Plant Based Food Market

The global plant-based food market is growing at a rapid pace with rising health consciousness among the consumers towards healthy eating habits. The growing prevalence of lactose intolerance among the population across the globe is leading to an increased demand for non-dairy products. This has increased the sales of plant-based milk and derivatives. Also, growing consumer preference for a vegan and vegetarian diet is driving the growth of the global plant-based food market. Moreover, the growth of the organized retail sector in the developing economies is contributing to market growth, making the products easily available to consumers. However, poor olfactory properties along with allergic reactions associated with certain plant protein sources hamper market growth.

There has been a rise in the number of cases of lactose intolerance across the globe. Lactose intolerant people lack the enzyme lactase in their small intestine which breaks down lactose into simpler sugars. Lactose intolerance includes an allergy to dairy products, deficiency of disaccharides, and a lactase deficiency. Undigested or partially digested lactose leads to abdominal bloating, stomach pain, diarrhea, tiredness, sleep disturbances, vomiting, and other health problems. Estimates for lactose intolerance vary by ethnicity. African, American, and Asian ethnicities see a 75% - 95% lactose intolerance rate, while northern Europeans have a lower rate at 18% - 26% lactose intolerance. The presence of lactose intolerance across the globe has forced people to opt for alternatives to dairy-based milk and milk products. This has led to an increased sale of plant-based milk and derivatives.

The above table depicts the comparison between the various nutrients present in cow, soy, and oat milk. Soy and oat milk, despite being plant-based, have a similar number of calories as cow’s milk, while cow’s milk has significantly higher sugar content. The protein content in soy and cow’s milk is similar; however, it is lowest in oat milk. Oat milk also has a significant number of calories with low saturated fat and sugar content. Hence, plant-based milk is high in nutrients and a suitable alternative to dairy milk.

The global plant-based food market has seen many product line expansions in recent years. Increased R&D expenditures and technological advances have led to the emergence of innovative products in the market. With the growing stability of the vegetarian population at global level, and the assurance of the steady and mature vegetarian market in developed countries such as the UK, the US, Germany & France, the food & beverages manufacturers have started concentrating more on the different plant-based product options and developing products with plant sources flavors. An increasing number of companies are expanding their consumer appeal by focusing on plant protein ingredients and staying away from animal ingredients wherever possible. Even the meat companies are expanding their product line with meat alternatives to cater to the vegetarian sector to avoid the risk of shutting out a growing area of the market. Plant protein ingredient is gaining high acceptance in food application industry such as bakery & confectionery, breakfast cereals, snacks, RTD beverages, and RTE & RTC meals, among others. Moreover, athletes and bodybuilders are also inclining towards the consumption of protein supplements which is increasing the application of plant-protein ingredients in the dietary supplements as well. In January 2020, a staggering 1,200 new vegan products were launched across the globe. Among the brands offering new plant-based options were Heinz, Hellman’s, Ben & Jerry’s, Quorn and Dr. Oetker, and eateries including KFC, Subway, Burger King, McDonald’s, TGI Fridays, Wagamama, and Pizza Hut. With continuous product innovations and product launches of plant-based food, the global market size is projected to gain tremendous growth in the coming years.

Soy and nut protein are the major plant-protein sources having a wide range of application in the food & beverages industry. However, unpleasant tastes are often associated with proteins derived from plant sources with varying amino acid profiles. Rice, pea, and chia are all very popular sources of plant-derived proteins, but they all have unique, inherent off-tastes, bitter notes, and vegetative aftertastes. This acts as a restraint for the acceptance of plant-based food among consumers. Moreover, a notable segment of the population is allergic to certain varieties of nuts such as walnuts, almonds, hazelnuts, and Brazil nuts. The allergic reactions caused due to the consumption of nuts can range from mild to severe symptoms such as itchiness, rashes, eczema, and difficulty in breathing. As per Food Allergy Research & Education (FARE), peanuts and tree nuts (walnuts, almonds, cashews, pistachios, and pecans) are among the eight foods that account for nearly 90% of all food-allergic reactions annually in the US. Moreover, the estimated prevalence of nut allergies in the US is approximate 0.4%–0.6%. This is a major factor that is hindering the growth of the global plant-based food market.

Although there has been high growth in terms of consumption of plant-based food, preference for taste as well as cultural reasons limit the sales of certain plant-based food. For instance, the majority of the population regard superior taste as important when purchasing food. Hence, even though Asian consumers have been used to consuming plant-based protein such as tofu, it is a different matter when it is in the form of a beverage. As such, there remains a need for plant-based beverages to appeal to local consumer tastes. Moreover, traditionally consumers are used to the taste of dairy milk, and adoption of plant-based milk would not be easy among the consumers. Strong marketing and promotional activities are required to be carried out by the manufacturers to create influence among the consumers in favor of their products.