Vegan Dessert Market 2020 and Forecast 2021-2027

                                          
Report Overview: Vegan Dessert Market


The global vegan dessert market size was valued at USD 2.66 billion in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 9.9% from 2021 to 2027. The growing popularity of the vegan lifestyle in developed economies of North America and Europe has been driving the market for vegan dessert across the globe. Furthermore, increasing demand for dairy alternatives is another crucial factor contributing to the progress of the vegan dessert industry. Over the past few years, awareness about veganism has increased along with an extensive range of plant-based products. Vendors of the industry have been offering numerous plant-based sweet dishes that deliver the quality, taste, and visual appeal of the traditional desserts.

Some international chefs have been increasingly exploring the industry and innovating plant-based sweet dishes. For instance, Chef Fran Costigan, globally recognized as the influencer on vegan desserts, provides recipes and books, consultations, cooking schools, and classes. Such services have been expanding the consumer base of the industry. The vegan dessert is increasingly gaining a place in the menu of several restaurants and cafes in order to appeal to consumers having dietary concerns, such as allergies to eggs, lactose intolerance, and high cholesterol level. Furthermore, the wide availability of plant milk and fats has fueled the supply of vegan desserts.

In addition, rising health consciousness among consumers has encouraged producers to use healthier ingredients in their foods. For instance, with the increasing awareness about the negative impact of white sugar, consumers have been avoiding foods containing white sugar. Therefore, producers of the industry have been using sugar alternatives, such as sweet potato.

The growth of vegan dessert has hindered in 2020 due to the coronavirus outbreak across the globe. Several promotional activities organized by the vegan organizations have been postponed or canceled. Furthermore, the lockdown imposed in several countries has forced to close hotels, restaurants, and cafes, which are a crucial distribution channel for vegan desserts. In addition, frozen desserts, especially the ice cream market, have been witnessing a significant drop in the sales due to COVID 19 pandemic as consumers have a misconception or fear that ice cream can make them susceptible to the disease by catching a cold.

Distribution Channel Insights: Vegan Dessert Market

The HoReCa distribution channel segment held the largest share of over 45.0% in 2019. Increased dining out trend has fueled the sales of vegan desserts through hotels, restaurants, and cafes. As per a survey published in 2019, more than 55% of the U.S. population dines out twice or thrice a week. Consumers majorly prefer this distribution channel owing to its convenience. Millennials spend the most on dining out, an average of USD 95 per week.

The offline retail stores such as supermarkets, hypermarkets, grocery stores, and convenience stores held a significant market share in 2019. A large number of consumers prefer this distribution channel due to its wide range of product availability and discounted price. Therefore, several companies opt for these stores for the distribution of their products. For instance, Planet Oat introduced a dairy-free frozen dessert line, which is available in numerous retail chains, including Albertsons, Stop & Shop, Safeway, Hannaford, Giant Carlisle, and Harris Teeter.

Product Insights: Vegan Dessert Market

The cakes and pastries product segment lead the market for vegan dessert, with more than 25.0% share of the total revenue in 2019. These are the most popular products in the industry as they are also considered a celebratory dish served on ceremonial events, such as birthday, wedding, and anniversary. Rapid urbanization, along with increased purchasing power of the millennial consumers, has fueled the growth of this product segment. Over the past few years, the launch of plant-based cakes and pastries has increased notably, especially in Europe and North America. For instance, in 2020, BOSH!, Oggs, and Love Food Co. launched plant-based cakes in different flavors in the U.K.

The frozen dessert segment is expected to expand at the fastest CAGR over the forecast period 2021-2027. The rising launch of ice creams made with plant-based milk and fat has been boosting the growth of this segment. As of 2019, nearly 75% of the population is lactose intolerant, which represents a wide consumer base for the vegan dessert market. Furthermore, increasing concern about animal cruelty and their impact environment is an important factor driving the market for a vegan dessert. In February 2020, Planet Oat, a widely held oat milk brand in the U.S., launched its first dairy-free frozen dessert line made with oat milk.

Regional Insights: Vegan Dessert Market

North America led the market for vegan dessert in 2019 with more than 35.0% share of global revenue. The increasing vegan population has propelled the sales of vegan desserts in the region. According to Mercy For Animals, 25% of the U.S. population aged between 25 to 34 years old was vegetarian or vegan in 2018. Furthermore, retail sales of plant-based foods increased by more than 10% in 2019 in the U.S., as per a report published by the Plant Based Foods Association and The Good Food Institute.
Asia Pacific poses a wide scope for the growth of the vegan dessert market in the upcoming years. Demand for plant-based food is increasing significantly in the Asia Pacific nations, including China, Japan, Australia, Vietnam, and Philippines. As a result, companies in the industry have been expanding their reach in this region.

Key Companies & Market Share Insights: Vegan Dessert Market

Companies have been expanding their product portfolio to expand the customer base. For instance, in August 2018, Unilever launched its plant-based ice cream in Sweden and Finland under its Magnum brand. The product is marketed as Magnum Dairy Free. Similarly, Cornetto, another Unilever owned brand, has incorporated dairy-free ice cream in its product portfolio. Some of the prominent players in the vegan dessert market include:

Key companies Profiled: Vegan Dessert Market Report

 	
HP Hood (Planet Oat)
 	
Unilever
 	
Danone S.A.
 	
Cado
 	
Bliss Unlimited, LLC.
 	
Daiya Foods Inc.
 	
Alternative Foods
 	
Ben & Jerrys Homemade, Inc.
 	
BOSH
 	
OGGS
 	
Grupo Bimbo

This report forecasts revenue growth at the global, regional, and country levels, and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. Trusted Business Insights has segmented the global vegan dessert market report based on the product, distribution channel, and region:

Product Outlook (Revenue, USD Million, 2016 - 2027)

 	
Biscuits/Cookies
 	
Cakes & Pastries
 	
Custards & Puddings
 	
Frozen Desserts
 	
Others

Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)

 	
Offline
 	
HoReCa
 	
Online