Vegan Margarine Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[219+ Pages Report] According to Facts and Factors, the global vegan margarine market size was valued at USD 922.34 million in 2023 and is predicted to surpass USD 1,904.56 million by the end of 2032. The vegan margarine industry is expected to grow by a CAGR of 8.39% between 2024 to 2032.

Market Overview

Vegan margarine is a plant-based alternative to traditional dairy products. It is made without the inclusion of any animal-derived ingredient and is ideal for those who are following vegetarian or flexitarian diets. Vegan margarine largely consists of vegetable oils such as canola, soya bean, and sunflower oil as the primary source of fat. Vegan margarine is naturally cholesterol-free and is good for people with lactose intolerance or any dietary restrictions.

Key Insights

• As per the analysis shared by our research analyst, the global vegan margarine market size is estimated to grow annually at a CAGR of around 8.39% over the forecast period (2024-2032).
• In terms of revenue, the global vegan margarine market size was valued at around USD 922.34 million in 2023 and is projected to reach USD 1,904.56 million by 2032.
• Growing demand for plant-based products is driving the growth of the global vegan margarine market.
• Based on the sales channels, the hypermarket segment is growing at a high rate and is projected to dominate the global market.
• Based on the forms, the food industry segment is projected to swipe the largest market share.
• Based on the applications, the spreadable segment is expected to dominate the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• Growing demand for plant-based products is driving the growth of the global market.

Growing popularity of vegan products and lifestyle is one of the major factors boosting the growth of the global vegan margarine market. Also, people are becoming more health-conscious, which is further expected to pose a huge demand for healthier plant-based products. Vegan margarine is viewed as a healthy food option as compared to its traditional animal-based counterparts.

Vegan margarine is low in saturated fat and is free of cholesterol, which further makes it a healthy alternative to traditional dairy products. Therefore, such a landscape is expected to drive the growth of the industry. For instance, Land o’ Lakes Inc. came up with an all-new packaging format that offers a new front-of-the-page plan in February 2020.

Restraints

• Ingredient transparency and labelling concerns are likely to hamper the growth of the global market.

The surging awareness among people regarding the ingredients and labelling of food products is expected to restrict the growth of the vegan margarine industry. Some people avoid vegan margarine because of the presence of preservatives and additives. Moreover, the growing popularity of more natural and minimally processed products like advocator spread is expected to further slow down the growth of the industry.

Opportunities

• Product innovations are expected to foster growth opportunities in the global market.

The ongoing research and development in the food industry on vegan margarine is expected to widen the scope of the global vegan margarine market. Manufacturers are coming up with innovations in product textures, flavors, and formulations, which are further expected to attract more consumers to the market.

Also, the growing celebrity endorsements and promotions are also encouraging people to adopt plant-based food products for sustainable living, which is another reason driving the interest of people in vegan food products like margarine.

Challenges

• Limited awareness is a big challenge in the global market.

Some people still view vegan products as less nutritious and tasty, which is a big challenge in the vegan margarine industry. Moreover, price sensitivity among consumers is also expected to deter them from buying vegan margarine. Traditional dairy-based products are affordable and have a large influence on consumers.

Segmentation Analysis

The global vegan margarine market can be segmented into sales channels, applications, forms, and regions.

On the basis of sales channels, the market can be segmented into e-retailers, specialty stores, convenience stores, hypermarkets, and others. The hypermarket segment is expected to dominate the vegan margarine industry during the anticipated period. Hypermarkets include a diverse range of food products under dedicated segments, which fosters buying habits among consumers. People can easily purchase side food items like vegan margarine along with groceries and household items.

Overall, the hypermarket increases the accessibility of these products in the global marketplace. Hypermarket offers a one-stop shopping experience for consumers, thereby helping them to explore new vegan products like margarine. Also, the hypermarkets offer extensive shelf space to showcase diverse brands and increase product visibility among consumers.

Additionally, hypermarkets attract a diverse customer base, which is advantageous for manufacturers as it facilitates easy penetration of vegan margarine into a broader market. All these factors are expected to positively impact the growth trajectory of the segment during the forecast period.

