Vegan Food Market

Vegan food is a category of food that completely excludes animal products and their derivatives, including meat, dairy, eggs, honey, gelatin, etc. It primarily consists of plant-based ingredients and can be prepared using a variety of techniques. Meat alternatives are products that mimic the taste, flavour, and appearance of actual meat but are healthier than meat. These products are gaining popularity as substitutes for conventional meat and meat-based products. Furthermore, the worldwide surge in obesity rates and resulting health issues, such as heart disease, high blood pressure, diabetes, and asthma, have led to increased awareness of overall health among consumers. As a result, there has been a growing demand for various types of healthy food products, including vegan options. Veganism is a lifestyle choice driven by concerns such as animal welfare, health, and the environment that has gained momentum in recent years. By adopting a vegan diet, individuals can significantly reduce their contribution to animal agriculture and, in turn, minimize their carbon footprint.

Market Drivers

The increasing demand for animal-friendly products is a crucial factor propelling the vegan food industry. With an increasing awareness of the ethical issues concerning animal agriculture and animal welfare, consumers are increasingly seeking food products that are produced without harming animals. Consequently, there is currently a growing preference for vegan food options that are not only free from animal-derived ingredients but also manufactured in a way that avoids any cruelty to animals. Growing awareness regarding animal welfare and the impact of animal cruelty on the food industry has prompted consumers to switch to plant-based food products.

Plant-based options offer several benefits, including a reduced risk of heart disease, stroke, and premature death. As demand for non-dairy and meat substitutes rises, the adoption of vegan diets is likely to increase. Consumers are also seeking nutritious alternatives. To expand their customer base and improve their brand image, market players are introducing innovative and unique food products.According to the Vegan Society, there has been a significant surge in the demand for vegan food, which has grown by over 980% in the past ten years. The vegan food market is currently in the growth stage and is projected to experience stable expansion during the forecast period.

Market Restraints

Several manufacturers have developed and introduced plant-based substitutes, however, their prices are generally higher compared to animal-based products. Certain components used in vegan cuisine, such as tofu, tempeh, and seitan, can be more expensive than animal-derived ingredients. This is due to the fact that they are mostly produced from whole foods that require extensive processing. Furthermore, vegan products necessitate specialized equipment and ingredients.

Segment Analysis

The alternative dairy market is experiencing significant growth, primarily based on product type. This segment is expanding faster than meat substitutes and includes soy, oats, and other similar products. These dairy alternatives are ideal for individuals who want to lose weight or are lactose intolerant. The growing awareness of the health benefits of vegan products is expected to further drive market demand for this segment. Plant-based milk (such as almond, oat, or soy milk) and vegan cheese are among the prominent dairy alternatives available in the vegan food market. These products offer alternatives to conventional dairy products and cater to individuals with milk allergies or those who follow a vegan lifestyle.

The vegan food market is classified into offline and online categories based on the distribution channel. The online segment is expected to dominate the market. Major retail chains have invested significantly in online distribution channels. In addition, companies also directly sell their products to consumers through their own websites or social media platforms. Several multinational retail corporations have started delivering food online, making e-commerce portals a major channel for consumers to purchase these products. Due to the pandemic, the trend for online shopping has increased, as consumers are inclined to buy products from the comfort of their homes and have them delivered to their doorsteps.

Regional Analysis

The vegan food market in Europe is anticipated to maintain its leading position globally. Major food chains like Starbucks and Dominos have caught up with the trend and introduced new vegan options for their regional consumers. Countries such as the UK, Germany, and France have observed a decrease in per-capita meat consumption over the past few years. The most popular food and snack items in the region comprise canned mock meats, burgers, pizza, fillets, patties, sausages, ready meals, meat-free meatballs, and more. Consumers growing environmental consciousness is one of the reasons for the rising popularity of veganism in the region. Vegan food companies are striving to enhance quality and lower prices by introducing new products and innovations.

The vegan food industry in Europe is experiencing a significant surge in growth. Despite the fact that countries like India have a substantial number of vegetarians, the adoption of a completely animal-free diet remains relatively low. However, the mounting consciousness among consumers has a pivotal impact and is driving the expansion of the vegan food market in the region.

Competitive Landscape

The vegan food industry is experiencing a rise in fragmentation as numerous small and medium-sized companies compete for market share. The competitive landscape is shaped by various factors, including taste, quality, price, and availability. In addition, consumer preferences and market trends play a significant role in determining a company's competitive position. As such, product innovation is a crucial competitive strategy in this market.

Key Players

• Amy's Kitchen

• Beyond Meat

• Daiya Foods

• Danone S.A

• Eden Foods Inc.

• Follow your heart.

• Impossible Foods

• Oatly

• Ripple Foods, Inc.

• Tofurky

Recent Development

• In Jun 2023, Violife UK has introduced a new plant-based cream cheese that incorporates garlic and herbs. This product is ideal for outdoor gatherings, such as picnics and barbecues, and can also be utilized as a spread on bagels or added to sauces.

• In Jun 2022, Tata Starbucks has entered into a partnership with Imagine Meats, a plant-based food company, to retail vegan cuisine in India.