Plant Based Ingredients Market Research Reports

"Rise of Plant-Based Giants: Deep Dive into Leading Companies and Market Trends (2024 Market Size: USD 13.1 billion)"!

Plant Based Ingredients Industry Overview

In recent years, the plant-based ingredients market has experienced significant development, which has been fueled by the growing demand for health-conscious and sustainable food options among consumers. The global plant-based ingredients market size was USD 12.7 billion in 2023 and will be USD 13.1 billion in 2024, with a compound annual growth rate (CAGR) of 10.1%. By 2031, the market will increase to USD 28.28 billion, at a CAGR of 10.10%.  The market is primarily composed of plant-based proteins, such as soy, pea, and wheat proteins, which account for 45% of the market. The segment is experiencing an 11% increase in 2024, primarily due to its widespread use in dairy alternatives and meat substitutes. 

North America, which currently holds a 40% market share, is experiencing development due to the strong presence of key players and the high level of consumer awareness. In 2023, plant-based food sales in the United States alone experienced a 9% increase. Europe is the fastest-growing region, with a CAGR of 12% through 2024, and it currently holds a 30% market share. Significant drivers are the EU's rigorous regulations regarding animal welfare and sustainability. The region is experiencing a 9% compound annual growth rate (CAGR) due to the increasing urbanization and disposable incomes, which currently account for 20% of the market. Around 70% of consumers opt for plant-based products due to their perceived health benefits, which include reduced cholesterol and lipid content. 

There has been a substantial rise in the demand for functional foods that are enhanced with plant-based ingredients to provide additional health benefits. The market is currently experiencing a significant increase in innovation, with a 15% increase in the number of new product introductions that incorporate plant-based ingredients in 2023. Novel plant-based dairy products, plant-based aquaculture, and egg substitutes are among the innovations. Venture capital funding in 2023 alone exceeded USD 1.5 billion, indicating that the plant-based ingredients market has garnered substantial investment. Additionally, significant food corporations are establishing strategic partnerships and acquisitions to broaden their plant-based portfolios.

Top Countries Contributing in Plant Based Ingredients Market

United States (2024 Market size: USD 2.6 billion)

According to cognitive market research, The plant-based ingredients market holds a significant revenue share of 23% of the total revenue generated and its market size was USD 2.4 billion in 2023 and will be USD 2.6 billion in 2024. Meat substitutes, dairy alternatives, munchies, and beverages are among the most significant sectors that employ plant-based ingredients. The U.S. market has experienced significant growth as a result of the growing demand for health-conscious and sustainable food options among consumers. This growth has been fueled by innovation and the strong presence of key actors such as Impossible Foods and Beyond Meat. This market is also experiencing accelerated growth as a result of strategic partnerships and investments.

Germany (2024 Market Size: USD 1.3 billion)

The Germany's plant-based ingredients market size was USD 1.2 billion in 2023 and will be USD 1.3 billion in 2024. Dairy alternatives, poultry substitutes, and bakery products comprise significant sectors. Germany holds 2% of the global market share. The country's expansion is driven by a robust regulatory framework and a well-established food processing industry, as well as a strong consumer preference for sustainable and health-oriented food products. Plant-based constituent innovations and expanded product availability have also facilitated market expansion.

United Kingdom (2024 Market Size: USD 1 billion)

In 2023, the plant-based ingredients market in the United Kingdom was valued at USD 900 million and will be USD 1 billion in 2024. These ingredients are utilized in the production of animal substitutes, dairy alternatives, and ready-to-eat meals. U.K. holds a revenue share of 9% of the global market. Significant investments in research and development by major food companies, as well as increasing consumer awareness of health and environmental benefits, are driving market growth. The country's regulatory support for plant-based diets and the increased availability of a variety of products are also significant factors.

