Plant Based Beverages Market By Type (Milk, Others), By Source (Almond, Soy, Coconut, Rice, Others), By Packaging (Carton Packaging, Glass Bottles, Plastic Bottles & Pouches, Cans), By Distribution Channel (Supermarkets/Hypermarkets, and Others), By Region And Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, And Forecast 2023-2032

Report Overview

Plant Based Beverages Market size is expected to be worth around USD 30.3 Bn by 2032 from USD 12.2 Bn in 2022, growing at a CAGR of 9.8% during the forecast period from 2023 to 2032.

The growing demand for healthier and more environmentally friendly food and drink options has led to remarkable growth in the plant-based beverages market in recent years. This expanding market incorporates a vast selection of non-dairy beverages derived from a variety of plants, such as nuts, seeds, grains, and herbs. Consider almond milk, soy milk, and coconut water as examples of popular beverages. The popularity of these plant-based beverages has increased substantially due to their numerous health benefits. First, they are an excellent dairy substitute for people with lactose intolerance and dairy allergies. In addition, they typically contain fewer calories and cholesterol than their dairy counterparts. In addition, these beverages have an extended expiration life, making them a practical option for many consumers.

The industry of plant-based beverages has witnessed a surge of innovative developments that have revitalized the sector. In investigating novel plant-based ingredients such as pea protein, hemp, and oats, for instance, companies are venturing into uncharted territory. In addition, the introduction of functional plant-based beverages infused with added nutrients, probiotics, and antioxidants has increased the allure of these beverages among health-conscious consumers, fostering a sense of intrigue and enthusiasm.

In the near future, a surge in demand for healthier and more environmentally-friendly dietary options is anticipated, which bodes well for the market for plant-based beverages. Beyond the domains of food and drink, these beverages have found applications in a variety of industries, including cosmetics, pharmaceuticals, and nutraceuticals, thereby maximizing their potential. The food and beverage, cosmetic, and biomedical industries, among others, are all eager to invest in plant-based beverages. Concurrently, both consumers and health professionals are increasingly embracing plant-based alternatives, enticed by the growing corpus of research demonstrating the health benefits of plant-based diets.

The key forces propelling the plant-based beverages market include consumer demand for healthier and more sustainable products, a growing awareness of the environmental repercussions of conventional dairy farming practices, and the expansion of research into the numerous health advantages of plant-based diets. It is important to note that the enhanced flavor and texture of plant-based alternatives are also major factors in their soaring popularity.

Ethical considerations are of the utmost importance within the market for plant-based beverages. As consumers become more concerned about animal welfare and the environmental impact of their dietary choices, businesses are required to adopt a posture of transparency, accountability, and unwavering dedication to responsible sourcing practices. Leading producers such as Danone and Alpro have already integrated sustainability into their plant-based businesses, setting an admirable example for the entire industry.

Driving Factors

The Rise of Vegan and Plant-Based Diets

The plant-based beverages market is experiencing a significant increase, which can be attributed to consumers' growing awareness of and preference for vegan and plant-based diets. As individuals become more aware of the environmental impact of their food choices, animal welfare concerns, and the importance of personal health, plant-based diets have garnered popularity as a means of addressing these crucial issues. This transition in dietary preferences has also been fueled by a growing emphasis on health and wellness; plant-based diets are associated with a variety of health benefits.

Increasing Demand for Dairy Alternatives

The rising demand for dairy alternatives due to lactose intolerance and milk allergies is one of the main factors driving the expansion of the plant-based beverages market. There is now a greater selection of plant-based milk alternatives available in supermarkets and online for consumers seeking alternatives to conventional dairy products. In addition, the growing prevalence of functional beverages, such as plant-based protein shakes and smoothies, among fitness enthusiasts and athletes is a factor in the market's expansion.

Focus on Environmental Sustainability

Environmental sustainability has become a major concern, resulting in a rise in demand for natural and eco-friendly products. This trend has prompted increased investments in research and development, which has led to the discovery of new plant-based ingredients and the expansion of plant-based beverage options within the food service industry. Consumers are actively pursuing products that align with their values and leave a smaller ecological footprint, thereby accelerating market expansion.

Potential Regulatory Changes and Technological Disruptions

Some countries are introducing legislation that restricts the use of animal-derived ingredients in food products, which could result in regulatory changes for the plant-based beverages market. This transition toward more stringent regulations has the potential to affect market dynamics. In addition, emerging technologies such as 3D printing have the potential to revolutionize the creation of plant-based culinary products, opening up new market avenues and opportunities.

