Global Plant-Based Foods: Market Opportunity Analysis

Global Plant-Based Foods: Market Opportunity Analysis

As of 2021, the global plant-based food market is valued at $25.6 Billion, with a CAGR of 12.27%, and prospects of the market value to increase up to 123.4 billion by 2028.
North America has the highest market share for plant-based foods in 2021, holding approximately 37.3%. The CAGR is expected to grow by 10.6% from 2022 to 2030. Through the increased awareness of healthy lifestyles and eating habits due to the COVID-19 pandemic, China is set to be a key drive within the industry’s future growth, with a projected CAGR of 6.31% in 2026. Some of the major drivers for the growth of the industry include the rise of disposable income, health, and environmental conscious. According to Google Trends, the top trending regions between 2004 through 2022 that has an increase in veganism consumption include the United Kingdom, New Zealand, Austria, Israel, and Australia. In the United Kingdom, veganism increased by 360% in 2016.

The prices of plant-based foods are competitively higher than animal-based products, due to the complicated production process. This is one of the leading reasons why consumers are hesitant in further purchases. However, with the growing industry, plant-based companies would be able to better negotiate prices for raw materials, have a more scalable infrastructure, as well as create sustainable R&D investments.
Protecting the environment is a significant reason why many people have decided to pursue a plant-based diet. According to the Physicians Committee for Responsible Medicine, a global shift to plant-based diet could reduce mortality and greenhouses gases by 10% and 70%. More than 21% of individuals chose veganism due to the concerns for the environment.