The global vegan food market size was valued at USD 12.69 billion in 2018 and is projected to expand at a CAGR of 9.6% from 2019 to 2025. Increasing awareness about the benefits of following vegan diet is the key factor responsible for the growth of this market. North America, Europe, and Asia Pacific, in particular, have a large percentage of vegan population.
Growing awareness about animal health and animal cruelty in the food industry has been encouraging people to shift from animal-based to plant-based food products. According to The Vegan Society, from 2012 to 2017, the meat-free food demand grew by 987%. The product is Googled three times more than gluten-free and vegetarian products.
This implies the rapidly growing popularity of the product across the globe. U.S., Australia, U.K., New Zealand, Sweden, Canada, Israel, Ireland, Austria, and Germany have the highest percentage of vegan population in the world. Over the past few years, one in three American consumers has either stopped or reduced meat consumption. In Sweden, meat consumption reduced significantly in 2017.
Rising awareness about various health benefits offered by plant-based food products has increased the consumer base of this industry. Plant-based products help maintain blood pressure levels and lower the risk of heart disease, stroke, prostate cancer, colorectal cancer, cholesterol, and premature death.
Dairy alternatives were the largest product segment in 2018 and accounted for more than 50% of the global revenue. Around 65% of the global population is lactose intolerance, which is a key factor boosting the demand for dairy alternative food items. Availability of a number of products, such as cheese, yogurt, ice cream, and snacks, has also attracted non-vegetarians and widened the consumer base of this segment.
In addition, manufacturers in the market have introduced a number of quality food items in different flavors with attractive packaging solutions. This is also likely to contribute to segment growth. Among such products, plant-based cheese accounted for the largest share in the dairy alternatives. Increasing product portfolio along with rising cases of lactose intolerance is expected to fuel its demand.
Offline segment was the largest distribution channel and is projected to maintain its dominance over the forecast period. This segment includes convenience stores, specialty stores, hypermarkets, and supermarkets. Growing number of supermarkets and hypermarkets have increased the overall product sales. Furthermore, consumers prefer shopping from brick-and-mortar grocers due to easy access and availability. However, online channel is estimated to witness the highest CAGR from 2019 to 205 due to rising penetration of the internet as a result of extensive usage of smartphones and other such devices.
Around 48% of the U.S. consumers buy at least some of their groceries through online retail and this percentage is expected to increase in the near future. As a result, many major retail chains across the world have been investing significantly in online distribution channels. Walmart, a leading multinational retail corporation, has started delivering foods online. Thus, an increasing number of online grocery platforms is expected to boost the online sales of the products, thereby propelling the segment growth.
According to The Institute of Grocery Distribution and IGD Services, China, U.S., Japan, U.K, South Korea, France, Australia, Germany, Canada, and Spain are the largest online grocery markets in the world. In 2018, The Kroger Co., another giant retailer, has invested in the online distribution platform in these key countries. Furthermore, Kroger also started self-driving grocery delivery vehicles to enhance its service.
North America lead the global vegan food market in 2018 due to higher vegan population in the region due to increased concerns about animal cruelty in the food industry and its negative impact on the environment. In addition, U.S. has a large number of lactose intolerant people, which fuels the demand for alternative dairy products. In 2017, Cal-Maine Foods, Inc. reported a loss of USD 74 million due to an increased preference for plant-based egg alternatives.
Asia Pacific is expected to witness the fastest growth at a CAGR of 12.1% from 2019 to 2025 on account of rising health consciousness among consumers. Moreover, increasing per capita income levels in the developing countries including China, India, Thailand, Taiwan, and Bangladesh will contribute to market growth. Key manufacturers in the market have been focusing on expanding business in APAC due to high growth opportunities.
Major companies in the market include The Archer Daniels Midland Company; Amy's Kitchen; Beyond Meat; Daiya Foods, Inc.; Plamil Foods Ltd.; Tofutti Brands, Inc.; Danone S.A.; VBites Foods Ltd; VITASOY International Holdings Ltd.; and Eden Foods, Inc. High demand for flavored foods has widened the scope of growth for manufacturers across the world. Thus, product innovation has been a major competitive strategy in this market. For instance, in January 2019, Danone introduced Two Good Greek low-fat yogurt. This product range has different flavors, such as Strawberry, Vanilla, Mixed Berry, Blueberry, and Peach.
Attribute |
Details |
Base year for estimation |
2018 |
Actual estimates/Historical data |
2015 - 2017 |
Forecast period |
2019 - 2025 |
Market representation |
Revenue in USD Million and CAGR from 2019 to 2025 |
Regional scope |
North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa |
Country scope |
U.S., Germany, China, Japan, and Brazil |
Report coverage |
Revenue forecast, company share, competitive landscape, and growth factors and trends |
15% free customization scope (equivalent to 5 analyst working days) |
If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization |
This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global vegan food market report on the basis of product, distribution channel, and region:
Product Outlook (Revenue, USD Million, 2015 - 2025)
Dairy Alternatives
Cheese
Dessert
Snacks
Meat Substitutes
Tofu
TVP
Seiten
Quorn
Others
Others
Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)
Offline
Online
Region Outlook (Revenue, USD Million, 2015 - 2025)
North America
The U.S.
Europe
Germany
Asia Pacific
China
Japan
Central & South America
Brazil
Middle East & Africa
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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.