Vegan Ice Cream Market

Global Vegan Ice Cream Market Forecast

• The US$1.6 Bn vegan ice cream market (2022) anticipates a valuation worth US$4 Bn by 2030-end
• Global vegan ice cream market size likely to expand at a CAGR of 13.5% over 2023 - 2030

Quick Report Digest

1. Creative flavours and ingredients such as coconut, almond, and soy are being introduced by companies in the vegan ice cream sector, which is experiencing a boom in plant-based inventions. This trend draws in health-conscious customers in addition to vegans, which greatly expands the market by providing a variety of products.
2. Brands of vegan ice cream are increasingly partnering with social media stars. Influencers raise customer knowledge and interest in vegan ice cream by encouraging moral and environmentally friendly decisions. Through growing their customer base, these alliances promote favourable brand perception, increase brand recognition, and aid in market expansion.
3. With a substantial market share, almond milk emerges as the dominant category. Its nutty flavour, creamy texture, and broad consumer acceptability are the main reasons for its appeal. Because almond milk is high in nutrients and low in calories, it fits well with current health trends. Its ability to create a wide variety of tasty vegan ice cream flavours is a major factor in its dominance in the market.
4. Fruits dominate the market because of their inherent sweetness, eye-catching features, and favourable health effects. The market dominance of vegan ice cream with fruit flavours is a result of consumer preferences for guilt-free, refreshing options.
5. Cups and tubs are widely used, providing a range of servings and convenience to suit the tastes of different customers. The market domination of this area might be attributed to its easy accessibility and storage.
6. Convenience, a large selection of products, and expanding e-commerce trends make online businesses the industry leaders. Online accessibility drives growth in the segment.
7. With a rise in health-conscious customers and growing knowledge of plant-based diets, Asia Pacific has the fastest growth. The growing demand for vegan ice cream is mostly due to the region's big population and changing nutritional choices.
8. Owing to a well-established health and wellness culture and a strong demand for vegan alternatives, North America currently holds the title of largest market. The significant presence of the market in the region is driven by a strong preference for sustainable and ethical options along with high disposable income.
9. Europe takes the second spot, distinguished by an increase in the number of vegans and a greater emphasis on eco-friendly activities. The region's notable presence in the global vegan ice cream industry can be attributed to its cultural shift towards plant-based products and strict legislation that supports sustainable food choices.

A Look Back and a Look Forward - Comparative Analysis

Global demand for vegan ice cream is rising. Demand is surging in the market as a result of consumers becoming more health-conscious, adopting plant-based diets, and becoming more aware of environmental sustainability. Many product innovations, from unusual flavours to substitute milk bases, appeal to a wide range of customers, not just vegans but also the general public, looking for dessert options that are healthier and more morally sound.

The market for vegan ice cream has undergone a significant change throughout the years. After starting as a niche product, it has undergone a radical transformation driven by shifting consumer attitudes and preferences.

Plant-based technology developments and growing awareness of the environmental effects of traditional dairy have driven the market's expansion over time. A change towards mainstream acceptance and integration can be observed from the historical perspective, where accessibility went from being limited to broad.

Forecasts suggest that the demand for vegan ice cream will continue to rise, which bodes well for the future of the product. A surge in veganism, technology advancements improving product quality, and a heightened consciousness of sustainability and health worldwide are anticipated reasons.

Industry-wide partnerships, mergers, and acquisitions are probably going to get more intense, which will lead to more breakthroughs. As consumers place a higher value on moral and health-conscious decisions, the market is anticipated to grow, providing a greater range of options and securing its place as a major participant in the dessert sector.

Key Growth Determinants

• Increasing Health Consciousness, and Dietary Shifts

The worldwide increase in health consciousness and dietary changes is one of the main factors driving the rise of the vegan ice cream business. The market for plant-based goods is being driven by consumers' active search for healthier food options due to an increasing emphasis on well-being.

Because it doesn't include dairy, vegan ice cream is frequently seen as a healthier option; this is in line with changing consumer tastes for wholesome and environmentally friendly options. Growing knowledge of the health advantages of a plant-based diet, including lower intake of saturated fat and cholesterol, is encouraging customers to choose vegan ice cream as a guilt-free treat.

