The growing popularity of plant-based butter has led to specialty brands experimenting with new flavors and sources. A new study by Future Market Insights concurs with positive consumer sentiment on plant-based butter, estimating market to grow nearly 7% y-o-y in 2021. Sales of vegan foods and beverages have gone up significantly owing to increased health awareness among consumers, especially in terms of effects from the consumption of animal-based products. The broader gains in the plant-based food category have rubbed off on varied categories, with plant-based butter sales gaining significant traction.
As per the Food Industry Association, around 30% of
households are home to vegan, vegetarian, flexitarian, or pescatarian consumers.
This trend is creating opportunities for growth for plant-based butter
manufacturers. Demand for plant-based butter can also be attributed to the
growing consumer preference for clean-label, natural foods, which is pushing
dairy producers to develop and launch vegan alternatives.
Key Takeaways Global plant-based butter market to exhibit
CAGR exceeding 7.5% through 2030 Soy-milk based butter held nearly 40% share in
2020 Online retail distribution to register relatively faster growth, aided by
benefits in terms of consumer engagement US to remain the largest market,
pegging North America to surpass US$ 200 Mn in 2020“The plant-based butter
market is a nascent phase and is being increasingly viewed as a high-potential product
in the dairy alternative industry, as a healthy alternative to conventional
fatty food products, which will aid growth in the market for the foreseeable
future,” says a FMI analyst.
Covid-19 Impact AnalysisThe covid-19 pandemic has resulted
in substantial changes in the dietary preferences of consumers around the
world. Concerns over transmission of the virus through animal based products
has aided the adoption of plant-based alternatives.
Also, plant-based butter can be sourced from oat milk, rice
milk, corn milk, soy milk, pea milk, almond milk, coconut milk, cashew milk,
flax milk, and hemp milk among others, allowing for a wider flavor range. While
demand from the food service sector is likely to drop owing to lockdown
restrictions, home consumption with sales through online sales is expected to
rise.
The prospects of the plant-based butter market has widened
since early 2020. As per the Good Food Institute, sales of plant-based foods
surpassed that of animal based alternatives since the advent of the crisis, and
will continue through the forecast period.
Who is Winning?The plant-based butter market is competitive
and characterized by the presence of small and mid-scale players. Leading
manufacturers are effectively leveraging demand for natural, clean label
products, with the aim of geographic expansion and widening product portfolios
for long term growth.
Some of the leading players in the plant-based butter market
include Conagra Brands Inc., Upfield Foods, Miyoko’s Creamery, Wayfare Food,
Prosperity Organic Food Inc., Lyrical Foods Inc., Califia Farms, Premier
Organics, Naturli Foods, Ekogram-the real food, Wildfriend Foods, The J.M.
Smuker Co., The Leaviet Corp., Milkadamia, among others.
More Valuable Insights on Plant-based Butter Market
Source
Oat Milk Rice Milk Corn Milk Soy Milk Pea Milk Almond Milk
Coconut Milk Cashew Milk Flax Milk Hemp Milk Others
Distribution Channel
B2B Hotels Restaurants Cafes B2C Hypermarket/Supermarket
Convenience Stores Specialty Stores Mom and Pop Stores Discount Stores Food
& Drink Specialty Stores Independent Small Groceries Online Retail Others
Region
North America (U.S. & Canada) Latin America (Mexico
& Rest of LATAM) Europe, Middle East & Africa Asia Pacific (Greater
China, South East Asia, Japan, India, South Korea, Australia, New Zealand)