Vegan Ingredients Market

According to Stratistics MRC, the Global Vegan Ingredients Market is growing at a CAGR of 5.6% during the forecast period. Vegan ingredients are substances that are derived from plants or minerals and do not involve any animal-derived components or by-products. Common vegan ingredients include fruits, vegetables, grains, legumes, nuts, seeds, herbs, spices, plant-based oils, and certain additives derived from non-animal sources. Vegan ingredients are used in various food, beverage, cosmetic, and household products to provide texture, flavor, nourishment, and other desired properties without compromising the principles of veganism.

According to Gallup Poll, published in 2020, 23% of Americans reported eating less meat in 2019 as compared to 2018.

Market Dynamics: 

Driver: 

Ethical and animal welfare concerns

Increasing awareness about the ethical implications of animal agriculture has led many consumers to reconsider their dietary choices. Vegan ingredients offer a cruelty-free option, allowing consumers to enjoy food without contributing to animal exploitation. Moreover, by choosing plant-based ingredients, consumers can reduce their ecological footprint and contribute to the preservation of natural resources and biodiversity, thereby propelling this market further.

Restraint:

High cost

Organic and sustainably grown vegan ingredients often require higher labor and farming practices, which can drive up production costs. The lack of economies of scale can lead to higher costs associated with smaller production volumes and less streamlined supply chains. Furthermore, some vegan ingredients necessitate specialized processing techniques or equipment, adding to the overall expenses, which significantly hampers this market expansion.

Opportunity:

Innovations in product development

As consumer demand for vegan products continues to rise, manufacturers are investing in research and development to create innovative plant-based alternatives. Advances in food science and technology have enabled companies to utilize ingredients to create products that not only satisfy the cravings of meat-eaters but also appeal to vegetarians and vegans. Furthermore, there is a growing focus on sustainable and environmentally friendly ingredients and packaging solutions, which drives this market.

Threat:

Limited education

Many consumers lack comprehensive knowledge about plant-based diets, which can lead to misconceptions and hesitations about adopting a vegan lifestyle. Without proper education and exposure to these alternatives, consumers may perceive veganism as restrictive or unappealing, hindering the uptake of vegan products. Moreover, the absence of education about the ethical, environmental, and health implications of animal agriculture and the benefits of plant-based diets further deter market growth.

Covid-19 Impact

The COVID-19 pandemic has had several negative impacts on the vegan ingredient market, both directly and indirectly. The economic downturn resulting from the pandemic has impacted consumer purchasing power, leading to changes in spending habits and preferences. Many consumers have become more price-sensitive, opting for cheaper alternatives or reducing discretionary spending on specialty vegan products. Furthermore, the decline in tourism and travel has affected sales of vegan products in airports, hotels, and other travel-related outlets, which is impeding this market.

The nutrients & supplements segment is expected to be the largest during the forecast period

The nutrients & supplements segment is estimated to hold the largest share due to a wide array of products tailored to meet the dietary needs of individuals adhering to a vegan lifestyle. This segment focuses on providing plant-based alternatives rich in essential vitamins, minerals, and other nutrients typically sourced from animal products. Furthermore, as awareness of the health and environmental benefits of veganism continues to rise, the nutrients and supplements segment is poised for significant growth within the broader vegan ingredient market. 

The specialty stores segment is expected to have the highest CAGR during the forecast period

The specialty stores segment is anticipated to have highest CAGR during the forecast period due to the unique needs and preferences of vegan consumers by offering a diverse range of plant-based products specifically curated to align with their lifestyle choices. Customers can find an extensive selection of vegan alternatives to traditional animal-derived ingredients, as well as a variety of vegan-friendly snacks and convenience foods. Moreover, specialty stores may offer personalized assistance and guidance to customers, helping them navigate the complexities of vegan cooking and meal planning, thereby driving this segment’s expansion.

Region with largest share:

Asia Pacific commanded the largest market share during the extrapolated period owing to a confluence of factors including shifting dietary preferences, increasing health consciousness, and growing awareness of environmental sustainability. Countries such as India, China, Japan, and South Korea are witnessing a significant rise in the adoption of plant-based diets, driven by factors such as urbanization, rising disposable incomes, and exposure to global food trends. Moreover, the Asia Pacific region is witnessing investments and collaborations aimed at fostering innovation in vegan ingredients, which is propelling this region’s growth.

Region with highest CAGR:

North America is expected to witness highest CAGR over the projection period, owing to a surge in demand for plant-based alternatives across various food categories. Canada and Mexico are also witnessing notable shifts in consumer preferences towards plant-based diets, driven by similar factors such as health consciousness and sustainability concerns. Furthermore, the presence of a diverse culinary landscape in these countries is contributing to the development and adoption of a wide variety of vegan ingredients and products, thereby driving this region’s size.

Key players in the market

Some of the key players in the Vegan Ingredients Market include Cargill, Incorporated, BENEO GmbH, Kerry Group, Beyond Meat, Impossible Foods, DuPont de Nemours, Inc., Puris, Archer Daniels Midland Company (ADM), Roquette Frères, Sensient Technologies Corporation, Firmenich SA and Tate & Lyle PLC.

Key Developments:

In February 2024, Cargill and food tech leader ENOUGH, are expanding their current partnership to further innovate nutritious and sustainable alternative meat and dairy solutions consumers crave.

In December 2023, Kerry Group plc announced plans to acquire part of the global lactase enzyme business belonging to Chr. Hansen Holding A/S and Novozymes A/S.  The acquisition would boost Kerry’s enzyme technology to create lactose-free and reduced-sugar dairy products.

In September 2023, Cargill and Solidaridad announced a strategic global partnership across five countries to improve farmer livelihoods, increase use of climate-friendly farming practices, and improve conservation and responsible land use.

Types Covered:
• Dairy substitutes 
• Nutrients & Supplements 
• Staple food 
• Specialty food 
• Food additives 
• Other Types 

Buyers Types Covered:
• Household & Residential
• Food Processors & Manufacturers
• HoReCa (Hotel/Restaurant/Catering)
• Other Buyers Types

Claim Covered:
• Organic
• Non-GMO
• GMO

Sales Channels Covered:
• Specialty Stores
• Direct Sales
• Modern Trade
• Small Groceries
• Convenience Store
• Other Sales Channels

End Users Covered:
• Food & beverages
• Nutraceuticals
• Cosmetics & Personal Care
• Agricultural
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings: 
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances