Plant-based Flavour Market Report

The rising lactose intolerance among the population and growing demand for plant-based proteins from consumers led to many partnerships between government and industries for investment and funding to expand the sale of plant-based flavor market. For instance, in March 2025, The Mediterranean Food Lab, an Israeli food tech company, completed a US$17 million Series A funding round. MFL uses Solid-State Fermentation to convert agricultural commodities, upcycled agro-industrial waste and side-streams into sustainable, plant-based, clean-label flavor solutions. The company’s innovation process is driven by a team of world-class chefs and scientists. The funding was led by Gullspång Re: food, along with PeakBridge, Arancia International, and FoodBridge, aiming to accelerate the transition from animal-based to plant-based foods.

Consumers are shifting from traditional dairy milk to plant-based drink substitutes for immunity boosters and detoxifying qualities integrated with herbs and spices. Due to this market players are introducing plant-based flavor products.  For instance, in April 2024, Goldthread tonic announced the release of plant-based reformulated drinks named Matcha Clarity and Rose Glow formulated with the highest potency ingredients such as medicinal plants, adaptogens, and phytonutrients helping in optimal well-being. Made with chlorophyll and fresh-squeezed lime juice with a unique blend of herbs and spices, providing an oasis of phytonutrients, and minerals. Rooibos leaf combined with antioxidant-rich rose, ginger, cinnamon, goji, cardamom, and dragon fruit juice act as a tonic that provides stronger immunity.

The high price of the plant-based flavour products is one of the major challenges, as it is not affordable for low- and middle-income consumers resulting in slow market expansion and hampering the growth of the market. In addition, plant-based flavour products sometimes lead to nutrient deficiencies such as vitamin B12, calcium, zinc, and omega-3 fatty acids as well these products such as vegan sauces, ice cream and more contain added sugar and fat and almost no minerals and beneficial compounds and cannot meet the required protein intake. However, many complications have been registered due to bacterial contamination in drinks and are banned from consumption, as are highly unsafe and leads to multiple illness.

For instance, in October 2024, the Canadian Food Inspection Agency issued a recall for 18 plant-based milk products, including Silk and Great Value (Walmart’s generic brand), due to listeria monocytogenes contamination. Multiple foodborne illnesses have been linked to affected beverages like great value almond beverage original and silk almond original.

With the rising lactose-intolerance population, there is an increased demand for dairy alternative flavors. Consumers seeking plant-based diet options with no added preservatives and artificial food flavors. For this many market players are launching new plant-based flavour products in the market. For instance, in September 2024, Cathedral City announced the launch of plant-based smoky vegan cheese made from coconut oil, starch, smoked water, and added calcium. It is described as creamy, rich, and intensely smoky, offering a plant-based version of the classic flavor. This combination of health, sustainability, and flavor innovation expands market growth to more natural alternatives to artificial flavourings and preservatives.

The growing demand for sustainable and eco-friendly plant-based food and flavors among consumers is rapidly increasing as consumers become more concerned about environmental impact. Due to this, many companies are developing innovative formulation options for changing consumer preferences. For instance, in January 2024, Armored Fresh announced to introduction of plant-based cheeses a combination of innovation and culinary art, made from oat milk, that will replicate the taste and texture of dairy cheese infused with nutrients to fulfill protein content, includes non-dairy cheddar, mozzarella, pepper jack cheese and provolone made from oat milk.

With increasing food allergies, including lactose intolerance and dairy sensitivities, dairy-free products, become crucial for consumers, offering an allergen-free dessert option allows broader access for those with dietary restrictions. Due to this market players are expanding their product segment with plant-based gelatos for a broader consumer base. For instance, in April 2024, Plantaway announced the launch of plant-based gelatos made from 100% plant ingredients. It is dairy-free with no added sugar offering delightful flavours like chocolate and fruit fanatic and another plant-based alternative including cheese, butter, mayo, and meat alternatives.

North America is exhibiting high demand for plant-based flavour products resulting in market expansion, as consumers shift towards healthier lifestyles and are prioritizing more cruelty-free, vegan diets. However, growing concerns related to environmental sustainability are influencing this demand, and increasing awareness of the health benefits of plant-based diets, such as reduced chronic disease risks is also fuelling market expansion. The rise of lactose intolerance, veganism, and flexitarian diets is further contributing to this trend. Major food producers are innovating plant-based dairy, meat alternatives, and flavours to cater to both vegan and non-vegan consumers, such as in May 2022, Molson Coors announced the launch of golden wing barley milk.  It contains twice as much vitamin D and calcium with 60% less sugar compared to 2 percent milk and is made from a combination of water, barley, sunflower, shiitake mushroom extract, and pink Himalayan salt.

Europe is also witnessing market growth in plant-based flavored products due to increasing the health benefits awareness of plant-based diets, such as reduced risk of chronic diseases. These products are often perceived as healthier due to lower saturated fats and cholesterol. According to the report, it is estimated that around 2.5 million of the population of Europe consume vegan food representing 4.7% of the adult population, and 3.5% population is identified as vegetarian. Due to this many collaborations are going on between industries to expand the selling platform. For instance, in September 2023, Carrefour announced a partnership with seven industries to form an international coalition to increase the sales of plant-based with a goal of plant protein-based products from lentils and peas. Furthermore, collaborations and acquisitions within the region are accelerating plant-based product development, positioning Europe as a key market for plant-based flavour products.

Asia-Pacific market is also expanding, due to increasing urbanization and the increasing shift of population towards natural and healthy food options to cope with hectic lifestyles, resulting in a boost in the sales of the plant-based flavour market. Rising lactose intolerance and growing health-consciousness are fuelling demand for dairy and meat alternatives, particularly in Japan, China, and India. Consumers are choosing plant-based options for gut health, weight management, and lower cholesterol. The market is expanding with more plant-based offerings in urban areas, while innovative flavours replicate traditional animal-based products.  In December 2023, Life Health Foods launched plant-based vegan milk so good oat in caramel flavour, ideal for bone building and a healthy gut, responding to the demand for clean-label and transparent ingredients, ensuring market growth.

The Latin American plant-based flavor market is expanding due to changing consumer preferences and increasing health awareness for sustainable, ethical food options. Brazil, Mexico, and Argentina seeing a rise in plant-based diets consumers due to lactose intolerance and obesity concerns. However, challenges like high production costs and limited consumer education persist. Despite these, the market’s future remains promising, with continued investment and growth expected. The MEA plant-based flavor market is gradually expanding due to shifting consumers' preference for healthy and sustainable awareness. Dubai, Abu Dhabi, and Riyadh are increasingly adopting plant-based flavors mainly in dairy alternatives, beverages, and snacks fuelled by rising interest in health-conscious eating and ethical food choices.