Plant-Based Diet Market Growth ( USD 238.1 Bn by 2034 at 18.1% CAGR)

Shreyas Rokade
Shreyas Rokade

Updated · Feb 3, 2025

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Introduction

The global plant-based diet market is witnessing remarkable growth, driven by a variety of factors, and is projected to expand significantly in the coming decade. The market size, currently valued at USD 45.1 billion in 2024, is anticipated to reach around USD 238.1 billion by 2034, with a Compound Annual Growth Rate (CAGR) of 18.1% during the forecast period from 2023 to 2033.

Key growth drivers include increasing ethical concerns over animal welfare, rising awareness of the health benefits associated with plant-based diets, and growing environmental sustainability efforts. These factors are encouraging more consumers to choose plant-based options over traditional animal-based products. Recent developments in the market reflect this shift, with major companies like Beyond Meat and Impossible Foods leading the charge, continually innovating and expanding their product lines to cater to this growing demand. For instance, Beyond Meat recently launched new plant-based chicken products, available in major retailers like Kroger and Walmart​.

However, the market faces challenges, including the higher cost of plant-based products compared to animal-derived foods, which can limit accessibility, particularly in lower-income regions​. Additionally, the taste and texture of plant-based products often fall short of their animal-based counterparts, which can deter some consumers from making the switch​

Recent developments in technology are addressing these challenges by improving the sensory qualities of plant-based foods, making them more palatable and similar to traditional meat and dairy products. Innovations in plant-based meat technologies, for example, are creating more appealing textures and flavors, which not only attract vegetarians and vegans but also flexitarians who are reducing their meat consumption for health or ethical reasons​

Evonik Industries AG has also made significant strides by launching its first plant-based product, PhytriCare® IM, which consists of plant extracts with a high flavonoid content, targeting animal nutrition with a focus on anti-inflammatory benefits. Hubei Sanonda Co., Ltd., while less prominently featured in specific recent developments related to the plant-based diet market, continues to be involved in the broader agricultural chemicals sector which indirectly supports the cultivation of plant-based foods.

Key Takeaways

  • Plant Based Diet Market size is expected to be worth around USD 238.1 Bn by 2034, from USD 45.1 Bn in 2024, growing at a CAGR of 18.1%.
  • Plant-Based Dairy Products held a dominant market position, capturing more than a 49.1% share of the plant-based diets market.
  • Seeds and Nuts held a dominant market position, capturing more than a 35.7% share of the plant-based diets market.
  • Supermarkets/Hypermarkets held a dominant market position, capturing more than a 46.3% share of the plant-based diets market.
  • North America dominated the plant-based diets market, holding a substantial share of 31.8%, valued at USD 14.1 billion.

Report Scope

Market Value (2024)USD 45.1 Billion
Forecast Revenue (2034)USD 238.1 Billion
CAGR (2025-2034)18.1%
Segments CoveredBy Product Type (Plant based Dairy Products, Plant based Meat Products, Others), By Source (Seeds and Nuts, Whole Grains, Fruits and Vegetables, Legumes), By Distribution Channel (Supermarkets/hypermarkets, Convenience Stores, Specialty Stores, Online, Others)
Competitive LandscapeAbove Food Inc., Amy’s Kitchen Inc., Atlantic Natural Foods LLC, Beyond Meat Inc., Conagra Brands, Inc., Danone SA, DSM-Firmenich AG, Nestle S.A., Garden Protein International Inc., Glanbia PLC, Impossible Foods Inc., Lightlife Foods Inc. (Maple Leaf Foods Inc.), Maple Leaf Foods Inc., Nestle S.A., The Hain Celestial Group, Inc., Tyson Foods Inc., Vbite Food Ltd.

Emerging Trends

  • Increased Focus on Gut Health through Fermented Foods: The benefits of fermented foods are gaining more recognition for their role in enhancing gut health. Expect to see a rise in plant-based fermented food products such as kimchi, sauerkraut, and kombucha, known for boosting digestion and immunity​.
  • Expansion of Clean Label Products: The demand for transparency in food production is leading to more clean label products. Consumers are increasingly seeking plant-based foods with natural, recognizable ingredients that offer nutritional benefits without artificial additives​.
  • Rise of Functional and Exotic Ingredients: Exotic mushrooms like shiitake and lion’s mane are emerging as superfoods in the plant-based sector due to their health benefits and rich flavors. There’s also a growing trend towards incorporating ingredients that support specific health concerns such as digestive health, with an increase in products containing prebiotics and probiotics​.
  • Growth in Dairy and Meat Alternatives: The market for dairy and meat alternatives continues to expand with innovations aimed at improving taste and texture to closely mimic their animal-based counterparts. This includes the introduction of new plant-based milk alternatives and the ongoing enhancement of plant-based meats and seafoods​.
  • Sustainability-Driven Choices: Consumers are increasingly influenced by the environmental impact of their dietary choices, prompting a shift towards plant-based diets as a sustainable option. Brands are responding by highlighting the climate benefits of plant-based foods and creating products that align with these values​.

Use Cases

  • Reduced Land Use: Plant-based diets can significantly decrease the amount of land needed for agriculture. By replacing animal proteins with plant-based options, we can reduce global agricultural land use substantially. For instance, adopting a plant-based diet can cut down the hectares used for animal pasture, enabling the restoration of ecosystems and biodiversity​.
  • Lower Greenhouse Gas Emissions: The production of plant-based foods results in lower carbon emissions compared to livestock farming. This shift can greatly mitigate the impact of climate change by reducing the carbon footprint associated with food production​.
  • Chronic Disease Prevention: Plant-based diets are associated with a lower risk of chronic diseases such as type 2 diabetes, certain cancers, and obesity. The high content of antioxidants, fiber, and less saturated fat in plant-based foods contributes to better heart health and reduced incidence of these conditions​.
  • Improved Digestive Health: The fiber-rich composition of plant-based diets supports a healthy gut microbiome, aiding in better digestion and regular bowel movements​
  • Reduced Water Usage: It is more water-efficient to produce plant-based proteins like tofu and legumes compared to animal-based proteins. For example, producing one pound of beef requires significantly more water than producing equivalent plant-based proteins like tofu or oats​.
  • Food Security Enhancement: Shifting to plant-based diets can increase the global food supply without the need to expand croplands. This can contribute to greater food security globally by making more efficient use of existing agricultural resources​.
  • Animal Welfare: Adopting plant-based diets can reduce the demand for animal farming, which often involves inhumane conditions for livestock. This shift can align with ethical values concerning animal welfare​.
  • Cultural Shifts: Plant-based diets are becoming more mainstream, supported by the growing availability of plant-based options in markets and restaurants, making it easier for individuals to adopt these diets irrespective of their cultural background​.

Major Challenges

Nutritional Deficiencies: A plant-based diet can lead to deficiencies in essential nutrients such as Vitamin B12, iron, protein, and omega-3 fatty acids, which are predominantly found in animal products. To counter this, individuals may need to rely on fortified foods or supplements to meet their nutritional needs​.

Balancing Macronutrients: Achieving the right balance of carbohydrates, proteins, and fats can be challenging, especially for those new to plant-based eating. This often requires careful meal planning and might involve incorporating a variety of legumes, nuts, seeds, and whole grains to ensure adequate protein intake​.

Social and Cultural Barriers: Adopting a plant-based diet can be difficult in social settings and cultures where meat is a central part of meals. This can lead to social isolation or difficulty in maintaining dietary preferences in social gatherings and family events​.

Accessibility and Affordability: While staple plant-based foods like beans and grains are generally affordable, specialty vegan products and substitutes can be more expensive and less accessible in certain regions. This can pose a barrier to adopting and maintaining a plant-based diet​.

Dealing with Skepticism and Criticism: Those adopting a plant-based diet may face skepticism or criticism from peers who do not understand or support this dietary choice. Overcoming this challenge involves arming oneself with knowledge and responding confidently to such criticisms​

Health Conditions and Food Sensitivities: For individuals with specific health conditions or food sensitivities, such as nut allergies or digestive issues, some plant-based foods might need to be avoided, which can limit diet options and complicate nutrition​.

Transition and Adaptation: Shifting to a plant-based diet can be a significant change that requires time to adapt, both in terms of digestion and acquiring a taste for new foods. Initially, this can lead to gastrointestinal discomfort as the body adjusts to higher fiber intake​.

Market Growth Opportunities

Expanding Dairy and Meat Alternatives: The demand for plant-based dairy and meat alternatives continues to rise, fueled by increasing health consciousness and ethical concerns regarding animal welfare. This trend is supported by the significant market share held by dairy substitutes due to the high prevalence of lactose intolerance globally. Innovation in this sector, particularly in developing plant-based alternatives that mimic traditional dairy and meat products in texture and flavor, presents a substantial opportunity for growth​.

Rise in Alternative Protein Sources: There’s a notable shift towards alternative protein sources such as legumes, seeds, nuts, and whole grains. These sources are capturing substantial market interest due to their health benefits and lower environmental impact compared to traditional animal-based proteins. The ongoing advancements in processing technologies that improve the sensory qualities of plant-based meats are creating new opportunities for expansion in this sector​.

Increased Consumer Demand in Asia-Pacific: The Asia-Pacific region is emerging as a rapidly growing market for plant-based foods, driven by a large, young, and health-conscious population. The regional market benefits from a rich culinary tradition that integrates plant-based ingredients, presenting unique product development opportunities that cater to local tastes and preferences​.

Technological Innovations and Product Development: Continued innovation in food technology, especially around plant-based seafood and functional foods, is opening new avenues. There’s growing consumer interest in plant-based foods that offer additional health benefits, such as fortified plant milks or protein-enriched snacks. This trend towards functional, health-enhancing food products is likely to drive market growth further​.

E-commerce and Digital Marketplaces: The rise in online shopping has significantly impacted the plant-based food market. E-commerce offers a broader range of plant-based products than is typically available in physical stores and allows consumers to access various brands and products conveniently. The growing trend of online grocery shopping is expected to continue, enhancing the distribution and accessibility of plant-based foods​.

Key Players Analysis

  • Above Food Inc.
  • Amy’s Kitchen Inc.
  • Atlantic Natural Foods LLC
  • Beyond Meat Inc.
  • Conagra Brands, Inc.
  • Danone SA
  • DSM-Firmenich AG, Nestle S.A.
  • Garden Protein International Inc.
  • Glanbia PLC
  • Impossible Foods Inc.
  • Lightlife Foods Inc. (Maple Leaf Foods Inc.)
  • Maple Leaf Foods Inc.
  • Nestle S.A.
  • The Hain Celestial Group, Inc.
  • Tyson Foods Inc.
  • Vbite Food Ltd.

Recent Developments

In 2024 Above Food Inc., continued to innovate, focusing heavily on the development of new plant-based proteins and dairy alternatives, responding to the increasing consumer demand for sustainable and ethical food choices. They’ve made notable advancements in creating products that closely mimic the taste and texture of traditional animal products, appealing to a broad consumer base that includes vegans, vegetarians, and flexitarians alike.

In 2024 Amy’s Kitchen is also known for its environmentally conscious practices, particularly in its packaging, with approximately 75% being recyclable or compostable—a figure they plan to increase to 100%. Additionally, the company’s focus extends beyond products to include community engagement and employee welfare, providing comprehensive healthcare benefits and scholarships, further solidifying its reputation as a socially responsible brand.

​In 2024, Atlantic Natural Foods LLC (ANF) made headlines within the plant-based diet sector for its strategic business decisions rather than new product launches. The company, known for its popular shelf-stable plant-based brands such as Loma Linda®, neat™, and TUNO™, opted to withdraw from a significant acquisition agreement with Above Food, which would have shifted ANF towards public ownership. This decision was made to maintain private ownership and refocus on its core business principles and commitment to quality amidst an evolving business landscape marked by challenges such as COVID-19 impacts, supply chain disruptions, and rising food inflation.

In 2024, Beyond Meat Inc. demonstrated a notable recovery in its financial performance, showing resilience in a competitive market. The company reported a 7.6% increase in net revenues, reaching $81 million in the third quarter of the year. This growth was attributed to higher revenue per pound of product sold, although overall product volume decreased. Beyond Meat also significantly reduced its net loss to $26.6 million, down from $70.5 million the previous year, thanks to increased gross profits and reduced operating expenses. These results highlight Beyond Meat’s strategic adjustments, such as cost-cutting measures and price adjustments, which have helped improve its profit margins despite broader market challenges.

In 2024, Conagra Brands, Inc. continued to make significant strides in the plant-based diet sector, underlining its commitment to innovation and market adaptation. With a revenue of approximately $12.1 billion and an extensive portfolio of products, Conagra has reinforced its presence in this rapidly evolving market segment. The company’s focus has been particularly evident in its development and marketing of Gardein, a brand that offers a wide range of plant-based alternatives to traditional meat products, catering to the growing demand among health-conscious consumers and flexitarians.

In 2024, Danone SA demonstrated strong performance in the plant-based diet sector, showcasing a commitment to expanding its plant-based offerings alongside traditional dairy products. The company reported a positive financial trajectory with a notable 4.0% increase in like-for-like sales, reaching a total of €13.757 billion in the first half of the year. This growth was driven by strong volume and mix improvements across its product categories. Danone’s strategic focus on innovation and market adaptation, particularly in the plant-based product line, continues to strengthen its market position, reflecting in a 2.6% increase in recurring earnings per share and an 11% rise in free cash flow.

In 2024, DSM-Firmenich AG made significant strides in the plant-based diet sector, demonstrating a strong commitment to innovation and sustainability. The company reported robust sales growth in the first half of the year, totaling €6.298 billion, which represents a substantial increase from the previous year. This growth was driven by their focused strategy on high-growth and high-margin segments in nutrition, health, and beauty, following the strategic de-prioritization of certain business units.

In 2024, Nestlé S.A. continued to solidify its position in the plant-based diet sector with notable advancements and product launches that cater to evolving consumer preferences. The company has been particularly successful in enhancing its offerings in the plant-based chocolate category, introducing new dairy-free chocolate chip morsel varieties under its Toll House brand. These innovations align with consumer demand for products labeled as “plant-based,” responding to insights from market research that highlighted a significant consumer interest in such products.

In 2024, Garden Protein International Inc., based in Richmond, Canada, continued to strengthen its position in the global plant-based food market, particularly in the development and production of plant-based protein products. The company, known for its extensive range of meat alternatives designed to replicate the taste and texture of animal-based products, has successfully expanded its distribution network. This expansion includes strategic partnerships with retailers, restaurants, and foodservice providers worldwide, helping to facilitate the transition of consumers towards plant-based eating.

In 2024, Glanbia PLC continued to excel in the plant-based diet sector, emphasizing its strong commitment to “Better Nutrition.” The company reported a robust first half with revenues slightly down by 1.1% to $1.82 billion, but with a significant 12.4% growth in adjusted EPS. This growth was driven by increased volume and strategic acquisitions, alongside a 12.8% increase in EBITDA to $261.6 million. Glanbia’s performance reflects its effective management and innovative product offerings in nutritional solutions, focusing on health-conscious consumers and sustainable food options. This positions Glanbia well for ongoing growth and market leadership in the plant-based nutrition space​

Conclusion

In conclusion, the plant-based diet market is poised for robust growth, driven by increasing consumer awareness of health, environmental, and ethical considerations. With a rising global prevalence of lactose intolerance and a growing interest in sustainable living, plant-based dairy and meat alternatives continue to capture significant market share. Technological innovations and an expanding array of products that cater to diverse dietary preferences and nutritional needs are enhancing consumer adoption. Additionally, the Asia-Pacific region emerges as a key growth area, offering vast opportunities due to its large, health-conscious population and rich culinary traditions favoring plant-based ingredients. As more consumers shift towards healthier, sustainable eating patterns, the plant-based diet market is expected to thrive, offering lucrative opportunities for new and existing players.

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