Several vegan dessert products have become available in the market in recent years in keeping with the growing trend of veganism. Vegan desserts essentially replace dairy-based and egg-based products with plant-based alternatives. Popular vegan dessert products include cakes, ice creams, cookies, custards, doughnuts, fruit crisps, etc.
The vegan dessert market is fragmented and see intense competition between the various players. At the same time players also cooperate through vegan fairs and other such promotional activities and events in an attempt to expand the overall vegan market. This adds to the market’s complex dynamics.
Manufacturers that traditionally made non-vegan dessert products have also entered the market in order to capitalise on its growth. This include major companies like Nestle and Unilever, the latter of which introduced vegan ice-creams under its Magnum and Cornetto brands. The entry of such players has added to the market’s fragmentation.
Some of the top players in vegan dessert market include HP Hood, Danone, The Hain Celestial Group, Cado, Cool Delight Desserts, Bliss Unlimited, Daiya Foods, Grupo Bimbo, Unilever, Arla Foods, Alternative Foods, Love Food, Sunopta, Ben & Jerry's Homemade, OGGS, Haagen-Daz, Archer Daniel’s Midland Company, Nestlé, General Mills, Breyer’s, Tofurky, BOSH! and Halo Top Creamery.
Product launches are a key strategy used by major players to expand their market share. In 2020 itself, Love Food, BOSH! and Oggs unveiled different flavours of vegan cakes in the UK, while HP Hood launched its first vegan ice-cream made of oat milk under its Planet Oats brand. Product endorsements by celebrated vegan chefs is another key market strategy.
Product endorsements by celebrated vegan chefs such as Fran Costigan, Kristen Battaglia, Victoria Burghi, Julia Child and others, is another important strategy in the vegan dessert market.
In terms of distribution channels, growth in the online channel has been relatively sluggish for the vegan dessert market as compared to other markets as consumers have preferred to explore a variety of products and do hands-on shopping.
Establishing presence at retail and departmental stores, supermarkets and at vegan fairs is hence important for manufacturers. Growing consumption of vegan deserts in the hospitality segment has meanwhile led to syndications between manufacturers, vendors and hotel, restaurant and café chains.
Drivers of the Vegan Dessert Market
The vegan dessert market has been mainly driven by growing adoption of veganism in western countries as proponents of veganism have highlighted the health benefits of vegan diets, as well as the positive impact it has on the environment by reducing a person’s carbon footprint. Growing instances of lactose intolerance, egg-related allergies and an attempt by people to reduce their cholesterol intake have further driven the market.
Impact of Covid-19
The immediate impact of the Covid-19 pandemic has been felt by the vegan dessert market in the form of cancellation of promotional events and vegan fairs due to lockdowns and social distancing measures in several countries.
This negative impact is however likely to fade once the lifting of restrictions gains steam and market stability is expected to return in the long-term.
On the other hand, the Covid-19 pandemic has created health concerns that may change food consumption patterns. Thus, intensive marketing of vegan desserts as a healthy alternative to traditional deserts is likely to gain further traction among manufacturers and vendors.
North America has been enjoyed a lion’s share in the vegan dessert market since this regional segment can be considered the cusp of modern veganism. Increasing risks and awareness about lifestyle related ailments in the region is likely to ensure the market’s continued growth.
The European and East Asian regional segments have seen substantial growth in recent years. This has been mainly led by increasing veganism in developed countries, especially in western Europe and maritime East Asia.
Oceania has followed a similar growth trajectory despite its substantially smaller market size. South Asia, Latin America and Middle East and Africa are the other important regional segments for the vegan dessert market.
The vegan dessert market can be segmented based on the following:
By Distribution Channel
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The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.