The plant-based dessert alternatives market size was valued at USD 3.45 Bn in 2022 and is likely to reach USD 8.07 Bn by 2031, expanding at a CAGR of 9.9% during 2023–2031. The market growth is driven by the rising vegan population and increasing product developments.
Plant-based dessert product demand is growing in the industry due to its health claims and nutritional benefits. Plant-based desserts are lower in saturated fat and cholesterol, as a result, these nutritional benefits are found more appealing to health-conscious consumers. Furthermore, the growing demand for dairy alternatives is another crucial factor behind the advancements in the plant-based dessert alternative industry.
Plant-based desserts offer a range of nutritional advantages such as lower saturated fat and cholesterol as a result, that are particularly appealing to individuals who prioritize their health. These desserts are made entirely from plant-derived ingredients by avoiding the use of animal products such as dairy, eggs, and gelatin. These alternatives are designed to cater to individuals who follow a plant-based or vegan lifestyle as well as those seeking healthier and more environmentally friendly dessert options.
A significant portion of the global population leads to sedentary lifestyles that develop health issues such as heart disease and obesity which affect various individuals. As consumers become increasingly aware of the food industry's impact on animals and the cruelty associated with it, the demand for plant-based products is expected to grow in the coming years.
Plant-based desserts are often lower in saturated fats, cholesterol, and calories compared to traditional dairy and egg-based desserts. They are typically rich in vitamins, minerals, and fiber which contribute to a well-balanced diet. Consuming plant-based desserts is linked to a reduced risk of chronic diseases such as cardiovascular disease and type 2 diabetes.
The market report finds that the COVID-19 pandemic hampered the vegan-based dessert alternatives market. Restaurants and food services face restrictions during the lockdown, and the demand for plant-based desserts in these settings decreased temporarily. Economic adversities during the pandemic affected consumers’ purchasing power and also strict government regulation disrupted the supply chain of raw materials to prevent the spread of the virus. Post-pandemic, growing awareness about health and nutrition leads many consumers to seek out healthier food options including plant-based desserts.
Plant-Based Dessert Alternatives Market Dynamics
Major Drivers
Growing consumer interest in health and wellness is another factor that propels the market. These desserts offer superior nutrition compared to animal-based options, which makes them an ideal option to attract weight-conscious consumers. Moreover, these desserts have higher fiber content contributing to a sense of fullness and aiding calorie control.
Younger generations particularly Generation Z and Millennials are more health-conscious and actively seek out products that include sustainability and ethical considerations. This consumer interest has encouraged food manufacturers and retailers to invest in research, development, and marketing of plant-based products, further driving the market's expansion.
Existing Restraints
The high cost of plant-based dessert products hampers the market. Compared to traditional animal-based desserts plant-based alternatives are often more expensive and pose challenges in price-sensitive regions. Some plant-based dessert ingredients such as certain nuts, specialty flours, and alternative sweeteners are more expensive than conventional ingredients used in traditional desserts. The cost of sourcing high-quality plant-based ingredients impacts the final price of the dessert products. The manufacturing processes for plant-based desserts involve additional steps or specialized equipment which contribute to higher production costs.
Emerging Opportunities
Product innovation and continuous research by manufacturers create lucrative opportunities for the market. Innovating and researching new plant-based dessert alternatives allows manufacturers to cater to changing consumer preferences and demands. Manufacturers are focusing on creating plant-based dessert alternatives with optimized nutritional profiles by ensuring that the products are rich in essential vitamins, minerals, and other nutrients. They can also develop a diverse range of plant-based dessert alternatives including ice creams, cakes, brownies, and more. This variety appeals to different tastes and dietary preferences of consumers which further drives the market.
Scope of the Plant-Based Dessert Alternatives Market Report
The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Plant-based Dessert Alternatives Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Product (Cakes & Pastries, Custards & Puddings, Biscuits/Cookies, and Frozen Desserts [Ice-creams and Yogurts), Flavor (Unflavored and Flavored [Vanilla, Chocolate, and Others], Form (Liquid and Solid), and Distribution Channel (HoReCa, Online, and Offline retail stores]
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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HP Hood LLC; Unilever; Daiya Foods Inc.; Danone S.A.; Ben & Jerry's Homemade, Inc.; Upfield; and ChickP.
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Market Segment Insights
Product Segment Analysis
Based on product, the plant-based dessert alternatives market is divided into cakes & pastries, custards & puddings, biscuits/cookies, and frozen desserts. The frozen dessert segment is bifurcated into ice creams and yogurts. The cakes & pastries segment is expected to expand at a major growth rate during the projection period due to their growing popularity among consumers.
Plant-based cakes and pastries have become highly popular products in the industry as they are commonly used for celebratory occasions such as birthdays, weddings, and anniversaries. Cakes and pastries traditionally contain animal-based ingredients like butter, eggs, and dairy and are now being recreated with plant-based substitutes such as almond milk, coconut oil, and flax eggs. This shift caters to health-conscious consumers who still want to indulge in their favorite treats while aligning with their dietary preferences and values.
Rapid urbanization and the increased purchase power of millennial consumers encourage them to buy healthy alternatives, especially individuals with dietary preferences. Manufacturers have recognized the potential and consumer demand for plant-based cakes and pastries. As a result, there has been a surge in the launch of new plant-based options which offer various flavors, textures, and designs to cater to diverse consumer preferences.
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For instance, in February 2022, Upfield the renowned key player partnered with OGGS. It is the United Kingdom’s first and large vegan bakery brand and the leading manufacturer of plant-based egg alternatives.
The frozen dessert segment is expected to expand at a significant growth rate in the coming years due to increasing concerns about animal cruelty and its impact on the environment and rising lactose intolerance & dairy allergies. Consumers are increasingly seeking ethical and sustainable alternatives as the concerns about animal cruelty and its impact on the environment are rapidly growing, which leads to the rising popularity of plant-based frozen desserts.
Plant-based options provide an excellent alternative for individuals who cannot consume traditional dairy-based ice creams. The prevalence of lactose intolerance and dairy allergies leads many consumers to seek dairy-free frozen desserts. The wide variety of plant-based ice creams is made with alternative milk such as almond, soy, coconut, oat, and cashew.
- For instance, in November 2022, ChickP is capturing the attention of flexitarians by introducing a luscious and velvety chickpea-based ice cream. It is a renowned company, that developed chickpea protein isolate designed for plant-based ice creams. This brand caters to the needs of flexitarians who aim to reduce their animal product intake while refusing to compromise on an authentic flavor similar to traditional options.
Flavor Segment Analysis
Based on flavor, the global market is segregated into unflavored and flavored. The flavored segment is projected to register a considerable CAGR during the forecast period due to increasing diverse taste preferences and attracting non-vegans.
Consumers have a wide range of taste preferences and the different flavor caters to this diversity. Flavored plant-based desserts offer a variety of tastes from classic favorites such as chocolate and vanilla to more unique and exotic flavors such as mango, matcha, salted caramel, and more.
Offering a variety of flavors in plant-based desserts can attract non-vegans who are curious about trying plant-based alternatives. The availability of familiar and appealing flavors makes the transition to plant-based desserts more accessible to a broader audience.
The unflavored segment is anticipated to hold a significant share of the market due to its offer of customization, culinary experiments, and growing health-conscious consumers. Unflavored plant-based desserts provide a versatile base that allows consumers to customize their desserts according to their preferences. They can add their favorite toppings, fruits, sauces, or flavorings, enabling a personalized dessert experience.
Some consumers prefer unflavored desserts to reduce added sugars or artificial flavorings due to health and wellness goals. Unflavored options often contain low sweeteners and allow for a more natural taste. Consumers can also explore different recipes and techniques to create unique desserts using the unflavored base.
Form Segment Analysis
On the basis of form, the plant-based snacks alternatives market is segmented into solid and liquid. The solid segment is expected to register a robust growth rate during the forecast period due to its providing texture familiarity and convenience to busy lifestyles.
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Solid-form plant-based desserts such as bars, cookies, brownies, and fudge offer a familiar texture and eating experience similar to their conventional desserts. Consumers often prefer desserts with a solid texture which makes them highly appealing. It is a convenient and portable form that makes an ideal choice for on-the-go consumption. Solid-form plant-based desserts match this trend of snacking culture and offer guilt-free snacking options to the wider consumer base.
Distribution Channel Segment Analysis
Based on the distribution channel, the plant-based dessert alternatives market is segregated, HoReCa, online, and offline retail stores. The HoReCa segment is expected to hold a significant market share during the forecast period, due to the increased dining-out trends and growing popularity of plant-based snack options.
The HoReCa refers to the Hotel, Restaurant, and Catering industry. Consumers are becoming increasingly aware of the benefits of consuming plant-based desserts. The HoReCa plays a vital in the plant-based dessert alternatives, as it caters to a broad customer base that includes vegans and vegetarians but also flexitarians.
Consumers who occasionally reduce their meat and dairy consumption and health-conscious individuals, known as flexitarians. Restaurants, hotels, and catering companies recognize the importance of catering to these evolving dietary preferences and are increasingly offering plant-based dessert alternatives on their menus. The rising trend of dining out in various regions boosts the market.
The offline retailer segment is projected to expand at a considerable growth rate during the projection period due to it providing in-store experience, providing buying convenience, and consumer education. Growing awareness attracts consumers to plant-based desserts as they are healthy compared to traditional ones. Offline channels, such as supermarkets/hypermarkets and specialty dessert shops offer consumers an in-store experience where they can physically select a variety of plant-based dessert alternatives. This physical experience can be appealing to many shoppers.
This convenience is especially valuable for consumers seeking a quick and satisfying dessert option. In-store experiences allow for face-to-face interactions with store staff who can provide information and recommendations about plant-based dessert alternatives. This personal touch can help educate consumers and address any questions or concerns they may have.
Regional Outlook
In terms of region, the global plant-based dessert alternatives market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Europe is expected to dominate the market during the projection period due to consumers increasingly seeking healthier and cruelty-free options and a growing vegan population. Growing awareness of animal cruelty in the food industry has led many Europeans to shift away from traditional animal-based desserts. Plant-based alternatives offer a cruelty-free option, appealing to those who seek to minimize harm to animals.
The population in the region is more health-conscious a is opting for plant-based diets to reduce the intake of saturated fats and cholesterol found in animal-based desserts. Plant-based desserts often use healthier ingredients like fruits, nuts, seeds, and whole grains, making them a more nutritious choice.
- For instance, as per the data published on February 2023, consumers in the United Kingdom are reducing their interest in meat consumption. Ongoing trends turned meat eaters into vegetarians, flexitarians, or even vegans. These dietary choices are very popular and are followed by around 14% of consumers in the UK. Individuals around 20 and 29 years of age are following vegetarianism which is double the general population present in the UK.
The market in North America is projected to grow rapidly during the forecast period, owing to growing health & wellness consciousness among individuals and increasing product developments. North American consumers are becoming more health-conscious and seeking healthier food options with lower levels of saturated fats and cholesterol.
Plant-based desserts, which are often perceived as a healthier alternative to traditional dairy-based desserts are gaining popularity. Plant-based desserts are often made from natural ingredients, providing essential nutrients and health benefits. Manufacturers and food companies in the region are continuously innovating and developing new plant-based dessert alternatives with improved taste, texture, and nutritional profiles. These innovations attract consumers and drive the market.
Segments
The plant-based dessert alternatives market has been segmented on the basis of
Product
- Cakes & Pastries
- Custards & Puddings
- Biscuits/Cookies
- Frozen Dessert
Flavor
Form
Distribution Channel
- E-commerce
- Offline
- Hypermarket/Supermarket
- Specialty Stores
- Convenience Stores
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
Key players competing in the global plant-based dessert alternatives market are HP Hood LLC; Unilever; Daiya Foods Inc.; Danone S.A.; Ben & Jerry's Homemade, Inc.; Upfield; and ChickP.
These companies adopted development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to expand their consumer base worldwide. For instance,
- In February 2022, Ben & Jerry's, super-premium ice cream and non-dairy/vegan desserts company introduced a new ice cream flavor named Chewy Gooey Cookie. It features milk chocolate and coconut ice creams with fudge flakes, shortbread cookies, and caramel swirls.
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