Global Packaged Vegan Food Market - 2021-2028
Consumer preferences towards food they eat are rapidly changing around the world with factors such as changing lifestyles, nutrition, economic and sustainability concerns. Much of this changing eating preferences is shifting consumers towards plant-based, animal-free food. Veganism evolved as the largest attribute for the growth of sustainable food production and consumption agenda globally. Packaged vegan food is the packaging products that are prepared without the use of any animal-based ingredients resulting in low fat and cholesterol. Consequently, a growing number of people at present are turning vegan because of their love and compassion toward animals and the environment. The global packaged vegan food market valued USD XX million in 2020 and is estimated to reach USD XX million by 2028, growing at a CAGR of 11%
Rapid increase in vegan population is driving the market
Rapidly growing vegan population is driving the market of packaged vegan food. For instance, the number of U.S. consumers identifying as vegan grew from up to 6 percent from 1 percent between 2014 and 2017, an almost 600% increase. Sales of plant-based substitutes to animal-based foods such as meat, cheese, milk and eggs increased 17 percent over the past year, while overall U.S. food sales increased only 2 percent, according to research from Nielsen and the Good Food Institute. Due to the growing trend of vegan people, manufacturers are producing attractive packaged vegan food such as snacks, ready-to-eat food etc. and package them with special packaging products which are made from ingredients without animal materials. This, in turn, strengthens the market of packaged vegan food.
Another major driving factor of packaged vegan food is the health benefits that come with consuming vegan food. Besides the convenience benefits of processing and packaging, these products avoid diseases like heart attack and diabetes. Thus it is viewed to be healthier and hence is preferred over meat by many who have lifestyle diseases such as obesity, diabetes etc. Some of the alternatives of dairy and meat products such as nuts and whole grains are packaged with a focus on vegan as a promotion strategy, which gives a competitive edge to the food processors and producers.
However, the high cost of packaged vegan foods and threat of counterfeit may hinder some consumers from buying this product which restrains the market expansion up to some extent.
Growing adoption of package vegan meals is helping in the market growth.
The type segment of the global packaged vegan food market is divided into vegan dairy alternatives, packaged vegan meals, meat alternatives, vegan bakery and confectionery products. The packaged vegan meals are expected to dominate the market due to the growing adoption of these products by consumers, mainly in North America and Europe. Further, the innovation towards new dairy alternatives such as soya milk, oat milk, almond milk etc., with attractive packaging, is also driving the consumers to buy these products. Other than that, various vegan snacks and cakes are also driving the market growth of packaged vegan food.
The distribution channel is segmented into online and offline distribution channels. The offline distribution channel is dominating the global packaged vegan food market over the previous years. This is primarily due to the easy availability of packaged food products in the offline channel such as retail stores and hypermarkets. Many retailers are exclusively promoting the packaged vegan food in the market. For example, Walmart is suggesting its suppliers meet the growing demand for plant-based foods.
North America is dominating the Packaged Vegan Food market
North America and the Europe region are experiencing more vegans year by year due to the influence of vegan-related organizations such as PETA, increasing health awareness and high activity of food producers in terms of vegan promotion of their products. For example, 16 percent of all new food product launches were vegan in the U.K. in 2018, doubling from 8 percent in the previous year. As for Americans, health and weight management are the top reasons why people are converting to veganism. For instance, food allergies are on the rise, with 1 in 13 children affected in USA. As per researchers, 90 percent of food allergies come from milk, eggs, peanuts, tree nuts, soy, wheat, fish, and shellfish. A number of people also undergo from food-related illnesses such as celiac disease (nearly 1 in 133 Americans) and lactose intolerance (about 30-50 million in the U.S.), which have resulted in consumers accepting more vegan diet options.
Increasing rate of merger & acquisition made the market competitive
The global packaged vegan food market is fragmented with large number of players providing various vegan related products such as diary and meat alternatives to consumers. The market competition is intense due to increasing innovation to find out more alternatives and growing consumer interest towards vegetarian foods. Key players in the global packaged vegan food market are Amy's Kitchen Inc., Dr. McDougall's Right Foods, Beyond Meat Inc., Annie's Homegrown, Plamil Foods Ltd. Ltd., Danone S.A., Tofutti Brand Inc., Barbara's Bakery Inc., Edward & Sons Ltd., Galaxy Nutritional Foods Inc and others.
COVID-19 Impact: Pandemic had a mixed impact on global packaged vegan food market
In most of 2020, global trade came to a halt due to various restrictions and lockdown in many countries because of Covid-19. Due to huge global supply chain fluctuation, the food industry has been impacted by severe freight challenges, which have also affected many commercial packaged food products. Also, the covid-19 has changed the consumer's preference regarding the packaging of food. For example, a Study led by Dalhousie University concludes that Canadian consumers were 55 percent more worried about food safety since the COVID-19 pandemic began, 50 percent became price-conscious when grocery shopping. Slight decrease found in motivation to reduce plastics. There is a clear decrement in support for stricter regulations and bans on single-use plastics; consumers have more willingness to pay for biodegradable alternatives. All these factors will detect the future of packaged vegan foods in the forecast period.