The vegan food market is now one of the rising trends in the food industry. With its benefits, the vegan food industry growth offers a profitable opportunity for F&B companies.
Veganism has been one of the most popular trends in the food and beverage industry, embracing nutrition, animal protection, food politics, etc. With an increasing health disorder, consumers have driven demand for veganism trends somehow due to the rise of health-conscious. The vegan food market has recently gained popularity, especially in the North American and European markets.
The vegan food market has gone up the demand for various categories of plant-based food products regarding dairy substitutes and meat alternatives. Recently, most of the products are processed with plant-based ingredients, including soy, almonds, etc. Thereby, the veganism trend plays a significant role in driving the vegan food market growth.
Vegan food market overview
People tend to use vegan products for their benefit in which a large number of vegetarians in the North American, European, and Asia-Pacific areas. So, increased awareness of a vegan diet is a chief factor for the vegan food market growth.
Besides, people are aware of animal protection and animal cruelty, suggesting individuals move from eating animals to herds and vegetables. Between 2012 and 2017, the demand for meat-free dishes rose by 987% (The Vegan Society). It means vegan products are increasing sharply all over the world.
Vegan food industry: Market share and segmentation insight
Vegan food market share
Vegan food products are dairy-free or meat-free food products that are processed from plant-based ingredients. Firstly, meat alternatives are food products resembling actual meat regarding flavor, taste, and appearance yet healthier than meat. They can fundamentally consist of ingredients such as soy, wheat, etc. In particular, tofu will probably be one of the most popular meat substitutes in terms of chicken, pork, beef, and so on. Moreover, dairy-free food & beverage products are derived from almonds, rice, coconut, and others. Commonly dairy alternatives can be milk, cheese, butter, etc.
The US, Australia, the UK, New Zealand, and Canada have the biggest vegan communication. Recently, the US has experienced a dramatic decrease in meat consumption and even stopped eating it. In Sweden, meat consumption went down significantly (2017). Consumers’ insights have improved, so they see the tremendous benefits of vegetables and vegan food products. Vegan food helps to reduce the risk of heart illness, stroke, premature death, etc. Moreover, food industry software has developed sharply, so it helps to order food online accessibly via websites or mobile app. Thus, it raises the delivery capacity of vegan food products.
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Vegan food product segmentation
The global vegan food market is segmented based on distribution channel, region, and product type. Since the rise in awareness of physical activities or programs, people start participating in these activities to keep fit. It has driven the demand for health-oriented products regardless of food, beverages, clothes, or footwear. Vegan food providers have come up with various vegan products that can meet the requirements of target customers.
Vegan food market classification based on the product type
The vegan food market is classified into meat substitutes, dairy alternatives, and more, based on the product type. Firstly, the meat substitutes make up the higher value vegetarian food market share. Secondly, dairy-free cheese products and desserts are considered the alternative food to dairy. They generally contain low fat and calories without cholesterol.
Currently, vegan food products are processed from almond milk, which costs higher prices than others, soy or rice for example. According to the vegan food market forecast report, the increase of health awareness amongst consumers is expected to open new opportunities for the vegan food industry.
Vegan food market classification based on the region
The vegan food industry is classified into North America, Europe, Asia-Pacific, and LAMEA. Amongst them, Europe is the biggest market for meat substitutes worldwide. Western countries have experienced a decline in meat consumption in the past few years. According to the World Health Organization, nearly 30 – 70% of people in European countries are overweight.
The United Kingdom is the largest vegan food market of meat substitutes in the region due to the highest level of obesity. Besides, the software soilutions can help with supplying various kinds of meat substitutes to end-users via ordering platforms. Consumers easily enjoy many meat substitutes at home, especially during the covid-10 outbreak.
Vegan food market classification based on the distribution channels
Last but not least, the vegan food market can be segmented into distribution channels online and offline. The offline distribution segment accounts for a higher proportion of the vegan food market share. Specialty stores are one of the most effective offline distribution channels for the vegan food market. The rise of supermarkets in the dairy alternative can contribute to the growth of the vegan food industry. Moreover, the one-stop shop offered by retailers makes it a popular option for consumers.
The food and beverage software development build a high level of online distribution channels via food ordering software. Consumers can stay at home and order vegetarian food for their meals through on-demand food ordering apps. Thanks to the rise of custom software development services in the food technology industry, vegan food products are more viable in front of customers’ eyes.
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Vegan food industry statistics: Vegan food market booming
The global vegan food market reached $15.4 billion in 2020. The demand for the vegan food market is driven by the increasing awareness of vegan food product benefits to human health. According to the Research and Markets report, the vegan food industry value will predictably reach $31.4 billion by 2026, with a CAGR of 10.5% between 2019 and 2026.
Roughly 48% of consumers in the US are ordering food online through some food ordering software. Expectedly, this percentage will grow, leading to massive investments in online distribution channels, followed by food ordering software introduction. So, customers can easily order vegan food products for their meals only using food industry software or food ordering apps.
