About the Report
The market for plant based beverages witnessed massive slowdown in its progress as a result of the spread of Covid-19 pandemic across the globe. The level of demand declined to the extreme level due to lockdown creating hurdles for the key players operating in this market. However as recovery commences in 2021, major players are recuperating their positions through production expansion, capacity utilizations and online selling in 2021 keeping in view the covid-19 norms.
Recognized companies such as The Coca-Cola Company, Del Monte Pacific Limited, PepsiCo, Inc, Dr Pepper Snapple Group, Inc and Pacific Foods of Oregon, Inc are focusing on the incorporation of tactics including partnership agreements, sales contracts, strategic alliances, diversifications, innovative launches, mergers & acquisitions, research and developments, technological upliftments, product line extensions, hiring technical expertise, joint ventures, collaborations, product approvals etc for gaining a competitive edge over others in the market.
In the post covid world, health and wellness have gained significant popularity. In 2021, the global wellness market was valued at more than $4 Trillion. The rise in the number of people suffering from diabetes and obesity has forced them to opt for healthier alternatives of various meals. Moreover, one of the key driving factors is the increasing number of people with lactose intolerance. Lactose intolerance is propelling the growth of the plant based beverages market owing to their dietary benefits. The National Institute of Diabetes and Digestive and Kidney Diseases, about 36% of people in the United States have lactose intolerance.
North America, Western Europe and APEJ account for the majority of the plant based beverages market. The increasing disposable income of consumers, coupled with the rising awareness of healthy lifestyles is leading to expansion in the market. Manufacturers are also using innovative plant based packaging solutions to attract more consumers. Plant-based beverages are now available in glass bottles, pouches, cartons, and cans. In 2018, Coca Cola Co. launched their sustainable packaging initiative known as “World Without Waste”. The initiative is based on 3 goals- Design, Collect and Partner. 60% of their packaging is either refilled or collected for recycling, 80% of their packaging is recyclable globally, and much more.
Plant-based Juices to Remain Lucrative
Among sources, the demand in the dairy alternative segment is expected to rise considerably in the forthcoming years. Dietary restrictions imposed on lactose intolerant population will make them favour dairy-based alternatives. However, over the course of the forecast period the plant-based juices segment will continue holding a relatively higher volume of share. By the end of 2019, the plant-based juices segment was predicted to hold the dominant 68.4% of the global market in terms of value.
Meanwhile, the dairy alternative segment is expected to register a higher growth at 8.3% CAGR between 2019 and 2028.
US, Western Europe, China, and India Lurative
North America, Western Europe, and APEJ cover the majority of the plant-based beverages market. Together these regions held approximately 80% of the overall market. Among the, APEJ is expected to offer the most lucrative growth opportunities to the plant-based beverages market players.
The rising disposable income of consumers, coupled with their willingness to spend on healthier food will bode well for the market in the region. Prevailing opportunities in the region are attracting manufacturers from across the globe. Furthermore, APEJ and MEA are relatively less-penetrated markets and therefore have opportunities abound for the market players.
Focus on Health and Wellness Facilitates Growth
The rising focus on health and wellness among consumers will aid the expansion of the plant-based beverages market. Factors such as the rising incidence of diabetes, cardiovascular diseases and the increasing prevalence of obesity have compelled consumers look for healthier alternatives of their favourite meals.
In addition to this, innovative packaging solutions introduced by manufacturers will enable them attract an increasing number of consumers. For instance, plant-based beverages are now available in glass bottles, pouches, cartons, and cans. These packaging trends offer ease of use and better convenience to consumers.
How Growth will Unfold
The reports of antibiotics and hormones administered to livestock are doing rounds. Such information has rendered customers highly skeptical. As a result an increasing number of them are in favor of healthier plant-based alternatives. Impelled by ongoing trends, some of the leading names in the food and beverages industry are enacting policies to eradicate to lessen if not completely eradicate the use of one of both in supply chains. Bolstered by this factor, the plant-based beverages market will exhibit strong growth over the course of the forecast period.
Despite witnessing considerable growth opportunities, manufacturers in the plant-based beverages market are faced with the challenge of ensuring the same amount of nutritional content in their products as compared to their counterparts. This is proving to be a crucial restraint leaving little choice among manufacturers but to look for ways of improving plant-based offerings to guarantee equivalent nutritional benefits.
KEY HIGHLIGHTS
Who are some of the leading brands in the plant-based beverages market?
Some of the leading brands operating in the plant-based beverages market are:
- The Coca-Cola Company
- Del Monte Pacific Limited
- PepsiCo, Inc
- Dr Pepper Snapple Group, Inc
- Pacific Foods of Oregon, Inc
Which is the most popular source of plant-based beverages?
Currently plant-based juices are witnessing considerably high demand. Over the course of the forecast period, the market is expected to witness rising demand for dairy alternatives.
Which region exhibits high demand for plant-based beverages?
North America and Western Europe are leading markets, exhibiting high demand for plant-based beverages. Besides this, Asia Pacific holds considerable share. In the coming years, the demand from Asia Pacific excluding Japan and the Middle East and Africa is expected to increase.
What are the key challenges restricting widespread uptake of plant-based beverages?
Increasing awareness pertaining to health and wellness is encouraging consumers to choose healthier food. This is a key factor aiding the expansion of the plant-based beverages market. The market is also expected to benefit from the rising preference for vegan diet.
Are there any negative effects of vegan cheese?
Despite positive growth opportunities, market players are finding it difficult to match the nutrient value of their animal-based counterparts. In addition to this, the high price of plant-based beverages is restricting their penetration in underdeveloped regions since affordability becomes a key concern for consumers.
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PLANT-BASED BEVERAGES MARKET TAXONOMY
The report segments the global plant-based beverages market in detail to present an executive-level blueprint to the reader
Source
- Dairy Alternatives
- RTD Drinks
- Plant-based Juices
Nature
- Organic
- Conventional
Format
- Regular
- Flavoured
Packaging
- Glass Bottles
- Plastic Bottles & Pouches
- Carton Packaging
- Cans
Sales Channel
- Hypermarket/ Supermarkets
- Specialty Store
- Online Retailers
- HoReCa
- Independent Small Groceries
Region
- North America
- Latin America
- Western Europe
- Eastern Europe
- APEJ
- Japan
- MEA
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by - Sudip Saha, Managing Director and Co-Founder of Future Market Insights
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