Global demand for nutritional and healthy foods is on the rise as a result of escalating consumer awareness for adopting healthy diet patterns. There are several countries, such as the U.S., the U.K., and Germany, across the globe that are witnessing a surge in demand for healthy and plant-based foods due to the health benefits associated with them. Furthermore, consumers having food allergies and health issues due to dairy and animal-based products also seek to adopt alternatives that can mimic the taste of original products without causing any negative impact on the health of consumers. For instance, Arla Foods Jord oat milk is a plant-based alternative to conventional milk, which is made of oats. The product is organic and lactose-free, which can easily be consumed by individuals with lactose intolerance.
The global fermented plant-based alternative market was valued at $315.11 million in 2020 and was projected to reach $422.26 million in 2026, following a CAGR of 5.0% during the forecast period 2021-2026. The market growth is highly impacted by the adoption of healthy diet patterns among consumers such as veganism, free from food, lactose-free, etc. Asian countries have high growth potential for fermented plant-based alternatives market. For instance, India has the largest vegetarian population in the world, with over 30% of the total population being vegetarian. As the country has a huge demand for vegetarian food products, the country is expected to witness a surge in demand for fermented plant-based foods.
Despite having a high growth, fermented plant-based alternative products manufacturing companies are facing multiple challenges. The biggest challenge in the industry is to mimic the taste and texture of meat-based products. Plant-based alternatives can have a similar texture to meat alternatives, but the absence of meat tissues in the food does not bring the original taste of the product. However, products such as soy protein are increasingly gaining more consumer interest as it delivers almost the same texture and taste to meat products.
Fermented plant-based food alternatives are food and beverage products that can be used as plant-based alternatives to the original dairy or meat-based product. These products have certain helpful bacteria that help consumers in reducing the development of allergies by improving digestion and immunity. As a result of the health benefits associated with fermented plant-based products, consumers are expected to witness a surge in demand for these products.
Fermented Plant-Based Dairy Alternatives Dominates the Global Fermented Plant-Based Alternatives Market
Fermented plant-based dairy alternatives emerged as the largest segment in the global fermented plant-based alternatives market, majorly led by yogurt. A large number of consumers across the globe have been picking lactose-free and dairy-free food and beverages due to rising food allergies and diseases among consumers. It has been found that over two-thirds of the global population have lactose intolerance; as a result, the trend for fermented plant-based food is gaining more prevalence in the industry.
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Online Segment Appears to be the Fastest Emerging Distribution Channel
Global fermented plant-based alternatives are available for end users through hypermarket/supermarkets, convenience stores, specialty stores, and online. Online purchase of fermented plant-based food is projected to achieve a high growth rate due to the COVID-19 outbreak across the world, which has made consumers more aware of health and safety. There are multiple e-commerce websites such as BigBasket, Amazon, FreshDirect, Culina Yogurt, which offer fermented plant-based food products making the products more accessible to consumers. There are various manufacturing companies such as Nestle, Epigamia, Yakult, etc. who have their own online portals to sell fermented plant-based products.
Competitive Landscape
The competitive landscape of the fermented plant-based alternatives market consists of different strategies undertaken by major players across the industry to gain market presence. Some of the strategies adopted by manufacturers are new product launches, business expansions, and partnerships and collaborations. Among all the strategies adopted, product launches have been the most prominent strategy adopted by the providers.
The global fermented plant-based alternatives market has high growth opportunities in the future as more and more consumers are shifting their interest toward plant-based meat options. Smart fermented coffee, probiotic chips, fruit juices are some of the new products being launched in the market. Hence, manufacturers can invest in the growing products to gain a high market share.
