Vegan Donuts Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[203+ Pages Report] According to Facts and Factors, the global vegan donuts market size was valued at USD 118.6 million in 2022 and is likely to surpass USD 260.8 million by the end of 2030. The vegan donuts industry is expected to grow with a CAGR of 10.40% during the forecast period.

Market Overview

Vegan donuts refer to the kind of donut that does not include any animal-based ingredients in the preparation. These are good and healthy plant-based alternatives to the traditional donuts. Vegan donuts come in a wide range of styles and flavors.

Some of the common varieties include specialty flavors, cinnamon sugar donuts, fruit-filled donuts, chocolate donuts, glazed donuts, and others. These donuts are ideal for people following vegan diets or those with allergies or dairy intolerance.

Key Insights

• As per the analysis shared by our research analyst, the global vegan donuts market size is estimated to grow annually at a CAGR of around 10.40% over the forecast period (2023-2030).
• In terms of revenue, the global vegan donuts market size was valued at around USD 118.6 million in 2022 and is projected to reach USD 260.8 million by 2030.
• Vegan product’s portfolio is driving the growth of the global vegan donuts market.
• Based on the distribution channel, the online channel segment is growing at a high rate and is projected to dominate the global market.
• Based on the product, the yeast donut segment is projected to swipe the largest market share.
• Based on region, North America is expected to dominate the global market during the forecast period.           

Growth Drivers

• Vegan product’s portfolio is likely to drive the growth of the global market.

The wide availability of vegan food products is one of the major reasons for the growth of the global vegan donuts market. Moreover, the easy availability of different vegan products from the portfolio, like egg substitutes, vegan-friendly baking ingredients, plant-based milk, etc., has made it easier for the manufacturers to come up with unique and delicious plant-based products like vegan donuts.

Nowadays, the food and beverage industry is coming up with seasonal and unconventional flavors like pumpkin spice, lavender, and matcha, which are likely to gain immense popularity among people. The local and artisanal offering is further likely to increase sales and expand the market. The local chefs and artisanal producers are coming up with handcrafted and premium options that are likely to offer a personalized touch and thereby garner more appreciation from the consumers.

Restraints

• Price sensitivity is likely to hamper the growth of the global market.

Vegan ingredients are sourced organically and with other unique techniques that are more expensive than their animal counterparts. Therefore, vegan donuts are priced higher than their counterparts, which is likely to hamper the growth of the global vegan donuts industry in the forthcoming years.

Additionally, the limited availability of vegan donuts all across the world is further expected to restrict the reach and, therefore, slow down the growth of the market.

Opportunities

• Online delivery services are likely to foster growth opportunities in the global market.

The convenience of ordering food online via e-commerce channels or food delivery apps is likely to widen the scope of the vegan donut industry globally. Many bakeries and donut shops are extending their sales via online delivery to reach a wider customer base. For instance, The Mad Over Donuts is investing in its store in South Mumbai in 2022. The store is around 700 square feet across Churchgate Station.

Challenges

• Competition with traditional donuts is a big challenge in the global market.

Traditional donuts are still in the minds of people. Therefore, the vegan donut faces competition with a broader donut industry, which is a big challenge in the global vegan donuts market. Moreover, cultural and regional preferences are further likely to limit the adoption of vegan donuts.

Segmentation Analysis

The global vegan donuts market can be segmented into distribution channels, products, and regions.

On the basis of distribution channels, the market can be segmented into online channels, supermarkets, retail stores, and others. The online channel segment accounts for the largest share of the vegan donut industry. The market can be further bifurcated into two categories, namely, e-commerce websites and food delivery apps.

One of the major reasons for the growth of e-commerce channels is the growing convenience of ordering donuts from the comfort of one’s own place. The convenience appeals to the hectic job workers and the tired homemakers looking for hassle-free ways to access vegan treats.

Moreover, the food delivery apps and e-commerce platforms are extending their reach to a global audience, thereby allowing companies in the vegan doughnut industry to expand the market beyond their local area. Online channels offer a wide range of brands and flavors, thereby giving more choices to customers.

As a result, people hover over online channels for different tastes and dietary preferences. The supermarket segment is also likely to grow steadily in the forthcoming years because brands sell through supermarkets to provide wider access to a customer base.

However, the retail store segment is also anticipated to foster developments during the predicted period. The retail stores sometimes collaborate with vegan bakeries and cafes for marketing and sales operations. It is done to build brand loyalty, offer store promotions, and taste feedback.

On the basis of product, the market can be segmented into cake and yeast donuts. The yeast donut segment is likely to dominate the vegan donut industry during the forecast period. Yeast donuts are prepared from yeast, which includes vegan fats, plant-based milk, yeast, and sometimes egg substitutes for binding. The yeast donuts have a very airy and lighter texture.

Also, the manufacturers are coming up with unique product offerings like donuts with fruit preserves, custard filings, vegan creams, etc., to attract a broader customer base in the market. The cake donut segment is also projected to register notable growth in the forthcoming years because these come in a large range of options like cinnamon, sugar, vanilla, chocolate, and others.

Additionally, manufacturers come with more creative and seasonal variations like lemon glaze or pumpkin spice to attract a larger customer base. The cake donuts are made from cake-like batter, which includes vegan milk, fats, and leaving agents. These cakes are denser as compared to others. Also, these are topped with coatings like chocolate, maple, icings, fruit glazes, and several others.

Report Scope

Regional Analysis

• North America to dominate the global vegan donut market.

North America is expected to experience significant growth in coming years due to the growing demand for vegan food products in the region. The demand can be attributed to the increasing environmental, health, and sustainability concerns among people.

Animal cruelty is the biggest concern, contributing heavily to the growth in the popularity of vegan products. People in the region are increasing their expenditures in the health and wellness field. People are shifting their choices to healthier options, thereby opting for plant-based products like vegan donuts.

Also, the local market in the region includes some artisanal vegan producers who offer unique flavors, personalized touch, and high-quality ingredients, which further attract customers and encourage regional growth.

Asia Pacific is expected to grow steadily during the forecast period because of the rapidly growing regional market. The surging awareness of veganism and plant-based diets all across the region is likely to positively impact the growth trajectory.

Moreover, the region is known for the cultural diversity in the vegan diet. Therefore, there is immense growth potential of the vegan donuts in the region. Additionally, the major urban centers in Asia, like Singapore, Bangkok, Seoul, and Tokyo, are witnessing the rising trend of vegan bakeries and cafes.

Moreover, American-style donuts are positively influencing the regional market, leading to the growing popularity of vegan versions of donut flavors like cinnamon sugar, glazed, or chocolate. For instance, Theobroma opened its first outlet in Chennai in October 2022. Theobroma is a famed Mumbai patisserie company. Now, the company has a hundred stores across India.

Competitive Analysis

The key players in the global vegan donuts market include:

• Dun-Well Doughnuts 
• Voodoo Doughnut 
• The Cinnamon Snail 
• Holey Moley Coffee + Doughnuts 
• Glam Doll Donuts 
• Mighty-O Donuts 
• Rise Biscuits Donuts 
• Dottie's Donuts 
• Blue Star Donuts 
• Reverie Bakeshop 
• Crosstown Doughnuts 
• Oh Doughnuts 
• Peaceful Provisions 
• Vegan Doughnut Company 
• Beet Box Bakery & Cafe

For instance, The Premium Healthful bread line in 2021 stepped into the market with three product lines, namely, Oroweat, Arnold, and brownberry. They came into the market with the aim to consistently supply and cater to the fast-growing vegan donut market.

The global vegan donuts market is segmented as follows:

By Distribution Channel Segment Analysis

• Online Channels
• Supermarkets
• Retail Stores
• Others

By Product Segment Analysis

• Cake Donuts
• Yeast Donuts

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