Vegan food market: projected growth and market dynamics
Technavio’s latest market research report estimates significant growth of €19.6 billion between 2021 and 2026. The market is projected to register a CAGR of 12.25% during this period. The report provides detailed insights into the current market scenario, trends, drivers and the overall market environment.
The vegan food market is segmented based on products, including dairy alternatives, meat alternatives, and others, as well as geographical regions such as North America, Europe, APAC, South America and the Middle East and Africa.
The growing number of vegan consumers
One of the key drivers for the expansion of the vegan food market is the growing number of individuals adopting a vegan lifestyle. Veganism, which focuses on eliminating animal exploitation and cruelty in various industries, including food and clothing, has gained significant traction. People are embracing veganism for health, ethical and environmental reasons. Notably, food service outlets are also catering to this growing consumer segment by incorporating vegan recipes into their menus. The report highlights that the global vegan population reached nearly 79 million in January 2021, indicating a 3% increase from the previous year. This upward trend in vegan consumers is expected to drive the growth of the vegan food market throughout the forecast period.
New product launches and standardisation
New product launches are playing a pivotal role in propelling the growth of the vegan food market. Successful launches not only contribute to revenue growth but also help companies establish a strong consumer base and gain a competitive edge on the market. For instance, recent launches of vegan products, such as battered fishless fillets and dairy-free ice cream flavours, have generated considerable interest among consumers. However, one of the challenges faced by the market is the lack of product standardisation guidelines. Varying regulations and legislations across different countries impact packaging and labeling processes, leading to increased production costs for vendors. Addressing this challenge through uniform regulations will be essential for sustained growth in the vegan food market.
According to the report, the vegan food market is set to experience significant growth, driven by the increasing number of vegan consumers globally. The report emphasises the dairy alternatives segment as a major contributor to market growth due to rising demand. Furthermore, the market is fragmented, and vendors need to strengthen their positions in fast-growing segments while maintaining their presence in slower-growing ones. Launching new products and addressing challenges related to standardisation are crucial for market expansion. By leveraging market research reports like Technavio’s, businesses can gain valuable insights into the vegan food market, identify growth opportunities, and strategise their market entry and expansion plans.
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