Restraining Factors

High Prices of Plant-Based Beverages Compared to Conventional Dairy Products

The high cost of plant-based beverages relative to conventional dairy products is one of the primary factors restraining the plant-based beverages market. There have been dairy products such as milk and yogurt for centuries, and their production is highly optimized, making them cost-effective. Plant-based beverages, on the other hand, are more expensive to produce because they require specialized equipment and ingredients. In addition, the market for plant-based ingredients is relatively limited, leading to higher raw material costs.

The Limited Availability of Some Plant-Based Ingredients

The limited availability of certain plant-based ingredients is another constraining factor. Soybeans, almonds, and coconuts are the main ingredients in the majority of plant-based beverages. However, the production of these ingredients is extremely reliant on environmental factors such as soil fertility and climate.

Lack of Awareness Among Consumers About the Benefits of Plant-Based Beverages

Despite the expanding popularity of plant-based beverages, consumers are still unaware of the advantages of these products. Due to the taste and texture, most individuals are hesitant to attempt alternatives to cow's milk. In addition, it is a common misconception that plant-based beverages cannot offer the same nutritional benefits as dairy products. Plant-based beverages, on the other hand, are a great source of vitamins and minerals, and they are frequently fortified with calcium and vitamin D.

Unacceptable Consumer Acceptance Due to Flavor and Texture Problems

Last but not least, significant restraint on the plant-based beverages market is limited consumer adoption due to taste and texture issues. The flavor and consistency of plant-based beverages are often found to be distinct from those of dairy products. Additionally, not all plant-based beverages taste and feel the same.

Product Type Analysis

For quite some time, the plant-based milk segment has dominated the plant-based beverages market. Increasing awareness of the health benefits of plant-based milk, a growing vegan population, and an increase in lactose intolerance cases are a few of the factors contributing to its growing popularity.

Plant-based milk consumption has increased in recent years in emerging economies. This is a result of the economic development of these nations. As economies expand, individuals typically become more health-conscious, resulting in a shift toward healthier food and beverage options. In emerging economies, plant-based alternatives are frequently more cost-effective than their animal-based counterparts.

A growing number of consumers are adopting vegan and flexitarian diets, which has led to a surge in demand for plant-based milk. Increasing awareness of the negative health effects of animal protein and lactose intolerance is another factor. Plant-based milk is also more alluring to consumers due to concerns about animal welfare and the environment. The segment will continue to grow in prominence over the next few years thanks to the ongoing innovation in plant-based milk production and its increasing availability in retail stores and online platforms.

Source Analysis

Almond milk holds a substantial share of the plant-based beverages market, and it is frequently considered the most popular plant-based milk substitute due to its neutral flavor and versatility in cooking. The segment is considered a healthier alternative to dairy milk due to its low-calorie and low-fat content.

In emerging economies, almond milk adoption is primarily propelled by economic development. Due to their perceived health benefits, plant-based alternatives are becoming increasingly popular as economic development increases.

Almond milk is adaptable and extensively utilized in a variety of recipes, including smoothies, coffee, and cereal. This adaptability and predilection for a neutral flavor profile have significantly increased demand for almond milk. In addition, ongoing innovation in the production of almond milk and its widespread availability in retail stores and on the Internet contribute to the segment's growth.

Packaging Type Analysis

In the packaging sector of the plant-based beverages market, cartons occupy the largest share. Cartons are a sustainable business model that is extensively used in the packaging of plant-based milk substitutes. The transition towards eco-friendly packaging such as cartons is driven by economic development, as people become more aware of the negative environmental effects of plastic waste. As economies expand, people become more environmentally conscious, resulting in the adoption of environmentally favorable packaging options.

The preference of consumers for eco-friendly packaging is growing, and cartons are viewed as the most sustainable option. The willingness of consumers to pay a premium for plant-based alternatives in eco-friendly packaging has contributed to the development of sustainable business models.

Compared to plastic bottles, cartons are generally regarded as a more sustainable and eco-friendly packaging option. As consumer environmental consciousness increases, there is a growing preference for cartons over other forms of packaging. The growth rate of carton packaging in the plant-based beverages market is also influenced by its affordability and accessibility.

Distribution Channel Analysis

Supermarkets continue to be the primary distribution channel for plant-based beverages, accounting for more than fifty percent of total sales. The segment is favored because it offers consumers access to a variety of options in a single location.

Economic development is the primary motivator of the adoption of plant-based beverages, with supermarkets being the preferred distribution channel. As people's incomes increase, they develop a preference for healthier food and drink options, making supermarkets an attractive option.

Due to their accessible location and accessibility, supermarkets remain the most popular distribution channel for plant-based beverages. In the future years, the rising popularity of plant-based alternatives will continue to drive demand for these products in supermarkets. In addition, expanding partnerships between manufacturers of plant-based products and supermarkets will increase the availability of these products in supermarkets, thereby contributing to the anticipated growth rate.

Key Market Segments

By Type

• Milk
• Others(Drinks, Juices)

By Source

• Almond
• Soy
• Coconut
• Rice
• Others(Oats, Seed, Cashew, etc.)

By Nature

• Organic
• Conventional

By Packaging

• Carton Packaging
• Glass Bottles
• Plastic Bottles & Pouches
• Cans

By Distribution Channel

• Supermarkets/Hypermarkets
• Convenience Stores
• Independent Small Groceries
• Specialty Stores
• Online Retailers

Growth Opportunity

Increasing Investment in Marketing and Promotional Activities

The rising expenditures on marketing and promotional activities are another factor influencing the expansion of plant-based beverages. Companies are increasing their marketing efforts to differentiate themselves and acquire a larger market share as market competition increases. Numerous businesses are forming partnerships with influencers and celebrities to advertise their products on Instagram and YouTube. This strategy has been successful at increasing awareness of plant-based products and boosting sales. In addition, a number of plant-based beverage companies are utilizing experiential marketing strategies, such as pop-up stores, to allow consumers to sample their products and learn about the advantages of a plant-based lifestyle.

Expansion of Distribution Channels to Reach New Customers

The expansion of distribution channels is an additional important factor contributing to the expansion of the plant-based beverage industry. As the demand for plant-based products rises, businesses are expanding their distribution networks and exploring new markets to reach new consumers. Numerous plant-based beverage companies are forming partnerships with retailers and e-commerce platforms to expand their domestic and international market presence. In addition, many businesses are exploring the culinary service industry to increase their customer base.

Demand for plant-based beverages is increasing in emerging markets

The increasing demand for plant-based beverages in emerging markets represents a significant opportunity for companies that produce plant-based beverages. As consumers in emerging markets become increasingly health- and environmentally-conscious, the demand for plant-based products increases. Due to rising discretionary income and a trend toward healthier behaviors, China, India, and Brazil, for instance, are emerging as lucrative markets for plant-based beverages.

Increased emphasis on sustainability and eco-friendly packaging

Increasing emphasis on sustainability and eco-friendly packaging drives the expansion of the market for plant-based beverages. Consumers are becoming more environmentally conscious and are demanding eco-friendly packaging and sustainable products. To reduce their carbon footprint and appeal to environmentally conscious consumers, many plant-based beverage companies are utilizing innovative packaging solutions, such as paper-based cartons and biodegradable plastic.

Latest Trends

Increasing demand for plant-based protein drinks and smoothies

The rising demand for plant-based protein drinks and smoothies is another trend in the market for plant-based beverages. The demand for protein-rich plant-based beverages has increased as a result of consumers' increased health and fitness consciousness. Smoothies and beverages containing plant-based protein are excellent sources of energy and recovery following exercise.

Introduction of plant-based coffee and tea alternatives

The introduction of plant-based alternatives to coffee and tea is another trend influencing the Plant-Based Beverages Market. As consumers pursue healthier and more eco-friendly alternatives, they gravitate toward plant-based coffee and tea alternatives made with coconut milk, almond milk, or oat milk. These alternatives offer consumers a plant-based alternative that is low in calories and environmentally favorable.

The growing popularity of plant-based beverages in the food service sector

Plant-based beverages are becoming more prevalent in the food service industry. Customers are demanding healthier and more environmentally friendly options, and the food service industry is responding. To meet the changing preferences of their consumers, well-known cafes, restaurants, and food chains are now offering plant-based beverages on their menus. Manufacturers and suppliers are investing in new products to satisfy the growing demand for plant-based beverages in the food service industry.

Increasing investment in research and development of new plant-based ingredients and products

Increasing investment in the research and development of new plant-based ingredients and products is an additional trend influencing the Plant-Based Beverages Market. Manufacturers and suppliers are investing in research and development to create new sustainable and healthful plant-based ingredients. In addition, they are developing plant-based protein beverages, plant-based coffee and tea alternatives, and plant-based milk alternatives to meet the rising demand. Plant-based beverages' flavor, texture, and nutritional value are all being improved by investment in research and development.