On the basis of application, the market can be segmented into the food industry and household. The food industry segment accounts for the largest share of the global vegan margarine market. Vegan margarine is used as a primary ingredient in many food dishes across the food industry. The food industry uses vegan margarine in bakery items and many other processed foods. Vegan margarine is increasingly being used as a spread in place of traditional butter.

Also, people's growing interest in vegan diets is another major reason for the high growth rate of the segment. Additionally, vegan margarine is used in different food service establishments in the production of processed food to extend the shelf life and improve protection & flavor.

Also, the growing number of the vegan population is widening the scope of vegan margarine in the food industry. Therefore, all these factors are expected to foster growth opportunities in this segment.

On the basis of form, the market can be segmented into stick and spreadable. The spreadable form is the fastest-growing segment in the vegan margarine industry during the forecast period. The spreadable vegan margarine is convenient for people who like to use products that can be spread on food items easily. This is particularly high in demand among individuals with busy lifestyles. These spreadable vegan margarines are versatile in nature and, therefore, can be easily used in different culinary applications.

Also, the surging frequent snacking trend is boosting the growth of the segment. Spreadable vegan margarine is becoming a popular choice for a complimentary dip or spread among people with quick snacking habits. This spreadable form is ideal for breakfast items like bagels and toast, thereby making it a first choice among consumers on the breakfast table. Also, companies are emphasizing innovative products that have improved texture, taste, and nutritional value to swipe a large market area in the vegan margarine industry.

Report Scope

Regional Analysis

• North America to dominate the global market.

North America accounts for the largest share of the global vegan margarine market because of people's growing interest in plant-based diets in the region. Furthermore, the surging health consciousness and ethical considerations among people are also expected to positively influence the growth of the regional market.

Additionally, the region is likely to witness a significant shift in people's lifestyles. As a result, people are increasingly looking forward to healthy alternatives to traditional dairy products. Also, the easy availability of vegan margarine products in the region is responsible for boosting the sales revenue in the market. An increasing number of retailers in the region are including plant-based alternatives in their stores because of their growing popularity.

Moreover, people nowadays have increased their emphasis on health and wellness, which is also leading to their interest in healthier plant-based options like vegan margarine. Moreover, the emerging regulatory environment and labelling standards are also likely to positively influence the regional market dynamics. Additionally, the surging demand for clean-label ingredients among consumers is also expected to encourage the growth of vegan margarine in the region.

Asia Pacific is also expected to witness huge growth prospects in the coming years because of the growing awareness among people regarding the health benefits of plant-based diets. The region holds diversity in cultural preferences and dietary patterns. Many countries in the region prefer the plant-based diet as their cultural preferences are expected to influence the growth trajectory of the regional market positively.

Moreover, the growing consciousness among people regarding health and the environment is also pushing them to adopt healthy alternatives to traditional dairy products. The easy availability of vegan margarine in supermarkets, specialty stores, and others in the region is also likely to expand the regional market in the coming years.

Manufacturers are making efforts to align with the local preferences and tastes of people by catering to their diverse culinary traditions. Moreover, the increasing middle-class population in Asia Pacific is expected to contribute heavily towards vegan and clean-label food products in the forthcoming years.

Therefore, these factors are expected to foster growth opportunities in the regional market during the anticipated period. For instance, The United States Food and Drug Administration (FDA) permitted the adoption of margarine water as a spreadable fat in food in April 2023. The step is expected to boost the sale of margarine water items in the regional market.

Competitive Analysis

The key players in the global vegan margarine market include:

• Yili Group
• Mengniu Group
• Dairy Crest
• Brightdairy
• Grupo Lala
• Yildiz Holding
• Uni-President
• NamChow
• Wilmar-International
• Bunge
• BRF
• COFCO
• Cargill
• Sunnyfoods
• Unilever
• Zydus Cadila
• ConAgra
• NMGK Group

For instance, Unilever unveiled its new product range of margarine water items in February 2023. These products are said to be low in calories and fat.

The global vegan margarine market is segmented as follows:

By Sales Channels Segment Analysis

• E-Retailers
• Specialty Stores
• Convenience Stores
• Hypermarkets
• Others

By Applications Segment Analysis

• Food Industry
• Household

By Forms Segment Analysis

• Stick
• Spreadable

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America