Packaged Vegan Foods Market Size 2024-2028

The packaged vegan foods market size is estimated to grow by USD 39.05 billion at a CAGR of 18.52% between 2023 and 2028. Veganism is gaining significant traction as a lifestyle choice, driven by growing awareness of animal welfare and health benefits. This trend is influencing the food industry, with an increasing number of companies introducing vegan options to cater to this market. Additionally, the organized retail sector is expanding at a rapid pace, providing consumers with easy access to a wide range of products. Private label brands are also rising in popularity, offering affordable and high-quality alternatives to established brands. In this context, the food industry is witnessing a triple convergence of veganism, organized retail, and private label brands, presenting both challenges and opportunities for businesses. Companies that can effectively navigate this landscape and meet the evolving needs of consumers are likely to succeed in this dynamic market.

What will be the size of the Market During the Forecast Period?

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Market Dynamics and Customer Landscape

The market is flourishing amidst rising awareness about health and wellness, environmental sustainability, and concerns over chronic illnesses like heart disease, diabetes, and obesity. This market caters to vegetarians and vegans seeking plant-based alternatives through a variety of offerings such as tofu, plant-based diets, and meat alternatives. It leverages food technology to innovate in packaged vegan meals, vegan bakery, and confectionery products, meeting consumer demands in the food and beverage sector. With a surge in Vegan festivals and celebrity endorsements, alongside the influence of influencer culture, vegan food labelling becomes pivotal in differentiating products in the processed food market. The market's growth is driven by increasing consumer interest in plant-based products for weight control and overall dietary health. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The rise of private-label brands is notably driving market growth. Private label brands are cheaper than mainstream brands, and most budget-conscious consumers tend to prefer the former. Private-label brands are also popular among retailers, especially grocery stores, as they tend to offer more profit margins than mainstream brands. They are made for a single retailer and sold under the retailer's brand name. Major packaged vegan food chains have their own private-label vegan brands to capitalize on the growing demand for packaged vegan food, which, in turn, will drive the growth of the market during the forecast period.

Consumer demand for private-label vegan foods has increased as retailers have introduced delicious vegan food offerings with high-quality ingredients such as mock meat and complex flavor profiles. Moreover, retailers are also expanding their product lines by introducing RTC vegan delicacies and other plant-based milk to cater to the demands of consumers. They also include organic, natural, and clean-label products without artificial ingredients. Therefore, such initiatives will drive the growth of the vegetarian packaged food market during the forecast period.

Significant Market Trend

The growing inclination toward plant-based proteins is an emerging trend in the market. Veganism has witnessed a dramatic rise across the world. For instance, the number of vegans in the UK increased from approximately 0.28 million in 2016 to nearly 0.6 million in 2020. A plant-based diet has several health benefits such as it helps in losing excess weight, helps in lowering blood sugar levels, and helps improving kidney function. These health benefits will increase the demand for vegan foods, which, in turn, will drive the growth of the market. 

Apart from the health benefits associated with the vegan diet, there are quite a few social reasons that have influenced consumers to adopt vegan lifestyles. For instance, rearing livestock for animal-based products requires far more energy, land, and water than the production of grains. Besides, nearly 13.5 pounds of CO2 is generated per pound of beef in comparison to just 0.45 pounds when it comes to per pound of lentils. Moreover, the rising number of campaigns for the protection of animal rights by organizations such as People for the Ethical Treatment of Animals (PETA) has not only brought the issues related to animal welfare into the limelight but has also been quite instrumental in propagating the advantages of vegan diets. Thus, the growing inclination toward plant-based proteins will enhance the growth of the global market during the forecast period.

Major Market Challenge

The high price and limited awareness are major challenges impeding the market growth. The high price of packaged vegan foods compared to traditional dairy products is one of the major reasons behind their limited penetration and adoption in developing regions. Furthermore, the middle-income demographics in developed countries also avoid buying packaged vegan foods due to the high price.

The price per pound of packaged vegan products varies greatly with respect to the brands offering them and is nearly 1.5-2 times the prices of the same quantity of conventionally processed products. For instance, in the UK, Violife Original Vegan Cheese Slices cost over USD 7 per pound, while Dairy Crest-owned vegan Cathedral City Mature Cheddar Cheese costs around USD 4 per pound.  Furthermore, although the global market is growing, the awareness of packaged vegan foods has been very limited among consumers, especially in South America, South East Asia, MEA, and Eastern Europe. Therefore, the market in these regions is highly underdeveloped, with negligible penetration. Hence, these factors are expected to negatively impact the growth of the global market during the forecast period.

Key Market Customer Landscape

The report includes the adoption lifecycle of the vegetarian packaged food market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the vegetarian packaged food market.

Amys Kitchen Inc. - The company offers various food products including vegan food products, gluten-free foods, soups, burritos and wraps, pizzas, and other products. The key offerings of the company include packaged vegan foods. 

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• Archer Daniels Midland Co.
• Beyond Meat Inc.
• Blue Diamond Growers
• Campbell Soup Co.
• Conagra Brands Inc.
• Danone SA
• DR. Mcdougalls Right Foods
• Earths Own Food Co. Inc.
• Eden Foods Inc.
• Edward and Sons Trading Co.
• General Mills Inc.
• Kellogg Co.
• Otsuka Holdings Co. Ltd.
• Post Holdings Inc.
• Ripple Foods PBC

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Market Segmentation

The market share growth by the offline segment will be significant during the forecast period. The offline distribution channel segment generates revenue from the sales of products through hypermarkets, supermarkets, and clubhouse stores; department stores; and independent retailers. 

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The offline segment was valued at USD 11.90 billion in 2018. Manufacturers of canned food sell their products through specialty stores and retailing formats such as hypermarkets, supermarkets, convenience stores, clubhouse stores, and department stores. In 2022, hypermarkets and supermarkets accounted for the largest share of the offline distribution channel segment. Some of the factors considered while purchasing products from these stores are convenience, huge SKUs, and a wide brand variety. As the offline segment is losing its market and popularity to the online channel segment, retailers are introducing new business and retail strategies. For example, better pricing strategies and wider assortments, owing to the declining preference for offline shopping and the need to survive in a competitive market. As a part of the marketing and offline sales strategy, resellers place attractive displays that generate strong sales. Furthermore, vendors push their offline sales by widening their store operations across geographies to cater to each consumer category. Hence, with the growth in retail channels in cities and regions, customers have become familiar with different types of canned food. Therefore, sales through this channel are expected to increase during the forecast period. 

By Region

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Europe is estimated to contribute 37% to the growth of the global vegetarian packaged food market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The demand for packaged vegan foods is on the rise in Europe, driven by the expanding vegan population base in countries such as Germany. The increasing awareness of the benefits of following vegan diets and the growing popularity of veganism as a lifestyle choice among the youth is expected to drive the growth of the market in Europe. Moreover, the presence of key vendors that offer new varieties of products, rising disposable incomes, and growing awareness about the health benefits of vegan products will drive the growth of the market during the forecast period. 

The indulgence trend is one of the major factors driving the consumption of packaged vegan foods in Europe. In addition to the take-home varieties, packaged vegan foods are also popular in the region because of the presence of a well-equipped industry with the required machinery to produce these products. Furthermore, the online sales of packaged vegan food products in Europe are expected to increase due to the growing internet penetration in the region during the forecast period. 

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Distribution Channel Outlook
  • Offline
  • Online

• Product Outlook 
  • Vegan milk
  • Vegan meat
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

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Market Analyst Overview

The market is expanding rapidly to meet the diverse dietary preferences of consumers in the vegetarian and vegan market segments. It offers a wide array of products including meat substitutes like tempeh, jackfruit, and texturized vegetable protein, along with dairy-free options such as almond milk, soy milk, coconut milk, rice milk, and oat milk. Innovations in food technology have led to the development of vegan butter, dairy-free yogurt, and ice cream & frozen novelties that cater to lactose intolerance and animal cruelty concerns. This burgeoning market is supported by bio-based plastics and bioplastics, aligning with sustainability and environmental initiatives. With growing interest from Millennials and substantial investments from venture capital and private equity, the vegan food industry is thriving across retail and grocery, hospitality and food service, and online stores.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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