Vegan Desserts Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[216+ Pages Report] According to Facts & Factors, the global vegan desserts market size was valued at USD 3,181.88 million in 2023 and is predicted to surpass USD 7,332.57 million by the end of 2032. The vegan dessert industry is expected to grow by a CAGR of 9.72% between 2024 and 2032.

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Market Overview

Vegan desserts are sweet treats made without the inclusion of any animal by-products. Common ingredients used in vegan desserts include non-yogurt, plant-based creams, plant milk, and many others. Also, the manufacturers use bananas, applesauce, flaxseeds, or chia seeds to replace eggs in their products. These products have healthy sweeteners like coconut sugar, maple syrup, or dates.

Different kinds of vegan desserts include cookies, brownies, cakes, cupcakes, pies, tarts, chocolates, ice cream, truffles, and many others. These products are healthier than traditional dairy products. These are low in saturated fats & cholesterol and are ideal for people with dairy allergies, lactose intolerance, or any other food allergy.

Key Insights

• As per the analysis shared by our research analyst, the global vegan desserts market size is estimated to grow annually at a CAGR of around 9.72% over the forecast period (2024-2032).
• In terms of revenue, the global vegan desserts market size was valued at around USD 3,181.88 million in 2023 and is projected to reach USD 7,332.57 million by 2032.
• Growing health awareness is driving the growth of the global vegan desserts market.
• Based on the distribution channels, the offline segment is growing at a high rate and is projected to dominate the global market.
• Based on the forms, the solid segment is projected to swipe the largest market share.
• Based on flavors, the vanilla segment is expected to dominate the global market.
• Based on products, the frozen dessert segment is anticipated to witness significant developments in the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.

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Growth Drivers

• Growing health awareness is the primary reason for the growth rate of the global market.

Rising awareness among people regarding the health benefits of plant-based diets is the primary reason for the high growth rate of the global vegan desserts market. People are switching from their traditional desserts to vegan dessert products because it has low cholesterol, saturated fats, and calories. It seems to be a healthy alternative to traditional desserts.

However, the rising incidents of lifestyle-associated diseases like cardiovascular, diabetes, and obesity are further encouraging people to adopt plant-based options like vegan desserts. These are made up of natural sweeteners and further appeal to health-conscious consumers.

However, the rising environmental concerns are another major factor positively impacting the growth trajectory of the industry. Increasing greenhouse emissions, water consumption, climate change, and many such issues are supporting the widespread adoption of plant-based options like vegan desserts. For instance, Maloney came up with Dairy-free baked goods like vegan cakes and cookies in 2023. The company has launched its product line in India.

Restraints

• High cost is likely to hamper the growth of the global market.

Vegan desserts are priced higher than traditional desserts which is a major factor expected to restrict the growth of the vegan desserts industry. High cost is because of the specialized production process of plant-based ingredients. Also, the limited accessibility of vegan desserts in many areas is further expected to slow down the growth of the industry.

Opportunities

• Rising urbanization and disposable incomes are expected to foster growth opportunities in the global market.

Many regions are experiencing strong economic growth, particularly developing economies like India, China, and Japan. The rise in disposable income of people is persuading them to spend on more premium and niche products like vegan desserts. Also, urbanization is leading to a positive change in the people's lifestyle. People are highly influenced by Western habits, including the adoption of plant-based diets.

Also, the growing awareness campaigns across social media platforms are further fostering developments in the industry. Celebrities, bloggers, and influencers are promoting products like vegan desserts to drive consumer interest and thereby increase sales revenue. All these factors are expected to open numerous growth opportunities in the global vegan desserts market. For instance, Just Desserts was awarded a Certified Vegan Logo in 2020. This certification helps people validate products that are free from animal-based products or their by-products.

Challenges

• Limited consumer awareness is a big challenge in the global market.

People in many regions still have no knowledge regarding the health benefits of plant-based diets. This awareness gap is a big challenge in the vegan dessert industry. Moreover, people still view traditional desserts as more tasty and satisfying when compared to vegan desserts. Consumer expectation, sensory experience, and the limited number of options in the vegan dessert product line are a few of the major factors likely to negatively impact the growth trajectory of the industry in the coming years.

Segmentation Analysis

The global vegan desserts market can be segmented into distribution channels, forms, flavors, products, and region.

On the basis of distribution channels, the market can be segmented into online, offline, HoReCa, and others. The offline segment accounts for the largest share of the vegan desserts industry during the forecast period. Specialty stores, supermarkets, hypermarkets, bakeries, cafes, and many others are preferred locations for shopping for products like desserts. These centers are easily accessible to people instantly when they crave desserts without waiting for delivery. There is still a large chunk of people who prefer in-store shopping, particularly for food items.

Moreover, the major specialty stores and retail chains are expanding their product availability, particularly for vegan products like deserts. Nowadays, physical stores have accentuated their strategies to engage with customers with promotion, customer service, sampling, and many others. Therefore, all these factors are likely to foster growth opportunities in the segment.

On the basis of form, the market can be segmented into solid and liquid. Solid is the fastest-growing segment in the global vegan desserts market. Solid vegan desserts like chocolate pastries, cookies, and cakes appeal to consumer preferences. Also, these solid products are easy to experiment with. These can be combined with other healthy ingredients to check for consumer interest.

Additionally, solid desserts have a longer shelf life, which also makes it easier to store and ship according to the requirements. Solid vegan desserts are healthy alternatives with natural sweetness, offering lower calories and fat. Also, solid vegan dessert products are easily available in different retail channels like specialty stores, supermarkets, and other online platforms. Such wide accessibility fosters higher market sales.

On the basis of flavor, the market can be segmented into chocolate, vanilla, unflavored, and others. The vanilla segment is likely to swipe the largest share of the vegan desserts industry. Vanilla is a widely preferred flavor largely because of its versatility. It is the first choice among people from different cultures and age groups, which makes it a staple choice in many regions.

However, the vanilla flavor is very common in puddings, ice creams, cookies, dessert cakes, and many others as it improves the taste profile. Also, many people view vanilla as a classic and safe option when compared to other available options in the market. Many people see vanilla as a base flavor that can also be combined and complemented with different ingredients and flavors. Also, manufacturers experiment with vegan vanilla desserts to appeal to environmentally aware and health-conscious consumers.

On the basis of product, the market can be segmented into frozen desserts, custard & pudding, cakes & pastries, biscuits, and others. The frozen dessert segment is likely to dominate the global vegan desserts market during the forecast period. Frozen desserts, like ice cream, yogurts, and other treats, can easily be stored at home, which appeals to consumers. These products have a longer shelf life.

Also, there are ongoing innovations in the category of frozen desserts, like different types of bases or flavors like soy milk, coconut milk, almond milk, cashew milk, and many others. Companies are also coming up with exotic flavors to attract a larger market area. Many people are shifting to vegetarian diets because of health and animal welfare reasons.

Also, vegan desserts contain less cholesterol, fewer calories, and low fat content, thereby making them ideal for health-conscious individuals. Additionally, the rise in popularity of plant-based diets further contributes significantly towards the growth of the segment.

Report Scope

Report Attribute	Details
Market Size in 2023	USD 3,181.88 Million
Projected Market Size in 2032	USD 7,332.57 Million
CAGR Growth Rate	9.72% CAGR
Base Year	2023
Forecast Years	2024-2032
Key Market Players	OGGS, Grupo Bimbo, Ben & Jerry's Homemade Inc., Alternative Foods, Daiya Foods Inc., Bliss Unlimited LLC., Cado, Danone S.A., Unilever, HP Hood (Planet Oat), and Others.
Key Segment	By Distribution Channels, By Form, By Flavor, By Product, and By Region
Major Regions Covered	North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa
Purchase Options	Request customized purchase options to meet your research needs. Explore purchase options

Regional Analysis

• North America to dominate the global market.

North America will account for the largest share of the global vegan desserts market during the forecast period. The United States is the largest market in the region, driven by strong retail infrastructure and a high consumer base. Cities like San Francisco, New York, and Los Angeles are emerging as a strong market for vegan food culture.

However, the entrance of many vegan bakeries in the United States is further expected to support the growth trajectory of the regional market. Canada is another major region driven by the rising popularity of vegan products. Cities like Montréal, Toronto, and Vancouver are expected to see a significant rise in vegan food bakeries and specialty stores.

North America is witnessing rising concerns regarding ethical and animal welfare, which is positively influencing consumers to adopt vegan lifestyles. Influencers and celebrities are raising high-profile campaigns and endorsements to spread awareness regarding environmental sustainability practices and animal welfare. Retailers in the region are also expanding their offerings in the vegan dessert product line to swipe a large market area. Therefore, such a landscape is expected to foster growth opportunities in the regional market.

Asia Pacific is another major region likely to contribute significantly towards the growth of the global vegan dessert market. China is likely to contribute significantly towards the growth of the regional market because of the growing health consciousness among people in the region. Cities like Beijing and Shanghai are witnessing a rising number of vegan restaurants and specialty stores offering products like vegan desserts. India is also a growing market positively influenced by the traditional habit of eating a vegetarian diet.

Moreover, cities like Bangalore, Delhi, and Mumbai are witnessing a significant rise in vegan cafes and dessert stores. Japan and South Korea are also witnessing the growing popularity of veganism, particularly among the younger population, which in turn is expected to positively influence the growth of the regional market. For instance, Graeter's Ice Cream came up with the perfect indulgence product line of frozen vegan desserts in 2021. The company is America's oldest ice cream maker.

Competitive Analysis

The key players in the global vegan desserts market include:

• OGGS
• Grupo Bimbo
• Ben & Jerry's Homemade Inc.
• Alternative Foods
• Daiya Foods Inc.
• Bliss Unlimited LLC.
• Cado
• Danone S.A.
• Unilever
• HP Hood (Planet Oat)

For instance, Bosh and Oggs and U.K. bakeries Love Food came up with unique flavors of vegan cakes in 2020. Companies said to increase their market share with the introduction of new product lines in the U.K.

The global vegan desserts market is segmented as follows:

By Distribution Channels Segment Analysis

• Online
• Offline
• HoReCa
• Others

By Form Segment Analysis

• Solid
• Liquid

By Flavor Segment Analysis

• Chocolate
• Vanilla
• Unflavored
• Others

By Product Segment Analysis

• Frozen Desserts
• Custard & Pudding
• Cakes & Pastries
• Biscuits
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America