Europe Plant-Based Food and Beverage Market Size

Europe Plant-based Food and Beverages Market Analysis

Europe's plant-based food and beverage market is projected to grow at a CAGR of 8.87% over the next five years.

The popularity of the vegan diet and incidences of lactose intolerance drive the European plant-based food and beverages market. The rising consumer awareness regarding meat consumption's negative impact on health is leading to a shift toward a vegan diet and declining meat consumption. For instance, according to the Office for National Statistics (UK), in 2021, consumer spending on meat was at approximately 20.54 billion British pounds, which decreased from 20.78 billion British pounds in 2020. Additionally, the benefits of cholesterol-free protein, with a meat-like texture, are one of those critical factors promoting the growth of plant-based food and beverages.

Increased launch of unconventional dairy alternative products, such as hemp, pea, and cashew milk, is an optimistic development for the market. This is expected to drive the market in the future, as most manufacturers are making developments in the sector. For instance, in July 2021, Linda McCartney's, one of the UK's darling meat-free brands, launched its plant-based milk line. Linda McCartney's range comprises a barista oat, barista coconut, soy, and rice milk. Furthermore, there is a significant improvement in media coverage, which is primarily in line with the increase in new product developments and the demand for products.

However, the comparatively high prices of dairy alternatives pose a challenge to the market. The presence of nutritionally equivalent options for a lower price is expected to affect consumer behavior and refrain from purchasing dairy alternatives.