Plant-Based Spreads Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[213+ Pages Report] According to Facts & Factors, the global plant-based spreads market size was valued at USD 528.65 million in 2023 and is predicted to surpass USD 893.14 million by the end of 2032. The plant-based spreads industry is expected to grow by a CAGR of 6.00% between 2024 and 2032.

Market Overview

Plant-based spreads are spreads made from plant ingredients and are used in different dishes. It is viewed as a healthier alternative to traditional animal-based spreads. Also, it is an environmentally friendly option, contributing less carbon footprint when compared to traditional spreads. Different types of plant-based spreads include legume spreads, margarine spreads, seed butter, nut butter, and many others. These products are rich in nutrients like protein, healthy fats, minerals, and vitamins. Also, these have low cholesterol levels, which is advantageous for people with heart diseases.

Key Insights

• As per the analysis shared by our research analyst, the global plant-based spreads market size is estimated to grow annually at a CAGR of around 6.00% over the forecast period (2024-2032).
• In terms of revenue, the global plant-based spreads market size was valued at around USD 528.65 million in 2023 and is projected to reach USD 893.14 million by 2032.
• Rise in vegan diets is driving the growth of the global plant-based spreads market.
• Based on the distribution channels, the hypermarket & supermarket segment is growing at a high rate and is projected to dominate the global market.
• Based on the sources, the nuts segment is projected to swipe the largest market share.
• Based on types, the margarine segment is expected to dominate the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• Rise in vegan diets is likely to drive the growth of the global market.

The rising adoption of vegan diets among consumers is driving the growth of the global plant-based spreads market. People are increasingly eliminating animal-based products from their diets because of many reasons like animal welfare and environmental sustainability.

Moreover, an increasing number of people have adopted a flexitarian diet, which is further contributing to the growth of the market. Flexitarians prefer plant-based products in their regular diets, but occasionally, they consume meat and dairy products.

Also, the fast expansion of retail stores and supply chains in urban and suburban areas all across the globe is making these products more accessible. The boom of e-commerce is further expected to revolutionize the market in the coming years. People are increasingly shopping on these online platforms for convenience and discounts, which is further expected to foster growth opportunities in the industry.

For instance, Daiya Foods Inc. said to open its online store in 2021 with the aim to expand its offering of plant-based food products to a wider audience in the United States and Canada. The company is a leading dairy-free cheese producer.

Restraints

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

Sourcing plant-based products like specialty oil, seeds, and nuts is quite expensive and leads to a higher production cost as compared to traditional products, which is a major factor expected to hamper the growth of the plant-based spreads industry. Moreover, the processing and manufacturing techniques of these products are quite complex, which further affects the manufacturer's view regarding manufacturing plant-based products.

Opportunities

• Product innovation and developments are expected to foster growth opportunities in the global market.

Continuous developments in ingredients, flavors, and formulations are expanding the market. Manufacturers are coming up with more variety of plant-based spreads like legumes, seeds, nuts, and vegetables to cater to the growing requirements of people. Plant-based spreads are well fortified with vitamins and minerals to enhance the nutritional profile, which is further expected to appeal to the wider consumer base. Rising educational campaigns to increase awareness among people regarding the health benefits of vegan products like plant-based spreads are further expected to positively impact the growth trajectory of the global plant-based spreads market.

Challenges

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

However, there is a growing popularity of vegan products, but still, there is a large chunk of people who are unfamiliar with these products. These people are skeptical regarding the nutritional benefits and taste of the products like plant-based spreads. Moreover, there is a big educational gap regarding the environmental and health benefits of these products. Therefore, it is a big challenge in the plant-based spreads industry.

Segmentation Analysis

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

On the basis of distribution channels, the market can be segmented into online channels, specialty stores, convenience stores, hypermarkets & supermarkets, and others. The hypermarket & supermarket segment accounts for the largest share of the plant-based spreads industry. Hypermarkets and supermarkets are accessible to a huge number of the population.

Therefore, their extensive reach and presence in most of the areas make it a primary source of shopping for people. These stores hold products from different brands and types and offer people to shop from a lot more options. Moreover, people have more trust in the quality of the products from these stores.

Additionally, the store facilitates shopping for multiple items, like groceries, domestic items, electronics, etc., in one place, which further makes it a favorite place to shop for customers. However, these stores use promotional activities to engage people with discounts or loyalty programs, which further makes it the perfect choice for offering products like plant-based spread. The product placement and marketing strategies adopted by these stores are also expected to facilitate impulse purchases and increase the visibility of these products like plant-based spread.

Many supermarkets and hypermarkets nowadays have dedicated units for plant-based food products, which is further expected to increase the sales of the products. These stores have more competitive pricing, which makes the product more affordable and, therefore, drives higher sales volumes.

On the basis of source, the market can be segmented into grains, seeds, nuts, vegetable oils, pulses, and others. Nuts segment is likely to swipe the largest share of the global plant-based spreads market. Nuts like hazelnut, cashew, peanut, or almond are rich in protein, vitamins, minerals & fats, and therefore, it is more popular among consumers. The growing awareness among people regarding the regular intake of protein, especially among the populations, is further boosting the growth of the segment. Nut butter is highly versatile in nature and can be used in different ways like in smoothies, baking, cooking, and spread applications.

Therefore, people are more inclined towards the nuts options. These products are ideal for both sweet and savory dishes. The rising demand for dairy-free and gluten-free food options is also making these plant-based spreads like nut butter popular in the market.

Also, nuts are viewed as a more natural and minimally processed food product with clean-label ingredients, and therefore, it is more in demand. Manufacturers are increasing their research and development activities to come up with more innovative and unique flavors like hazelnut chocolate or honey almond butter to swipe a large market area.

On the basis of type, the market can be segmented into jam, vegan herring salad, vegan cream cheese, hummus, guacamole, pesto, veggie plates, nut butter, margarine, lard, and others. Margarine is the fastest-growing segment in the global plant-based spreads market. Consumers are looking forward to healthier alternatives, unlike traditional margarine, because of the high saturated fat and cholesterol content. Vegan margarine is fortified with vitamins like B12 and D, along with omega fatty acids, to improve the nutritional profile of the products.

However, the surge in the adoption of vegan diets all across the globe is further boosting the demand for plant-based products in the market. Manufacturers are investing heavily in research and development activities to enhance the texture, functionality, and taste of the products in order to offer a similar mouthfeel and texture to traditional margarine products. Manufacturers are experimenting with different oils like olive oil and avocado oil to lower the amount of trans fat content, thereby making these products more appealing. However, manufacturers have come up with flavored market variants by adding specialized herbs and garlic, which in turn is further expected to expand the market.

Report Scope

Regional Analysis

• North America to dominate the global market.

North America accounts for the largest share of the global plant-based spreads market during the forecast period. Consumers in the region have become more aware of their health and wellness, which is further boosting the demand for healthier alternatives like plant-based spreads in the market. Vegan products like plant-based spreads contain low saturated fat and cholesterol.

Also, they do not have lactose content, thereby making it ideal for people with lactose intolerance issues or health-conscious consumers. The rise in veganism is a primary driver for the high demand for plant-based products in the market. Moreover, many people have shifted their regular diet to vegetarianism because of ethical and environmental reasons, as plant-based products offer a lower environmental footprint as compared to dairy products. The US is the largest market in North America because of the high consumer awareness regarding the health benefits of plant-based products.

Also, the presence of strong market players in the region is further supporting the growth of the industry. Canada is also likely to witness significant growth in the coming years because of the rising interest of people in health and sustainability aspects. Moreover, the regional government policies are also likely to promote sustainable products and practices, which in turn is expected to support the market expansion.

Asia Pacific is also likely to witness significant growth in the coming years. Consumers in the region are becoming more aware of the nutritional advantages of plant-based diets. Rising urbanization is also showing a strong preference for plant-based diets. The region is witnessing an increasing number of people facing the issues of lactose intolerance or gluten food allergies. Rising concerns over animal welfare and environmental sustainability are also driving people to adopt plant-based products like plant-based spreads. India has a dominant vegetarian population, thereby making it a promising market for plant-based spreads.

Also, the growing middle population and urbanization in Indian cities are further likely to support the growth trajectory of the regional market. China is also showing remarkable developments in the market because of the growing health awareness among people along with government support for plant-based diets as a part of their sustainability initiatives.

Competitive Analysis

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

• Frito-Lay North America Inc.
• Galaxy Nutritional Foods Inc.
• Good Foods Group LLC
• WayFare Health Foods
• KENSINGTON & SONS
• Bear Pond Farm
• Majestic Garlic
• Red Duck Foods Inc.
• Litehouse Inc.
• B&G Foods Inc.
• Follow Your Heart
• Amy's Kitchen Inc.
• Meridian Group.
• DAIYA FOODS INC.

For instance, Follow Your Heart came up with its second product in the plant-based cheese range in 2021. It is said to be a complimentary addition to salads, crostini, and pizza. The firm first introduces its dairy-free feta crumbles in the market.

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

By Distribution Channels Segment Analysis

• Online Channels
• Specialty Stores
• Convenience Stores
• Hypermarkets & Supermarkets
• Others

By Sources Segment Analysis

• Grains
• Seeds
• Nuts
• Vegetable Oils
• Pulses
• Others

By Types Segment Analysis

• Jam
• Vegan Herring Salad
• Vegan Cream Cheese
• Hummus
• Guacamole
• Pesto
• Veggie Plates
• Nut Butter
• Margarine
• Lard
• 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