Canada (2024 Market Size: USD 790 million)

As per cognitive market research, the Canada's plant-based ingredients market holds a 7% revenue share of the total revenue generated and its market size was USD 700 million in 2023, and will be USD 790 million in 2024. Functional foods, dairy alternatives, and meat substitutes comprise the principal sectors. An approximated Canada holds 7% of the global market share. The market is expanding as a result of the increasing interest of consumers in sustainability and health, which is bolstered by government initiatives that advocate for plant-based diets. Growth is also being stimulated by the presence of prominent companies and the increased investment in product innovation.

France (2024 Market Size: USD 690 million)

The plant-based ingredients market in France was valued at USD 600 million in 2023, and will be USD 690 million in 2024. Dairy alternatives, poultry substitutes, and bakery products comprise significant sectors. FRance holds 6% of the global market share. Consumer preferences for sustainable and natural food alternatives, which are bolstered by a robust regulatory framework and culinary tradition, are the primary factors driving market expansion. Product innovation and increased investment in research and development are also significant factors.

China (2024 Market Size: USD 575 million)

The China's plant-based ingredients market share is 5% of the total revenue generated and its market size was USD 500 million in 2023 and will be USD 575 million in 2024. Meat substitutes, dairy alternatives, and refreshments comprise critical sectors. Increasing urbanization, rising disposable incomes, and a growing awareness of health and environmental issues are the primary factors driving market growth. The market's expansion is also facilitated by the government's endorsement of sustainable agricultural and food production practices.

Japan (2024 Market Size: USD 520 million)

Thr Japan's plant-based ingredients market size is USD 450 million in 2023 and will be USD 520 million in 2024. Functional foods, dairy alternatives, and meat substitutes comprise significant sectors. The global market share is held by Japan at 4.5%. Consumer preferences for health and wellness, in conjunction with advancements in food technology, are the primary factors driving market expansion. Additionally, the expansion of the market is significantly influenced by government policies that prioritize sustainability and healthful eating.

Australia (2024 Market Size: USD 470 million)

According to cognitive market research, Australia's plant-based ingredients market holds a revenue share of 4% of the total revenue generated and its market size was USD 400 million in 2023, and will be USD 470 million in 2024. Meat substitutes, dairy alternatives, and refreshments comprise critical sectors. The market is experiencing growth as a result of the increasing demand for health-conscious and sustainable food products, which is bolstered by a robust food processing industry and favorable government policies. An increase in investment in product development and innovation also stimulates growth.

Netherlands (2024 Market Size: USD 410 million)

In 2023, the market for plant-based ingredients in the Netherlands was valued at USD 350 million and will be USD 410 million in 2024. Meat substitutes, dairy alternatives, and bakery products comprise significant sectors. Netherland holds a 3.5% of the global market share. The market is expanding due to the robust consumer demand for sustainable and nutritious food alternatives, which is bolstered by a well-established food processing industry and an innovative food technology market. Regulatory frameworks and government support also play a substantial role.

Brazil (2024 Market Size: USD 350 million)

As per cognitive market research, the market for plant-based ingredients in Brazil was valued at USD 300 million and will be USD 350 million in 2024. Meat substitutes, dairy alternatives, and beverages comprise critical sectors. Brazil holds a revenue share of 3% of the global market. The market is expanding as a result of the developing middle class and increasing disposable incomes, which are bolstered by consumer interest in health and sustainability. Market growth is also influenced by the government's initiatives to promote plant-based diets and the country's agricultural resources.

PESTEL Analysis of Plant Based Ingredients Market

Political

The political landscape significantly influences the growth and development of the plant-based ingredients market. The environmental and health advantages of plant-based diets are being increasingly acknowledged by governments worldwide, resulting in the implementation of supportive policies and initiatives. For example, in an effort to mitigate greenhouse gas emissions and advance sustainable agriculture, numerous nations have implemented subsidies for the cultivation and research of plant-based foods. The Farm to Fork strategy, which is a component of the Green Deal in the European Union, underscores the importance of transitioning to sustainable food systems. This includes the promotion of plant-based diets. The function of trade policies is also essential. Tariffs, trade agreements, and import/export regulations can influence the cost and availability of plant-based ingredients. For instance, the reduction of tariffs on plant-based products can enhance their competitiveness in the global market as a result of favorable trade agreements between countries. In contrast, protectionist policies can impede the market's expansion by increasing costs and restricting market access. Other critical political factors include regulatory frameworks that govern product labeling and safety standards. 

