Market Insights And Analysis
From 2023 to 2033, the market for plant-based beverages is anticipated to expand at a compound annual growth rate (CAGR) of 6.7 %, reaching a total market size of USD 668.8 billion.
Several reasons are responsible for this rise. People with lactose sensitivity have a hard time breaking down lactose, the sugar in milk. Many dairy allergies can cause a wide spectrum of mild to severe symptoms. People who are lactose intolerant or allergic to dairy products have a safe and enjoyable alternative to plant-based beverages. Since it consumes a lot of water and land, dairy milk production has a significant impact on the environment. Plant-based beverages are more environmentally friendly because they require less resources to make. Type, source, channel of distribution, and region are all possible divisions of the global market for plant-based drinks. Plant- based milk (including soy, almond, oat, coconut, and rice milk), Plant-based yoghurt, Plant-based cheese, Plant-based ice cream, and Plant-based smoothies are the several categories of products available on the market. Soy, almond, oat, coconut, rice, and hemp are the several source categories of plant-based beverages in the global market. Growing consumer awareness of the environmental and health advantages associated with plant-based beverages is anticipated to fuel further growth in the global market for these beverages in the years to come. In response to this rising demand, producers have introduced a greater variety of plant- based beverages with various flavours and components. To make it simpler for customers to locate and buy plant-based beverages, they are also extending their distribution networks.
Plant-Based Beverages Market Scope :
|Revenue forecast in 2033
|USD 668.8 billion
|CAGR of 6.7% during 2023-2033
|By Type , By Source,By Distribution Channel,By Regional Analysis ,
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Danone, Nestlé, PepsiCo, Unilever, Oatly, Califia Farms, Ripple Foods, Elmhurst 1925, Forager Project, NadaMoo, Coconut Bliss
The market for beverages derived from plant-based sources, including nuts, seeds, grains, and legumes, is known as the global market for plant-based beverages. These alcoholic beverages are frequently consumed in place of dairy-based alcoholic beverages such as milk, yoghurt, and ice cream. A vegan lifestyle abstains from eating meat, dairy, or eggs as well as any other practises that involve the exploitation or cruelty of animals. A vegetarian diet is devoid of fish, fowl, and meat. The popularity of vegetarianism and veganism is rising, which is boosting the requirement for plant- based beverages. Drinks made from plants can be drunk on their own, mixed with other liquids like coffee or tea, or used in baking and cooking. They may additionally be employed to create vegan variations of dairy products like yoghurt, cheese.
Key Market Segments.
Insights on Key Types
Over 70% of the global market share belongs to plant-based milk, which is the most prevalent type of plant-based beverage. This is so because plant-based milk is a flexible beverage that may be consumed in a variety of ways, including on its own, in coffee or tea, or baking and cooking. There are several well-known forms of plant-based milk, including:
A) Soy milk: Low in saturated fat and a rich source of protein and calcium, soy milk. As a form of plant-based milk, it is additionally one of the most cheap.
B) Almond milk: Almond milk is a well-liked beverage that is low in calories and fat and high in vitamin E. The flavour is slightly sweet and nutty.
C) Oat milk: Oat milk contains beta-glucans, a type of fibre that has been demonstrated to decrease cholesterol levels. It has a creamy texture and is a good substitute for cow’s milk in coffee and tea.
D) Coconut milk: Rich and creamy with a lot of good fats, coconut milk is a tasty beverage. The flavour is coconutty and just a little sweet.
E) Rice milk: Rice milk is a viable alternative for those who are sensitive to lactose or who have other dairy allergies. Along with calcium and vitamin B12, it also has enough amounts of other vitamins and minerals. Plant-based Yoghurt Dairy yoghurt is frequently substituted with plant-based yoghurt. It is made from a variety of plant- based milk, including coconut, oat, almond, and soy milk.
The saturated fat and cholesterol content of plant-based yoghurt is often lower than that of dairy yoghurt, and it is a rich source of calcium and protein. Plant-based Cheese Another well-liked substitute for dairy cheese is cheese made of plants. Its creation involves a wide range of plant-based ingredients, including nuts, seeds, and vegetables. In general, plant-based cheese is higher in protein and fibre and lower in cholesterol and saturated fat than dairy cheese.
