The global plant-based ingredients market is expected to reach a valuation of USD 9.3 billion by the year 2024, accelerating with a CAGR of 8.6% by 2024 to 2034.
Ethics, Environment, and health are pushing consumers to consume more plant-based diets. Growing plant-based claims around the world have given ingredient and branded product companies more chances to combine plants with already-existing products like bread, dairy, and even meat-based products to boost plant content-something that customers are increasingly demanding.
Furthermore, demand for free-from foods has grown regardless of whether customers have allergies or not. These meals, which frequently coincide with other well-liked diet regimens like paleo and keto, include dairy-free, gluten-free, and meat-free options. Furthermore, as lactose or dairy in general are believed to cause digestive issues in certain people, free-from foods are frequently linked to gut health.
| Attributes | Details |
|---|---|
| Plant-based Ingredients Market Size (2024E) | USD 9.3 billion |
| Plant-based Ingredients Market Projected Size (2034F) | USD 21.2 billion |
| Value CAGR (2024 to 2034) | 8.6% |
| Top 3 Countries Market Share | 42.4% |
Plant-based ingredients are more ecologically viable than animal-based proteins owing to the use of less natural resources and also fewer environmental damage triggered by their production. Livestock are usually nourished with plants rich in protein, minerals and vitamin content, so if we consume the plant protein straight instead, consumers can avoid the resource inputs required to raise the livestock.
| Particular | Value CAGR |
|---|---|
| H1 | 9.5% (2023 to 2033) |
| H2 | 9.3% (2023 to 2033) |
| H1 | 8.9% (2024 to 2034) |
| H2 | 8.8% (2024 to 2034) |
The above table presents the expected CAGR for the global plant-based ingredients food sales over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 9.5%, followed by a slightly lower growth rate of 9.3% in the second half (H2) of the same decade.
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to decrease slightly to 8.9% in the first half and remain relatively moderate at 8.8% in the second half. In the first half (H1) the industry witnessed a decrease of 60 BPS while in the second half (H2), the industry witnessed an decrease of 50 BPS.
Trend of Flexitarian Diet Fueling Growth of Plant-Based Ingredients Sales
Flexitarians, defined as those who mostly prefer a vegetarian diet but occasionally consume meat and poultry, are a significant and growing demographic. Nestlé reports that over 50% of consumers in the UK are following a flexitarian diet. According to our research, 40% of people who consume plant-based dairy alternatives also eat other dairy products, and 30% categorize themselves as flexitarians. This shift towards a flexitarian lifestyle is proving to be a key driver of growth in the plant-based ingredient sales.
Within the last five years alone, the number of vegans in Europe-people who eliminate all animal products and byproducts from their diet and lifestyle-has doubled from 1.35 million to an estimated 2.60 million, representing 3.2% of the population. When including vegetarians, pescatarians, and flexitarians, this group totals about 31.9% of the population, indicating that almost a third of all Europeans no longer consider themselves full meat-eaters.
This trend is influencing the plant-based ingredient industry significantly. As more people, including both flexitarians and traditional meat-eaters, shift their dietary habits towards plant-based options, there is an increased demand for innovative plant-based ingredients. Companies are capitalizing on this by blending plants with existing products such as bread, dairy, and meat-based items to increase plant content. This not only caters to the growing consumer demand for healthier and more ethical food choices but also opens up new opportunities for ingredient and branded product firms to expand their offerings.
Moreover, the rise in free-from foods, which include dairy-free, gluten-free, and meat-free options, is further driving the sales. These products often overlap with popular diet plans like keto and paleo and are associated with gut health benefits, appealing to a broad spectrum of health-conscious consumers. As a result, the plant-based ingredient industry is experiencing robust growth, fueled by the evolving dietary preferences of a significant portion of the population.
Rising Consumer Demand For Sustainable Product Sources Is Driving The Market For Plant-based Ingredients
Burgeoning consumer demand for sustainable products sources stands as a formidable driver propelling the market for soy protein concentrates. This shift in consumer preferences is not merely a passing trend but a fundamental transformation in dietary choices influenced by heightened environmental awareness, ethical considerations, and a commitment to fostering sustainable practices.
Consumers today are increasingly conscious of the ecological footprint associated with their food choices. The traditional reliance on animal-derived proteins has come under scrutiny due to concerns related to deforestation, greenhouse gas emissions, and the intensive resource requirements associated with livestock farming. In response, consumers are actively seeking alternatives that align with their values of environmental stewardship.
Plant based ingredients as such soy protein concentrates, derived from soybeans, have emerged as a front-runner in meeting this demand for sustainability. Soybeans boast a significantly lower environmental impact compared to traditional livestock farming. Soybean cultivation requires less land, water, and energy, making it a more resource-efficient and sustainable protein source. Additionally, soybeans contribute to crop rotation practices, enhancing soil health and reducing the ecological strain associated with monoculture.
The plant-based ingredients industry gains impetus as consumers increasingly opt for plant-based alternatives that not only offer nutritional benefits but also align with their desire for sustainable choices. This demand is particularly pronounced in regions where environmental consciousness is a driving force behind purchasing decisions.