• Environmental Sustainability, and Expanding Ethical Consumerism

The growing consciousness of ethical and environmental responsibility is also driving the growing market for vegan ice cream. Alternatives that are cruelty-free and ecologically friendly are growing increasingly popular as consumers grow more aware of the environmental impact of traditional dairy farming. Plant-based ingredients used to make vegan ice cream attract customers looking for items with less of an impact on the environment.

Vegan ice cream is becoming more popular due to ethical factors, such as worries about animal suffering and the desire to support sustainable methods. Consumers who care about the environment are becoming more receptive to businesses that emphasize ethical sourcing and openness in their production methods.

• Innovation in Flavour Profiles, and Product Offerings

One of the main factors driving the growth of the vegan ice cream market is the innovation in flavour profiles and the variety of products offered. Manufacturers are spending money on R&D to provide distinctive and decadent flavours that compete with conventional dairy-based products as customer expectations change. Diverse plant-based milk substitutes, including almond, coconut, soy, and cashew, have been introduced; these cater to a broad range of customer tastes while also offering variation.

The investigation of unusual ingredients, including fruits, nuts, herbs, and beans, further enhances the market's attractiveness. Constant product innovation draws customers who are looking for unique and intriguing vegan ice cream options, which promotes market expansion. Creative marketing methods that showcase these novel taste combinations also help.

Major Growth Barriers

• Price Sensitivity

The perceived higher cost of vegan ice cream in comparison to typical dairy-based choices is a major market restraint. High-quality plant-based ingredient production and creative manufacturing techniques may result in higher product costs.

Widespread adoption is hampered by consumer price sensitivity, particularly in areas with a price-conscious population. Strategic pricing, economical sourcing, and consumer education about the long-term advantages of selecting vegan ice cream are necessary to overcome this restriction.

• Limited Shelf-Space, and Distribution Challenges

Issues with distribution and the amount of shelf space available in retail establishments significantly constrain the market. There is generally less room in freezer compartments for vegan alternatives because traditional dairy products predominate. Inadequate accessibility and visibility can limit customer choice.

Logistically, it might be difficult to maintain a dependable and effective frozen vegan product distribution network. Overcoming these limitations requires working with merchants, refining product placement tactics, and making investments in strong distribution networks to increase market availability and reach.

Key Trends and Opportunities to Look at

1. Expansion of Online Retail Channels

The market for vegan ice cream has a lot of potential thanks to the expanding trend of internet buying. Customers can easily and conveniently browse and buy a variety of vegan ice cream items through eCommerce platforms.

Manufacturers can benefit from this trend by developing effective distribution strategies, working with e-commerce behemoths, and improving their web presence. In addition to increasing market reach, utilising Internet media allows for direct customer contact, targeted marketing, and customised promotions to accommodate a range of tastes.

2. Health and Wellness Collaborations

Partnerships with dietitians, fitness specialists, and influencers in the health and wellness space present a bright future for the vegan ice cream industry. Collaborating with proponents of plant-based diets and a healthy lifestyle can improve the product's perception as a decadent yet nourishing pleasure.

Manufacturers can reach a wider audience by stressing the general well-being linked with consuming vegan ice cream and the health advantages of essential components. By forming strategic partnerships with influencers, vegan ice cream may be positioned in the health and wellness community as a desirable option, which will improve customer loyalty and confidence.

3. Innovation in Sustainable Packaging

The market for vegan ice cream offers a chance for packaging innovation due to the growing desire for eco-friendly and sustainable methods. Manufacturers can lessen the overall environmental impact of the product lifecycle by investigating and implementing ecologically friendly packaging materials, such as recyclable or compostable solutions.

Prioritising sustainable packaging gives brands a competitive edge by aligning with the values of environmentally conscientious consumers. In addition to improving brand awareness, this trend tackles the growing worries about plastic waste, creating opportunities for market differentiation and attracting eco-aware customers looking for sustainable options.

How Does the Regulatory Scenario Shape this Industry?

Strict adherence to food safety and labeling rules characterises the regulatory landscape of the vegan ice cream sector. To guarantee the quality and safety of vegan ice cream products, regulatory agencies like the European Food Safety Authority (EFSA) in Europe, and the Food and Drug Administration (FDA) in the US enforce regulations.

It is critical to abide by allergen information, nutritional labeling, and ingredient disclosure. In order to satisfy changing standards and foster consumer confidence in the safety and integrity of their products, manufacturers must remain cautious and honest in their processes as the market grows and regulatory scrutiny increases.

