Exploring the Growth and Potential of the Plant-Based Food Market in India: Key Trends and Developments

Surge in Startups and Investments in the Plant-Based Food Sector
The plant-based food industry in India has seen a significant uptick in entrepreneurial activity and investment recently. Both local and international businesses are tapping into the market's potential, driven by increasing consumer demand. This has resulted in a wide variety of plant-based offerings for consumers, providing them with an array of choices.

Market Growth and Segmentation
Makreo's analysis reveals that the Indian plant-based food market grew by USD 435 Million from 2018 to 2022, with a compound annual growth rate (CAGR) of 13%. The market is segmented into plant-based dairy, meat, protein, and seafood products. The largest segment is plant-based dairy, accounting for 60% of the market, followed by plant-based protein and other categories. The most mature category within this segment is plant-based milk, which constitutes nearly 16% of all retail milk sales.

Influence of Northern India on Plant-Based Foods
Northern India has a significant influence on the plant-based food scene, with common foods including lentils, legumes, vegetables, and dairy substitutes like soy-based products and paneer (cottage cheese). North Indian cuisine, known for its rich flavors, offers a variety of plant-based dishes such as dal makhani, chole (chickpea curry), and aloo gobi (potato and cauliflower curry).

Expanding to Overseas Markets
Indian plant-based food companies are also setting their sights on international markets. Partnerships like the one between ADF Foods Ltd. and GoodDot to enter the US market underscore the global potential of Indian plant-based food products. By focusing on ethnic Indian grocery stores, these companies can cater to both the Indian diaspora and non-Indian consumers interested in Indian cuisine.

Supportive Vegetarian Demographic & Government Backing
India's longstanding tradition of vegetarianism, coupled with government support, provides a solid foundation for the plant-based food industry. A significant segment of the population follows a vegetarian or vegan diet due to ethical, religious, and cultural reasons, creating a ready market for plant-based foods. The government's recognition of the industry's potential for growth and job creation further bolsters its prospects.

Expanding Export Market
India's export market for plant-based products is substantial and growing. With the global demand for plant-based foods on the rise, especially in countries with large vegetarian populations, Indian companies have the opportunity to expand their reach. The appeal of Indian cuisine and the availability of plant-based alternatives make Indian plant-based food products an attractive export option.

Key Developments
Key developments in the Indian plant-based food market include the Food Safety and Standards Authority of India (FSSAI) clarifying in March 2023 that companies dealing in inherently vegan products do not need to apply the new national vegan label or undergo the certification process. In September 2022, the government facilitated the export of the first shipment of plant-based meat products from Nadiad in Gujarat to California, aiming to boost exports of unique agricultural processed food products. The demand for plant-based food in the HoReCa (Hotels, Restaurants, and Catering) sector is also on the rise, as stated at the India Food Forum 2022. Furthermore, Starbucks India, in collaboration with vegan meat company Imagine Meats, launched a vegan menu in September 2022.

Find out more:- India Plant-Based Food and Dairy Products Market Forecast (2018-2028)

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