The Vegan Market in 2024: Growth, challenges, and opportunities

In recent years, veganism and plant-based living have seen impressive growth worldwide, driven by ethical, environmental, and health concerns.

However, it’s hard to establish how much veganism has grown or how many vegan businesses exist. The picture of the vegan market is complex, with varying data and sometimes contradictory insights, depending on the source.

Is veganism gaining a foothold in mainstream consciousness? Are there more vegan businesses today than ever before? Will upward trends continue? Should we be paying attention to articles explaining “Why celebrities like Lizzo are ditching the vegan diet”, in case the public follows suit?

In today’s article, we’ll explore the vegan market’s current state based on recent data, trends, and financial performance within this evolving sector.

How many people are choosing veganism?

Veganism globally

Veganism has grown markedly worldwide, supported by a shift toward sustainable and cruelty-free lifestyles.

Data from Statista (April 2024) reveals massive differences in vegan adoption rates by country. India leads with 11% of the population – more than one in 10 people – following a plant-based diet, likely influenced by religious practices like Ahimsa (non-violence toward all living beings).

The USA and China follow, with approximately 4% of their populations eating exclusively plant-based diets. In Europe, Germany stands out as one of the most vegan-friendly nations, with 3% of its population identifying as vegan. However, some reports suggest the UK is outpacing other European countries in adopting veganism (more on this below!).

Movements like Veganuary, which saw a record-breaking 25 million participants globally in 2024, play a crucial role in this growth. Awareness campaigns, environmental reports, and the increasing visibility of animal agriculture’s impact are also significant drivers.

Veganism in the UK

The UK is widely seen as one of the most vegan-friendly countries for a variety of reasons:

• The UK’s social landscape is generally receptive to ethical and sustainable lifestyle choices
• Veganuary originated in the UK
• Major UK supermarkets all sell vegan products, while many restaurants and cafes provide vegan food options, including fast food chains such as McDonalds, KFC, and Greggs
• Veganism is increasingly celebrated at vegan festivals, markets, and events, especially in cities
• Social media plays a strong role in normalising veganism in the UK
• Policy discussions increasingly touch on plant-based diets as part of climate and health initiatives
• Some schools and councils have added plant-based options to their menus
• Veganism in the UK extends beyond food to areas like fashion, beauty, and cleaning products

All these factors mean that veganism is continuing to trend upward in Britain. A 2024 survey by Finder found that around 4.7% of UK adults identify as vegan, representing over 2.5 million people. This figure has risen by an estimated 1.1 million people over the past 12 months.

Other statistics suggest that people are waking up to the problems with animal agriculture and are looking for ways to eat fewer animal-derived products, although they might not yet be prepared to commit to veganism.

According to Statista, seven percent of UK residents say they are vegetarians, and four percent are pescetarians (meaning they eat fish and some other sea-living animals). A further 13% of UK adults describe themselves as “flexitarians,” which broadly means that they intend to follow a plant-based diet at least two days a week.

The financial health of the vegan market

As veganism grows, so does the plant-based market.

In 2022, The Good Food Institute reported that plant-based food sales are growing two to three times faster globally than the conventional protein market (i.e., animal flesh and secretions).

Predictions from MarketsandMarkets suggest that the global plant-based protein market will grow from $14.3 billion in 2024 to $20.5 billion by 2029 at a compound annual growth rate (CAGR) of 7.5%. Other forecasts estimate the global plant-based “meat” market could reach $23.7 billion by 2030, or even $35 billion by 2027.

In the UK, a report from Mintel suggests that plant-based food sales will exceed £1.1 billion by the end of 2024. Horizon Grand View Research says this market will continue to grow at a CAGR of 10.6% between 2022 and 2030.

What can Beyond Meat and Oatly tell us about the vegan market?

Recent financial results from Beyond Meat and Oatly highlight the complexities of the plant-based market.

• Beyond Meat reported net revenues of $81 million in Q3 2024, a 7.6% increase year-over-year. However, challenges like rising production costs and increased competition led to a 7% decrease in product volume sold.
• Oatly implemented cost-cutting measures, including reducing product ranges and halting factory expansion plans, to address inflationary pressures and supply chain disruptions. As a result, its Americas segment saw a 2% revenue increase, capturing over 25% of the chilled oat milk market.

The wider corporate market

Beyond Meat and Oatly remain key players, driving innovation and bringing vegan products to a wider audience. Their influence has pushed traditional food producers and restaurants to add plant-based options, signalling mainstream acceptance. Established brands are paying attention:

• In January 2024, Hard Rock Café introduced a Veganuary menu globally
• McDonalds and KFC have expanded their plant-based offerings
• Wagamama, Greggs, Pizza Hut, Burger King, and Subway all launched vegan options in Veganuary
• Costa, Pret, Krispy Kreme, and Pukka Pies have added an assortment of vegan goods to their products and menus
• Lidl announced in October 2024 that it plans to triple the number of its plant-based products after seeing a 12% increase in demand over the past year

However, these ventures are not without criticism. Some argue that these big brands view vegan options as a fleeting trend rather than a genuine movement, which risks alienating ethical consumers.

Pret a Manger’s decision to close its remaining vegetarian-only stores due to declining demand highlights the challenges faced by specialised plant-based outlets. Despite this, broader corporate involvement continues to normalise the idea of eating vegan, even for consumers in the mainstream market.

Encouragingly, the 2024 Veganuary Workplace Challenge saw 115 UK organisations participate, the highest number ever. Brands like Claire’s Accessories, Lush, Hastings Direct, and Salesforce encouraged employees to try veganism, making the lifestyle more accessible.

Independent plant-based businesses vs. corporate ventures

It is difficult to determine the exact number of independent plant-based businesses in the UK or globally. However, organisations like Vegan Business Tribe report that many are thriving.

While smaller, these businesses often serve as the industry’s heart, championing community-centred approaches. Independent vegan entrepreneurs innovate while maintaining ethical standards – whether by developing artisanal vegan cheeses, sourcing locally, or avoiding welfare-washing practices.

These businesses are often part of dynamic networks that share contacts and best practices, fostering a sense of collaboration. They respond quickly to market changes, connecting deeply with their communities to create sustainable and inclusive spaces.

Yet, challenges persist. High rent, rising utility bills, and reduced footfall impact many physical storefronts. Vegan business owners are finding creative solutions, such as:

• Operating pop-up shops
• Moving to shared collaborative spaces
• Running click-and-collect services

Different approaches suit different businesses, but resilience and adaptability remain crucial.

Emerging segments within the vegan market

With adaptability in mind, the vegan space is evolving all the time. As we approach the end of 2024, here are some of the predicted trends for the year ahead:

1.      Alternative proteins

The alternative protein sector, which encompasses plant-based meats, dairy substitutes, and lab-grown meat, is growing rapidly.

Innovations in this sector, such as fermentation-based proteins and mycelium-based meat, promise to diversify product offerings and meet consumer expectations around texture and taste. As alternative proteins evolve, their market share is expected to grow, though challenges like regulatory approval and price parity remain.

In August 2024, the new Labour government announced investing £15 million into the National Alternative Protein Innovation Centre (NAPIC), an innovation hub to accelerate the commercialisation of plant-based, cultivated and fermentation-made foods.

2.      Plant-based seafood alternatives

Beyond traditional substitutes for animal flesh, there’s a growing interest in plant-based “seafood.” Companies are developing alternatives to fishes and shellfish, catering to those seeking sustainable and cruelty-free options. This segment recognises the sentience of fishes and addresses concerns over overfishing and environmental degradation associated with the conventional seafood industry.

3.      Vegan convenience foods

The demand for quick and easy meal solutions has led to an increase in vegan ready-to-eat meals, snacks, and frozen foods. These products appeal to busy consumers looking for plant-based options that they can eat on the go without loads of prep.

4.      Vegan functional foods

While there are some concerns about plant-based meats being over-processed, people are increasingly looking for so-called “functional” foods that offer additional health benefits beyond basic nutrition.

As a result, there is a growing demand for vegan versions of these products, such as fortified plant-based milks and protein-enriched snacks.