Economical

Economic factors significantly influence the plant-based ingredients market. The global market for plant-based foods was USD 40 billion in 2023 and will be USD 45 billion in 2024 as a result of improving economic conditions and increasing consumer demand. Disposable income levels, the cost of basic materials, and overall economic stability are among the most significant economic drivers. Consumer purchasing power and preferences are significantly influenced by disposable income. Consumers are increasingly inclined to invest in premium and health-oriented products, such as plant-based foods, as their incomes increase, particularly in developing economies. This trend is particularly apparent in urban areas, where a burgeoning middle class has heightened health awareness and spending power. Another critical economic factor is the cost of basic materials. Soy, pea protein, and cereals are indispensable components of plant-based products. The production costs and pricing strategies of plant-based food companies can be impacted by fluctuations in the prices of these primary materials, which are influenced by factors such as weather conditions, supply chain disruptions, and agricultural policies.

Social

Social factors significantly influence the growth and acceptance of the plant-based ingredients market. Major social variables that influence consumer behavior and market trends include the growing awareness of health, environmental sustainability, and ethical considerations. The plant-based market is being propelled by a substantial social trend known as health consciousness. Consumers are increasingly aware of the health advantages of plant-based diets, including reduced risks of obesity, heart disease, and specific types of cancer. This transition to healthier eating habits is especially evident among newer generations, such as millennials and Gen Z, who are more inclined to adopt plant-based diets. The dissemination of information and the shaping of public perceptions regarding plant-based foods are significantly influenced by influential health advocates and social media. Another potent social consideration is environmental concerns. Consumers are becoming more motivated to decrease their ecological footprint as they become more aware of environmental degradation and climate change. Plant-based diets are frequently perceived as a sustainable alternative to conventional meat and dairy consumption due to their reduced resource requirements and reduced greenhouse gas emissions. This environmental awareness is driving the demand for plant-based products as consumers are striving to make more environmentally responsible choices.

Technological

The plant-based ingredients market is at the forefront of technological advancements, which are driving innovation, enhancing product quality, and expanding market reach. State-of-the-art technologies in food science, biotechnology, and manufacturing are revolutionizing the development, production, and distribution of plant-based foods. The development of innovative plant-based proteins and ingredients is one of the most significant technological advancements in the industry. Innovations in biotechnology are facilitating the development of plant-based proteins that closely resemble the nutritional profile, flavor, and texture of animal products. Advanced techniques are employed by companies such as Impossible Foods and Beyond Meat to replicate the meaty texture and umami flavor of traditional meat, thereby increasing the allure of plant-based alternatives to a broader audience. Another critical area of innovation is fermentation technology. Companies are employing microbial fermentation to generate ingredients like heme, which improves the flavor and aroma of plant-based proteins. 

Environmental

Environmental factors significantly influence the growth and appeal of the plant-based ingredients market. The environmental advantages of plant-based diets, including reduced greenhouse gas emissions, reduced water consumption, and reduced land exploitation, are significant factors that influence consumer preference and industry practices. Plant-based ingredients have a lower carbon footprint than animal-based products, which is one of their primary environmental benefits. Livestock production is a substantial contributor to greenhouse gas emissions, accounting for 14.5% of global emissions. Conversely, plant-based diets generate significantly fewer emissions, which contributes to the mitigation of climate change. For instance, the production of a plant-based burger typically results in a 90% reduction in greenhouse gas emissions compared to the production of a cattle burger. This substantial disparity is a compelling reason for environmentally conscious consumers to select plant-based alternatives. Another critical environmental consideration is water consumption. Animal cultivation is exceedingly water-intensive, necessitating substantial quantities of water for livestock consumption, feed crops, and processing. Conversely, plant-based diets typically necessitate less water. For example, the amount of water required to produce one liter of almond milk is substantially lower than that required to produce one liter of cow's milk. 

