Plant-based Beverage Market

Plant-based Beverage Market Outlook (2024 to 2034)

Revenue from the global plant-based beverage market is estimated to reach US$ 18.45 billion in 2024. The market is analyzed to rise at a CAGR of 11.9% to reach US$ 56.73 billion by the end of 2034.

Yogurts manufactured from plant milk such as almond, coconut, soy, or cashew are meant to take the place of conventional dairy yogurts. These are eaten on their own, as a component in smoothies or dessert recipes, or as a parfait. Like their dairy counterparts, plant-based yogurts frequently contain probiotics to support digestive health, making them a popular option for health-conscious consumers.

Plant-based ice creams produced from almond, coconut, oat, or cashew milk are beginning to supplant traditional dairy varieties. These plant-based frozen sweets satisfy customers who want vegan-friendly and lactose-free options without compromising on taste or texture. Almond, soy, or coconut milk are used to make plant-based coffee creamers instead of dairy ones.

Key Market Growth Drivers :

• A growing number of customers are choosing plant-based beverages over dairy milk as healthier alternatives.
• The investment activities of both traditional food and beverage companies and venture capital firms are contributing to the plant-based beverage market growth.
• The growing retail presence and distribution networks of plant-based solutions are making them widely available to customers, driving market expansion.
• One of the noteworthy plant-based beverage market trends includes growing customer preferences for sustainability, ethics, and health. Several customers are turning to plant-based alternatives, such as plant-based beverages, due to several advantages of plant-based diets. These larger issues are positively affecting the market for plant-based beverages.
• More customers choose to buy protein powders made from plant sources such as rice and peas rather than ones made with whey. Sports enthusiasts are adopting plant-based proteins as an essential component of their training regimens, driving up demand for plant-based protein supplements in sports nutrition.
• Several flavored beverages have recently entered the market because of the consistent development of these items. These items come in several flavors, including chocolate, banana, coconut, hazelnut, strawberry, and French vanilla. To encourage the acceptance of beverages in several applications, such as smoothies, protein shakes, yogurt drinks, and other beverages with preferred additions, manufacturers are producing and combining different flavors.

Report Attribute	Detail
Plant-based Beverage Market Size (2024E)	US$ 18.45 Billion
Forecasted Market Value (2034F)	US$ 56.73 Billion
Global Market Growth Rate (2024 to 2034)	11.9% CAGR
East Asia Market Share (2024E)	24.4%
North America Growth Rate (2024 to 2034)	12.4% CAGR
Demand for Regular Drinks (2024E)	US$ 11.42 Billion
Key Companies Profiled	Bayer AG; Abbott; DSM; DuPont.; Amway; The Nature's Bounty Co.; GlaxoSmithKline plc.; Nestlé SA; RiceBran Technologies; Mead Johnson & Company LLC; Medifast Inc.

What Key Drivers are Influencing the Market for Plant-based Beverages?

“Manufacturers Bringing Innovative Ways to Improve Flavor, Texture, and Nutritional Content of Beverages Made from Plants”

The need for plant-based drinks is rising among consumers due to health concerns about things such as digestive problems, cholesterol control, and lactose intolerance. The demand in the market is also driven by the belief that plant-based foods are healthier than dairy products. There is a growing trend of flexitarian and vegan diets that is driving up demand for non-dairy substitutes.

Health, ethical, and environmental concerns are driving these changes. There is growing knowledge of how animal agriculture affects the environment, including greenhouse gas emissions and water usage, which is pushing customers to select more environment-friendly options, such as plant-based beverages.

Manufacturers are coming up with great ideas to enhance the nutritional value, flavor, and texture of plant-based drinks. The market is also expanding with the introduction of varieties and fortified choices, such as those with additional vitamins or minerals. To further appeal to consumers who care about the environment, several firms are making investments in eco-friendly packaging and sustainable sourcing methods.

What are the Challenges to the Sales of Plant-based Beverages?

“Preference for Traditional Dairy Milk among Several Consumers and Unpleasant Flavor or Aftertaste”

Plant-based beverages are susceptible since dairy farmers not only compete fiercely but also actively promote and sell their products. Consumers are getting confused and suspicious because of the abundance of contradicting information regarding the benefits and drawbacks of vegan beverages from a nutritional standpoint.

Traditional dairy milk is still preferred by several customers, and some plant-based substitutes could have an aftertaste or flavor that is strange or unappealing. It is challenging to get plant-based beverages to have the same creamy texture as cow's milk, especially when it comes to choices like rice or almond milk, which is thinner and less rich. Particularly when used in coffee or cooking, some customers find the texture of plant-based beverages to be less satisfying.

Country-wise Insights

The market in East Asia is analyzed to hold 24.4% of the global plant-based beverage market share in 2024. Meanwhile, North America is estimated to hold a market share of 29.9% in 2024. More consumers are looking for alternatives due to lactose intolerance and dairy allergies, especially in areas where lactose sensitivity is common.

Consumer access to plant-based beverages is expanding as they are available in traditional grocery shops and online platforms. Restaurants and cafes are also starting to serve them more frequently. The promotion of plant-based lifestyles by celebrities, influencers, and social media trends is increasing consumer interest and knowledge of these items.

Although plant-based beverages were first more common in Western countries, dietary changes are pushing demand in potentially high growth countries, especially in Asia and Latin America.

What is Driving the Market for Plant-Based Beverages in the United States?