Insights on Key Distribution Channel
The dominant sub segment is comprised of supermarkets and hypermarkets. Over 60% of the market share for plant-based beverages is distributed through supermarkets and hypermarkets, making them the most dominant distribution channel. This is most likely a result of their extensive assortment of plant-based beverages, reasonable costs, and practicality. Convenience Stores With almost 20% of the market share, convenience stores are the second most common channel of distribution for plant-based beverages. This is definitely true due to their availability and convenience. Numerous food and beverage alternatives, including plant-based beverages, are available at convenience stores, many of which are situated in busy places. Speciality Stores With over 10% of the market share, specialised retailers such as natural grocery stores and health food chains are the third most common method of distributing plant-based beverages. This is probably a result of their substantial assortment of plant-based beverages, informed personnel, and dedication to promoting healthy and eco-friendly goods. Online Channels Online channels, which account for more than 5% of the market share, are the fourth most common distribution method for plant-based beverages. This is most likely a result of the ease of internet buying and the large number of plant-based beverage options.
Insights on Key Regions
The Asia-Pacific region is the most significant. The Asia Pacific area dominates the global market for plant-based beverages with a share of more than 60%. This is probably because more people in the area have lactose intolerance as well as other dairy allergies, vegetarianism and veganism are becoming more common, and people are becoming more aware of the advantages of plant-based beverages for their health and the environment.
North America With more than 20% of the market share, North America ranks second in popularity for plant-based beverages. This is probably because customers are seeking out plant-based beverages as healthier and more environmentally friendly substitutes for dairy beverages, which is driving up demand for these products. Europe With nearly 10% of the market share, Europe ranks third among regions where consumers prefer plant-based beverages. This is probably because vegetarianism and veganism are becoming more and more common in the area, and because people are becoming more and more conscious of the advantages of plant-based beverages for both health and the environment. Latin America the Middle East and Africa Africa, the Middle East, and Latin America account for the remaining market share. Although the market for plant-based beverages in these areas is still in its infancy, it is anticipated that it will expand dramatically over the next few years as people become more aware of their advantages for their health and the environment.
Just a few of the plant-based drinks that these companies sell are soy milk, almond milk, oat milk, coconut milk, rice milk, and pea milk. Additionally, they provide a range of flavoured and unsweetened choices, as well as goods that have been vitamin and mineral-fortified.
The following are some of the major companies in the global market for plant-based beverages: Danone, Nestlé, PepsiCo, Unilever, Oatly, Califia Farms, Ripple Foods, Elmhurst 1925, Forager Project, NadaMoo, Coconut Bliss.
Covid-19 Impacts And Analysis
On the market for plant-based beverages worldwide, the COVID-19 pandemic had a huge effect. Supply networks experienced interruptions in the early phases of the epidemic, forcing several businesses to close. Due to customers’ increased attention to buying necessities, the market for plant-based beverages decreased. However as the pandemic spread, customers’ desire for wholesome and environmentally friendly food and drink options increased. As people looked for alternatives to cow’s milk along with additional animal-based products, consumer appetite for plant-based beverages increased as a result. The pandemic also brought about a change to online buying. Companies that produce plant- based beverages benefited from this since customers were more willing to buy these items online than in physical stores. Plant-based beverage firms’ supply lines were hampered by the pandemic. This resulted in some products being in short supply and raising prices for businesses. New players have entered the market for plant-based beverages as a result of the epidemic. For already- established companies, this has intensified competitiveness. Global demand for plant-based beverages has experienced a varied response to the COVID-19 epidemic. On the one hand, it has elevated customer interest in these goods. On the other hand, supply networks have been disturbed, which has increased corporate competition. The market for plant-based beverages is predicted to expand in the years ahead, notwithstanding the difficulties the pandemic has brought about. This is brought on by a variety of elements, such as growing consumer knowledge of the environmental and health advantages of these products, in addition to the expansion of the selection of plant-based beverage items in brick-and-mortar stores and online.
Latest Trends And Analysis
• Danone introduces plant-based milk for young children: A new plant-based milk for toddlers aged 1-3 years was introduced by Danone in 2023. The product is intended to be a nutritional replacement for cow’s milk for young children and is supplemented with calcium, vitamin D, and other critical nutrients.
• Nestlé commits $200 million to the plant-based beverage industry: Nestlé declared in 2023 that over the next two years, it will invest $200 million in its plant-based beverage division. The company intends to leverage this investment to boost manufacturing and introduce fresh plant-based goods into new markets.
• When PepsiCo purchased SodaStream: A significant manufacturer of home soda makers, SodaStream International, was purchased by PepsiCo in 2023. This purchase is considered a demonstration of PepsiCo’s dedication to the market for plant-based beverages because SodaStream units can be used to create sparkling water alongside other beverages using ingredients that are derived from plants.
• Oatly moves into China: Oatly, a well-known manufacturer of oat milk, declared in 2023 that it would be moving into China. Given that China is the largest dairy market in the world, this move is considered as a significant opportunity for the business.
• New plant-based milk substitutes are available: New plant-based milk substitutes including cashew, hemp, and pea milk have become increasingly popular in recent years. Consumers seeking dairy-free products that are also strong in protein and minerals are increasingly turning to these substitutes.
Significant Growth Factors
There is a common misconception that beverages made from plants are healthier than those made from animals. As well as frequently being an excellent source of fibre, vitamins, and minerals, they are frequently lower in saturated fat and cholesterol. Compared to beverages made from animals, plant-based beverages are thought to be more environmentally friendly. This is so that there are fewer greenhouse gas emissions and fewer water and land requirements for the manufacturing of plant-based beverages. Lactose intolerance is the inability to process lactose, a sugar found in milk and other dairy products. This disease may cause a number of symptoms, including bloating, gas, and diarrhoea. People who are lactose intolerant have a lactose-free option to cow’s milk in the form of plant-based beverages. More retailers and websites are stocking beverages made from plants. This makes it simpler for customers to locate and buy these products. Major food and beverage firms are making significant investments in the market for plant-based beverages. This promotes product development and innovation in this sector. Around the world, more people are adopting vegetarian and vegan diets.
Since these goods are an important component of many vegan and vegetarian diets, this is increasing demand for plant-based beverages. Plant-based protein sources are becoming more and more popular with consumers, especially those produced from soy, pea, and hemp. This is an increasing requirement for plant- based beverages because many of these items are excellent sources of plant-based protein. Foods and drinks marketed as functional are those that, in addition to providing nourishment, are said to have additional health benefits. Vitamins, minerals, and other beneficial substances are frequently added to plant-based beverages. Customers looking for wholesome and useful food and beverage options are increasing the market for plant-based beverages as a result.
Worldwide, vegetarian and vegan diets are rising in popularity. Given that many vegan and vegetarian diets call for plant-based items, this is increasing demand for these goods. More and more customers are getting used to buying plant-based proteins like soy, pea, and hemp. Given that many of those goods are a strong source of plant-based protein, this is increasing demand for beverages made from plants. Foods and drinks that are marketed as having additional health benefits over and above those of basic nutrition are known as functional foods and beverages. Minerals, vitamins, and other useful substances are frequently added to plant-based beverages to make them more beneficial. As a result, customers who are looking for wholesome and useful food and beverage options are increasing their desire for plant-based beverages. Traditional beverage manufacturers are introducing their line of plant-based beverages. It may be challenging for new market entrants to obtain market share due to this competition. To adapt to changing consumer needs and preferences, producers of plant-based beverages must keep innovating and creating new products. The advantages of plant-based beverages for human health and the environment must be made clear to consumers. The acceptance of plant-based beverages may grow as a result of this instruction. Companies that produce plant-based beverages must broaden their networks of distribution and increase the accessibility of their goods in stores and online. Customers will find it simpler to locate and buy plant-based beverages as a result. In the next years, it is anticipated that the expansion of the global market for plant-based drinks will be hampered by the restraints outlined above.
However, it is anticipated that the important growth aspects that are propelling this market’s expansion will surpass the limiting factors. The market for beverages made from plants is therefore expected to grow during the coming years. The market for plant-based beverages is anticipated to expand in the upcoming years despite the issues mentioned above. Both current and new players have a great chance in this industry.