Vegan flavor market expected to boom as consumer preferences shift

As consumers become increasingly aware of the potential health benefits of a plant-based diet, the vegan flavor market is poised for a growth surge in 2024, according to a recent report from Fact.MR. 

Unlike traditional flavors which are sometimes sourced from animal derivatives,certified plant-based flavors come from fruits, vegetables, herbs and spices.

The global annual vegan flavor market is expected to reach $112.5 million in 2024, reaching $183.3 million by 2034 at a compound annual growth rate of 5.2%, the report said. 

As a result, ingredient manufacturers are prioritizing innovation and investing in research and development to capitalize. For example, companies have found that liquid form vegan flavor concentrates allows for easier integration and greater flexibility in creating diverse products like dressings, beverages and sauces. 

Major players in the space include International Flavors & Fragances, Givaudan USA, Kerry Group, among others. December 2023, McCormick unveiled a novel series of plant-based flavors created to assist food manufacturers in crafting vegan and vegetarian products with broader consumer appeal

“This growth is reflecting a global shift toward environmentally friendly and compassionate lifestyles,” according to the report. 

Health-conscious consumers as well as ethical and sustainability concerns have been driving growth in the market, similar to the plant-based alternative foods space at large.

Meanwhile, in October 2023, Firmenich, a Swiss fragance and flavor company, entered into a collaborative partnership with Chr. Hansen, a bioscience company, to advance its development of more authentic plant-based flavors. 

Other growth factors include increased consumer exposure to global cuisines that feature mainly plant-based dishes, according to the report. 

Ube, for example, was deemed to be the flavor of 2024 by Hasegawa USA. The ingredient contains a nutty, sweet and mildly earthy taste and can be used in a variety of applications in desserts like ice cream, beverages like bubble tea, all of which can be made from plant-based ingredients. 

As more consumers seek plant-based options, according to the report, manufacturers will offer a plethora of innovative vegan flavor alternatives. But even though the environment for growth is strong, developing these ingredients comes at a high cost. 

“Creating authentic plant-based flavors often requires complex and intricate processes,” the report said, “these higher costs pose a potential barrier to the widespread adoption of vegan flavors.” This is a problem for both manufacturers and consumers in terms of affordability. 

Another impediment to growth will be limited availability and accessibility. Though demand is there, not all regions have the same access to vegan products, creating cost barriers.