5.      Vegan baby and toddler foods

As more parents adopt plant-based diets, there’s a growing market for vegan baby and toddler foods. These products provide essential nutrients tailored to young children’s developmental needs, aligning with vegan families’ dietary choices.

6.      Vegan pet foods

Many vegans are increasingly seeking plant-based diets for their animal companions because they don’t want to contribute to animal agriculture or suffering in any way. This is leading to the development of vegan, nutritionally complete pet foods.

7.      Vegan supplements

To address potential nutritional gaps in plant-based diets, there’s a rise in demand for vegan supplements, including vitamins, minerals, and protein powders. These products ensure that individuals following vegan diets can meet their nutritional requirements effectively. They are also free from animal-derived ingredients, such as gelatin, often used to coat or fill tablets.

8.      Vegan cosmetics and personal care products

Beyond food, the vegan space extends to cosmetics and personal care items. Consumers are seeking products free from animal-derived ingredients and not tested on animals, leading to a surge in vegan skincare, haircare, and makeup products.

Challenges facing the vegan market

While the statistics and opportunities we’ve explored above paint a relatively bright picture, there will be challenges ahead for those of us operating in the vegan market.

·         Rising production costs and inflation

Rising production costs and inflation are impacting profit margins and consumers’ affordability. With prices for ingredients like oats, soy, and pea protein fluctuating, companies face pressure to balance affordability with profitability. This has led to shifts in consumer choices, with some opting for traditional, non-vegan, lower-cost options.

·         Welfare washing

As veganism becomes mainstream, the risk of “welfare washing” (sometimes known as “humane washing” or “vegan washing”) grows—we discussed this in our recent article on the RSPCA Assured Scheme.

Welfare washing is when corporations introduce vegan products while maintaining practices at odds with vegan ethics. Understandably, this can alienate conscientious consumers.

Anyone running a vegan business must be authentic and ensure ethical integrity. Failure in this would be a massive breach of public trust.

Some vegan businesses use smart labels with QR codes on their products to build transparency. A customer scans the QR code and is taken to a web page that explains the provenance of all the ingredients, information about the supply chain, ethical issues that can be a concern for that ingredient and what the company has done about them, and much more.

·         Supply chain issues and scalability

As you may know from your own vegan business, sourcing ingredients ethically and sustainably remains a challenge for plant-based brands, especially smaller businesses with limited budgets.

Companies often face shortages or supply issues, particularly for speciality items like pea protein, which are in high demand globally. Some businesses are exploring localised ethical supply chains to address these issues and improve sustainability and resilience.

·         Lack of governmental and policy-level support

While the vegan market continues to grow, governmental remains inconsistent and, in many cases, insufficient. Although some initiatives, such as the UK’s investment in the National Alternative Protein Innovation Centre, indicate progress, broader policy changes are often slow to materialise.

Subsidies for animal agriculture persist in many countries, making plant-based products comparatively more expensive and less accessible. Furthermore, labelling laws sometimes create barriers for plant-based businesses by restricting terms like “milk” or “cheese” for non-dairy products.

To truly support the shift toward sustainable food systems, governments need to provide greater financial incentives for plant-based innovation, promote educational campaigns about the benefits of vegan diets, and integrate plant-based policies into national climate and health strategies. Without systemic change, the vegan sector may struggle to achieve its full potential in combating environmental and ethical issues.

A pivotal point

Right now, the vegan and plant-based markets are at a pivotal point. Consumer interest remains high, driven by ethical, environmental, and health motivations, but inflation, welfare washing, and supply chain issues pose challenges.

If vegan businesses can successfully balance affordability and authenticity, there’s huge potential for growth and for enabling genuine changes in society, especially our food systems.

Our choices can make a real difference.

We can support independent vegan businesses, advocate for more significant governmental backing of plant-based innovation, and help drive the demand for ethical and sustainable products. Share this blog, start a conversation, or participate in initiatives like Veganuary to spread awareness.

Together, we can build a future in which plant-based living is not just an option but a mainstream solution for people and the planet.