Global Plant-based Foods Market to Reach US$23.6 Billion by 2030

The global market for Plant-based Foods estimated at US$12.5 Billion in the year 2024, is expected to reach US$23.6 Billion by 2030, growing at a CAGR of 11.2% over the analysis period 2024-2030. Plant-based Milk & Derivatives, one of the segments analyzed in the report, is expected to record a 14.1% CAGR and reach US$7.0 Billion by the end of the analysis period. Growth in the Bakery & Confectionery segment is estimated at 9.4% CAGR over the analysis period.

The U.S. Market is Estimated at US$3.4 Billion While China is Forecast to Grow at 15.6% CAGR

The Plant-based Foods market in the U.S. is estimated at US$3.4 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$5.0 Billion by the year 2030 trailing a CAGR of 15.6% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 7.8% and 10.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 8.9% CAGR.

Global Plant-Based Foods Market – Key Trends & Drivers Summarized

Why Is the Global Consumer Palette Shifting Rapidly Toward Plant-Based Alternatives?
The surge in plant-based foods is rooted in evolving consumer values around health, sustainability, and ethical consumption. Concerns regarding the health risks associated with high red meat intake—such as heart disease, colorectal cancer, and obesity—have prompted a broad shift toward plant-based diets across developed markets. The COVID-19 pandemic further accelerated this trend by amplifying awareness of immune health and dietary quality, leading to increased demand for nutrient-dense, fiber-rich alternatives derived from legumes, seeds, whole grains, fruits, and vegetables.

Moreover, consumers are increasingly motivated by the environmental impact of traditional animal agriculture, which is responsible for a significant share of global greenhouse gas emissions, water use, and land degradation. In this context, plant-based foods are marketed as lower-carbon, resource-efficient, and cruelty-free choices that align with eco-conscious lifestyles. These motivations are particularly strong among millennials and Gen Z demographics, who are not only leading demand for flexitarian and vegan diets but are also driving innovation through their demand for transparency, traceability, and ethical sourcing across the entire value chain.

What Is Enabling the Rapid Innovation in Taste, Texture, and Nutritional Functionality?
The shift in consumer expectations from compromise-based substitutes to indulgent and functional plant-based equivalents is catalyzing product innovation. Advanced food engineering techniques, such as high-moisture extrusion, fermentation, and protein fractionation, are being used to replicate the fibrous texture of meat, the melt and stretch of dairy, and the emulsification properties of eggs. Novel ingredients like mung beans, fava beans, lupin, oats, and mycelium are being explored not just for protein content, but for their ability to mimic culinary characteristics such as browning, chewiness, and mouthfeel.

Food-tech firms are developing proprietary plant protein blends that deliver complete amino acid profiles while maintaining sensory appeal. Fortification with micronutrients such as vitamin B12, iron, and omega-3s is addressing nutritional gaps traditionally associated with plant-only diets. Moreover, precision fermentation and cultured fat technologies are enabling fat mimicry, flavor enhancement, and extended shelf life in plant-based meat and dairy analogues. These R&D breakthroughs are allowing brands to compete not just as alternatives, but as premium-quality food products capable of satisfying mainstream consumer demand for taste, performance, and convenience.

How Are Retail, Foodservice, and Regulatory Ecosystems Fueling Mainstream Penetration?
Plant-based foods are increasingly transitioning from niche health store items to mainstream grocery staples and restaurant menu fixtures. Major retail chains are allocating dedicated shelf space for plant-based dairy, meat, and frozen food alternatives, often supported by in-store signage, price promotions, and private label launches. The foodservice industry is similarly embracing plant-based offerings, with fast food giants and fine dining establishments alike incorporating plant-based burgers, chicken, cheeses, and desserts into core menus.

On the regulatory front, several countries are issuing dietary guidelines that promote plant-based diets for health and sustainability, while others are investing in domestic plant protein industries through subsidies, research funding, and startup incubators. Labeling standards, allergen regulations, and clean-label compliance are being revised to accommodate novel plant-based ingredients and processes. Investment capital from venture funds, corporate strategic units, and sovereign wealth funds is further accelerating scale-up and infrastructure development across the plant-based food ecosystem. These system-wide shifts are reducing entry barriers for startups and increasing consumer trust in the safety, quality, and accessibility of plant-based products.

What’s Powering the Exponential Growth of the Plant-Based Foods Market?
The growth in the global plant-based foods market is driven by several factors, including evolving consumer behavior, escalating climate concerns, and continued technological innovation in food processing. A broad demographic transition toward health-forward, ethical, and sustainable consumption is pushing plant-based products into the mainstream. Expanding product portfolios, improving sensory properties, and increasing affordability are converting one-time trial users into regular consumers. The alignment of plant-based foods with wellness, fitness, and clean-label trends is creating strong synergies across health-conscious consumer segments.

Government-led support for plant-based agriculture and domestic food innovation ecosystems—combined with rising investor interest in alternative proteins—is catalyzing rapid expansion, particularly in North America, Europe, and Asia-Pacific. Additionally, the global proliferation of plant-based product launches in bakery, beverages, frozen foods, and ready-to-eat meals is driving retail channel growth. As food security, climate change, and ethical sourcing become more pressing global issues, plant-based foods are evolving from being lifestyle choices to strategic food system solutions. These factors collectively ensure robust, long-term momentum for the global plant-based foods industry across B2B and B2C markets alike.