Vegan Food Market Size, Share, Trends, Demand, Analysis, Growth 2032

Vegan Food Industry Prospective:

The global vegan food market size was worth around USD 16.46 billion in 2023 and is predicted to grow to around USD 39.03 billion by 2032 with a compound annual growth rate (CAGR) of roughly 10.07% between 2024 and 2032.

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Vegan Food Market: Overview

Vegan food is plant-based edible items. The industry includes buying, selling, and consumption of food products such as nuts, grains, vegetables, and fruits. Vegan food consumers refrain from consuming items derived from or associated with animals. Hence, while meat-based items are completely prohibited in vegan food culture, followers of the diet form also refrain from eating animal-derived items like eggs, milk, and dairy products. In the last few years, the number of research activities has grown resulting in the establishment of specific proof-backed information such as the presence of essential nutrients in a balanced vegan diet that includes fortified supplements and foods.

For instance, it is recommended that vegan diet followers must consume at least 5 portions of different types of vegetables and fruits every day. Consumers can eat dairy alternatives such as almond or soy milk-based items. Vegan diet followers are recommended to consume plenty while indulging in vegan consumables to avoid any health concerns. However, even with the existing range of research, the health impact of vegan food remains under question, and more research is required to confirm the claims made by vegan food experts.

Key Insights:

• As per the analysis shared by our research analyst, the global vegan food market is estimated to grow annually at a CAGR of around 10.07% over the forecast period (2024-2032)
• In terms of revenue, the global vegan food market size was valued at around USD 16.46 billion in 2023 and is projected to reach USD 39.03 billion, by 2032.
• The market is projected to grow at a significant rate due to the growing number of vegan food consumers
• Based on distribution channels segmentation, offline was predicted to show maximum market share in the year 2023
• Based on product segmentation, milk was the leading segment in 2023
• On the basis of region, North America was the leading revenue generator in 2023

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Vegan Food Market: Growth Drivers

Growing number of vegan food consumers across the globe will propel the market growth rate

The global vegan food market is expected to be propelled due to the growing number of vegan food consumers across the globe. A large number of studies have been published in the last decade that highlight the benefits of vegan food. A diet based completely on plant-based nutrients is known to have several positive health impacts. For instance, it is known to promote weight loss. Specific reports outline the advantage of depending on vegan food only to avoid or reduce the risk of heart disease since vegan diet followers consume limited quantities of cholesterol-rich food.

Additionally, research also suggests that vegan diets can help patients with diabetes manage hemoglobin A1C levels. The growing consumer awareness about these proliferated by increased access to information through several information-dispensing platforms in the digital world has led to higher acceptance of vegan food. In addition to this, several celebrities and known personalities have been influential in promoting the demand for vegan food.

In January 2024, cricket personality Virat Kohli and Indian actress Anushka Sharma announced their investment in the plant-based meat brand Blue Tribe. Celebrity culture has become widely popular in recent times with celebrity fans and followers mimicking the ways of life or choices of their preferred known personality.

Growing disposable income in emerging countries may fuel product adoption

The demand for vegan food is projected to further benefit from the increasing per capita income of the general population in emerging nations. Countries such as India, China, and nations belonging to the African continent are registering a shift in consumer preferences and eating habits highly influenced by the growing urbanization rate. Emerging nations have high growth potential as earning opportunities are on the rise and consumers are seeking ways to make changes to their regular lives.

As of October 2023, around 4.5% of the Chinese population identified themselves as either vegans or vegetarians. The country’s total population is 1.4 billion thus translating to around 60 million Chinese citizens preferring non-meat food thus affecting the global vegan food market.

Vegan Food Market: Restraints

High cost of vegan food as compared to conventional alternatives may restrict market expansion

The global vegan food industry is projected to be restricted due to the high cost of vegan commodities. Due to the abundant availability of conventional food items, they are relatively less priced especially when compared to vegan food. The cost of final products that are prepared using vegan ingredients including vegan milk and dessert items is increased further.

For instance, almost all milk is more expensive than cow or buffalo milk. The higher price is related to the higher number of almonds used for milk processing as well as the procedural complexities. The high price of vegan food restricts its market expansion strategy as consumers belonging to the lower income category may be unable to afford the products.

