Growing Demand for Plant-Based Spreads: A
Healthier and Sustainable Alternative to Traditional Spreads
Plant-based spreads have gained
significant popularity in recent years due to the increasing demand for
healthier and sustainable food options. Plant-based spreads are made from
various plant-based ingredients and offers an alternative to traditional
spreads such as butter, margarine and cream cheese. The increasing number of
people adopting vegan and vegetarian diets is fuelling the demand for
plant-based spreads. The Vegan Society filed 16,439 products with the
Vegan trademark in 2021. Over the forecast period, the market is expected to
rise rapidly, owing to consumers' desirable perceptions regarding plant-based
foods. Plant-based spreads offer a cruelty-free and sustainable alternative to
animal-derived spreads. Consumers are increasingly concerned about the
environmental impact of animal agriculture, prompting them to choose for
plant-based alternatives. Plant-based spreads requires fewer resources and has
a lower carbon footprint than animal-based spreads, thereby driving market
growth.
Rising Demand from Vegans, Vegetarians &
Flexitarians Leads to Market Growth
The North American market has
witnessed a surge in demand for plant-based spreads due to the rising number of
consumers adopting vegan and vegetarian diets. The United States, in particular,
has a robust plant-based food industry, including spreads made from nuts, seeds
and vegetables. Major players in the region include popular brands like Earth
Balance, Justin's and Kite Hill. According to American International Foods,
Inc., nearly 12% of consumers in the US, follow a flexitarian diet. The
percentage increases to one fifth (20%) of the US population when vegans,
vegetarians and flexitarians are included. Consumers who are vegetarian or
vegan are not the only ones driving the plant-based revolution; in fact, the
number of consumers that follow a flexitarian lifestyle are increasing at a
faster rate and driving the global plant-based spreads market. The Asia Pacific
region is witnessing a rapid growth in the plant-based market, including
spreads. Countries like China, India and Japan have a large population adopting
plant-based diets for health and sustainability reasons. Local brands are
emerging in the region, offering plant-based spreads made from ingredients like
soy, coconut and sesame.
Price Sensitivity and Taste Perception is
Likely to be a Challenge
Plant-based spreads, particularly
those made from premium ingredients, can be more expensive than traditional
spreads. Price sensitivity among some consumers may hamper market growth. Sourcing
quality plant-based ingredients can be a challenge for manufacturers,
especially for spreads made from specific nuts or seeds. Ensuring a consistent
supply of raw materials at reasonable prices can be a constraint. Some
consumers may still perceive plant-based spreads as inferior in taste or
texture compared to animal-derived spreads. Overcoming these perceptions and
delivering high-quality products is essential for market growth.
Novel Innovations & Acquisition Leads
to Market Expansion
Manufacturers are continuously
introducing new and innovative plant-based spreads products to cater to
evolving consumer preferences. The availability of a wide range of flavours and
ingredients is driving consumer interest and boosting market growth. Danone
made a significant move in the plant-based industry by acquiring Follow Your
Heart, in 2021. This acquisition included the company's diverse range of
products, such as Vegenaise spread, dairy-free cheeses, plant-based dressings
and Vegan Egg. The Kraft Heinz Company’s brand Philadelphia launched a
plant-based version of its original-flavoured spread in 2022. Oatly Group AB
expanded its plant-based product lineup in 2023, by introducing a new offering
called Oatly Creamy Oat Spread. Violife launched Creamy with Garlic & Herbs
cream cheese alternative spread in 2023.
Danone S.A. (Follow your heart), Lyrical
Foods, Inc., The Kraft Heinz Company, Oatly Group AB, Upfield Holdings B.V.
(Violife), Daiya Foods Inc., Meridian Foods Limited, B&G Foods Inc., Litehouse
Inc. and Majestic Garlic are some of the companies operating in the plant-based
spreads market.
Growing Health Awareness and Environmental
Concerns are Driving the Demand for Plant-Based Spreads
The plant-based spreads market
has experienced substantial growth in the past few years and is expected to
continue expanding. Factors such as rising health consciousness, growing vegan
and vegetarian populations and environmental concerns are driving the demand
for plant-based spreads. According to the Plant Based Foods Association's 2022
U.S. retail sales data report for the plant-based foods industry, the market
has generated a substantial US$ 8 billion in dollar sales. In terms of growth
rates, the report indicates a significant one-year growth of 6.6% in the
plant-based foods sector. Furthermore, the report demonstrates a three-year
growth rate of 44.5% in the plant-based foods industry. This growth determines
the long-term potential and market viability of plant-based products, including
spreads. Consumers are becoming more health-conscious and are seeking healthier
alternatives to traditional spreads. Plant-based spreads, that are often low in
saturated fats and cholesterol-free, are perceived as healthier options. All
these factors play a significant role in driving the plant-based spreads
market.
The report provides a detailed
overview of the plant-based spreads market insights in regions including North
America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and
Africa. The country-specific assessment for plant-based spreads market has been
offered for all regional market share, along with forecasts, market scope
estimates, price point assessment, and impact analysis of prominent countries
and regions. Throughout this market research report, Y-o-Y growth and CAGR
estimates are also incorporated for every country and region, to provide a
detailed view of the plant-based spreads market. These Y-o-Y projections on
regional and country-level markets brighten the political, economic and
business environment outlook, which are anticipated to have a substantial
impact on the growth of the plant-based spreads market. Some key country and
region included in the plant-based spreads market report as follows:
North America (U.S., Canada)
Latin America (Mexico, Argentina,
Brazil, Peru, Chile)
Europe (Germany, France, Italy,
U.K., BENELUX, Nordics, Spain, Poland, Russia, CIS)
Asia Pacific (China, ASEAN,
India, Japan, South Korea)
Oceania (Australia, New Zealand)
Middle East and Africa (South
Africa, GCC Countries, Turkey, Israel, Iran)
The Plant-Based Spreads Market Research
Report Covers In-depth Analysis on:
·
Plant-based spreads market segments
·
Plant-based spreads market dynamics
·
Plant-based spreads market value and share
analysis
·
Recent trends, restraints, opportunities in plant-based
spreads market
·
Companies & competition involved plant-based
spreads market
·
Latest technologies in plant-based spreads
market
·
Supply chain and value chain plant-based spreads
market
·
Plant-based spreads market sales and
distribution strategies
Plant-Based Spreads Market Growth
Highlights:
·
A comprehensive overview of parent market
·
Market dynamics, demand and trends in the
industry
·
Current, historical and anticipated market size
in terms of volume
·
In-depth market segmentation
·
Competition landscape
·
Key strategies of leading companies and product
portfolio
·
Plant-based spreads industry trends and
developments
·
Potential and country, regions and segments
exhibiting future growth
·
A detailed viewpoint on plant-based spreads
market forecast by countries
·
Essential information to enhance market position
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