About the Report
Marshmallows are back in the culinary limelight. Changing with the times, their perception has been further buoyed as a healthier confectionary item. In sync with modern-day preferences, marshmallows are available in various free-from options. Perhaps, none of the variants has created as much excitement among processors and consumers alike, as the vegan marshmallows. Already a distinctive lifestyle in its own right, veganism continues to create substantial changes in product offerings of the global food industry. And, vegan marshmallows segment is no different – already, a number of established and new entrants are looking to scale and consolidate their position. In a new latest, ESOMAR-certified market research and consulting firm, Future Market Insights (FMI) analyzes the key factors that will fuel demand in the next decade. The study tracks demand in over 20+ countries, with a detailed chapter on the impact of COVID-19 on this segment.
Vegan Marshmallows Market Overview
The global vegan marshmallows market is witnessing prolific growth, poised to expand at over 8% CAGR through 2028. Growth is largely underpinned by heightened consciousness about maintaining environmental sustainability and reducing environmental footprint in forthcoming years.
With an increase of clean-label products amidst the pandemic crisis, demand for plant-based products is bound to aggrandize, prompting manufacturers to launch new products and unique flavor combinations.
Potent Health Benefits to Boost Consumption
Healthcare experts have touted marshmallows as a highly effective remedy against numerous chronic and infectious ailments, ranging from common colds to managing more serious conditions such as cardiovascular diseases, diabetes and obesity.
A study undertaken way back in 2005 established efficacy of marshmallows in relieving coughs induced by colds, bronchitis and other respiratory tract diseases. Over a span of 12 days, the 62 participants in the trial reported almost 90% improvement in symptoms. Thus, lozenges containing marshmallow extracts have become highly popular.
Furthermore, marshmallow extracts have proven useful in addressing dermatologic conditions. The mucilaginous properties of the althea root allow for the formation of a protective covering over inflamed areas to reduce further inflammation. Such widespread applications are expected to boost vegan marshmallow sales in the long-run.
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A key factor for our unrivaled market research accuracy is our expert- and data-driven research methodologies. We combine an eclectic mix of experience, analytics, machine learning, and data science to develop research methodologies that result in a multi-dimensional, yet realistic analysis of a market.
Increasing Animal Welfare Concerns
According to the non-profit World Animal Protection, global livestock production is likely to increase twofold by 2050 compared to 2000. Presently, over 70 billion animals are farmed for food annually. Over 60% of these thrive in conditions where they are unable to move freely or naturally.
Recognizing this disturbing trend, government worldwide are looking to sensitize consumers, urging them to shift towards plant-based and vegan diets. Over the years, significant progress has been experienced in this regard. For instance, at the recent G-20 summit in November, global leaders called for an agreement to stop wildlife trade.
Although the Food and Agricultural Organization expects annual meat production to reach 376 million tons by 2030, vegan food popularity is simultaneously increasing. With a valuation of over US$ 7 billion for the vegan foods market in the next half-a-decade, it is no surprise that vegan marshmallows market outlook appears positive.
Burgeoning Shift towards Flexitarian Diets
As environmental concerns over meat consumption acquire precedence, consumers around the world are increasingly resorting to flexitarian diets. A popular study published by the University of Oxford advocates that curbing meat and dairy consumption reduces an individual’s carbon footprint by nearly 73%.
The study further propounds that if animal based food consumption stops completely, global farmland usage could reduce as highly as up to 75%, an area equivalent to the size of U.S, China, the EU and Australia combined. On the back of this, plant-based snack alternatives are becoming highly common.
Eventually, these aforementioned developments are expected to provide significant traction to vegan marshmallows consumption in the forthcoming forecast period. Player such as CEAMSA have become increasingly popular in recent years, offering a line of gelatin free marshmallows offering a similar texture as that of a regular marshmallow.
Longstanding Labeling and Packaging Concerns
As the demand for vegan food products skyrocket, concerns regarding their branding, labeling and packaging have also surfaced. A significant issue expected to hinder the vegan marshmallows market is the use of on-pack claims.
This is substantially restricting sales with various product recalls being initiated by regulatory authorities. To that end, a robust manufacturing strategy needs to be developed, with emphasis on developing a framework which would clearly define what constitutes a vegan or vegetarian claim.