Vegan Food Market: Opportunities

Growing number of new solutions in the market to deliver high-growth opportunities

The global vegan food market is projected to benefit from the increasing number of new vegan offerings in the market. As the number of options increases in the commercial vegan food industry, the prices are likely to become more competitive thus allowing a larger number of buyers to enter the vegan food industry. In September 2023, Boermarke, a leading Netherlands-based dairy company, announced that the company is planning to become completely plant-based as the company has witnessed high demand for dairy alternatives in the market.

Boermarke will launch its vegan lineup in Europe by 2026 as per company plans. In November 2023, Else Nutrition, a global provider of plant-based baby & toddler formula, announced its entry into the European market by launching its product in the UK region. In March 2023, Else Nutrition announced the commencement of commercial production of the products in Europe.

In October 2023, a leading giant in the food & beverages industry Nestle announced the launch of soy-dairy milk in the African market. This instant milk powder stands at affordable pricing. In October 2023, Zambia registered the inauguration of its first plant-based milk factor by 260 Brands. The company is expected to deliver dairy alternatives to Zambia and other countries in the region.

Higher adoption in the food service segment will help the market gain momentum

The global vegan food industry is expected to register higher growth as there is an emerging segment of restaurants and cafes operating in the food service sector offering vegan alternatives to popular food items on the menu thus making the food items more accessible to the consumers.

In June 2023, the US registered the launch of the much-anticipated vegan restaurant Planta. It offers vegan delicacies such as nachos, sushi, lasagna, ceviche, and pizza. Similar new establishments have opened at several locations across the globe leading to higher consumer reach.

Vegan Food Market: Challenges

Restricted research to back health claims may challenge market expansion

The global vegan food market is projected to be challenged by the limited research available in the scientific community backing the claims of the vegan diet. Several incidents have been reported globally highlighting the negative health implications of vegan food when consumed over a longer period. Furthermore, people with specific health conditions and pregnant women are advised to consult medical professionals before participating in any form of diet program.

Vegan Food Market: Segmentation

The global vegan food market is segmented based on distribution channels, product, and region.

Based on distribution channels, the global market is divided into offline and online. In 2023, the highest growth was observed in the offline segment. The primary growth propeller is the higher sale of food items through brick-and-mortar stores such as supermarkets & hypermarkets. The online segment is rapidly growing, especially driven by the increasing number of food delivery partners diversifying into supplying raw materials such as ingredients and spices. The growing innovation in food delivery services will aid the growth rate in the online segment. Around 7% of the Indian population buys groceries online.

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Based on product, the global market is divided into yogurt, meat & seafood, protein bars, butter, cheese, creamers, meals, milk, and others. In 2023, the highest demand was registered in the milk segment as a result of the higher popularity of soy and almond-based milk. The growing demand for vegan coffee and other sweet food products made of milk products are the essential growth drivers. 1 cup of almonds is required to produce 3 to 5 cups of milk.

Vegan Food Market: Report Scope

Vegan Food Market: Regional Analysis

North America to deliver the highest revenue during the forecast period

The global vegan food market is projected to be dominated by North America during the forecast period. In 2023, the region dominated nearly 37.5% of the total revenue as a result of higher regional acceptance and demand for vegan food items. Countries such as the US and Canada have higher population ranges that are demanding and consuming vegan food products. Some people have a personal preference for vegan products while the other groups continue to switch between vegan and meat-based diets. Additionally, the higher access to vegan food and increased disposable income adds to the regional revenue.

Europe has a high demand for plant-based food items. The growing consumer awareness and increased adoption of sustainable practices have created a higher growth scope in the European vegan food industry. Moreover, Europe has a thriving food service sector and high international food tourism. The rising number of new vegan food entrants will fuel the adoption of plant-based diets. Asia-Pacific has one of the largest consumer groups mainly due to the high population density of India and China. The emerging nations are witnessing a change in consumer lifestyle thus creating more demand in the regional industry.

Vegan Food Market: Competitive Analysis

The global vegan food market is led by players like:

• Impossible Foods
• Beyond Meat
• Gardein
• Tattooed Chef
• Lightlife Foods
• Daiya Foods
• Beyond Meat
• No Evil Foods
• Tofurky
• Just (formerly Hampton Creek)
• Oatly
• Alpha Foods
• Sweet Earth Foods
• Violife
• Field Roast

The global vegan food market is segmented as follows:

By Distribution Channels

• Offline
• Online

By Product

• Yogurt
• Meat & Seafood
• Protein Bars
• Butter
• Cheese
• Creamer
• Meals
• Milk
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa