Vegan Dessert Market Analysis, Opportunities & Trends 2031

Report Description

The global vegan dessert market size was USD 3.5 Billion in 2022 and is likely to reach USD 8.4 Billion by 2031, expanding at a CAGR of 10% during, 2023–2031. The market growth is attributed to the increasing adoption of a vegan lifestyle by people across the world.

The growth of the market is attributed to the rising shift among people from conventional desserts to vegan desserts. Many people prefer non-dairy products for several personal reasons such as lactose intolerance and supporting non-animal sourced food consumption. Considering these factors, market players in the market are anticipated to focus on expanding the market according to the rising consumer demand. For instance,

• As per a report published on January 21, 2020, HP HOOD LLC., a leading oat milk producer in the US, announced to expand its business by launching its novel non-dairy frozen dessert portfolio. The brand announced to launch of 6 flavors in the new product line, that are made using its oat milk, consisting of health benefits.

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The market report states that the global emergency of the COVID-19 pandemic slightly affected the global vegan dessert market, due to the disruption in the production and operation. This further impacted the market's supply chain, supported by the country-wide lockdown implementation to curb virus spread.

However, increased consciousness regarding the health benefits of consuming vegan dessert alternatives among people helped the market generate considerable revenue during the pandemic.

Impact of Artificial Intelligence on Vegan Dessert Market

The increasing integration of artificial intelligence (AI) in the processing and manufacturing operations of vegan desserts is gaining a significant amount of popularity across the key market players. For instance,

• As per a report published on May 9, 2023, Shake Shack announced the launch of its novel AI-integrated vegan milk, called NoMilk. This system analyzes food on a molecular level and replicates that to form a plant-based alternative.

Rising interest of consumers to experience AI-integration vegan desserts and food is anticipated to offer significant growth opportunities to the market companies. For instance,

• According to a report published on December 21, 2022, around 77% of people are willing to experience food processed and manufactured using AI around the world.

Vegan Dessert Market Dynamics

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Major Drivers

Increasing inclination of people across the world toward veganism is boosting the market. Many people follow a vegan diet as a support for animal rights & protection and overall environmental balance. Thus, rising number of vegan population across the nations is helping in market growth. For instance,

• According to a report published by the World Animal Foundation, around 79 million people across the globe are vegans. This number is projected to increase exponentially, due to health and moral reasons.

Surging number of innovative vegan products being introduced in the market facilitates a high number of sales. Moreover, many people suffer from lactose intolerance, high cholesterol, allergies, and other health conditions and thus, prefer organic food, is fueling the global vegan dessert market.

Existing Restraints

Lack of awareness about the benefits of vegan food and the high cost of production are expected to restrain the market. The food made from vegan sources does not offer an appealing taste as compared to other conventional dairy alternatives. This reduces the sale of the vegan desserts. Moreover, vegan food products are generally priced high, which further hampers the buying decisions of the customers and impedes the market.

Emerging Opportunities

Implementation of business growth strategies by the major players in the market is expected to create numerous opportunities for the market. Consistent research & development regarding different flavors and ingredients creates product expansion pathways.

Additionally, novel product innovations and attractive packaging technology are further anticipated to contribute to significant market revenue generation. Moreover, rising importance of veganism in sports nutrition is projected to create lucrative opportunities in the market.

Scope of Vegan Dessert Market Report

The report includes an assessment of trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Vegan Dessert Market Segment Insights

Product Type Segment Analysis

Based on product type, the vegan dessert market is divided into frozen desserts, cakes & pastries, biscuits, cookies, custards, puddings, and others. The cakes & pastries segment is expected to expand at a rapid pace during the projection period, due to the increasing number of ceremonies and celebrations across the world, such as birthdays and weddings.

Such celebrations popularly involve cake consumption and pastry distribution among the guests, thus there is an increasing demand for cakes & pastries around the world, which is expected to drive the market. Furthermore, rising number of product innovations and launches is projected to propel the segment. For instance,

• On March 4, 2021, BOSH MEDIA LTD. and Finsbury Food Group Plc partnered for the launch of vegan traybake cakes, Ultimate Slice, which were sold in licensed coffee stores including Costa Coffee.

The frozen desserts segment is anticipated to account for a significant market share during the forecast period, due to the rising consumer demand for plant-based milk ice creams, as many people have lactose intolerance conditions.

Moreover, the increasing demand for novel product innovations among people is aiding the market players to focus on producing new and enhanced products with vegan sources and recipes. Such factors are helping in the segment expansion during the assessment period.

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Distribution Channel Segment Analysis

On the basis of distribution channel, the global market is trifurcated into online, offline, and hotels, restaurants, & cafes. The hotels, restaurants, & cafes segment is projected to register a considerable CAGR during the forecast period, owing to the increasing number of hotels, cafes, and restaurants serving vegan desserts.

Rising popularity of eating out among people, especially youngsters, is boosting the segment. Moreover, as hotels, cafes, and restaurants, have better serving, presentation, and plating skills, which in turn, fuels the segment.

The offline segment accounts for a significant market share, attributing to the easy accessibility to a wide range of product options. In offline channels including retail stores, supermarkets, hypermarkets, and convenience stores, the aisle setup makes it easy for customers to shop better, this increases the sales of the plant-based dessert alternatives, and further fuels the market.

Regional Outlook

In terms of region, the global vegan dessert market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the forecast period, owing to the increasing consumption rate of desserts and sweets.

Additionally, the number of vegan-food stores in the countries including the US and Canada facilitates high sales of vegan desserts. Moreover, the surging trend of following a vegan diet among people is likely to boost the regional market. For instance,

• As per an article published on July 26, 2023, by the World Animal Foundation, around 2-6% of people in the US follow vegan food plans. Among these people, over 40% of the millennial population identifies themselves as vegan.

The market in Asia Pacific is anticipated to expand at a rapid pace during the forecast period, due to the high prevalence of vegetarianism among people in countries such as India. In recent years, due to the rising vegan trends, vegetarian people are likely to promote vegan diets for several moral and health reasons. Moral reasons such as animal protection in many countries is leading many people to the rise in veganism, further expanding the regional market.

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