To that end, the European Commission announced the initiation of the process of establishing a legal definition as a part and parcel of its Regulatory Fitness and Performance Program (REFIT) in 2019. This development is likely to address possible bottlenecks in vegan products manufacturing.
Vegan Marshmallows Market- Region-wise Analysis
North America Vegan Marshmallows Market
The North American vegan marshmallows market is expected to grow at a CAGR of over 8% through 2028. According to a Gallup survey, 3% of Americans were vegan, while another poll conducted by the Vegetarian Resource Group pegged the number to 2% for the following year. In spite of this decline, the market for vegan products continues to rise.
This has assisted in widening the scope of the regional vegan marshmallows market, prompting brands such as Campfire, Trader Joe’s, Kroger and Dandies to intensify their presence and tap into the ever proliferating demand from consumers.
Europe Vegan Marshmallows Market
Europe represents attractive investment opportunities for prominent vegan marshmallow manufacturers, attributed to an increasing prevalence of healthy eating across key countries such as the UK, France and Germany.
A popular survey conducted by Veganz, the proportion of vegan population has surged from 1.3 million from 2016 to 2.6 million currently, representing a two-fold increase in the past 4 years, representing 3.2% of the European population.
This shift is in response to increasing fatalities induced by increasing red meat consumption, leading to the emergence of cardiovascular diseases, colorectal cancers and type-2 diabetes. Hence, vegan companies are gaining ground in terms of plant-based marshmallow production.
APEJ Vegan Marshmallows Market
The Asia-Pacific excluding Japan marshmallows market is likely to grow at a staggering 10% CAGR. Growth is primarily underpinned by an increase in disposable income levels in emerging countries, thus providing consumers access to premium confectionery products.
Consequently, confectionery manufacturers are increasing inroads into the Asia-Pacific market. In 2018, specialty confectionery retailer Sugarfina partnered with Upper East Holdings to enter the Asian market by establishing a 900 square feet boutique in Hong Kong, China.
Likewise, Cargill Foods successfully inked an agreement to establish a manufacturing facility in western India to boost chocolate production for direct as well as indirect consumption. Such milestones are expected to widen prospects for the vegan marshmallows market across the region.
Premium Vegan Marshmallows Gaining Ground
In terms of pricing, premium vegan marshmallows and associated products are expected to yield US$ 385 Mn in revenue by 2020-end. Enhanced purchasing power in light of widening income pools is a primary growth catalyst responsible for accelerating demand.
Reputed brands such as Dandies Vegan Marshmallows and Doumak are making significant inroads into lucrative markets across the developing world. However, economy priced vegan marshmallows are expected to retain prominence, since a substantial chunk of the global population earn a moderate income.
Preference for Vanilla Marshmallows Remains Elevated
In terms of flavor, vanilla marshmallows are expected to retain lucrativeness, registering nearly seven out of ten sales throughout the forecast period. Extensive usage as flavoring agents and icings across various deserts is likely to enhance consumption in the upcoming forecast period.
However, peppermint marshmallows are acquiring equal popularity, as consumers seek to experiment with new flavors to enhance their sensory experiences. A Y-o-Y expansion of over 10% is projected for this segment through 2028. Dandies is a prominent peppermint marshmallow producer.
COVID-19’s Impact on the Vegan Marshmallows Market
Since its declaration as a pandemic by the World Health Organization, the COVID-19 epidemic has ushered in a paradigm shift in people’s dietary preferences. Consumers are gradually shedding animal-based food products for plant-derived ones amid apprehensions of possible virus transmission through animals.
Estimates suggest that nearly 60% of all known infectious diseases in humans are transmitted due to close contact with animals, with 3 out 4 emerging infections are likely to be zoonotic in the future. Hence, consumers are exercising extreme caution and making the required dietary transitions.
Moreover, meat production has witnessed considerable decline in the past few months. For instance, major meat processing plants in the United States shut down upon detection of major infection outbreaks, with an over 40% reduction in pork meat processing.
In fact, vegan marshmallow sales witnessed a considerable incline in recent months. Recent developments include the entry of Chicago Vegan Foods’ owned Dandies Marshmallows into the UK market in September 2020. Such prevailing trends are expected to generate fertile ground for the market’s proliferation in the upcoming future.
