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.
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.
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.
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.
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
Blue Diamond Growers, Inc.
SunOpta
The Hain Celestial Group, Inc.
Freedom Foods Group Ltd.
Califia Farms
Harmless Harvest
Koia
Vitasoy International Holdings Ltd.
Report Attribute |
Details |
Market size value in 2021 |
USD 25.94 billion |
Revenue forecast in 2028 |
USD 66.53 billion |
Growth rate |
CAGR of 14.3% from 2021 to 2028 |
Base year for estimation |
2020 |
Historical data |
2016 - 2019 |
Forecast period |
2021 - 2028 |
Quantitative units |
Volume in million liters, revenue in USD million/billion, and CAGR from 2021 to 2028 |
Report coverage |
Revenue forecast, volume forecast company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Type, product, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
Country scope |
U.S.; Canada; Mexico; U.K.; Germany; France; Italy; Russia; Switzerland; Spain; China; India; Thailand, South Korea; Australia; Taiwan; Japan; Argentina; Brazil; South Africa; Saudi Arabia; UAE |
Key companies profiled |
Danone S.A; Pacific Foods of Oregon, LLC; Blue Diamond Growers, Inc.; SunOpta; The Hain Celestial Group, Inc.; Freedom Foods Group Ltd.; Califia Farms; Harmless Harvest; Koia; Vitasoy International Holdings Ltd. |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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
b. The plant-based beverages market size was estimated at USD 22,859.4 million in 2020 and is expected to reach USD 25.94 billion in 2021.
b. The plant-based beverages market is expected to grow at a compound annual growth rate of 14.3% from 2021 to 2028 to reach USD 66.53 billion by 2028.
b. The Asia Pacific dominated the plant-based beverages market with a share of 66.5%% in 2020. This is attributable to the increasing vegan population in the region, especially the millennials’ inclination toward plant-based, natural, and healthy foods and beverages.
b. Some key players operating in the plant-based beverages market include Danone S.A., Califia Farms, Vitasoy International Holdings Limited, and Blue Diamond Growers
b. Key factors that are driving the plant-based beverages market growth include increasing health concerns that have compelled consumers to shift their preference to vegan foods and beverages.
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Amidst the global pandemic crisis and the indefinite lockdown across nations, the consumer food & beverage industry first witnessed high demand for household staples, healthy food items, and consumables with longer shelf lives. The demand for frozen food products, fruits & vegetables, eggs, flour, and whole grains, among others, witnessed a considerable increase during the early stages of the crisis. Presently, most companies in the industry are faced with low consumption of their products and supply chain challenges. The companies are focusing more on altering their supply chains in order to reinforce their online presence and delivery measures, in an attempt to adapt to the present business environment. The changes in consumer buying behavior and the dynamic shifts towards online and D2C distribution channels may have serious implications on the near future growth of the industry. Our team is diligently working towards accounting these factors in our report with the aim of providing you with the up-to-date, actionable market information and projections.
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