Fairfield’s Ranking Board

Top Segments

1. Almond Milk, Followed by Cashew Milk, Remain Sought-after Choices

In 2022, the market for vegan ice cream and almond milk clearly dominates. Its creamy texture, subtle nutty flavour, and broad consumer acceptance are what drive its popularity. Because it is high in nutrients and low in calories, almond milk is a popular option for health-conscious consumers. It also follows current health trends. Almond milk's ability to create a wide variety of tasty and nutritious vegan ice cream flavours is a major factor in its market dominance.

The vegan ice cream market's fastest-growing section is cashew milk. Cashew milk's mild flavour and creamy consistency make it a great foundation for creative flavour combinations. Consumer preference for cashew milk has increased due to its rich and indulgent nature, which has contributed to its expanding popularity. Cashew milk is positioned to witness rapid market expansion due to its unique properties as the demand for high-quality and varied vegan ice cream options continues to expand.

2. Fruit-Flavoured Ice Cream Bestseller, Herbs Gain Traction Faster

Fruits are the leading category in the market for vegan ice cream in 2022. Fruit-flavoured ice cream appeal to consumers who are looking for guilt-free and refreshing treats because of their natural sweetness, colorful profiles, and health benefits. Fruit flavours dominate the market in part because of their adaptability, which enables producers to make a wide variety of creative and enticing fruit-based concoctions that appeal to a wide spectrum of consumers.

In the vegan ice cream industry, herbs are the category with the quickest rate of growth, indicating a distinct and unusual trend. Traditional flavours are given a refined and refreshing twist when herbs are used in ice cream compositions. Increased customer interest in unique flavours and a preference for high-end, artisanal products are driving the market for choices infused with herbs. This trend highlights a move toward more daring and upscale taste profiles, establishing herb-flavoured vegan ice cream as a unique and quickly growing market niche.

3. Sales of Cups and Tubs Dominant

The market category that leads the vegan ice cream market is cups and tubs. Their adaptability to different consumer tastes and their range of portion sizes fit the needs of an on-the-go lifestyle. Because they are so easily accessible, customers can stock up on their preferred flavours and enjoy them whenever they want, which contributes to the popularity of Cups and Tubs. The commercial domination of this segment can be attributed in large part to its practicality for storage and its ability to create a wide variety of flavour combinations.

The market for vegan ice cream is expanding at the quickest rate for bars thanks to a rise in consumer demand for snacks that are portion-regulated and portable. Customers looking for a quick and mess-free treat are drawn to the ease of eating a frozen dessert on a stick. Bars' appeal to consumers seeking a simple and fulfilling vegan ice cream experience is further fueled by their inventive flavour combinations and the possibility of producing decadent yet healthier options.

4. Supermarkets and Hypermarkets Lead Distribution Globally

The main distribution routes for vegan ice cream are supermarkets and hypermarkets in 2022. The dominance is ascribed to these retail behemoths' broad product visibility, enormous shelf space, and well-established customer trust. These stores' convenient one-stop shopping for a wide range of vegan ice cream flavours and brands plays a big part in the market supremacy of this industry.

The vegan ice cream market's fastest-growing section is online retailers. This market is rising quickly because of the expanding e-commerce trend and consumers' increased inclination for online purchasing. Online retailers attract customers looking for convenience, a large product selection, and doorstep delivery with their varied array of vegan ice cream selections. Online channels are positioned as a major growth driver for the market because of their accessibility and use in conjunction with digital marketing methods.

Regional Frontrunners

North America Jumps in the Bandwagon with a Strong Plant-Based Drive

In 2022, the market for vegan ice cream is dominated by North America, which makes up a sizable portion of its total size. The region's strength comes from a strong movement in consumer preferences toward plant-based diets, a strong wellness and health culture, and high levels of disposable money.

North America is at the forefront of the market due in part to the robust presence of major players in the industry and the abundance of different vegan ice cream options available in supermarkets, and specialty shops. The market is growing in this region due to rising awareness of environmental sustainability, animal welfare, and health benefits.

Asia Pacific’s Thriving Food Culture All Set to Unlock Multiple Opportunities for Brands

In the vegan ice cream market, Asia Pacific is the area with the quickest rate of growth during the forecast period. There is a spike in demand in the area due to factors like population growth, greater consciousness of environmental and health concerns, and a growing inclination toward plant-based diets.

