Plant-based Beverages Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[213+ Pages Report] According to Facts and Factors, the global plant-based beverages market size was valued at USD 28.06 billion in 2022 and is predicted to reach USD 71.46 billion by the end of 2030. The plant-based beverages market is expected to grow with a CAGR of 12.35% during the forecast period.

The report analyzes the global plant-based beverages industry's growth drivers, restraints, and impact on demand during the forecast period. It will also help navigate and explore the arising opportunities in the market.

Market Overview

Plant-based beverages are dairy alternative beverages prepared from different plant sources other than traditional dairy ones. These beverages are in high demand due to various factors like dietary preferences, ethical considerations, environmental concerns, and health & wellness trends.

Key Insights

• As per the analysis shared by our research analyst, the global plant-based beverages market size is estimated to grow annually at a CAGR of around 12.35% over the forecast period (2023-2030).
• In terms of revenue, the global plant-based beverages market size was valued at around USD 28.06 billion in 2022 and is projected to reach USD 71.46 billion by 2030.
• The increasing adoption of veganism is likely to drive the growth of the global plant-based beverages market.
• Based on the distribution channels, the specialty stores segment accounts for the largest share of the global market.
• Based on the type, the plant-based milk segment is noted to observe the highest growth in the global market.
• Based on the source, the fruits segment is expected to dominate the global market.
• Based on region, Asia Pacific is expected to dominate the global market during the forecast period.           

Growth Drivers

• Increasing adoption of veganism is expected to propel the growth of the global market.

The rising trend of adopting vegan diets is a major factor positively impacting the growth of the global plant-based beverages market. Increasing plant-based movements are further influencing people's preferences and their buying behavior.

Moreover, several social media platforms have played a crucial role in encouraging people to adopt plant-based lifestyles and products. Celebrities and influencers are highly endorsing plant-based beverages, which in turn is expected to further propel the growth of the industry in the forthcoming years.

Nowadays, plant-based beverages are becoming more mainstream. Consumers view them as a nutritious and tasty alternative to traditional sugar-loaded beverages. For instance, Conagra Brands in May 2021 extended its Gardein meat alternatives with the advent of the new Suprême Plant-Based Burger.

Restraints

• Premium prices of plant-based beverages are expected to hamper the growth of the global market.

Plant-based beverages, particularly the ones made from specialty ingredients, are priced higher than traditional beverages. Therefore, it is expected to restrict the growth of the global market. The plant-based beverages are still in their initial stages and have to come a long way to achieve the texture and taste of traditional dairy-based beverages. Therefore, these factors are likely to hamper the growth of the plant-based beverages industry in the forthcoming years.

Opportunities

• Clean-label and allergen-free trends are expected to offer lucrative growth opportunities in the global market.

Nowadays, people are experiencing different types of allergies, which restrict them from consuming a number of food products. But the plant-based beverages are prepared with clean label ingredients and are allergen-free in nature, thereby making them suitable for people with different food allergies.

Therefore, the global plant-based beverages market is expected to experience lucrative growth opportunities in the forthcoming years. For instance, Gaia's Farming Co., in January 2022, revealed two brand new milk alternatives with oats and hemp to deliver to the increasing vegan population.

Challenges

• Fortification concerns are a big challenge in the global market.

Plant-based beverages need to undergo the fortification process to align with the nutritional content of dairy milk, which is a big challenge for manufacturers in the industry. Ensuring proper fortification is quite expensive. Furthermore, plant-based beverages are experiencing supply chain challenges which is further expected to hamper the growth of the global plant-based beverages industry.

Segmentation Analysis

The global plant-based beverages market can be segmented into distribution channels, types, sources, and regions.

By distribution channel, the market can be segmented into specialty stores, online stores, convenience stores, hypermarkets, and supermarkets. The specialty stores segment is anticipated to grow fast in the forthcoming years due to the large adoption of retail formats by people.

Moreover, the one-stop solution offered by these stores attracts the customer. The specialty store segment serves health-conscious consumers who are more likely to adopt plant-based alternatives that are environmentally safe. The store largely focuses on providing sustainable, organic, and natural products, thereby offering more ideal plant-based beverages to the customers.

However, the supermarket and hypermarket segments are expected to grow parallelly in the forthcoming years due to the growing number of these retail formats in developing countries like India, China, and Japan.

By type, the market can be segmented into juices, plant-based milk, RTD tea & coffee. The plant-based milk segment is noted to observe the highest growth in the global plant-based beverages industry in the forthcoming years. The major reason behind the growth of the segment is the increasing number of lactose-intolerant populations.

Also, a large number of people are increasingly choosing vegan and ethical lifestyles due to the health, environment, and animal welfare. Milk-based milk manufacturers are innovating with different flavors and formulations to serve the growing preferences of people regarding taste and dietary needs.

By source, the market can be segmented into soy, rice, nuts, fruits, and others. The fruits segment is expected to dominate the global plant-based beverages market during the predicted period. The growth can be attributed to the constantly growing demand for food with high concentrations of iron, zinc, and vitamins to maintain good health.

However, nut-based beverages are also expected to grow steadily in the forthcoming years due to the high penetration of cholesterol-free and high-nutrition beverage products. Also, nut-based beverages are known to taste better than other categories. These beverages are cholesterol-free products with good fat. Therefore, the segment is further expected to experience high demand in the forthcoming years.

Report Scope

Regional Analysis

• Asia Pacific dominates the global market with a considerable share.

Asia Pacific is noted to experience the highest growth in the forthcoming years because of the growing attention from consumers, investors, and manufacturers. It is emerging as a potential region with high scope in the global plant-based beverages market in the coming years.

People in the region are becoming more health conscious and thereby surging as healthy alternatives to traditional beverages. Consequently, manufacturers are innovating with a large number of plant-based beverages to serve the growing population.

However, plant-based beverages contain lower saturated fat content, and thereby, these are seen as the healthiest choices for people. Asian countries are experiencing a high number of lactose intolerant populations, which is deriving more demand for non-dairy alternatives like plant-based milk.

Furthermore, religious and dietary preferences like veganism and vegetarianism are further contributing to the growing market share of the regional market in the forthcoming years.

North America is noted to witness substantial growth during the anticipated period due to the growing popularity and expansion of plant-based beverages. North American people are heavily focusing on their health and wellness, therefore deriving more demand for healthy food and beverages in the region.

Plant-based beverages like oat milk, soya milk, almond milk, and several others are seen as better and healthy options in the region. A large number of people are transitioning to vegan diets, which in turn will also boost the growth of the regional market.

Also, the increasing popularity of plant-based coffee options is further contributing to the immense growth of the regional market. For instance, Starbucks in 2023 said to double its vegan product development, including plant-based specialty drinks, in its lineup. The company recently launched a Vanilla oat milk shaken espresso drink to celebrate the arrival of spring.

Europe is also noted to observe a good growth rate in the forthcoming years because some European countries have adopted several supportive policies to encourage plant-based diets and sustainable food production in the region. These regulations are further expected to support the growth of the regional market.

Competitive Analysis

The key players in the global plant-based beverages market include:

• Bionova 
• Herbalife International of America Inc. 
• Glanbia PLC 
• NOW Foods 
• Health Food Manufacturers' Association 
• U.S. Spice Mills Inc. 
• TOOTSI IMPEX Inc. 
• Premier Nutrition Corporation 
• Medifast Inc. 
• Mead Johnson & Company LLC. 
• RiceBran Technologies 
• Nestlé SA 
• GlaxoSmithKline plc. 
• The Nature's Bounty Co. 
• Amway 
• DuPont 
• DSM 
• Abbott 
• Bayer AG.

For instance, Danone, in May 2022, revealed a new baby formula named Dairy & Plants Blend to satisfy the surging demands for feeding flexitarians, vegetarians, and other plant-based diet populations.

The global plant-based beverages market is segmented as follows:

By Distribution Channel Segment Analysis

• Specialty Stores
• Online Stores
• Convenience Stores
• Hypermarkets
• Supermarkets

By Type Segment Analysis

• Juices
• Plant-Based Milk
• RTD Tea & Coffee

By Source Segment Analysis

• Soy
• Rice
• Nuts
• Fruits
• 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