Food and Beverages

Vegan Food Market is Expected to Reach USD 63.23 Billion by 2031

May 2024

Food and Beverages

As per the report published by Kings Research, the global Vegan Food Market was valued at USD 28.42 billion in 2023 and is projected to reach USD 63.23 billion by 2031, growing at a CAGR of 10.53% from 2024 to 2031.

Innovation in alternative ingredients presents lucrative opportunities for vegan food market growth. As consumer demand for plant-based options grows steadily, the need for innovative ingredients that replicate the taste and texture of traditional animal products and offer unique nutritional profiles and sustainability benefits is increasing. Food companies are investing in research and development to discover and utilize novel plant-based ingredients such as jackfruit, seaweed, and legume-based proteins to create innovative vegan products. Additionally, advancements in food technology enable the extraction and processing of plant-derived components to mimic the functionality of animal-derived ingredients, thereby expanding the possibilities for vegan food innovation. These alternative ingredients cater to the diverse preferences and dietary requirements of consumers, which is contributing to the expansion of the vegan food market.

Key Insights

  • Based on the product type, the condiments & dressings segment is expected to register a CAGR of 12.48% over the forecast period
  • Based on nature, the conventional segment generated the highest revenue of USD 22.56 billion in 2023
  • By sales channel, the online retail segment is expected to witness the highest CAGR of 11.07% over 2024-2031
  • On the basis of region, Europe is anticipated to grow at a robust CAGR of 11.23% over the forecast period

Danone Partners with Else to Enter Vegan Food Market

December 2023: Danone's strategic expansion into the vegan market advanced through a multi-phase partnership with Else. This collaboration entails Danone securing a licensing agreement to market Else's products under its own brand name.

Growing Adoption of Innovative Food Packaging of Vegan Food Products to Foster Industry Growth

The growing adoption of innovative food packaging for vegan food products fuels industry growth. With increasing consumer demand for sustainable and eco-friendly packaging solutions, food companies are exploring innovative packaging materials and designs to reduce environmental impact and enhance product freshness and shelf life. Packaging innovations such as compostable and biodegradable materials, reusable containers, and minimalist packaging designs appeal to environmentally conscious consumers and differentiate vegan products in the market. Moreover, functional packaging features, such as portion control options, and on-the-go formats, are designed to cater to convenience-oriented consumers seeking convenient and portable vegan options. By investing in innovative food packaging, companies are enhancing the attractiveness and competitiveness of their vegan food products, thereby driving industry growth and long-term sustainability.

Rising Demand for Animal Cruelty-Free Products to Fuel Vegan Food Market Growth

The rising demand for animal cruelty-free products is a significant driver fueling the growth of the vegan food market. With increasing awareness of animal welfare issues and ethical concerns surrounding animal agriculture, consumers are actively looking for cruelty-free alternatives to traditional animal products. Vegan food products, produced without the use of animal-derived ingredients or by-products, offer consumers a guilt-free and ethically aligned choice that resonates with their values and beliefs. This trend is further bolstered by social media activism, celebrity endorsements, and advocacy campaigns that raise awareness regarding animal cruelty in the food industry and promote the benefits of veganism. As a result, food companies are expanding their vegan product lines and marketing efforts to meet the growing demand for animal cruelty-free options, thereby supporting market growth and profitability. With consumer preferences shifting toward more ethical and sustainable choices, the vegan food market is estimated to witness substantial expansion in the forthcoming years.

Europe to Record a Staggering CAGR of 11.23% Between 2024 and 2031

Based on region, the global vegan food market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America. Europe is poised to register a substantial CAGR of 11.23% in the foreseeable future. This considerable regional market growth can be attributed to the increasing consumer awareness regarding health, environmental sustainability, and animal welfare concerns, leading to a growing demand for plant-based alternatives to traditional animal products. European consumers are increasingly adopting vegan and vegetarian diets, supported by government initiatives, dietary guidelines, and environmental policies promoting sustainable food choices. Moreover, the rise of plant-based startups, investments in food innovation, and collaborations between food companies and research institutions contribute to the expansion of the vegan food market in Europe. With a strong emphasis on quality, authenticity, and diversity in food offerings, Europe presents a conducive environment for notable growth, thereby positioning it as the major region in the global vegan food market.

Market Players Concentrating on Innovative Product Launches to Drive Market Development

The global vegan food market is fragmented with key players such as Amy's Kitchen, Inc., ADM, Axiom Foods, Inc., Conagra Brands, Inc., Daiya Foods, Danone S.A., Eden Foods, Impossible, Kellanova, SunOpta, The Hain Celestial Group, Inc., Tofutti Brands, Inc., and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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