Growing in popularity is vegan ice cream as eating patterns change, especially for younger people. In addition, the region's fast acceptance of plant-based substitutes is facilitated by the impact of international culinary trends and a thriving food culture, making Asia Pacific a crucial player in the market's explosive expansion.

Fairfield’s Competitive Landscape Analysis

The market for vegan ice cream is highly competitive, with several firms specialising in plant-based products. To obtain a competitive advantage, major players experiment with new flavours, product variety, and sustainable business practices. The race to satisfy the growing customer demand for pleasurable and ethical frozen delights is getting more intense through partnerships, acquisitions, and clever marketing.

Who are the Leaders in Global Vegan Ice cream Space?

1. Arctic Zero
2. Booja-Booja
3. Double Rainbow Ice Cream
4. HappyCow
5. Morrisons
6. NadaMoo!
7. Over The MOO
8. Perry's Ice Cream
9. SorBabes
10. Tofutti Brands Inc.

Significant Company Developments

New Product Launch

• December 2023: The Dairy Free Decadence Series is returning for a short period, according to a statement from Salt & Straw. Led by chief ice cream maker and co-founder Tyler Malek, the line consists of five varieties of vegan ice cream. The special flavours will be offered in-store and online beginning in December 2023 and running through the entire month of January.
• October 2023: The New Vegan Ice Cream Shop Owned by Michelin Star Chef Wins National Award. Crème de la Crop, the vegan ice cream business owned by former Michelin-starred pastry chef Olivia Green, has just opened and already boasts a great accolade: national recognition from PETA, the largest animal rights group in the world.
• November 2023: A year after receiving $65.5 million in Series A funding, Singapore's oat milk brand, OATSIDE, debuted three ice cream flavours in the frozen market in November 2023. The ice cream are described as having a creamy texture with the malty basis of its oat milk. They are available in three varieties: Chocolate, Peanut Butter Cookie Dough, and Coffee with Mini Chocolate Chips.
• October 2023: Ben & Jerry's 19-strong vegan ice cream lineup includes almond and sunflower seed bases; nevertheless, the company claims that the current formulations alter the ice cream's overall flavour. Two years ago, the company attempted to alter its recipes. It looked at ten other ingredient bases, including coconuts and a modified version of the almond formula.
• February 2023: Keventers, a 97-year-old dairy company and restaurant chain famous for its milkshakes and ice cream, will launch its first line of vegan ice cream in India.

An Expert’s Eye

Demand and Future Growth

A number of variables are coming together to create a strong growth opportunity for the vegan ice cream sector. Demand is being driven by growing consumer awareness of sustainability, ethics, and health. The market's attractiveness is increased by its capacity to accommodate a wide range of dietary choices and novel product formulations.

Analysts predict that the industry will continue to grow as more people adopt plant-based diets, which will propel it upward. With significant potential for innovation and commercial penetration, vegan ice cream is positioned as a major participant in the future of frozen desserts, thanks to the convergence of health-conscious attitudes, environmental concerns, and a changing flavour landscape.

Supply Side of the Market

According to our analysis, the demand for plant-based substitutes grows, and a burgeoning network of suppliers and producers is driving the vegan ice cream market's supply side. Ingredient suppliers are essential in giving manufacturers access to a wide variety of flavourings, cutting-edge components, and plant-based milk substitutes.

Competition from the growing number of new businesses entering the market encourages innovation and the creation of novel goods and formulas. The robust supply side is facilitated by efficient supply chains, sustainable sourcing methods, and partnerships with farmers that grow plant-based products. A flexible and adaptable supply chain is necessary to meet customer demands and guarantee product availability as the market grows.

Global Vegan Ice Cream Market is Segmented as Below:

By Type:

• Coconut Milk
• Soy Milk
• Almond Milk
• Cashew Milk

By Flavour:

• Fruits
• Nuts
• Herbs
• Beans

By Product Type:

• Bars
• Cones
• Cups/Tubs

By Distribution Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• Online Stores

By Geographic Coverage:

• North America 
  • U.S. 
  • Canada 
• Europe 
  • Germany
  • U.K.
  • France
  • Italy
  • Turkey
  • Russia
  • Rest of Europe 
• Asia Pacific 
  • China
  • Japan
  • South Korea
  • India
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America 
  • Brazil 
  • Mexico 
  • Argentina
  • Rest of Latin America 
• Middle East & Africa  
  • GCC 
  • South Africa
  • Egypt
  • Nigeria
  • Rest of Middle East & Africa