Legal

Legal considerations significantly influence the regulatory landscape and market dynamics of the plant-based ingredients market. Regulations encompass a variety of aspects, such as intellectual property, product safety, labeling requirements, and international trade agreements, all of which have an impact on consumer confidence and industry operations. Food safety regulations are essential for guaranteeing the quality and safety of plant-based products. In order to safeguard consumer health and prevent foodborne illnesses, governments worldwide implement rigorous regulations. Thorough testing, monitoring, and adherence to hygiene practices throughout the production process are necessary to ensure compliance with these regulations. Transparency and consumer confidence are contingent upon the implementation of labeling regulations. Consumers are better equipped to make informed decisions regarding their allergen concerns and dietary preferences when they are provided with clear and precise labeling for plant-based products. Labeling requirements are being further refined by regulatory bodies to prevent misleading claims and guarantee consistency in product information. Innovation and competitiveness in the plant-based market are contingent upon intellectual property (IP) rights. 

Key Players of Plant Based Ingredients Market

Beyond Meat

In 2023 and 2024, Beyond Meat, a prominent participant in the plant-based meat industry reported significant revenue growth. The company's revenue in 2023 was USD 418 million, and preliminary reports for 2024 suggest that it will increase to USD 450 million. This increase is indicative of the increasing acceptance and demand for plant-based alternatives. Beyond Meat's R&D initiatives are a substantial component of its strategy, with annual expenditures exceeding USD 40 million in both years. These initiatives are designed to enhance the quality of its products and broaden its product line. Retail, food service and international markets comprise Beyond Meat's principal business segments. The retail market, which encompasses supermarkets and grocery stores, is the most significant, followed by the food service sector, which provides restaurants and food chains. The core of Beyond Meat's operations is the plant-based meat products, which are central to all of these segments. Beyond Meat occupies an immense portion of the plant-based meat market on a global scale. Beyond Meat holds a revene share of 7% in 2024, which is indicative of its robust brand presence and distribution network. This significant share is a result of the company's production capacity and overall size, which have established it as a leader in the swiftly expanding market.

Impossible Foods

Impossible Foods has been a significant innovator in the plant-based meat market, achieving remarkable development in recent years. The company's revenue was USD 500 million in 2023 and will be USD 540 million in 2024. The organization allocates USD 60 million annually to research and development, with an emphasis on improving the nutritional profile, texture, and flavor of its products. Impossible Foods is predominantly involved in the retail and food service industries. The food service segment encompasses partnerships with restaurants and fast-food chains, while the retail segment is the largest, consisting of sales through grocery stores and supermarkets. These segments are fundamentally influenced by the company's plant-based burgers, sausages, and other meat substitutes. Impossible Foods will control 9% of the plant-based meat sector on a global scale in 2024. This substantial market share is a result of the company's extensive distribution channels, innovative products, and strong brand recognition, which have firmly established it as a major player in the industry.

Oatly

In recent years, Oatly has experienced substantial growth, and it is recognized for its oat-based dairy alternatives. Oatly's revenue was USD 600 million in 2023 and will be USD 650 million in 2024. In order to expand its product line and innovate, the organization allocates USD 50 million annually to research and development (R&D). Retail, food service and international markets comprise Oatly's business segments. The retail segment, which includes supermarkets and grocery stores, is the largest, followed by the food service segment, which provides cafés, restaurants, and other food service outlets. The company's oat milk and other oat-based products are essential to these segments. In the global plant-based dairy market, Oatly occupies a substantial position. Oatly holds a market share of 6% in 2024, which is indicative of its robust brand presence and production capacity. Oatly's market share attests to its leadership in the expanding market for plant-based dairy alternatives.

Danone

Danone, a global champion in the food and beverage industry, has a robust presence in the plant-based market through its brands Silk and Alpro. The company's revenue from plant-based products was USD 1.2 billion in 2023, and will be USD 1.3 billion in 2024. Danone allocates USD 100 million annually to research and development, with an emphasis on expanding its plant-based products. Waters, Essential Dairy and Plant-Based Products, Specialized Nutrition, and Early Life Nutrition comprise Danone's principal business segments. The plant-based products are located in the Essential Dairy and Plant-Based Products segment, which is a critical component of the company's portfolio. Danone's global market share in the plant-based market is 10% in 2024. Positioned as a market leader, this proportion is indicative of Danone's extensive distribution network, robust brand portfolio, and ongoing innovation.

Nestlé

Through its Garden Gourmet and Sweet Earth brands, Nestlé, a multinational food and beverage corporation, is expanding its business in the plant-based market. Nestlé's revenue from plant-based products was USD 900 million in 2023, and will be USD 950 million in 2024. With an annual expenditure of USD 80 million, the organization allocates substantial resources to research and development in order to improve its plant-based product line. Prepared Dishes and Cooking Aids, Confectionery, PetCare, Milk Products and Ice Cream, Nutrition and Health Science, and Powdered and Liquid Beverages are Nestlé's primary business segments. The Prepared Dishes and Cooking Aids segment is a significant focus area due to the presence of its plant-based products. In 2024, Nestlé holds 8% of the global market share in the plant-based market. Nestlé's ongoing dedication to innovation in the plant-based market, diverse product portfolio, and extensive distribution network are all emphasized by this share.

Recent developments in Plant Based Ingredients Market

• October 2023: VFC Foods, a prominent vegan fried chicken company, acquired Clive's Purely Plants, a manufacturer of plant-based nut roasts, rolls, pies, and pies in the United Kingdom, in October 2023. This acquisition was made to meet the growing demand for a diverse selection of plant-based options among consumers. The ongoing research and development endeavors were directed toward the development of novel plant-based ingredients that would replicate the flavor and texture of their animal counterparts. (Source: https://bakeryinfo.co.uk/finance/vfc-foods-acquires-clives-purely-plants/684146.article)

Conclusion

The plant-based ingredients market has experienced remarkable growth and transformation in recent years, with 2023 and 2024 being particularly noteworthy. The global plant-based ingredients market size was USD 12.7 billion in 2023 and will be USD 13.1 billion in 2024, with a compound annual growth rate (CAGR) of 10.1%. By 2031, the market will increase to USD 28.28 billion, at a CAGR of 10.10%. This rapid expansion is indicative of the growing demand for sustainable, nutritious, and ethical food options among consumers. Beyond Meat, Impossible Foods, Oatly, Danone, and Nestlé are among the major entities that have contributed to this growth by making substantial investments in research and development and driving innovation. Impossible Foods' revenues increased from USD 500 million to USD 540 million during the same period, while Beyond Meat reported revenues of USD 418 million in 2023, which increased to USD 450 million in 2024. Danone's plant-based segment revenue increased from USD 1.2 billion to USD 1.3 billion, while Oatly's revenue increased from USD 600 million in 2023 to USD 650 million in 2024. Nestlé's revenue from plant-based products increased from USD 900 million in 2023 to USD 950 million in 2024.

The market's expansion is a reflection of the increasing diversity and quality of products, as well as the evolving preferences of consumers. Beyond Meat and Impossible Foods have been investing significantly in research and development, with each company allocating over USD 40 million and USD 60 million annually, respectively. In addition, Nestlé and Danone have allocated substantial resources to research and development, with annual expenditures of USD 80 million and USD 100 million, respectively.