The global plant-based beverage market is expected to increase at a CAGR of 12.3% between 2024 and 2031. The market value is predicted to rise from USD XX billion in 2024 to USD YY billion in 2031.
Europe now dominates the market, with North America and Asia-Pacific following closely behind. Key metrics include rising consumer demand for plant-based diets, increased understanding of health and sustainability, and rising lactose sensitivity among the global population.
The market is rapidly developing as a result of the rise of veganism and flexitarianism, new product launches with improved taste and nutritional profiles, and an increasing retail presence of plant-based beverages. The development of novel plant sources for beverages, as well as the addition of beneficial components, all contribute to market growth.
Market Trend: Diversification of plant sources and flavour innovations
The plant-based beverage industry is seeing a substantial shift towards plant source variety and flavour innovation. While classic alternatives like soy, almond, and coconut are still popular, customers are increasingly looking for innovative and exotic plant-based beverages created with components like oats, peas, hemp, and even vegetables. This movement is motivated by a desire for variety, new gastronomic experiences, and nutritional diversity. For example, in 2023, a well-known plant-based beverage firm introduced a line of vegetable-based drinks comprising fruits and vegetables such as carrot, mango and beetroot berry, aimed at health-conscious consumers seeking low-sugar alternatives. Flavour development is also important, with companies developing artisanal and gourmet flavours to cater to discerning palates. This trend is predicted to continue as producers look for new plant sources and flavour combinations to differentiate their goods in an increasingly competitive market.
Market Driver: Increasing health consciousness and dietary shifts
Consumer's increased health consciousness and transition to plant-based diets are major drivers of the plant-based beverage industry. Consumers are becoming more aware of the health benefits of plant-based diets, which include a lower risk of heart disease, diabetes, and certain malignancies. Furthermore, concerns about hormones and antibiotics in animal products have prompted many customers to seek out plant-based alternatives. According to a 2023 global survey, 65% of consumers choose plant-based beverages to traditional dairy products because of their health benefits. Flexitarianism, in which individuals limit their use of animal products but do not totally eliminate them, has greatly increased demand for plant-based beverages. According to industry experts, the number of self-identified flexitarians climbed by 25% between 2022 and 2023. This nutritional trend, combined with the rising prevalence of lactose intolerance and milk allergies, is increasing the popularity of plant-based beverages among all demographics.
Market Restraint: Challenges in Matching the Nutritional Profile of Dairy
One of the most difficult issues for the plant-based beverage sector is replicating dairy milk's entire nutritional profile, particularly in terms of protein content and important components such as calcium and vitamin B12. While plant-based beverages can provide considerable nutritional benefits, some consumers and nutritionists are concerned about their potential to provide as a comprehensive nutritional replacement for dairy, especially in growing children. A 2023 study discovered that just 12% of plant-based milk replacements have the same protein level as cow's milk without fortification. Furthermore, the bioavailability of minerals in some plant-based beverages may be lower than in dairy. This nutritional gap may be a barrier to adoption for some consumer groups, notably those concerned about protein intake or with specific nutritional requirements. Addressing these nutritional difficulties with improved formulations, fortification, and clear communication of nutritional benefits is critical to the long-term viability and acceptability of plant-based beverages in the mainstream.
Almond-based beverages dominate the plant-based beverage market.
Almond-based beverages account for more than 30% of the plant-based beverage industry's total volume. This dominance is due to almond milk's mild, pleasant flavour, low calorie count, and reputation as a good substitute for dairy milk. Almond milk is also naturally lactose-free and low in saturated fat, making it appealing to health-conscious shoppers and lactose intolerant individuals.
Recent advancements in the almond-based beverage industry include the launch of barista-style almond milk formulations intended for use in coffee shops. For example, in 2023, a well-known plant-based beverage manufacturer introduced a new almond milk product that froths and steams like dairy milk, responding to the increased demand for plant-based alternatives at cafes and coffee shops. These enhancements are extending the use of almond milk beyond home consumption and into foodservice settings.
The increased emphasis on sustainability and water efficiency in agriculture benefits the almond-based beverage industry as well. Manufacturers are responding to concerns about the water intensity of almond agriculture by implementing more sustainable farming practices and developing alternate production methods. According to industry data, sales of organic and sustainably sourced almond milk climbed by 18% in 2023 compared to the previous year, demonstrating a growing customer preference for ecologically responsible options.
Europe leads the global plant-based beverage market:
Europe now accounts for more than 35% of the worldwide plant-based beverage market. This dominant position is mostly due to the region's strong vegan and vegetarian culture, heightened awareness of environmental sustainability, and innovative food and beverage business.
Germany, the United Kingdom, and Sweden are among the European countries with the highest consumption of plant-based beverages. The region's strict food labelling and quality requirements have also helped to boost customer confidence in plant-based products. Furthermore, the proliferation of plant-based beverage companies and startups in Europe has resulted in a diverse and innovative product selection.
Recent news reports highlight the growing popularity of plant-based beverages in Europe. In 2023, a well-known European supermarket chain reported a 50% rise in sales of plant-based milk replacements over the previous year. This growth in demand has resulted in more shelf space for plant-based beverages in retail outlets throughout the region.
Key figures show Europe's dominance in the plant-based beverage sector. According to our analysis, Europe accounted for more than 40% of all new product launches in the plant-based beverage sector by 2023. Furthermore, the number of homes in the region that buy plant-based milk replacements has increased by 30% year on year.
The European market has been very active in creating new plant-based beverage options. In 2023, a well-known food technology business collaborated with a Dutch university to develop a novel fermentation technique for oat-based beverages, increasing their nutritional value and smoothness. This success reinforces Europe's status as a research and development hub for plant-based beverages.