Pet Food Industry Offers Avenues For Plant-Based Ingredients To Address The Nutritional Needs Of Companion Animals
As consumers explore and embrace a wide array of global cuisines, a parallel trend is emerging in the pet food industry. There is a growing demand for alternative solutions that can authentically replicate and elevate the nutritional profiles of traditional pet foods. The opportunity lies in providing pet owners with the means to offer their companion animals high-quality, plant-based ingredients that meet their dietary needs.
Plant-based ingredients play a pivotal role in this scenario by serving as essential components in pet nutrition. These ingredients can help replicate the taste and nutritional benefits of conventional pet foods, ensuring that pets receive a balanced diet. This not only satisfies the growing consumer interest in sustainable and ethical food choices but also addresses the specific health and dietary requirements of pets.
Moreover, the trend towards plant-based pet food is not just about sustenance; it is about enhancing the quality and variety of pet diets. Pet owners, particularly those seeking premium and gourmet experiences for their pets, are willing to invest in high-quality plant-based products that can elevate their pets' culinary experiences to a level of sophistication and authenticity.
The opportunity for the plant-based pet food industry extends beyond meeting existing demand; it involves anticipating and innovating for future preferences. Developing unique and high-quality plant-based pet food that caters specifically to discerning pet owners in the premium category becomes a strategic avenue for growth. This may include crafting blends inspired by specific nutritional needs, using premium ingredients, and ensuring that the products align with the evolving expectations of consumers who seek genuine and premium gastronomic experiences for their pets.
The widespread dietary shift towards plant-based ingredients is driven by a growing body of information highlighting their health benefits, as well as recommendations from global public health authorities encouraging increased consumption of plant-based products. Additionally, the perceived negative impacts of animal-based meals on both health and the environment are further propelling the plant-based ingredients industry.
The issue has never been about whether consumers want to eat more plant-based foods; it has always been about how easily they can incorporate them into their diets. "People demand extreme convenience more than anything else," stated Julian Mellentin, Director of New Nutrition Business, at Food Ingredients Europe 2019. Recognizing this sales gap, many producers are now focused on providing plant-based food products in more convenient formats, making it easier for consumers to make the switch.
The plant-based ingredients sales experienced significant growth, with sales increasing at a compound annual growth rate (CAGR) of 10.2% between 2019 and 2023. This period saw the entry of numerous new industry players and a wave of product innovations aimed at meeting the rising demand.
Companies introduced a variety of convenient, ready-to-eat plant-based options, from snacks and meal kits to plant-based dairy and meat alternatives. These innovations have not only expanded the industry but also catered to the busy lifestyles of modern consumers, allowing them to enjoy the benefits of plant-based diets without sacrificing convenience.
The Plant-Based Ingredients industry is characterized by its tiered structure, comprising both organized and unorganized players. The organized segment accounts for 40% of the industry sales, dominated by multinational corporations (MNCs) with annual revenues exceeding 5 million USD. Leading firms like Cargill and ADM are at the forefront, leveraging their extensive production capabilities, sophisticated technological infrastructure, and comprehensive product portfolios to maintain a significant industry presence.
These organized players are adept at meeting stringent regulatory standards and sustaining robust distribution networks, enabling them to capture substantial company share globally. Their advanced research and development facilities further drive innovation, allowing them to introduce a wide array of plant-based ingredients that cater to the evolving preferences of health-conscious and environmentally aware consumers.
On the other hand, the unorganized segment, which constitutes 60% of the industry sales, is composed of local players with annual revenues of less than 5 million USD. These smaller firms, while lacking the global reach of their larger counterparts, play a crucial role in specific regions.
They focus on niche industries, offering specialized products that cater to localized demands and specific dietary needs. This segment's flexibility and agility enable these companies to quickly adapt to key trends and consumer preferences, often leading to unique and innovative product offerings.
The coexistence of both large and small companies within the plant-based ingredients industry ensures a dynamic and competitive market landscape. This diversity fosters continuous advancements and a broad spectrum of product choices, meeting the diverse needs and preferences of consumers globally. As a result, the plant-based ingredients industry is well-positioned for sustained growth, driven by innovation and the increasing consumer shift towards healthier and more sustainable food options.
The following table shows the estimated growth rates of the significant five geographies sales. Japan and India are set to exhibit high freeze-dried food consumption, recording CAGRs of 11.2% and 12.5%, respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 5.3% |
| Germany | 6.9% |
| China | 4.9% |
| India | 9.4% |
| Brazil | 12.5% |
As per the plant-based ingredients sales possibilities, the USA commanded a significant part of the industry in 2024 and is likely to do so throughout the forecast period for plant-based food ingredients.
The increase in demand for plant-based food items, owing to rising concerns about animal welfare and lactose intolerance among humans, is driving the growth of the USA plant-based ingredients industry.
Furthermore, the rise in the incidence of diseases caused by artificial chemicals has encouraged individuals to choose plant-based food ingredients, which is another driving factor in the USA.
The surge in the plant-based claims in food products has opened up even more options for ingredient and branded product companies to incorporate plants into established products like bread, dairy, and even meat-based products to improve plant content.