Vegan Marshmallows Market- Competition Analysis
Future Market Insights’ vegan marshmallows market report has profiled the following prominent players operating in the landscape. These include, but are not limited to*:
- Freedom Confectionery
- Chicago Vegan Foods
- Mr. Mallo Group
- The Naked Marshmallow Co.
- Ananda Foods Ltd.
- The Marshmallowist
*This list is indicative- full details about vegan marshmallow players is available upon request.
As health concerns acquire precedence, consumers are increasingly demanding non-GMO and naturally derived foods, prompting market players to introduce new products with innovative flavor combinations. In addition, they are concentrating on expanding production capacities through acquisitions, collaborations and partnerships.
In September 2020, Freedom Confectionery introduced Mallow Out, a range of vegan mallow bars coated in vegan chocolate. The company also plans to announce a twin pack format consisting of two variants- vanilla and strawberry mallows. The company has also partnered with Pusheen the Cat to manufacture a chocolate coated gummy bar.
Likewise, Chicago Vegan Foods penetrated the European market by securing a listing across the UK grocer Asda for its vegan marshmallow brand Dandies. This foray is symbolic of the rising veganism trend prevalent across Europe and has reported a 100% sales rate.
In 2017, Mr. Mallo Group successfully acquired Belgian confectionery giant Mellow Party to expand its sugar free, vegan, bio, Kosher and Halal product portfolios with the objective of penetrating non-traditional markets thus enhancing its revenue and growth prospects.
Vegan Marshmallows Market- Report Scope
Historical Data Available for
US$ Mn for Value & Mn Tons for Volume
Key Regions Covered
North America, Latin America, Europe, Japan, APEJ and Middle East & Africa
Key Countries Covered
U.S., Canada, Brazil, Mexico, Argentina, E.U-4, U.K., BENELUX, Russia, Poland, China, Japan, South Korea, India, ASEAN, Australia, New Zealand, GCC & South Africa
Key Segments Covered
Ingredient, Distribution Channel & Pricing
Key Companies Profiled
Freedom Confectionery, Chicago Vegan Foods, Mr. Mallo Group, The Naked Marshmallow Co., Ananda Foods Ltd. & The Marshmallowist
Market Overview, Market Forecast, COVID-19 Impact Analysis, Segmental Overview, Regional Profiling, Competition Assessment & Company Profiles
Customization & Pricing
Key questions answered in the report
- How will the global vegan marshmallows market expand until 2028?
According to Future Market Insights (FMI), the global vegan marshmallows market is poised to embark on a robust trajectory, registering a value CAGR worth 8.4% across the 2020-2028 assessment period
- Which is the largest market for vegan marshmallows?
North America is expected to emerge as the most lucrative market, attributed to a growing preference for healthy alternatives which has prompted entry of numerous vegan product manufacturers. However, Europe is expected to emerge as an attractive investment destination throughout the forecast period
- How is COVID-19 impacting the vegan marshmallows market growth?
Since its outbreak, the COVID-19 pandemic has drastically altered global food consumption patterns. Consumers are increasingly drifting towards consuming plant-based alternatives amid fears of contracting the virus as a result of high meat consumption
- Which are the prominent players operating in the market?
Some prominent players in the global vegan marshmallows market include Freedom Confectionery, Chicago Vegan Foods, Mr. Mallo Group, The Naked Marshmallow Co., Ananda Foods Ltd. & The Marshmallowist
Enquiry before Buying
- Is the vegan marshmallows research conducted by Future Market Insights?
Yes, the vegan marshmallows report has been compiled by expert analysts of Future Market Insights through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to the research analyst.
- What research methodology is followed by FMI?
FMI follows a methodology that encompasses the demand side assessment of the market, and triangulates the same through a supply side analysis. This methodology is based on use of standard market structure, methods and definitions.
- Who are the respondents for primary research?
FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.
- What are the sources of secondary research?
FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
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- Convenience Store
- Drug Stores & Pharmacies
- Health & Wellness Stores
- Online Retailing
- Other Retailers
- North America (U.S & Canada)
- Latin America (Brazil, Mexico, Argentina & Rest of Latin America)
- Europe (EU-4, U.K, BENELUX, Russia, Poland & Rest of Europe)
- APEJ (China, India, ASEAN, Australia & New Zealand, South Korea & Rest of APEJ)
- Middle East & Africa (GCC, South Africa & Rest of MEA)