According to Acumen Research and Consulting paper, North America made up over 31% of the total vegan food market, the largest regional market (2018). However, the Asia-Pacific vegan food market share is expected to grow by over 11.5% (2019 – 2026). Dairy alternatives were the vegetarian food market (2018) and retain their position over the years. Furthermore, the online distribution channel via food ordering software will grow with the fastest CAGR of 10% (2019-2026). Nevertheless, the offline distribution channel segment will account for the largest share of the vegan food industry in the world.
Benefits of vegan food: health-conscious trends new prospect market
Receive and retain nutrients for your body
Your body needs certain nutrients to function for daily activities. If you suddenly crave fries or sweets, you might know what your body needs to eat. Let’s think of craving something that doesn’t sound tasty, for example, salt, indicating dehydration. In these cases, eaters are craving sweets referring that their body needs more magnesium.
Anything that your body is craving can be supplied with plenty of vegan food. Vegan food will help you to absorb nutrients more efficiently. There are some custom mobile apps that you can note and check the number of calories that you need within a day. So you’ll know how many calories you have to add to your body via the food and beverage industry software.
Help offset some types of cancer
A meat-based diet is somehow bad for your health. While most manufacturers tell you that this is to preserve flavor, these meats contain some types of harmful chemicals related to cancer. Thus, the World Health Organization has listed red meat as a carcinogen.
For example, most hot dogs have sodium nitrate, stated to add flavor. If you do not know, sodium nitrate can be harmful to your body when heated up. Thereby, many ingredients have a connection to colorectal cancer disease. Using vegan food products somehow helps eaters to reduce the risk of cancer.
Have a better sleep
For individual usages, they need to sleep from 7tp 9 hours per night, that not simply laying in bed with their eyes closed. It means quality sleep. The more time your body is indulged in a restful sleeping state, the better it will be. Most scientists agree that the body needs to set in REM sleep.
Your dietary choices may affect your quality of sleep, so vegan food products in your meal will promote greater sleep quality. For instance, eating potatoes is a perfect option for a bedtime snack since it contains a high amount of healthy carbs and potassium.
Give you more energy
Finally, vegan food products can give you more energy for daily activities. Eaters may add lots of vegan food items such as legumes, almonds, and bananas, their bodies will get nutrients. These proteins are enough to keep you energized for most of the day. A cup of almonds, for example, can contain about 15 grams of protein.
Regarding protein, men will need about 56 grams, while women need about 46 grams. Consuming almonds as an afternoon snack is a great way to boost your energy. Or even you can easily order vegan diets via some food ordering software while working out, indicated by custom software development companies.
Vegetarian food market: Trends & Challenges for market-leading candidates
Vegan food trends within target users
1. Flexitarians are driving the force of the vegan food trend
The number of eaters who restrict animal-based foods made up roughly 40% of global consumers in 2020. In general, health-conscious trends and animal rights are two key drivers to choose vegan food products, leading to the growth of the vegan food industry. Moreover, there are some ethical reasons driving the demand for vegan food in several countries such as the UK and Germany. A large number of health-conscious eaters in the US and Australia also affect the vegan food trend.
2. Cost is an essential factor for adopting vegan food market
During the covid-19 pandemic, the demand for vegan food has increased dramatically. Retail sales of milk alternatives and meat substitutes have been urged, especially in Western areas. Nevertheless, the vegan food market offers significantly more expensive food than animal-based products, so the price is one of the main factors for adopting vegan food. Moreover, people tend to use food ordering software to take orders of vegetarian foods via mobile app development solutions of food and beverage software development services. That makes the price of vegan food products more expensive. Yet, ordering vegan meals using food industry software somehow affects vegan food trends.
3. Vegan food trend claims remain a niche market
Regarding positioning, the vegan food market is much more widespread than the “plant-based” food market. The plant-based concept turns out to be more appealing to many consumers; however, combining plant-based with vegan food products can gain trust and transparency about health-conscious products.
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Vegan food challenges
Besides the significant benefits of vegan food, there are still have several challenges for the vegan food industry to grow. For instance, the doubts on undernourishment and hygiene in the processing and storage of their ingredients.
In terms of nutrition elements, the processing techniques used to make vegan food will help with raising the retention level of proteins and their usage rate. That makes vegan meat and seafood obtain abundant vegetable protein. Manufacturers also get vegan food challenges regarding quality management and control techniques for processed vegan food items. When ensuring quality management and control techniques, vegan food manufacturers can gain the trust of many companies.
Where is the largest growing market for vegetarians? With the massive benefits of vegan food products for customers, the vegan food market is booming. The article has just shown you an overview of the vegan food industry regarding market share, segmentation, statistics, trends, and their benefits. We will see the vegan food market change, including challenges that the vegan food market might face.