Plant-based Beverages Market Size, Share & Trends Analysis Report By Type (Soy-based, Oats-based), By Product (Plain, Flavored), By Region (Europe, Asia Pacific), And Segment Forecasts, 2021 - 2028

Report Overview

The global plant-based beverages market size was valued at USD 22,859.4 million in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 14.3% from 2021 to 2028. Increasing health concerns have compelled consumers to shift their preference to vegan foods and beverages. The vegan population is significantly increasing owing to the rising prevalence of lactose intolerance and various kinds of food allergies. Soy milk is widely consumed across the globe as it has various similar benefits as dairy-based milk. Soy milk is widely used in various applications, such as bakeries and confectioneries. In addition, soy milk is a good source of protein, vitamin A, vitamin B-12, potassium, and isoflavones. It is also considered the best alternative for lactose-intolerant consumers.

Hemp-based drinks are also gaining popularity among consumers owing to their health benefits and pain relief properties. In addition, various governments across the globe are removing CBD and Hemp from illicit drugs and promoting these drinks. These supportive policies encourage beverage manufacturers to launch new products in the market.

Moreover, the rising demand for organic agro products, as they are free from harmful chemicals, is compelling manufacturers to use plant-based raw materials in their beverages. Moreover, Fairtrade Sourcing, halal certification, and kosher certification can help manufacturers reach a wide base of customers across the globe.

The dairy industry is also known to have an adverse impact on the environment, which is compelling more and more consumers to switch to non-dairy alternatives. According to the World Wildlife Fund, millions of farmers worldwide tend approximately 270 million dairy cows to produce milk. Dairy cows and their manure produce Greenhouse Gas (GHG) emissions, which contribute to climate change. Poor handling of manure and fertilizers can degrade local water resources, and unsustainable dairy farming and feed production can lead to the loss of ecologically important areas, such as prairies, wetlands, and forests.

Type Insights

In the U.S., in terms of volume, the almond-based type segment dominated the market with a revenue share of more than 50%. The rising health consciousness, supportive government initiatives, and the introduction of various vegan products are anticipated to drive the market for plant-based beverages.

Restaurants, eateries, hotels, and cafés are including plant-based milk, especially oats and almond milk, in their menu to cater to a large number of lactose intolerant as well as vegan customers. Key players in the market are launching new products in the market with the rising demand for plant-based milk. The pandemic has also generated a lot of opportunities for plant-based beverage manufacturers as consumers have become more conscious of their health.

Consumers are focusing on increasing their immunity and maintaining their overall health through simple and nutritious vegetarian and plant-based foods and beverages. Consumers from developed as well as developing countries are showing a willingness to pay a premium price for beverages with better nutritional and medicinal benefits. With the growing consumer demand for nutritional and allergy-free drinks, soy-based beverages are expected to witness steady growth over the forecast period.

Product Insights

The plain product segment led the global market with a revenue share of over 59% in 2020. The growing adoption of highly nutritious plant-based beverages by consumers, along with expected amendments in governing laws to support plant-based beverages, is expected to drive the segment during the forecast period. On the other hand, the oat-based segment is estimated to register the fastest CAGR from 2021 to 2028. Some of the popular coffee chains are launching plant-based alternatives of their drinks, owing to the rising demand from customers. For instance, in July 2020, Starbucks Canada expanded its non-dairy options by launching oat-based beverages as its latest plant-based offering.

The growing adoption of plain plant-based milk in several drinks is anticipated to boost the sales of plant-based beverages over the forecast period. Leading companies offer various almond-based, soy-based, coconut-based, oats-based, and rice-based beverages, several small- and medium-sized players are emerging to capture niche products segments, such as hemp-, hazelnut-, and flax-based beverages. For instance, Living Harvest Foods (a Tempt brand), Manitoba Harvest Hemp Foods (a Hemp Yeah! brand), and Milkadamia are popular in the hemp-based milk market. In addition, manufacturers are introducing and combining several flavors to stimulate the adoption of beverages in different applications, such as smoothies, protein shakes, yogurt drinks, and others. An increasing number of product launches in appealing flavors is expected to drive the segment growth over the forecast period.

Regional Insights

Asia Pacific accounted for the largest revenue share of over 66% in 2020. The increasing vegan population in the region, especially the millennials’ inclination toward plant-based, natural, and healthy foods and beverages, is likely to fuel the demand for plant-based beverages in Asia Pacific. Countries, such as China, India, and Thailand, have been adopting a healthy lifestyle by opting for healthy food options.

Growing health awareness among U.S. consumers is leading to less sugar and fat intake, along with high protein consumption and overall nutritional balance. Furthermore, the increasing purchasing power of consumers, coupled with the rising adoption of a vegan diet, has been driving the plant-based beverages market in the region. Greater focus on fitness among millennials and the younger population is another trend fueling market growth in the U.S.

Key Companies & Market Share Insights

The industry is fragmented in nature with numerous large- and small-scale players. The market players face intense competition, especially from the top manufacturers of health and nutritional drinks as they have a large customer base. The strong brand recognition and vast distribution networks of these companies also intensify the degree of rivalry among players. Key companies have been implementing various expansion strategies, such as partnerships and new product launches, to stay ahead in the game and to establish a hold in the plant-based beverage market. Some of the leading players in the global plant-based beverages market are:

• Danone S.A

• Pacific Foods of Oregon, LLC

• LBlue Diamond Growers, Inc.

• SunOpta

• The Hain Celestial Group, Inc.

• Freedom Foods Group Ltd.

• Califia Farms

• Harmless Harvest

• Koia

• Vitasoy International Holdings Ltd.

Plant-based Beverages Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global plant-based beverages market report on the basis of type, product, and region:

• Type Outlook (Volume, Million Units; Revenue, USD Million, 2016 - 2028)

  • Soy-based

  • Coconut-based

  • Almond-based

  • Rice-based

  • Oats-based

  • Hemp-based

  • Hazelnut-based

  • Cashew-based

  • Flax-based

• Product Outlook (Volume, Million Units; Revenue, USD Million, 2016 - 2028)

  • Plain

  • Flavored

• Regional Outlook (Volume, Million Units; Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Russia

    • Switzerland

    • Spain

  • Asia pacific

    • China

    • Thailand

    • South Korea

    • India

    • Australia

    • Japan

    • Taiwan

  • Central and South America

    • Brazil

    • Argentina

  • Middle East and Africa

    • South Africa

    • UAE

    • Saudi Arabia