“Rising Cases of Lactose Intolerance Stimulating People to Opt for Non-Dairy Solutions”

Attribute	United States
Market Value (2024E)	US$ 3.15 Billion
Growth Rate (2024 to 2034)	12.6% CAGR
Projected Value (2034F)	US$ 10.32 Billion

Consumers in the United States are increasingly interested in wellness and health, which is pushing them to look for dairy product substitutes. A growing number of people in the country are selecting plant-based drinks because they offer health benefits such as being an excellent source of vitamins and minerals, as well as having less fat and cholesterol.

Consumers in the United States are increasingly consuming non-dairy options due to the rising incidence of lactose intolerance and allergies associated with dairy. Almond, soy, oat, and coconut milk are examples of plant-based beverages that offer alternatives for people who avoid dairy.

One of the major factors contributing to this trend is the growing popularity of these lifestyles. Even if they aren't entirely dedicated to plant-based eating, more consumers are adding plant-based foods to their diets.

What is the Sales Outlook for Plant-based Beverages in China?

“Concerns Regarding Digestion, Cholesterol, and Overall Health Driving Market for Non-Dairy Milk Substitutes”

Attribute	China
Market Value (2024E)	US$ 2.2 Billion
Growth Rate (2024 to 2034)	11.9% CAGR
Projected Value (2034F)	US$ 6.76 Billion

Several consumers in China are becoming more conscious of their health and well-being, which has led to a preference for plant-based beverages over dairy-based ones. The demand for non-dairy milk alternatives such as soy, oat, almond, and rice milk is being driven by concerns related to cholesterol, digestive health, and general well-being.

Chinese cuisine has traditionally included soy milk, which provides a solid framework for manufacturers of plant-based beverages. Building on this heritage, the contemporary plant-based movement is offering a greater diversity in non-dairy beverage options and creative concoctions such as flavored or fortified soy milk. The need for lactose-free, plant-based substitutes for conventional dairy milk is further rising by the fact that a sizeable section of the population in the country is lactose intolerant.

Category-wise Insights

The market for plant-based beverages is categorized into RTD drinks, dairy alternatives, and plant-based juices, of which a sizable portion of 57.4% is estimated to be held by dairy alternatives in 2024. By format, the market is divided into flavor and regular drinks. The latter is estimated to capture a market share of 61.9% in 2024.

Which Source is Accountable for the Significant Share of Plant-based Beverages?

“Growing Preference for Dairy Alternatives for Their Nutritive Value”

Attribute	Dairy Alternatives
Segment Value (2024E)	US$ 3.65 Billion
Growth Rate (2024 to 2034)	12.1% CAGR
Projected Value (2034F)	US$ 11.45 Billion

Almond and oat milk are two examples of plant-based milk substitutes that are often lower in fat and calories than dairy milk. Health-conscious shoppers looking for lighter, healthier options are finding them more appealing.

Drinks made from plants have no cholesterol by nature, which makes them perfect for anyone trying to control their heart health. Unique nutrients such as fiber (found in oat milk), protein (found in soy milk), and healthful fats (found in almond and coconut milk) are found in plant-based substitutes. To meet or surpass the nutritional value of dairy, several beverages are also fortified with vitamins (B12 and D), minerals (calcium), and other nutrients.

Why are Regular Plant-based Beverages Demanded More?

“Regular Smoothie Recipes Often Call for Plant-Based Alternatives to Dairy Products”

Attribute	Regular Drinks
Segment Value (2024E)	US$ 11.42 Billion
Growth Rate (2024 to 2034)	11.8% CAGR
Projected Value (2034F)	US$ 34.74 Billion

Traditional dairy-based protein drinks are substituted with plant-based ones produced from pea protein, soy protein, or other plant-derived proteins. Athletes, fitness fanatics, and people searching for a dairy-free protein supplementation frequently eat these.

To improve their nutritional profile, these beverages generally include extra vitamins, minerals, and superfoods (such as chia seeds, matcha, or turmeric). Plant-based substitutes for dairy yogurt and milk are used in regular smoothie recipes.

Customers make wholesome, vegan-friendly smoothies by combining plant-based milk or yogurt with fruits, veggies, and protein powders. Plant-based drinks combine the benefits of both types of beverages by blending conventional fruit juices with plant-based milk (such as almonds or oats).

Competition Analysis

Key players in the plant-based beverage market are facing off against the influx of innovative startups and niche brands. Consumer demand for plant-based beverages is trending upward because of environmental and health concerns. Thus, by offering a large selection of plant-based beverage options, investing in product innovation, and expanding their distribution networks, the companies are fighting for market dominance.

• Nescafé introduced a range of vegan flat white latte pods in the United Kingdom in January 2021. The pods come in almond, oat, and coconut varieties. Customers are also forced to switch to vegan meals and beverages because of growing health concerns. There is a noticeable rise in the number of vegans.
• A Vancouver-based dairy substitute business Plant Veda in June 2021 announced the introduction of a new kind of vegan lassi, an Indian yogurt beverage made with cashews and genuine fruits. This product has probiotics that are good for the gut and is devoid of cane sugar.
• Heartbest Foods introduced its plant-based milk in February 2021. There were two tastes of the plant-based milk: basic and quinoa.

Fact.MR provides detailed information about the price points of the leading providers in the plant-based beverage market positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Plant-based Beverage Market Research

• By Source :

  • RTD Drinks
  • Dairy Alternatives
  • Plant-based Juices

• By Format :

  • Flavor
  • Regular Drinks

• By Nature :

  • Conventional
  • Organic

• By Function :

  • Cardiovascular Health
  • Cancer Prevention
  • Bone Health
  • Lactose-Free Alternative

• By Packaging :

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

• By Packaging :

  • North America
  • Europe
  • East Asia
  • Latin America
  • South Asia & Pacific
  • Eastern Europe
  • Middle East & Africa