The plant-based beverage market is characterised by fierce rivalry and rapid product development. To keep their competitive edge, major corporations are expanding their product lines, improving flavour and nutritional characteristics, and enhancing their distribution networks.
Leading market players have reported good financial results, with several reporting double-digit growth in their plant-based beverage categories. Market leaders usually devote 8-10% of their revenue to R&D, demonstrating the importance of innovation in this competitive industry.
Recent trends in the competitive landscape include an emphasis on clean label items with minimal ingredients, the addition of useful compounds such as adaptogens and probiotics, and the creation of protein-fortified plant-based beverages. To attract environmentally conscious customers, businesses invest in sustainable packaging and transparent supply chains.
In terms of market share, the top five competitors account for roughly 45% of the global plant-based beverage industry. However, the sector is seeing the introduction of new companies, particularly regional brands and startups offering unique plant sources or specialised formulae, which is projected to increase competitiveness in the years ahead.
Plant-based beverage makers and foodservice chains are forming more partnerships, with many high-profile collaborations announced in the last year. These collaborations seek to enhance the availability of plant-based meals in cafés, restaurants, and other out-of-home eateries.
Advances in plant protein extraction methods, the development of hybrid goods combining multiple plant sources, and the incorporation of personalised nutrition concepts into product offerings are all expected to have an impact on the competitive environment in the future. Companies that can effectively navigate these trends while producing innovative, sustainable, and delicious products will gain a huge competitive advantage in the market.
The plant-based beverage sector is at a tipping point, ready for rapid expansion and innovation in the coming years. One of the most intriguing trends we've seen is the combination of plant-based beverages and functional nutrition. We predict a spike in products that not only serve as dairy alternatives but also provide unique health advantages via adaptogens, nootropics, and other bioactive substances.
Another trend to watch is the growing localisation of plant-based beverages. As the market matures, we anticipate to see more goods that cater to regional preferences and use locally sourced ingredients. This tendency towards localisation may lead to the creation of new plant sources that are both sustainable and culturally relevant to certain markets.
The application of technology to improve the sensory experience of plant-based beverages has also shown promising results. Advances in food science and processing technology allow firms to produce plant-based beverages with the same flavour, texture, and mouthfeel as dairy milk. We believe that more investment in this business will help to close the gap between plant-based and traditional dairy products.
Finally, we predict a greater focus on the environmental impact of plant-based beverages. While these products are typically thought to be more environmentally benign than dairy, there is rising concern about their water consumption, carbon footprint, and packaging. Companies that can demonstrate strong sustainability credentials throughout the value chain will undoubtedly gain a competitive edge in an increasingly environmentally sensitive market.
Danone S.A.
The Coca-Cola Company
PepsiCo Inc.
Blue Diamond Growers
Kikkoman Corporation
Califia Farms, LP
Ripple Foods
Oatly AB
SunOpta Inc.
Vitasoy International Holdings Limited
Danone S.A. will introduce a new line of plant-based beverages enriched with algae-derived omega-3 fatty acids in September 2024, with the purpose of capitalising on the rising market for functional plant-based products.
In July 2024, Oatly AB forged a strategic relationship with a major coffee shop chain to distribute its oat milk products in over 10,000 locations throughout Europe and North America.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope and Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking—Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies List by Country) (Premium)
5. COMPANY PROFILES
5.1. Danone S.A.
5.2. The Coca-Cola Company
5.3. PepsiCo Inc.
5.4. Blue Diamond Growers
5.5. Kikkoman Corporation
5.6. Califia Farms, LP
5.7. Ripple Foods
5.8. Oatly AB
5.9. SunOpta Inc.
5.10. Vitasoy International Holdings Limited (*LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Diversification of plant sources and flavour innovations
6.1.2. Convergence of plant-based beverages with functional nutrition
6.1.3. Increasing localisation of plant-based beverages
6.2. Market Drivers
6.2.1. Increasing health consciousness and dietary shifts
6.2.2. Growing awareness about sustainability
6.2.3. Rising lactose intolerance among the global population
6.3. Market Restraints
6.3.1. Challenges in matching nutritional profile of dairy
6.3.2. Price premium of plant-based beverages
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY SOURCE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH)--2020-2031)
7.1. Almond
7.2. Soy
7.3. Coconut
7.4. Rice
7.5. Oats
7.6. Others
8. BY FUNCTION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. Regular
8.2. Flavoured
9. BY DISTRIBUTION CHANNEL (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. Supermarkets/Hypermarkets
9.2. Convenience Stores
9.3. Online Retail
9.4. Others
10. BY TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
10.1. RTD Tea & Coffee
10.2. Plant-based Milk
10.3. Juices
11. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
11.1. North America
11.1.1. United States
11.1.2. Canada
11.1.3. Mexico
11.2. South America
11.2.1. Brazil
11.2.2. Argentina
11.2.3. Rest of South America
11.3. Europe
11.3.1. Germany
11.3.2. United Kingdom
11.3.3. France
11.3.4. Italy
11.3.5. Spain
11.3.6. Russia
11.3.7. Rest of Europe
11.4. Asia-Pacific
11.4.1. China
11.4.2. Japan
11.4.3. India
11.4.4. Australia
11.4.5. South Korea
11.4.6. Rest of Asia-Pacific
11.5. Middle-East
11.5.1. UAE
11.5.2. Saudi Arabia
11.5.3. Turkey
11.5.4. Rest of Middle East
11.6. Africa
11.6.1. South Africa
11.6.2. Egypt
11.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (2020-2031)
By Source:
Almond
Soy
Coconut
Rice
Oats
Others
By Function:
Regular
Flavoured
By Distribution Channel:
Supermarkets/Hypermarkets
Convenience Stores
Online Retail
Others
By Type:
RTD Tea & Coffee
Plant-based Milk
Juices
By Region:
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa
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