Plant-based Beverage Market Size, Competitive Landscape and Market Forecast - 2029
Global Plant-based Beverage Market is segmented By Source (Fruits, Seeds, Leaves, Nuts, Vegetables, Soy), By Distribution Channel (Online Sales (Defense, Government Building), Offline Sales (Convenience Stores, Grocery Stores, Super Markets)), By Type (Juices, Offline Sales, Coffee, Tea, Plant-Based Milk), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029
Market Overview:
The Global "Plant-based Beverage Market" is estimated to reach a high CAGR during the forecast period (2022-2029)
Plant-based beverages are beverages that may be used in place of dairy. These beverages are made from plants and are regarded as a healthy substitute for dairy. Soymilk, rice milk, and almond milk are three of the most popular plant-based beverages throughout the world. Because they contain numerous vital vitamins and minerals, they are considered healthy. They are also low on fats, cholesterol, and has zero concentration of lactose, owing to which the market for plant-based beverages is forecasted to reach USD XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).
Market Dynamics:
Increase in health consciousness among consumers
The market is growing due to an increase in health consciousness across a broad demographic segment as a result of their busy and stressful lifestyles. Growing public knowledge of the health advantages of beverages made from fruits, vegetables, and nuts is boosting plant-based beverages. Furthermore, in the near future, shifting consumer preferences from high-calorie carbonated drinks to healthy plant-based beverages is projected to drive the plant-based beverages market. Numerous studies have supported plant-based diets and their related health advantages, including findings presented at Nutrition 2018, the American Society for Nutrition's first flagship meeting (ASN). Plant-based diets are linked to a lower risk of diabetes, coronary heart disease, and obesity, according to the study.
Moreover, the market for plant-based beverages is growing due to an increase in the number of vegans and increased awareness of healthy and cruelty-free dietary options. Furthermore, an increase in the number of lactose intolerance cases, particularly in developed regions, has led to an increase in the demand for vegan drinks, which has fueled the expansion of the plant-based beverages market. Increasing vegan population across the world especially in the U.K., U.S., and other developed countries, is promoting the demand for plant-based beverages in the market. For instance, according to the statistics provided by ‘The Vegan Society’, the vegan population in the U.K. has increased fourfold from 2014 to 2019 and reached 600,000. Numerous advantages given by plant-based beverages, such as improved physical and mental health, are expected to boost the expansion of the plant-based beverages market.
Raw material price fluctuations and high costs, on the other hand, are key restrictions on this industry. The volatility in raw material prices is likely to influence demand for non-dairy drinks, which might stymie market growth over the study period.
Market Segmentation:
Oat is the leading ingredient for plant-based beverages in Europe, accounting for 35% of the market
The market revenue from soy products accounted for a revenue share of XX% in 2020. Soy milk is one of the most popular beverages across the globe owing to its various benefits. The product is a good source of protein, vitamin A, vitamin B-12, potassium, and isoflavones. It is also considered the best alternative for lactose-intolerant consumers. Major manufacturers are launching new products in order to cater to the increasing demand for plant-based beverages from consumers. For instance, in January 2018, The Hershey Company launched soy milk under the brand name ‘SOFIT’ in the U.S.
Coconut-based beverages is the fastest-growing segment with a CAGR of XX% from 2021 to 2028. Coconut water is widely used as a hydration drink in the gym and fitness sector whereas coconut milk is widely used in a variety of Asian and Caribbean cuisines. Furthermore, it has significant health benefits due to its rich antioxidant properties and is helpful in fighting diseases such as diabetes, kidney stones, and blood pressure.
Geographical Penetration:
Asia Pacific is expected to dominate the global plant-based beverages market during the forecast period
APAC is the biggest plant-based market in the world with 93% of the soymilk market and 63% of the rice, nuts, grains and seeds-based market. In the Asia Pacific region, the consumption of plant-based beverages as part of the daily diet is the norm. Soy is widely available, inexpensive and is firmly established as the dominant base ingredient. The challenge for manufacturers in this mature market is how to add value to a category that is already heavily commoditized. The region includes two major revenue-generating countries, China and Thailand, both of which have a substantial plant-based beverage customer base, with China having one of the world's largest lactose intolerant populations. In China, a much-cited study estimated that 92% of adults had trouble absorbing lactose; more recently, China's preventative medicine agency suggested that by the time kids are 11 to 13 years old, around 40% have lost the ability to digest it. Due to increased urbanization and the growing number of high-income groups in the region, the Asia Pacific region is projected to be a key revenue-generating pocket for plant-based beverages. To deal with their hectic lifestyles, consumers in this region are turning to natural and nutritious food alternatives. This has resulted in an increase in sales of plant-based beverages.
North America is the fastest-growing region with a CAGR of XX% from 2021 to 2028 owing to the increasing vegan population in the region over the past few years. For instance, according to the data provided by The Vegan Society, the vegan population in America increased by 600% from 2014 to 2019, opening new avenues for plant-based products over the forecast period. Almond has the greatest market share in the USA and grew 14.5% in 2017-18. In Europe and Central Asia, the consumption of plant-based beverages from rice, nuts, grains and seeds is expected to increase by a CAGR of 20% between 2018-212, while the plant-based beverage market in Asia-Pacific, including rice, nut, grain, soya and seed milk, stood at 14.9 billion liters in 2019, expanding at a CAGR of 6.9% from 2014 to 2019.
Competitive Landscape:
The market is fragmented in nature with the continuous introduction of innovative products from the new entrants in the market. WhiteWave Foods Company, Blue Diamond, The Hain Celestial Group Inc., and Eden Foods Inc. are some of the key players in the market. Moreover, major carbonated and soft drinks manufacturers are acquiring small scale companies with high potential in the market. To boost profitability and strengthen their position in the plant-based beverages market, firms in the plant-based beverage sector have turned to product launch and acquisition as a major development strategy. Costa Coffee, a Coca-Cola Company subsidiary, announced plans to offer soy milk in the United Kingdom in March 2019 and has already begun selling dairy-free items such as coconut, almond, and soy. In 2019, Earth’s own Inc launched a new plant-based chocolate old beverage. This expanded the product portfolio of the company. In 2021, SunOpta announced the acquisition of plant-based brands Dream and WestSoy. The Dream brand, which was introduced in 1982, is the number two brand of shelf-stable, plant-based milk. In 2021, Sunopta launched a new organic oat Creamer Brand. As the demand for plant-based food and beverage choices grows, one of the first organic oat coffee creamers hits the market. In 2020, Sunopta invested USD 26 million in an oat processing facility to meet demands for plant milk
COVID-19 Impact: Positive impact on the plant-based beverages market
Increased concern around health, immunity and sustainability is driving increased demand for plant-based products. Due to the growing demand for nutritional products, COVID-19 has had a beneficial impact on the plant-based beverage sector throughout the COVID period. Plant-based beverages give nutrition and immune boosts, which is expected to promote market growth. The virus's impact can be reduced by drinking a plant-based beverage, which is predicted to increase demand for such beverages, bolstering the market during the pandemic.