The global packaged vegan foods market is predicted to grow at a compound annual growth rate [CAGR] of 10.16 per cent during the period 2016-2020, according to market research firm Research and Markets.
According to the report: “Consumers adopting veganism as a way of life and those who are focusing on cutting down on animal-based dairy products prefer packaged vegan foods. Along with this, the health benefits associated with the consumption of vegan foods will predominantly be driving the market demand during the forecast period.
“Packaged vegan foods are prepared without the use of any animal-based ingredients; they are prepared using plant-based ingredients that are low in fat and cholesterol. This helps the people following a vegan diet to avoid lifestyle-related diseases such as type 2 diabetes and heart diseases.”
The report lists Amy’s Kitchen, Beyond Meat, Plamil Foods, Tofutti Brands, and WhiteWave Foods as the sector’s ‘key players’.
Commenting on the report, an analyst from the research team said: “One of latest trends in the market is media buzz and celebrity endorsements promoting veganism. Over the last few years, the word “vegan” has moved ahead from an obscure cultural curiosity to a word that is being discussed widely. With more celebrities adopting the vegan lifestyle, veganism as a concept has become mainstream. For example, Bill Clinton was named as PETA’s 2010 Person of the Year owing to his efforts to promote the benefits of veganism after changing his eating habits and lifestyle to improve his health and wellbeing. In 2015, Beyoncé’s was promoting the 22 Day Revolution on Good Morning America, about the health benefits of vegan diet.”
According to the report, one of the primary drivers in the market is growing concern toward animal cruelty and welfare. It says: “ Most of the people across the world have become vegan either permanently or temporarily because of their compassion toward animals and the environment, and also to improve their personal health and wellbeing.”
The report also states that one major challenge in the market is ‘lack of definitive regulations associated with vegan food labelling’, claiming: “The lack of any definition and regulation for packaged vegan foods has led to mistrust among the consumers while purchasing any packaged vegan food. With the formulation of a legal definition of vegan foods globally, manufacturers and retailers will have a solid basis to enhance their vegan product range. This will help the consumers to trust the brands and help in forming their purchasing decision. Since 2011, EU Food Information Regulation has been looking to European Commission to define requirements for food label with ‘suitable for vegans’ but till now it has failed to do. Also, in APAC, there are no definite laws for vegan food labeling. Therefore, the lack of any legal framework for vegan labeling is hindering the market growth.”