Plant Based Beverage Market Report

These consumer trends are expanding the scope of the plant-based beverage industry. A growing trend towards vegetarian and vegan diets, particularly among millennials, along with an increase in the variety of healthier options on the market, is likely to boost product sales in the near future. Growing health concerns have also forced customers to favour vegan foods and beverages. The vegan population is rapidly expanding. The increase of lactose intolerance as well as other food-related digestive issues among children and adults has affected consumer food preferences in recent years. Lactose intolerance is most common in Asian countries, especially in East Asia, where 70-100% of people are lactose intolerant. To increase customer penetration throughout the globe, key players are launching new products. One of the primary reasons driving market expansion is the global availability of a diverse variety of plant-based beverage bases and flavours.

Processing these products is one of the main challenges in the production of plant-based beverages. To minimize biological and chemical risks, the company must change its production practises. The use of raw materials results in a rise in chemical residues of microtoxins, pesticides, and allergens. Cross-contamination incidences have increased in the production of various beverages using tree nuts, soy, and gluten proteins. Major obstacles to the market's expansion include Mislabelling and product recalls. Furthermore, obstacles in the supply chain and the requirement for substantial investments in infrastructure and technology also play a role in the market's sluggish growth. Regulatory obstacles and different standards in different regions also create challenges, affecting the consistency of products and entry into the market. It is essential to tackle these challenges in order to speed up market growth and increase the consumption of plant-based beverages by consumers.

Product innovations within the plant-based drink markets are stimulating growth issue by constantly making new offerings available to public through the introduction of new flavours, new constituents, and new healthy benefits associated to the consumers. These releases satisfy new needs as far as healthier and more sustainable products are concerned, and that results in rivalry and further advancement. Thus, such changes seem to make companies expand the opportunities for producing new and more appealing plant-based drinks, which can lead to the development of the segment and satisfy the needs of consumers. For example, in January 2022, Califia introduced a number of non-dairy beverages as Almond milk Creamer, Cinnamon Roll Oat Creamer, Low Sugar Oat milk and Oat + Almond Plant based milk blend. Also, in July 2022, New York-based producer of coconut water Vita Coco launched the first Ready-To-Drink (RTD) juice.

North America is estimated to have the largest market share for plant-based beverages. The dominant position of North America in the plant-based beverages market may be attributed to factors such as consumer awareness of the benefits of protein-rich diets, growing health consciousness, a well-established beverage industry, and higher acceptance of technological advancements in the beverage industry.  Asia-Pacific market is showing the potential for rapid future expansion. An increase in adoption of emerging technologies for innovative products, collaborations between international and domestic beverage companies, increased R&D investments by governments in the beverage sector, and the presence of the market expansion in Asia-high Pacific may be attributable to several prominent market players. The increasing popularity of plant-based beverages in nations like Australia, Japan, China, Vietnam, and Thailand has contributed significantly to the market's recent expansion.   Due to the high protein content of these plant-based beverages, its popularity has skyrocketed. Clear labelling for plant-based beverages will significantly increase revenue. Increasing nutrition and health awareness is expected to play a crucial role in market growth during the forecast period.