The global plant based ingredient market is projected to grow at a CAGR of 8.7% from 2024 to 2031, reaching a value of USD 13.8 billion by 2031. North America currently dominates the market, accounting for approximately 35% of the global share. Key metrics include rising consumer demand for clean label products and increased adoption of plant-based diets.
The plant-based ingredient sector is rapidly expanding, driven by shifting customer tastes for healthier, more sustainable food options. Growing concern about the environmental impact of animal-derived products, combined with rising health consciousness, is driving demand for plant-based alternatives in a variety of industries.
Market Trend: Clean label products and sustainability drive plant-based ingredient innovation and adoption across industries.
The clean label trend continues to have an impact on the plant-based ingredient business, as buyers prefer products that are visible and easy to recognise. Manufacturers are reacting by creating new plant-based components that meet clean label regulations while also improving functionality and taste. Sustainability concerns are also promoting the usage of plant-based components, which often have a lower environmental impact than animal-based alternatives.
According to a recent industry study, 68% of worldwide consumers actively seek for products with identifiable ingredients, and 73% are willing to pay more for items free of fake additives. This trend has resulted in a 24% increase in new product launches with plant-based claims in the past year. Major food corporations, including Nestlé and Unilever, have promised to expand their plant-based product portfolios, with Nestlé aiming for $1 billion in revenue by 2025.
Furthermore, the sustainability of plant-based components is being discussed. According to a recent life cycle assessment research, producing plant-based proteins uses 47% less land, 72% less water, and emits 35% fewer greenhouse gases than animal-based proteins. This data is driving both consumer demand and business sustainability measures, with companies such as Cargill investing $100 million in pea protein manufacturing to address the growing need for sustainable plant-derived ingredients.
Market Driver: Health-conscious consumers and growing prevalence of dietary restrictions fuel demand for plant-based alternatives.
The plant-based ingredient market is being driven by increasing consumer health consciousness and the prevalence of dietary restrictions. Plant-based ingredients are seen as healthier alternatives to animal-based goods, with advantages such as decreased saturated fat content, more fibre, and important minerals.
According to recent data, 39% of worldwide consumers are actively working to incorporate more plant-based meals into their diets. Furthermore, the number of persons following vegetarian or vegan diets has risen by 40% during the last five years. The growing prevalence of lactose intolerance and dairy allergies, which affect nearly 65% of the world's population, has increased demand for plant-based dairy replacements.
In response to this trend, firms are investing substantially in R&D to increase the nutritional value of plant-based ingredients. Beyond Meat, for example, recently introduced a new version of its plant-based burger with 35% less saturated fat and more nutritional value. Similarly, Ingredion has launched a new line of plant-based proteins with comprehensive amino acid profiles to address protein quality concerns in plant-based diets.
Market Restraint: Taste and texture challenges hinder widespread adoption of plant-based ingredients in certain applications.
Despite the growing popularity of plant-based ingredients, taste and texture remain key barriers to mainstream adoption, particularly in specific food applications. Many buyers still assume that plant-based alternatives have inferior flavour and texture to their animal-based counterparts, which can hinder market expansion.
According to a recent consumer poll, 41% of respondents mentioned taste as the most significant obstacle to embracing plant-based products, with 28% citing texture as a major problem. This problem is especially noticeable in sectors like cheese substitutes and plant-based meats, where reproducing the organoleptic qualities of animal-based goods has proven difficult.
To get around this constraint, companies are spending extensively in flavour and texture innovation. For example, Givaudan, a prominent flavour and fragrance business, has introduced a new line of plant-based flavours intended to cover off-notes in plant proteins. Similarly, Roquette developed a novel pea protein to improve solubility and mouthfeel in plant-based dairy replacements. These technologies seek to close the gap between plant-based and animal-based products, but shifting client views remains a significant problem for the sector.
The protein segment dominates the plant based ingredient market, driven by increasing demand for meat and dairy alternatives.
The protein category now leads the plant-based ingredient market, accounting for more than 40% of total value. This dominance is mostly due to the rising demand for plant-based meat and dairy substitutes, as well as the increased usage of plant proteins in sports nutrition and functional foods.
According to recent industry study, the global plant-based protein market is estimated to reach $15.6 billion by 2026, growing at a compound annual rate of 7.2% between 2021 and 2026. Soy protein is the most popular plant protein, accounting for 35% of the market, followed by pea protein (25%) and wheat protein (20%). New proteins, like chickpeas, fava beans, and algae, are gaining popularity due to their distinct nutritional profiles and functional qualities.
The rapid expansion of the plant-based meat business has had a key role in the protein category. According to current industry forecasts, the worldwide plant-based meat market will grow by 18% in 2020, reaching $4.2 billion. Major companies such as Beyond Meat and Impossible Foods have extended their product ranges and distribution channels, increasing demand for plant protein. For example, Beyond Meat has announced collaborations with McDonald's and Yum! Brands, which are expected to increase demand for their main ingredient, pea protein.
Plant proteins are also increasingly being used as dairy replacements. The global plant-based milk market is expected to be worth $21.5 billion by 2024, with almond milk leading the way at 39% and soy milk at 28%. This has increased the need for plant proteins in dairy replacement formulations, including soy, pea, and oat proteins. Companies like Oatly have achieved remarkable success, with their recent IPO valued at more than $10 billion, highlighting the promise of the plant-based dairy sector.
North America leads the global plant based ingredient market, driven by high consumer awareness and product innovation.
North America now dominates the global market for plant-based ingredients, accounting for more than 35%. This leadership position is due in part to increased consumer awareness of the health and environmental benefits of plant-based foods, as well as a strong presence of important market players and ongoing product development.
The plant-based ingredient market in North America is estimated to rise at a 9.5% CAGR between 2024 and 2031, reaching $4.8 billion by the end of the forecast period. The US is the region's largest market, accounting for over 80% of the total North American market share.
Cargill announced a $75 million investment in its Minnesota pea protein production facility in March 2024, hoping to meet the region's growing demand for plant-based products.
Key Statistics: According to a recent survey, 39% of Americans are actively seeking to incorporate more plant-based meals into their diets, while 47% of customers in the region look for plant-based options when shopping.
Canada has emerged as a major player in the plant-based ingredient market, with the government investing CAD 150 million in the country's plant-protein sector. This project seeks to establish Canada as a global leader in plant-based ingredient manufacture and innovation.
The market for plant-based ingredients is highly competitive, with key companies prioritising product innovation, strategic collaborations, and capacity expansion. Leading firms, including as Cargill, ADM, and Ingredion, have a considerable market share due to their global presence and extensive product offerings.
Cargill, for example, has grown its plant-based ingredient range through acquisitions and investments. The company recently purchased Leman Decoration Group, expanding its expertise in plant-based decorations for the baking industry. ADM has prioritised strategic alliances, working with firms such as Perfect Day to generate animal-free dairy proteins through fermentation technology.
Emerging competitors such as Beyond Animal and Impossible Foods have shook up the industry with their novel plant-based animal replacements, resulting in increased demand for speciality plant proteins. These companies have raised substantial funds and extended their distribution networks, posing a challenge to established ingredient suppliers.
In terms of market share, Cargill and ADM account for 15-20% of the worldwide plant-based ingredient market, while Ingredion has 10-15%. However, the market is still fragmented, with many smaller businesses and startups entering the area, particularly in specific niches like new plant proteins and fermentation-derived components. Looking ahead, the competitive landscape is projected to shift rapidly, with a greater emphasis on sustainable sourcing, clean label solutions, and functional benefits. Companies who can provide a combination of nutritional value, sustainability, and improved flavour and texture will surely have a competitive advantage in this expanding industry.
The market for plant-based ingredients is expected to expand substantially in the coming years, because to a combination of reasons such as shifting consumer preferences, environmental concerns, and technical advancements. As the industry expands, we anticipate a transition towards more complex and functional plant-based components capable of accurately replicating the taste, texture, and nutritional profile of animal-based foods.
One major trend to monitor is the creation of hybrid products that mix plant-based components with cultivated animal cells or proteins produced through precision fermentation. This technique offers the potential to alleviate some of the present restrictions of plant-based ingredients while still appealing to flexitarian clients who want to reduce their use of animal products.
Furthermore, the emphasis on sustainability is projected to grow, with more enterprises adopting regenerative agriculture practices and researching innovative plant sources that provide both environmental and functional benefits. Ingredients generated from algae, fungus, and lesser-known plant species are expected to gain popularity as the sector strives to diversify its raw material base and improve the sustainability of its supply chain.
Cargill, Inc.
Archer Daniels Midland Company
Ingredion Incorporated
DuPont de Nemours, Inc.
Roquette Frères
Tate & Lyle PLC
SunOpta Inc.
Axiom Foods, Inc.
BENEO GmbH
Kerry Group plc
Glanbia plc
AGT Food and Ingredients
In June 2024, Ingredion introduced a new line of texturising starches developed from sustainable plant sources, with an emphasis on clean label dairy substitute applications.
In April 2024, Roquette expanded its pea protein manufacturing capacity in Canada to fulfil North America's growing demand for plant-based proteins.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & 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. Cargill, Inc.
5.2. Archer Daniels Midland Company
5.3. Ingredion Incorporated
5.4. DuPont de Nemours, Inc.
5.5. Roquette Frères
5.6. Tate & Lyle PLC
5.7. SunOpta Inc.
5.8. Axiom Foods, Inc.
5.9. BENEO GmbH
5.10. Kerry Group plc
5.11. Glanbia plc
5.12. AGT Food and Ingredients (*LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Clean label products and sustainability drive plant-based ingredient innovation
6.1.2. Emerging hybrid products combining plant-based and cellular agriculture
6.1.3. Increased focus on regenerative agriculture and novel plant sources
6.2. Market Drivers
6.2.1. Health-conscious consumers and dietary restrictions fuel demand
6.2.2. Environmental concerns driving shift towards plant-based alternatives
6.2.3. Technological advancements improving taste and functionality
6.3. Market Restraints
6.3.1. Taste and texture challenges hinder widespread adoption
6.3.2. Price competitiveness with traditional ingredients
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 (%)-- 2024-2031)
7.1. Soy
7.2. Wheat
7.3. Pea
7.4. Rice
7.5. Others
8. BY TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2024-2031)
8.1. Proteins
8.2. Starches & Derivatives
8.3. Fibers
8.4. Others
9. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2024-2031)
9.1. Food & Beverages
9.2. Animal Feed
9.3. Personal Care & Cosmetics
9.4. Pharmaceuticals
9.5. Others
10. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2024-2031)
10.1. North America
10.1.1. United States
10.1.2. Canada
10.1.3. Mexico
10.2. South America
10.2.1. Brazil
10.2.2. Argentina
10.2.3. Rest of South America
10.3. Europe
10.3.1. Germany
10.3.2. United Kingdom
10.3.3. France
10.3.4. Italy
10.3.5. Spain
10.3.6. Russia
10.3.7. Rest of Europe
10.4. Asia-Pacific
10.4.1. China
10.4.2. Japan
10.4.3. India
10.4.4. Australia
10.4.5. South Korea
10.4.6. Rest of Asia-Pacific
10.5. Middle-East
10.5.1. UAE
10.5.2. Saudi Arabia
10.5.3. Turkey
10.5.4. Rest of Middle East
10.6. Africa
10.6.1. South Africa
10.6.2. Egypt
10.6.3. 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 (%)-- 2024-2031)
BY SOURCE
BY TYPE
BY APPLICATION
BY REGION
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