Global Plant-Based Food Ingredients Market is projected to register a CAGR of 9.88% and reach USD 21,351.9 Million by 2026. Plant-based food ingredients refer to ingredients that are sourced through plants and are used as a primary raw material in food and beverages that are marketed as plant-based. The global plant-based food ingredients market has witnessed substantial growth over the last few years. The global plant-based food ingredients market is growing at a rapid pace owing to the rising health consciousness among the consumers towards healthy eating habits. The growing prevalence of lactose intolerance among the population across the globe is leading to an increased demand for non-dairy products. This has increased the sales of plant-based milk and derivatives. Additionally, growing consumer preference for a vegan and vegetarian diet is driving the growth of the global plant-based food ingredients market. However, poor sensory properties and allergic reactions associated with certain plant protein sources are likely to hamper market growth.

The trend of adopting a healthy lifestyle is rapidly increasing among consumers. Unhealthy lifestyles are contributing to the spread of obesity, diabetes, and cardiovascular disease, which has provoked consumers to adopt healthy eating. Healthy eating may be best achieved with a plant-based diet, which is usually defined as a regimen that encourages whole, plant-based foods and discourages meats, dairy products, and eggs as well as all refined and processed foods. Additionally, consumers are on a journey of realization regarding how their lifestyle choices and purchases have an impact on the planet. A number of consumers are switching to plant-based diets for several reasons, such as protecting animals, preserving the environment, general health concerns, and changing taste preferences. Growing concerns regarding animal welfare, human health, and the environment has led to the rising trend of veganism, which has become mainstream now. However, the poor sensory properties and allergic reaction associated with certain plant protein sources are one of the major restraints in the market. Soy and nut are the major plant-protein sources with a wide range of applications in the food & beverage industry. However, unpleasant tastes are often associated with proteins derived from plant sources with varying amino acid profiles. Rice, pea, and chia are all very popular sources of plant-derived proteins, but they all have unique, inherent off-tastes, bitter notes, and vegetative aftertastes. This acts as a restraint for the acceptance of plant-based food among consumers.

COVID-19 has resulted in creating immense pressure across the supermarkets & hypermarkets, retail stores, and food suppliers. As a result of increasing panic among consumers for food, stockpile for both animal-based products and plant-based food has become a common phenomenon in the last couple of months across the globe. Owing to this, vendors active in the global plant-based ingredients market are witnessing a hike in demand for their products. Rising health concerns amongst the retail consumers have led to a surge in the consumption of plant-based food products, which in turn is boosting the sale of plant-based food ingredients. However, the biggest concern is logistics. With the increasing number of COVID-19 infections globally, restrictions on vehicular movement are increasing. As the global economy struggles with the pandemic situation, its impact on the global trade and supply chain is growing owing to the rapid weakening of global investment flows. The reduced demand for food ingredients and raw materials is creating uncertainty in the transportation industry.

On the basis of source, the global plant-based food ingredients market has been divided into soy, pea, rice, almond, cashew, oats, coconut, and others. The others segment is expected to dominate the global market and reach USD 9,828.8 million by the end of 2026. The pea segment is projected to register the highest CAGR of 10.43% during 2020-2026. Field pea is considered as a primary source of several nutritional components such as protein, starch, and fiber, and is used as a functional ingredient in the food processing industry.

Europe is expected to constitute a dominant share of the plant-based food ingredients market during the forecast period. The region accounted for a 35.37% share of the market in 2019. Germany is among the major contributors to the growth of the European market. The market in the region is projected to register a significant CAGR of 9.97% during the forecast period of 2020 to 2026. The demand for plant-based food ingredients in the region is growing at an exponential rate. Increasing consumer preference towards organic and genetically modified (GM) free supply chains combined with an increasing number of flexitarians and vegetarian and vegan diets are anticipated to boost the demand for the plant-based food ingredients in Europe.

Prominent Players in the Global Plant-Based Food Ingredients Market include Ingredion Inc. (US), Archer-Daniels-Midland Company (US), DuPont de Nemours, Inc. (US), Cargill Inc. (US), Puris Proteins, LLC (US), BI Nutraceuticals, Inc. (US), Olam International (Singapore), SunOpta Inc. (Canada), Döhler GmbH (Germany), and The Scoular Company (US).

Players operating in the global plant-based food ingredients market are focusing on strengthening their regional footprint by expansion, product launch, agreement, partnership, acquisition, and investment in R&D.

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