The global vegan donuts market is expected to be valued at USD 120.4 Million in 2023 and to reach a valuation of USD 273.8 Million by 2033.
One of the primary drivers of this expansion is the increased global demand for vegan products because of their health benefits and the increasing veganism. Increasing numbers of customers are including vegan cuisine in their regular snack routine as a result of the positive effects it has on their gut health, immune systems, and inflammation levels. However, competition from non-vegan snack options is expected to slow the industry's expansion in the coming years.
Owing to these factors, the demand for vegan donuts is estimated to grow at a steady 9.6% CAGR, with the UK, the USA, Germany, and Japan emerging as key producers.
Bakery items without gluten, kosher, natural, and normal ingredients, as well as those that use flour other than wheat flour (such as rice flour and chia flour), are gaining popularity around the world. The growing prevalence of chronic diseases like diabetes has led to a marked increase in the demand for fortified versions of traditionally unhealthy baked goods. The donut industry is following the trend of better nutrition and fortifying food. As a result, they'll have to pay more, which is expected to spur tremendous expansion in that category of goods. Therefore, the growing demand for vegan donuts, gluten-free, and more vegan options presents a market opening for more online sales and product releases.
| Attributes | Details |
|---|---|
| Vegan Donuts Market CAGR (2023 to 2033) | 9.6% |
| Vegan Donuts Market Size (2023) | USD 120.4 Million |
| Vegan Donuts Market Size (2033) | USD 273.8 Million |
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The global demand for vegan donuts grew at a CAGR of 9.6% between 2016 and 2022, and it's expected to expand at a CAGR of 9.6% between 2023 and 2033. The growth potential of the market could be looked at from short-term, mid-term, and long-term perspectives.
| Short-Term Outlook (2023 to 2025): | Increased demand for vegan donuts is expected as both the interest in and emphasis on plant-based foods and wellness continues to grow. Consumers are highly influenced by factors like price, availability, and variety, especially during the short term. Companies are attempting to increase sales by creating healthier food options that don't sacrifice taste, convenience, or price. |
|---|---|
| Mid-Term Outlook (2025 to 2028): | Organic, low-carbohydrate, low-fat, and low-cholesterol desserts are gaining in popularity in developed economies like the USA, and this is expected to boost demand for Vegan Donuts in the coming years. The growth of millennials in the coming years and the changing consumer tastes in developing countries are expected to drive the demand for vegan donuts throughout the medium term. |
| Long-Term Outlook (2028 to 2032): | Vegan baking ingredients and vegan donuts that are both safe and taste and feel like their conventional counterparts are now being developed by a number of different companies. Potentially beneficial effects on the market are anticipated in the long run. The increasing number of innovations in the long term is expected to make it easier to satisfy consumer demands, driving up the price and the sales of vegan donuts. |
The proliferation of shops and stores is a major factor in the expansion of the donut industry
Urban teenagers have adopted the practice of hanging out in cafés for socialization. As more people move to cities, and as the proportion of white-collar workers in the population rises, so does the need for food service establishments in metropolitan areas. Donut shops, coffee shops, and quick-service restaurants have all sprung up in response to the growing need for a variety of food and drink options, especially freshly baked items and hot beverages. Due to the rising demand, numerous new firms have begun to heavily invest in the sales of vegan donuts through malls and shopping centers.
Large coffee franchises can take advantage of the expanding infrastructure in developing nations by opening additional locations near new airports and highways. Consumers' love of coffee and donuts has been fueled in part by the rise in the frequency with which they take road or air trips to popular tourist locations. It's becoming increasingly common for major donut chains to offer franchises in emerging markets like India and China. As a result, throughout the projected period, the expansion of the retail sector is likely to drive the expansion of the market emphasis.
The vegan donuts industry is experiencing significant growth due to the rising demand for healthier donuts
In 2022, donuts accounted for over 20% of the whole pastry segment in the USA, proving their widespread popularity both at home and on the go. The desire for healthier products, such as those that are whole grain, high in fiber, low in fat, all-natural, and fortified, has increased, however, as a result of consumers' shifting priorities. Most people all around the world would rather eat nutritious, home-cooked meals than consume unhealthy, processed, pre-packaged, or high-calorie fast food.
In response, new companies are releasing lower-sugar donuts. Nuts, raw cocoa, fruit, and coconut oil are just a few examples of the organic, healthy, and fiber-rich ingredients used by many bakers. Dunkin' Donuts, a product line of Dunkin' Brands Group Inc., for instance, has been offering gluten-free cinnamon-sugar donuts, which is expected to contribute to the expansion of the targeted market over the forecast period.
Raw material price volatility is a significant barrier to expansion in the donut industry
Donut ingredients including sugar, eggs, flour, chocolate, and milk all have variable costs depending on supply and demand. Additionally, the growing disparity between the demand for and supply of these basic materials has significantly driven up their prices in recent years. Costs for production go up alongside the price of raw materials, and suppliers' profit margins get squeezed as a result.
Manufacturers are also experimenting with cheaper replacements to maintain market share. Raw material vendors can set pricing for their wares that are both market-based and distinct from those of other vendors. Weather, national emergencies, strikes, government rules, natural catastrophes, supply shortages, and other unforeseen events can all impact raw material availability. As a result, finished goods become more expensive to produce. Due to this, it's important for market vendors to constantly innovate by releasing new product types, such as donuts made with different or more flavorful components. That's because shoppers are less likely to make purchases when price increases ripple across the economy.
The demand for vegan donuts in the USA is being driven in parallel by two opposing but overlapping trends: health awareness and pleasure. Products containing whole grains, high fiber content, or other healthful ingredients are being introduced to appeal to the health consciousness of consumers. In the future, value-based sales of vegan donuts are expected to receive a further boost from the rising gluten-free variations of baked products and their accompanying higher unit prices. Therefore, the only way to stay competitive in the US vegan donuts industry is to constantly innovate with new products and tweak packaging. Single-serve, on-the-go packaging has become increasingly common in recent years.
Notable Developments in the USA Vegan Donuts Industry:
| CAGR (2023 to 2033) | 10.9% |
|---|---|
| UK Vegan Donuts Market Share | 8.8% |
| UK Vegan Donuts Market Valuation (2022) | USD 9.6 Million |
| UK Vegan Donuts Market Valuation (2033) | USD 30.2 Million |
Demand for vegan donuts is likely to rise over the foreseeable years as more people opt for ready-to-eat foods as a solution to their busy schedules.
Vegan baked goods costs are particularly sensitive to the cost and availability of these ingredients. Many businesses, including Associated British Foods and Dawn Foods, and Bakels, have integrated backward in response to supply-demand imbalances and economic uncertainties. As the products must be carried in custom-built automotive components equipped with cutting-edge refrigeration capabilities, the vegan baked goods business is associated with significant levels of energy consumption, logistics, and storage expenses. There is a chance that these issues are likely to slow the expansion of the market.
Notable Developments in the UK Vegan Donuts Industry:
| CAGR (2023 to 2033) | 7.8% |
|---|---|
| China Vegan Donuts Market Share | 9.9% |
| China Vegan Donuts Market Valuation (2022) | USD 10.85 Million |
| China Vegan Donuts Market Valuation (2033) | USD 24.7 Million |
The proliferation of new food retail establishments such as bakeries, convenience stores, supermarkets, and hypermarkets is one driver driving the market forward. Artisan bakeries are trying to expand their reach into tier II and tier III cities by selling more pre-packaged cakes. Artisan bakers' commitment to product and packaging innovation in a variety of flavors continues to fuel demand for pastries. To meet consumer demand, major companies are refocusing their distribution strategies away from high-tech supermarkets and toward more traditional retail outlets in less-developed areas and second-tier cities. In terms of distribution channels, specialty stores account for the major share. They focus on a niche market and provide in-depth product information. Fujian Dali Food Co. Ltd was the largest supplier of vegan baked goods in China in 2020, with a market share of 5.6%.
