Plant-Based Beverages Market Forecast, 2021-2026

Plant-Based Beverages Market size was estimated at $13.2 billion in 2020, projected to grow at a CAGR of 9.7% during the forecast period 2021-2026. Buyers are more likely to embrace vegan and cruelty-free goods, and there is an increase in lactose intolerance or milk protein intolerance, as well as food allergies, in the plant-based beverage sector. Plant-based beverages, often known as "plant-based milk" or "plant milk," are created by extracting plant material in water, such as seeds or grains. They're commonly used as a dairy milk replacement. A huge movement toward plant-based drinks is being driven by consumer choices for health, ethics, and sustainability. Plant-based drinks include soy milk, coconut milk, almond milk, cashew milk, flax milk, rice milk, and oat milk. For individuals who cannot handle or refuse to eat cow's milk, plant-based beverages are a welcome alternative. Food allergies, sensitivities, and intolerances affect a significant portion of the population in the United States. Plant-based alternatives help those who can't consume dairy to maintain their regular eating patterns. Lactose malabsorption affects around 36% of persons in the United States, according to the National Institute of Diabetes and Digestive and Kidney Diseases. Lactose intolerance is caused by lactose malabsorption, however not everyone with lactose malabsorption has lactose intolerance. Large food companies have opted to spend money on costly marketing efforts, many of which are aimed at those born between the 1980s and the early 2000s. Millennials and Generation Z make up the greatest proportion of customers that choose plant-based beverages, proving that their constant promotion is beneficial. Owing to the increased reported levels of food allergies and dietary sensitivities, this marketing may especially appeal to these generations. Younger generations are also more likely than earlier generations to identify as primarily vegan or vegetarian.

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Plant-Based Beverages Market Report Coverage

The report: “Plant-Based Beverages Market Forecast (2021-2026)”, by Industry ARC, covers an in-depth analysis of the following segments of the Plant-Based Beverages Market.

By Product Source: Soy, Rice, Almond, Coconut, Hemp, Oats and Others


By Flavor: Plain, Flavored


By Product Type: RTD, Tea & Coffee, Plant-Based Milk, Juices


By Distribution Channel: Hypermarkets/Supermarkets, Speciality Store, Online Stores and Others


By Geography: North America (U.S., Canada, Mexico), Europe (Germany, U.K., France, Italy, Spain, Russia and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia & New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina and Rest of South America), and Rest of the World (Middle East and Africa)

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Key Takeaways

  • Protein Supplements Made from Plants is projected to expand owing to the growing trend of vegan diets, as well as new product introductions with high fiber content, which are boosting market growth.
  • Lactose intolerance is becoming more common, which is driving the market's growth. Lactose intolerance, for example, is most frequent in persons of East Asian descent, with more than 90% of adults in particular of these groups suffering from the illness, according to the US National Library of Medicine.

  • Market growth is being accelerated by increasing product releases with novel ideas and tastes. Koia, for example, debuted three plant-based beverage brands in 2019: Koia Core, Koia Keto, and Koia Coffee. Plant-based protein, coconut milk, and MCT oil make up the new product range. Vanilla Latte, Mocha Latte, and Salted Caramel are among the three varieties of Koia coffee.

  • However, affordability is a major issue for consumers, the high cost of plant-based beverages is limiting their adoption in developing countries.


Plant-Based Beverages Market Segment Analysis-Challenges:

High Cost of Processing:

On the negative side, the expense of manufacturing plant-based drinks may reduce their average sales. Critics point out that significant investments in processing are especially important in the case of plant-based dairy substitutes, such as soy milk, coconut milk, oats milk and others as they typically require huge amounts of oil, lipids, and added minerals to mimic the taste of their animal-based equivalents. This constraint, however, can be overcome if manufacturers find ways to reduce the amount of time and money spent on processing.

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Plant-Based Beverages Market Segment Landscape:

Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Plant-Based Beverages Market. Plant-Based Beverages Market top 10 companies are WildWood, PBC, Califia Farms LP, The WhiteWave Foods Company, Good Karma Foods, Inc., Ripple Foods, Koia, Blue Diamond Growers, Harmless Harvest Inc., Want China Holdings Limited, Pureharvest,

Acquisitions/Product Launches:

  • In 2020, California Farms LP intended to increase its plant-based beverage range and provide customers with high-nutrition beverage alternatives.
  • In May 2020, Danone announced the commercial release of its Vega One plant-based protein products in China, with the Vega One Sport specifically tailored for athletes. This food combines proteins from a variety of sources, including pumpkin seeds, alfalfa, sunflower, and peas.

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