Ingredients Market Size & Share 2023 to 2032
Market Size for Plant-Based Food & Beverages Size by Application (Plant-based Milk & Derivatives, Bakery & Confectionery, Sweet & Savory Snacks, Plant-based juices, RTD Tea & Coffee, RTE & RTC Meals), Product & Forecast.
Report ID: GMI5170
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Published Date: December 2022
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Report Format: PDF
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Authors:
Kiran Pulidindi, Kunal Ahuja
Ingredients Market Size
Ingredients Market for Plant-Based Food & Beverages size reached USD 2 billion in 2022 and is anticipated to witness over 15% CAGR from 2023-2032. A surge in the consumption of vitamin-based health supplements will positively influence the industry.
The rising prevalence of chronic and infectious diseases has accelerated the demand for health supplements rich in vitamins such as a range of vitamin Bs, C, K, and A. Vitamin supplements are easily available across drug stores, and grocery stores worldwide in a variety of forms such as powders, pills, capsules, and tablets. They have a promising acceptance among users due to the role played by vitamins in preventing illnesses and ensuring overall health. According to John Hopkins data, approximately 50% of the adult population in the U.S., including 70% of individuals aged 65 years and above consume vitamin-based health supplements.
Lack of regulatory compliance and standards to hamper industry growth
Standardization issues pertaining to the use of plant-based food and beverage ingredients could restrain ingredients market for plant-based food & beverages growth. Vegan food products are a new trend in the F&B sector and therefore lack the proper regulatory guidance associated with the standardization of raw materials. Additionally, the dearth of compliance to monitor processing methods, dosage formulation, and quality control criteria increase the scope for production and distribution of products that have not been validated by any food agencies.
Growing consumer awareness regarding food labeling will further encourage the deployment of relevant standards, allowing the industry to overcome standardization issues. For instance, in July 2022, the Food Safety & Standards Association of India (FSSAI) issued new regulations to control the selling of counterfeit vegan products.
Ingredients Market Analysis
In terms of revenue share, the demand for fatty acid ingredients for plant-based food and beverages is estimated to reach USD 6.5 billion by 2032. Increasing demand for functional food and beverages packed with fatty acids can be attributed to their potential health benefits. For instance, omega-3 fatty acids are considered to have a positive effect on cardiovascular health with the ability to reduce triglyceride levels, which are the key triggers of heart diseases. The rising prevalence of heart diseases will accelerate the consumption of fatty acid-fortified food and beverages. According to the American Heart Association report, nearly 805,000 people in the U.S. suffer from a heart attack each year.
Ingredients market for plant-based food & beverages share from RTE & RTC meals is anticipated to reach USD 1.5 billion by 2032. Over the last decade, the demand for ready-to-drink (RTD) tea & coffee has escalated rapidly due to growing consumer awareness regarding the harmful impact of carbonated drinks on health. Consumers are increasingly inclined towards adding value-added products to their daily diet such as antioxidant rich RTD beverages. Furthermore, industry players are ramping up efforts to introduce customized products to cater to the nutritional needs of women and children. Previously infamous ready-to-eat (RTE) meals are now being developed in more nutritionally stable and healthy forms.
Asia Pacific ingredients market for plant-based food & beverages is projected to record over 14.5% CAGR between 2023-2032. Massive population growth and rising disposable incomes is increasing the standard of living in the developing economies of APAC. Growing health awareness is fueling the demand for probiotics in countries such as China, India, and Australia. In recent years, the region has experienced a dramatic rise in the development of advanced technologies such as microencapsulation, transforming the space of probiotics in the region. These developments are rapidly overcoming technological limitations associated with aging techniques, thus offering lucrative opportunities for manufacturers in the region.
Ingredients Market Share
Some of the leading companies in the global ingredients industry for plant-based food & beverages include :
Impact of COVID-19 Pandemic
COVID-19 pandemic introduced new challenges for plant-based food ingredient manufacturers. With increasing focus on curbing the transmission of infection, countries worldwide imposed very strict lockdown restrictions. This resulted in the shutdown of a large number of small as well as large manufacturing facilities, including food and beverage production units. Additionally, the one’s operating in a limited capacity struggled with a shortage of raw materials due to heavily disrupted supply chains.
Labor-intensive production facilities failed to keep up with the unmatched supply and demand ratios, as only limited number of staff could work as per government regulations. Mandated vaccination and the use of PPE in commercial and industrial setups further added to the challenges for food companies. However, growing consumer awareness associated with the importance of a healthy diet for stronger immunity and vegan trends is expected to accelerate the demand for plant-based ingredients across food & beverage manufacturers.
The ingredients market for plant-based food & beverages market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume in tons and revenue in USD million from 2018 to 2032 for the following segments:
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Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
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2. Primary research
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Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
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✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
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Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
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Verified data sources
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GMI archive
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Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →