Researchers Predict Plant-Based Food Market Will Be Worth $74.2 Billion By 2027
Drivers for the increase include a larger vegan population and ‘increasing incidences of intolerance for animal protein’
JUL 26, 2020
Market researchers have predicted the plant-based food market will be worth more than $74 billion by the year 2027.
In a new report conducted by Meticulous Research, the plant-based market is expected to grow at a CAGR of 11.9 percent from 2020 for the next seven years.
Drivers for the increase include an ‘increased’ vegan population, ‘significant investments in plant-based product companies, and ‘increasing incidences of intolerance for animal protein’.
“[COVID-19] has led to some best practice models for plant-based products industry as the pandemic has conveyed to the forefront the connection between public health and animal meat consumption, which provides consumers a ground to go for a plant-based diet,” the report states.
“From a manufacturing and distributing point of view, this industry has faced unprecedented demand from manufacturers as well as consumers, particularly for some products such as meat analog and plant-based milk.
“Many companies in the space of alternative protein products have already started changing their strategies, owing to the sudden growth in demand.”
Recently, U.S vegan meat sales skyrocketed by 280 percent amid the coronavirus pandemic.
The crisis, which has resulted in meat shortages and temporary closure of slaughterhouses around the world, is said to have boosted the sales of plant-based meat as more people are afraid of ‘animal-borne illnesses’.
You can read the full report here
UK demand for new vegan food products soars in lockdown
Trademarks registered double in a year as supermarkets and restaurants eye fast-growing sector
The number of trademarks registered for new vegan food and drink products in the UK more than doubled to a record high last year.
Latest figures reveal that companies successfully applied for 107 trademarks in 2019 for everything from ice cream to meat-free burgers – a 128% increase on the 47 recorded in 2018 – as consumer demand for vegan alternatives continued to soar.
They were filed prior to lockdown, but supermarkets have meanwhile reported strong sales of plant-based ranges since the coronavirus outbreak began, highlighting the fragility of the traditional food chain.
The ongoing trend reflects people paying closer attention to their diet during lockdown, increasingly adopting “flexitarian” diets – cutting down on meat and dairy while eating more plant-based foods.
The new trademark figures are compiled by law firm EMW, which says the fast-growing vegan food category is now attracting interest from large multinational businesses with the resources to invest heavily in branded products.
With further innovations in the pipeline, two manufacturers – Upfield and Beyond Meat – have trademarked product names based on variations of “Beyond Butter”, “Beyond Cheese” and “Beyond Mince”. Upfield, the owner of Flora, bought the vegan cheese producer Violife for a reported €500m (£455m) earlier this year.
Daisy Divoka, an associate at EMW, said: “There are now more vegan products on supermarket shelves than ever before. Multinational corporations have identified this as a fast-growing sector and are competing to register their trademarks with the aim of capturing and defending a share of the market.”
Discount supermarket chain Lidl has trademarked a range of vegan products including pastries and baguettes, while restaurant chains Honest Burger and Leon also entered the fray for meat substitutes and plant-based condiments. The furniture chain Ikea will next month start selling “plant balls”; versions of its eponymous meatballs made from pea protein.
Sainsbury’s, which has trademarked its mushroom-based “shroomdog”, reported double-digit growth of its plant-based and meat-free range. Rosie Bambaji, plant-based buyer at Sainsbury’s said: “We expect to see this area continue to grow as we emerge out of lockdown.”
Tesco said it had launched more than 30 new plant-based products across its Wicked Kitchen and Plant Chef ranges in June, including BBQ, Asian-inspired and meal kits. Plant-based barbecue options had proved very popular during the recent hot weather, it said.
Companies can also apply to use the Vegan Society’s sunflower logo, for which they pay a licensing fee based on turnover. A spokeswoman said: “We have only recently starting reporting by category but the number of fashion products registered has doubled so far in 2020. Drinks, household and toiletry products are our next biggest growth categories.”