Regional Analysis

Plant Based Diets and Health Consciousness Are Increasingly Popular in North America In North America, there has been a significant transition towards plant-based diets. This change is influenced by a number of factors, including health consciousness, the increased availability of plant based beverages, and animal welfare and environmental concerns. Today, we will evaluate why this phenomenon is gaining popularity in North America and discuss the forces that are propelling it.

People's growing health and environmental consciousness is a significant factor in the rising prominence of plant-based diets in North America. Individuals are becoming increasingly concerned about the detrimental effects of animal-based products on their health and the environment. They are learning about the negative environmental effects of livestock consumption, such as greenhouse gas emissions, deforestation, and water pollution, and are opting for plant-based alternatives. Individuals are also becoming more aware of the health benefits of a plant-based diet, such as a reduced risk of cardiovascular disease, obesity, and diabetes.

The increased availability and diversity of plant based beverages is another factor in the rise of plant-based diets. This includes plant-based milks such as almond, soy, and oat milk, in addition to plant-based proteins such as pea protein. The widespread availability of these products in grocery stores and online makes it simpler for consumers to incorporate plant-based options into their diets.

Growing concern for animal welfare in North America is another factor contributing to the rise in popularity of plant-based diets. With the rise of social media and heightened awareness of how animals are raised and treated, a growing number of consumers demand animal-free products. This includes both animal products and products that have undergone animal testing.

Key Regions and Countries

North America

• US
• Canada
• Mexico

Western Europe

• Germany
• France
• The UK
• Spain
• Italy
• Portugal
• Ireland
• Austria
• Switzerland
• Benelux
• Nordic
• Rest of Western Europe

Eastern Europe

• Russia
• Poland
• The Czech Republic
• Greece
• Rest of Eastern Europe

APAC

• China
• Japan
• South Korea
• India
• Australia & New Zealand
• Indonesia
• Malaysia
• Philippines
• Singapore
• Thailand
• Vietnam
• Rest of APAC

Latin America

• Brazil
• Colombia
• Chile
• Argentina
• Costa Rica
• Rest of Latin America

Middle East & Africa

• Algeria
• Egypt
• Israel
• Kuwait
• Nigeria
• Saudi Arabia
• South Africa
• Turkey
• United Arab Emirates
• Rest of MEA

Key Players Analysis

Danone is a multinational food company that offers a variety of plant-based beverages, including Alpro, Silk, and So Delicious, under its brand names. They offer almond milk, soy milk, oat milk, and coconut milk among other products.

Coca-Cola possesses a number of plant-based beverage brands, including AdeZ, SmartWater, and Honest Tea. They sell medicinal teas, flavored waters, and plant-based protein beverages.

PepsiCo owns multiple brands of plant-based beverages, such as Tropicana, Naked Juice, and KeVita. They provide an assortment of fruit liquids, smoothies, and probiotic beverages.

With Nesquik, Carnation, and Garden Gourmet, Nestlé has a significant presence in the market for plant-based beverages. They provide plant-based alternatives to milk, such as almond milk and oat milk.

Califia Farms is a prominent producer of plant-based beverages, particularly almond milk, oat milk, and cold brew coffee. They are committed to providing innovative, sustainable, and high-quality plant-based beverages.

Ripple Foods specializes in beverages made with pea protein. They offer pea milk and protein smoothies to consumers in search of dairy alternatives with higher protein content.

Top Key Players in the Plant-Based Beverages Market

• Danone
• Coca-Cola Company
• Hain Celestial Group Inc.
• Nestlé
• SunOpta Inc.
• PepsiCo Inc.
• Dr Pepper Snapple Group Inc.
• Del Monte Pacific Limited
• Pacific Foods of Oregon Inc.
• Döhler GmbH
• Califia Farms LP
• Good Karma Foods Inc.
• The WhiteWave Foods Company
• Ripple Foods PBC

Recent Development

• In 2021, Oatly, a leading producer of plant-based milk alternatives, went public at a substantially higher price than initially anticipated. The company's success is evidence of the increasing demand for plant-based products and investors' interest in the sector.
• In 2021, PepsiCo also made a bold move by acquiring Health Warrior, a plant-based refreshment and beverage company. The acquisition is part of PepsiCo's strategy to expand its presence in the plant-based market and diversify its portfolio.

Report Scope