The global plant-based beverages market size is expected to reach USD 22.9 billion by 2027,registering a CAGR of 8.0% over the forecast period, according to a new report by Grand View Research, Inc. With increasing awareness for healthy lifestyle, consumers are shifting from conventional food to more natural and healthy plant-based products. Moreover, the vegan population across the globe is propelling the demand for plant derived beverages and food products. Plant-based milk is also gaining wide popularity among vegan population as well as consumers with lactose intolerance condition.

Significant increase in the vegan population across major developed countries such as U.S., U.K., Germany, Australia, New Zealand, and Italy is one of the key factors driving the demand for plant-based beverages. According to the statistics provided by ’The Vegan Society’, U.K. has the largest vegan population, which quadrupled from 2014 to 2019 whereas, the vegan population in U.S. reached 19.6 million in 2017, which was 600% more from 2014. These market trends are anticipated to boost the demand for plant-based beverages over the forecast period.

Lactose intolerance in one of the fastest growing disorders, which is anticipated to boost the scope for plant-based beverages. According to U.S. National Library of Medicine, an estimated 5% to 17% of Europe population suffers from lactose intolerance, whereas 44% of the Americans are lactose intolerant.

Asia Pacific is the largest plant-based beverage consuming region with a market share of more than 30% in 2019 owing to high concentration of buyers in countries such as China, Indonesia, Thailand, and Japan. However, North America is the fastest growing region with a CAGR of % from 2020 to 2027 owing to growing vegan population and increasing prevalence of lactose intolerance in U.S. and Canada.

Further key findings from the report suggest:

  • Soy-based milk accounted for a share of more than 30% of the global revenue in 2019. This category of functional drinks has been gaining popularity as it is a reach source of nutritional ingredients including vitamin A and B-12, proteins, isoflavones, and potassium
  • The coconut base segment is expected to register the fastest CAGR of 8.6% from 2020 to 2027. Increasing awareness regarding weight management among working-class population is projected to promote the use of coconut milk as a healthy alternative
  • The flavored segment is expected to witness the fastest CAGR of 8.3% from 2020 to 2027 owing to new product and flavor launches by industry participants, which are gaining traction particularly among youth population
  • Key players in the plant-based beverages market include D?hler GmbH; PACIFIC FOODS OF OREGON, LLC.; WhiteWave Foods Company; Blue Diamond Growers Inc.; SunOpta; and The Hain Celestial Group, Inc. New product launches is expected to remain a key strategy among the market leaders to gain a competitive edge.