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The packaged vegan foods market is estimated to grow at a CAGR of 14.92% between 2022 and 2027. The size of the market is forecast to increase by USD 25,695.71 million. The growth of the market depends on several factors, including rising veganism, the growing organized retail sector, and the rise of private-label brands.
This report extensively covers market segmentation by distribution channel (offline and online), product (vegan milk, vegan meat, and others), and geography (Europe, North America, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The rise of private label brands is notably driving the vegetarian packaged food market growth, although factors such as the high price and limited awareness may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Packaged Vegan Foods Market Driver
The rise of private-label brands is notably driving market growth. Private label brands are cheaper than mainstream brands, and most budget-conscious consumers tend to prefer the former. Private-label brands are also popular among retailers, especially grocery stores, as they tend to offer more profit margins than mainstream brands. They are made for a single retailer and sold under the retailer's brand name. Major packaged vegan food chains have their own private-label vegan brands to capitalize on the growing demand for packaged vegan food, which, in turn, will drive the growth of the market during the forecast period.
Consumer demand for private-label vegan foods has increased as retailers have introduced delicious vegan food offerings with high-quality ingredients such as mock meat and complex flavor profiles. Moreover, retailers are also expanding their product lines by introducing RTC vegan delicacies and other plant-based milk to cater to the demands of consumers. They also include organic, natural, and clean-label products without artificial ingredients. Therefore, such initiatives will drive the growth of the vegetarian packaged food market during the forecast period.
Significant Packaged Vegan Foods Market Trend
The growing inclination toward plant-based proteins is an emerging trend in the vegetarian packaged food market. Veganism has witnessed a dramatic rise across the world. For instance, the number of vegans in the UK increased from approximately 0.28 million in 2016 to nearly 0.6 million in 2020. A plant-based diet has several health benefits such as it helps in losing excess weight, helps in lowering blood sugar levels, and helps improving kidney function. These health benefits will increase the demand for vegan foods, which, in turn, will drive the growth of the market.
Apart from the health benefits associated with the vegan diet, there are quite a few social reasons that have influenced consumers to adopt vegan lifestyles. For instance, rearing livestock for animal-based products requires far more energy, land, and water than the production of grains. Besides, nearly 13.5 pounds of CO2 is generated per pound of beef in comparison to just 0.45 pounds when it comes to per pound of lentils. Moreover, the rising number of campaigns for the protection of animal rights by organizations such as People for the Ethical Treatment of Animals (PETA) has not only brought the issues related to animal welfare into the limelight but has also been quite instrumental in propagating the advantages of vegan diets. Thus, the growing inclination toward plant-based proteins will enhance the growth of the global market during the forecast period.
Major Packaged Vegan Foods Market Challenge
The high price and limited awareness are major challenges impeding the vegetarian packaged food market growth. The high price of packaged vegan foods compared to traditional dairy products is one of the major reasons behind their limited penetration and adoption in developing regions. Furthermore, the middle-income demographics in developed countries also avoid buying packaged vegan foods due to the high price.
The price per pound of packaged vegan products varies greatly with respect to the brands offering them and is nearly 1.5-2 times the prices of the same quantity of conventionally processed products. For instance, in the UK, Violife Original Vegan Cheese Slices cost over USD 7 per pound, while Dairy Crest-owned vegan Cathedral City Mature Cheddar Cheese costs around USD 4 per pound. Furthermore, although the global market is growing, the awareness of packaged vegan foods has been very limited among consumers, especially in South America, South East Asia, MEA, and Eastern Europe. Therefore, the market in these regions is highly underdeveloped, with negligible penetration. Hence, these factors are expected to negatively impact the growth of the global market during the forecast period.
Key Packaged Vegan Foods Market Customer Landscape
The report includes the adoption lifecycle of the vegetarian packaged food market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Packaged Vegan Foods Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the vegetarian packaged food market.
Amys Kitchen Inc. - The company offers various food products including vegan food products, gluten-free foods, soups, burritos and wraps, pizzas, and other products. The key offerings of the company include packaged vegan foods.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the offline segment will be significant during the forecast period. The offline distribution channel segment generates revenue from the sales of products through hypermarkets, supermarkets, and clubhouse stores; department stores; and independent retailers.
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The offline segment was valued at USD 10,966.43 million in 2017 and continued to grow until 2021. Manufacturers of canned food sell their products through specialty stores and retailing formats such as hypermarkets, supermarkets, convenience stores, clubhouse stores, and department stores. In 2022, hypermarkets and supermarkets accounted for the largest share of the offline distribution channel segment. Some of the factors considered while purchasing products from these stores are convenience, huge SKUs, and a wide brand variety. As the offline segment is losing its market and popularity to the online channel segment, retailers are introducing new business and retail strategies. For example, better pricing strategies and wider assortments, owing to the declining preference for offline shopping and the need to survive in a competitive market. As a part of the marketing and offline sales strategy, resellers place attractive displays that generate strong sales. Furthermore, vendors push their offline sales by widening their store operations across geographies to cater to each consumer category. Hence, with the growth in retail channels in cities and regions, customers have become familiar with different types of canned food. Therefore, sales through this channel are expected to increase during the forecast period.
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Europe is estimated to contribute 39% to the growth of the global vegetarian packaged food market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The demand for packaged vegan foods is on the rise in Europe, driven by the expanding vegan population base in countries such as Germany. The increasing awareness of the benefits of following vegan diets and the growing popularity of veganism as a lifestyle choice among the youth is expected to drive the growth of the market in Europe. Moreover, the presence of key vendors that offer new varieties of products, rising disposable incomes, and growing awareness about the health benefits of vegan products will drive the growth of the market during the forecast period.
The indulgence trend is one of the major factors driving the consumption of packaged vegan foods in Europe. In addition to the take-home varieties, packaged vegan foods are also popular in the region because of the presence of a well-equipped industry with the required machinery to produce these products. Furthermore, the online sales of packaged vegan food products in Europe are expected to increase due to the growing internet penetration in the region during the forecast period.
In 2020, the outbreak of COVID-19 negatively impacted the regional market. However, in 2021, the initiation of large-scale vaccination drives led to the lifting of lockdown and trade restrictions in the region. This resulted in the reopening of factories, warehouses, and other facilities of regional vendors. As a result, vendors are able to meet the increased demands of consumers. Such factors are expected to increase the demand for packaged vegan foods, which, in turn, will drive the growth of the regional vegetarian packaged food market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Packaged Vegan Foods Market Scope |
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Report Coverage |
Details |
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Page number |
164 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 14.92% |
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Market growth 2023-2027 |
USD 25,695.71 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
14.0 |
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Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
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Performing market contribution |
Europe at 39% |
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Key countries |
US, Canada, Australia, UK, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Amys Kitchen Inc., Archer Daniels Midland Co., Beyond Meat Inc., Blue Diamond Growers, Campbell Soup Co., Conagra Brands Inc., Danone SA, DR. Mcdougalls Right Foods, Earths Own Food Co. Inc., Eden Foods Inc., Edward and Sons Trading Co., General Mills Inc., Kellogg Co., Otsuka Holdings Co. Ltd., Post Holdings Inc., Ripple Foods PBC, SunOpta Inc., Tofutti Brands Inc., VBites Foods Ltd., and Vitasoy International Holdings Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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