Vegan Food Market Analysis Report By Product, By Distribution Channel, By Region And Segment Forecasts From 2019 To 2025

Report ID: MN17619533  |  Published: April 2020  |  No of Pages: 80
Format: Electronic (PDF)  |  Industry: Consumer Goods

Industry Insights

The global vegan food market was worth USD 12.69 billion, in 2018. The market is expected to grow with a CAGR of 9.6% over the forecast period. Growing awareness among consumers about the benefits of a vegetarian diet is fueling the growth of the market. Growing demand for vegan products from these regions is a key factor supplementing the growth of the market.

Animals are subjected to cruelty in the food industry. The awareness about animal health is gaining traction among consumers owing to the increasing promotion of animal well-being from various non-profit organizations, especially People for the Ethical Treatment of Animals (PETA). This has led to a change in preference among consumers from animal-based food to plant-based food. As reported by the Vegan Society, the demand for meat-free food increased by nearly 1000% from 2012 to 2017. Its popularity has surged significantly, as it was Googled three times more than vegetarian or gluten-free products.

China vegan food market

The popularity of vegan products is growing significantly, as either one in three consumers in the United States has stopped meat consumption or they have reduced it considerably. Countries with the highest percentage of the vegan population are United States, Israel, New Zeeland, Ireland, Germany, United Kingdom, and Canada among others. The Board of Agriculture of Sweden reported that meat consumption decreased by 3.6% in 2017, and this trend is expected to continue.

Disease outbreaks in animals and growing awareness about plant-based foods have resulted in a decline in the consumption of animal foods. Plant-based foods provide benefits against various diseases such as heart diseases, colorectal cancer, strokes, and cholesterol. Moreover, consumers diagnosed with certain diseases are mostly prescribed vegan foods.

Product Insights

Dairy alternatives held the largest segment, in 2018 with over 50% of the vegan food market share. Around two-thirds of the world’s population is lactose intolerant, which in turn drives the demand for milk and related products. Further, dairy products such as yogurt, cheese, ice creams, and others are readily available through multiple sales channels.

Manufacturers are focusing on introducing vegan food products with improved quality and innovative packaging. Among various diary alternatives, plant-based cheese products are the most popular. The entry of various new players and new products launch are expected to proliferate the market growth over the forecast period.

Distribution Channel Insights

Among different distribution channels, the offline segment dominated the sales, in 2018 and it is expected to continue its strong position throughout the forecast period. The offline segment includes supermarkets/hypermarkets, convenience stores, and specialty stores. The rise in the number of supermarkets/hypermarkets has played a key role in boosting the sales of vegan products. Moreover, consumers prefer to shop from brick and mortar stores as they wish to see the products and their manufactured date before buying.

Global vegan food market

However, growing millennials' inclination toward vegan food has resulted in a rise in sales of these products through online channels. The online segment is expected to grow with the highest CAGR during the forecast years. As surveyed in 2018, around 48% of the consumers in the United States prefer to buy at least a few grocery products online. Considering the growing demand for online sales channels, leading retailers are focusing on strengthening their online presence. Recently, the United States’ retail giant has started online food retailing. Thus, rising online platforms for grocery products are expected to further fuel the market growth. As per the Institute of Grocery Distribution and IGD Services, the leading countries with considerable online sales are China, Japan, the U.S, U.K, Canada, Spain, and others. The Kroger Co., a retail giant has significantly invested in these key regions. Such investment will help in driving the online sales of vegan products.

Regional Insights

North America held the largest market, in 2018 owing to the increasing vegetarian population in the region and growing awareness among consumers about animal cruelty. Further, the United States has a significant number of lactose-intolerant consumers, which in turn proliferate the demand for dairy products. United States-based Cal-Maine Foods, Inc. reported a loss of USD 74 million owing to rising preferences in the region about plant-based egg alternatives.

Asia Pacific is set to exhibit the highest CAGR of 12.1% over the forecast period. Increasing health awareness consumers coupled with increasing purchasing power is the primary factor leading to the market growth. Leading players of the world are focusing on strengthening their product portfolio and market presence in the Asia Pacific region.

COVID-19 Impact analysis

The vegan food market has been positively affected owing to the outbreak of COVID-19. The pandemic has made people more conscious of their diet patterns. Moreover, increasing awareness about pandemics affecting people with the disease has led to a rise in the demand for vegan products for their well-known benefits. This factor has propelled the market growth during the pandemic. In addition, there have been reports of COVID-19 spread through meat, which resulted in an increasing number of people opting for vegan foods. Moreover, vegan foods are comparatively cost-effective than non-vegan foods. Owing to the financial crisis, which led to a reduction in purchasing power, consumers are more inclined towards vegan foods.

Vegan food Market Share Insights

Leading players in the market are Beyond Meat, Plamil Foods Ltd, Danone S.A, Amy's Kitchen, Tofutti Brands, Inc., and The Archer Daniels Midland Company. The demand for flavored vegan products has increased significantly in the recent past, which makes product innovation one of the key factors among various competitors. Recently, in January 2019, French food company Danone introduced Two Good Greek low-fat yogurt in different flavors such as Mixed Berry, Strawberry, Blueberry, and Vanilla among others. Various other companies are also following a similar suit to stay competitive in the market. 

Report Scope



The base year for estimation


Actual estimates/Historical data

2015 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Million & CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa

Report coverage      

Revenue forecast, company share, competitive landscape, growth factors, and trends

Country Scope

U.S., Germany, China, Japan, and Brazil

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For this study, Million Insights has segmented the global vegan food market report based on product, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2015 - 2025)
    • Dairy Alternative
        • Cheese
        • Dessert
        • Snacks
    • Meat Substitutes
        • Tofu
        • TVP
        • Seiten
        • Quorn
        • Others
    • Others

• Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)
    • Offline
    • Online

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S.
    • Europe
        • Germany
    • the Asia Pacific
        • China
        • Japan
    • Central & South America
        • Brazil
    • Middle East & Africa

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