Whether or not customers have allergies, demand for free-from goods has soared. Furthermore, free-from meals are frequently linked to gut health, as specific components are known to cause digestive issues, for example, lactose or dairy. It is, therefore, positively affecting the sales and leading to a rise in the consumption of plant-based ingredients in the country.
The plant-based components protect the body from chronic diseases like diabetes and obesity while also providing a high nutritious value. The product is becoming more popular as a result of its excellent features, such as its sustainability, non-allergic nature, and ease of digestion which is propelling the market forward.
The plant-based ingredients industry will be boosted further by the rising demand for dietary supplements as consumers place a greater emphasis on proteins.
Some of the important drivers driving the growth of the plant-based food ingredients industry are an increase in incidences of sensitivity to animal-based food products, a growing vegan population, and large venture capital investments in plant-based product makers, therefore, promoting the growth of Indian plant-based ingredients market.
The major reason behind the growth in the Brazilian plant-based ingredients sales is the change in eating patterns.
Those consumers who don't want to give up meat may nevertheless be willing to reconsider about eating habits. Even a slight reduction in meat consumption has significant consequences: Brazil has a high population, which means there is a large industry for plant-based alternatives.
The number one reason for vegetarians and reducetarians lowering meat consumption is health, which is compounded by health constraints. Other considerations, such as environmental challenges, family, ethical, religious, and social concerns, also contributed to the change.
| Segment | Product Type (soy-based ingredients) |
|---|---|
| Value Share (2024) | 41.1% |
The global market for soy-based ingredients is expected to grow at a rate of around 4.8% during the forecast period (2024 to 2034) according to FMI.
It is an essential component of the global food chain and is utilized as a basic ingredient in the food business. Increasing dietary supplement application trends, as well as growing demand for a vegan diet, are pushing up the business even faster.
As dairy-free alternatives, soy milk, and rice milk are being added to the beverage product portfolios of several firms. The market will develop because of the growing popularity of vegan diets, ethical concerns about animal cruelty, and more awareness of the fats found in animal-based diets.
| Segment | End Use (Preservative) |
|---|---|
| Value Share (2024) | 12.5% |
In the plant-based foods and beverages business, food preservatives are getting a lot of attention. This is due to the benefits it provides, such as the ability to delay rancidity, the ability to halt or avoid flavor, color, texture changes, and increased shelf life.
Plant-based preservatives are predicted to grow in popularity as the demand for processed foods and vegan ready-to-eat food rises. Plant-based meat products confront specific obstacles, such as a short shelf life when refrigerated.
Plant-based preservatives play a critical role in overcoming these issues by extending shelf life, preventing spoilage, inhibiting pathogens, improving process efficiency, and reducing flavor loss, taste, and appeal. As a result of the aforementioned cases, the market for plant-based ingredients is predicted to increase.
| Segment | Sales Channel (Online Retail) |
|---|---|
| Value Share (2024) | 11.0% |
E-commerce has become increasingly important in daily lives which is directly impacting the sales of plant-based food and beverage products through online retails. It's changing the way people do business all throughout the world. E-commerce has changed dramatically throughout the years in terms of new players and vast global reach.
The number of product claims based on plants has increased dramatically in the past few years. Manufacturers in categories like baked goods and snacks frequently use such statements to signify the inclusion of less common, but often very nutritious, plant-based components, thereby increasing sales, as businesses look for ways to capitalize on consumer interest in the health profile of plant-based diets.
Over the course of the forecast period, the expansion of the vegan food, dairy, and meat substitute market will be aided by manufacturers concentrating on research and development, as well as developing products with clean labels and plant-based food labeling.
The major players in the industry are the agro-based businesses that supply grains. Ingredients that are vegan are supplied by Kellogg's brand division, Morningstar Farms. Trader Joe's, Gardein, Simply Balanced, Tofurky, and Beyond Meat, Sweet Earth Natural Foods, and Lightlife are just a few of the vegan meat alternative firms.
Plant-based ingredients industry is segmented as Soy, Wheat, Pea, Corn, Canola, Rice, and Potato
As per end use application, the industry has been categorized Meat Substitutes, Infant Foods, Bakery, Confectionery, Snacks, Cosmetics, Sports & Energy Nutrition, Preservatives and Animal Feed
Sales Channel further includes Convenience Store, Specialty Stores, Direct Sales, Modern Trade, Small Groceries, Online Retail and Other Sales Channels
Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania and Middle East & Africa
The plant-based ingredients sales shall reach nearly USD 9.3 billion by 2024.
The North American plant-based ingredients Sales has a share of around 38% in 2024.
The demand for plant-based ingredients is anticipated to grow at a 7.4% CAGR between 2024 and 2034.
The vast alleged benefits of plant-based components, as well as a purposeful move from a meat-based to a vegan diet, have fueled consumer interest in the plant-based ingredients category. There has evolved a diverse range of plant-based substances and products that challenge the conventional. Meat replacements and dairy substitutes are among the most well-known.
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Plant-Based Ingredients Market
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