels and Resorts
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In July 2024, Nestlé introduced Maggi Rindecarne in Chile, a plant-based meat alternative made from soy and spices. The product is designed to extend meals by doubling servings at an affordable price while maintaining nutritional value and taste when mixed with minced meat. It is versatile, customizable, and ideal for all minced meat-based dishes.
• In July 2024, Spice Grill Flame (SGF), a popular vegetarian restaurant chain in India, launched a new vegan menu with two categories: 100% Plant-Based Protein and Vegan. The first category features high-protein dishes made from soy, while the second offers wholesome meals that maintain SGF's signature flavors and cater to plant-based dietary needs.
• In March 2024, The Kraft Heinz Not Company LLC launched its first-ever plant-based Oscar Mayer products, NotHotDogs, and NotSausages, marking a milestone in its joint venture with NotCo. These plant-based offerings deliver the savory and smoky taste of traditional Oscar Mayer products, aligning with the company's mission to create delicious plant-based foods for everyone.

Why Purchase the Report?

• To visualize the global plant-based food and beverages market segmentation based on type, form, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of plant-based food and beverages market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global plant-based food and beverages market report would provide approximately 70 tables, 67 figures and 210 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies