With the global population reaching 9.8 billion by 2050, the demand for animal-based foods is expected to increase by more than 70% of the total demand in 2019. This has posed a great challenge for the agriculture and food industry to provide adequate and nutritious food for the growing population, without negatively affecting the environment.
The above-mentioned factors induced the introduction of foods that are completely developed from plants, such as plant-based meat, cheese, creamers, butter, yogurt, eggs, and ice cream. These plant-based foods are produced based on the biomimicry approach — that is, they are designed to replicate the taste, texture, and flavor of animal-based foods.
According to the recently published market intelligence report by BIS Research, Global Plant-Based Food & Beverages Alternatives Market – Analysis and Forecast, 2019-2024, the market registered revenue of $37.44 billion in 2018 and is projected to grow at a CAGR of 13.82%, during the forecast period from 2019-2024. The market is projected to reach $80.43 billion by 2024.
Key Market Drivers
The plant-based food and beverage alternatives market is projected to grow at a decent pace, owing to factors such as increasing number of ethical and health conscious consumers, increasing food safety concerns, and growing concerns for animal welfare.
Each of these factors influences the market in a different way. While some factors have a high impact, others may affect the market growth mildly. Both ethical and health consciousness of the consumers and concern for animal welfare are expected to have a high impact on the market for the next six years. However, factors concerning food safety are expected to showcase medium-level impact during the next three years, whereas during the period post three years, the impact is expected to be high.
Market Restraints
Although the plant-based food and beverage alternatives market is expected to grow at a significant rate, there are certain factors that are responsible for impeding the growth of the market. These factors include increasing cases of issues related to labeling and drastic reduction in the high processing method.
Owing to the high level of processing required in certain foods, consumers are often concerned about the health quotient of these processed foods. Mostly, whole foods have high nutritional value. Thus, most companies are trying to reduce the processing of foods to retain their health properties. Owing to the same, it is a major challenge for plant-based alternatives to expand the consumer base as these foods and beverages undergo a high level of processing.
Also, plant-based food manufacturers encounter several issues from regulatory bodies for using the familiar classification terms to attract consumers, in place of actual terms.
It has been analyzed that both these factors are just going to have a medium-level of impact on the consumption pattern of the consumers. However, reduction in high processing method can have a high impact on the growth of the market in a time frame of next four to six years.
Market Opportunities
There are certain opportunities that have the potential to boost the growth of the market even further. These opportunities include scope of expansion in developing countries and the right marketing and positioning of the products to increase the consumer base for such products.
These plant-based products have been available across the U.S. and other developed countries; however, they still haven’t made a strong consumer base in markets including Malaysia, India, China, and other countries across Middle East and Asia.
Further, in order to boost the adoption of plant-based products amongst masses, marketers need to communicate the attributes of these products aggressively based on the needs and requirements of the target base of consumers.
Market Segmentation
The global plant-based food and beverage alternatives market is segmented on the basis of product type, source, distribution channel, and region.
The product type segment of the market is further categorized into plant-based dairy, plant-based meat, and others. The plant-based dairy sub-segment is further segregated into plant-based milk, plant-based cheese, plant-based creamers, plant-based butter, and plant-based yogurt.
The others segment in the market by product type includes plant based eggs, egg replacer, egg free spreads, plant-based ice-cream, plant-based dressings, sour creams, and dips.
Continuous improvements in the taste as well as texture and changes in consumer values have enhanced the growth of plant-based food and beverage products, globally. Nearly one-third of the U.S. population is following a flexitarian diet, and plant-based food and beverage companies are using marketing strategies to target their products toward flexitarian consumers.
Based on the report, the plant-based dairy products dominated the market with 46.17% of the contribution in 2019. However, by 2024, the plant-based other products segment is expected to dominate the market.
The source segment of the market is categorized under soy, wheat, almond, corn, and others. The others segment of the market includes potato, lentils, nuts, and flaxseeds. In 2019, the sub-segment that contributes maximum to the market is soy with a share of 37.58%, followed by almonds. Based on the market analysis conducted by BIS Research, soy is expected to maintain its dominance in the market by 2024, followed by almonds.
The distribution channel of the plant-based food and beverages alternatives market is segmented into supermarkets/hypermarkets, convenience stores, specialty stores, online stores, and others. The supermarkets/hypermarkets segment of the market by distribution channel is dominating the market with a total contribution of 41.48% in 2019 and is expected to maintain its dominance by 2024.
North America, Europe, Asia-Pacific, and Rest-of-the-World (RoW) are the major regions into which the market has been segmented. The region of North America is estimated to be the major contributor of the plant-based food and beverage alternatives industry in 2019. Moreover, amongst all the countries in the North America, the U.S. is estimated to generate the maximum revenue of $6.08 billion in 2019. Based on the study of the market, it is projected that Asia-Pacific is the most emerging region, owing to the several opportunities, present the region.
Plant-Based Food Companies to Watch
The report profiles several companies that are expected to play a crucial role in boosting the growth of the plant-based food and beverages alternatives market. Some of the prominent companies that are operating in the market are listed in the following table under their respective categories.
1. Amy’s Kitchen 2. Before the Butcher LLC. 3. Beyond Meat Inc. 4. Blue Diamond Growers Inc. 5. Boca Foods Co. 6. Califia Farms LP 7. ConAgra Brands Inc. 8. Daiya Foods Inc. 9. Danone S.A. 10. Dr. McDougall’s Right Foods 11. Field Roast Grain Meat Co. Inc. 12. Good Karma Foods 13. Impossible Foods Inc. 14. JUST Inc. 15. Kite Hill | 16. Lightlife Foods 17. Morningstar Farms L.C 18. Moving Mountains 19. Pacific Foods of Oregon LLC. 20. Quorn Foods Ltd. 21. Ripple Foods 22. Sweet Earth Inc. 23. The Meatless Farm Co. 24. The Vegetarian Butcher 25. Tofurkey 26. Upfield 27. Wildwood Foods 28. Yofix Probiotics Ltd. 29. Other key Plant-Based Alternatives Providers |
Where to Learn More
For more information, be sure to check out the report Global Plant-Based Food & Beverages Alternatives Market – Analysis and Forecast, 2019-2024, which draws on research from a mix of primary interviews and secondary research, along with analytical tools that have been used to build forecasts and predictive models.
About the Publisher: BIS Research is a global market intelligence, research and advisory company that focuses on emerging technology trends that are likely to disrupt the market. Its team includes industry veterans, experts, and analysts with diverse backgrounds in consulting, investment banking, government, and academia.