Notable Developments in the China Vegan Donuts Industry:
Canada's first coffee and donut store debuted in Shanghai's People's Square. Tim Hortons, named after a famous hockey player, is expected to face stiff competition from Starbucks, which has been present on the Chinese mainland since 1999 and aspires to open 5,000 locations there by 2021. And a start-up out of Beijing called Luckin Coffee is planning to open 4,500 outlets by the end of the year thanks to its successful delivery app.
Tim Hortons faces competition in China from companies including Dunkin' Donuts, UK's Costa Coffee (now owned by Coca-Cola), McDonald's McCafe, KFC, Peet's Coffee, SPR (Dandong Qijian), UBC (Taiwan), C-Straits Café, and three South Korean firms in the form of Cafe Bene, Maan Coffee, and Tous Les Jours.
| CAGR (2023 to 2033) | 9.6% |
|---|---|
| India Vegan Donuts Market Share | 4.1% |
| India Vegan Donuts Market Valuation (2022) | USD 4.5 Million |
| India Vegan Donuts Market Valuation (2033) | USD 12.3 Million |
Over the past few years, customers have shown a marked growth in their appetite for vegan baked goods, likely due to the growing importance placed on convenience and low cost. As the number of people who live in and commute to India's major cities like Mumbai, Bangalore, Delhi, Hyderabad, and others continues to rise, the packaged cake area of the country's economy is booming. Increases in the number of fast-food restaurants also boost demand for vegan donuts. Due to the convenience and cost savings offered by online grocery stores, the demand for pre-packaged foods has grown in recent years. The popularity of bakeries has increased because of the ease of use their products provide.
Additionally, the development of bread items with added value is fueling industry expansion. To diversify their offerings and meet rising consumer demand, both domestic and international retailers are opening new stores across the vast country of India. To give just one example, in October 2022, the first location of Theobroma, a famed Mumbai patisserie, opened in Chennai. There are now a hundred additional Theobroma stores in India.
Notable Developments in the Indian Vegan Donuts Industry:
This would be MOD's 56th launch in the country, making it an industry leader. Over the next few years, it hopes to open 10-12 more locations across India. Mirah Hospitality, a major investor and business partner, gives its bullish outlook on the donut market.
Principal Consultant
| Segment | Sales Channel |
|---|---|
| Top Sub-segment | Hypermarkets/ Supermarkets |
| Market Share | 41.20% |
| Segment | Flavor |
|---|---|
| Top Sub-segment | Flavor Type |
| Market Share | 78.90% |
The food service industry is expected to increase its market share by a sizable margin during the next years. A wide variety of bakeries, food stands, and franchised specialty stores sell freshly made donuts, which are a regional favorite. The highest volume of commerce in this market is generated by franchised specialty outlets.
Sellers participating in the international donuts trade are spending heavily on the rollout of franchised stores and outlets for their various brands. Franchising aids a company in penetrating new markets and developing a recognizable brand identity among consumers. More people are drawn to franchises since the brands they represent are well-known and have widespread distribution. Donut franchises are appealing to QSR retail operators because of the high margins the brands typically generate. By allowing franchisees to survey customers across multiple markets, this business model also provides valuable consumer insight that can be used to better meet market demand for a wide range of donut flavors. These plans aid sellers in recurrently creating and introducing fresh donuts. As a result, the donut food service sector is anticipated to increase in the coming years due to these factors.
The expansion possibility for companies that produce vegan food has grown significantly as a result of the growing demand for gourmet snacks. As a result, the introduction of a new product has become an important component of a successful competitive strategy in the international market. In order to satisfy the growing demand from customers, producers are coming out with new goods that are not only nutritious but also handy and delicious.
Krispy Kreme’s Bold Advent into the Industry
The iconic American donut company and coffee house chain Krispy Kreme have announced the launch of its first vegan donut. Krispy Kreme is the next big player in line to launch vegan offerings exclusively for Veganuary, following the announcement that sandwich giant Subway is likely to add a vegan chicken sub to its menu for the event.
Due to the robust and expanding demand for vegan options in the United Kingdom, Krispy Kreme decided to conduct the maiden launch of their vegan donuts in that country. Eventually, the company intends to spread its vegan donuts into further regions.
The Original Glazed Vegan Donut is the moniker given to the veganized version of the original glazed donut. It is important to note that vegan donuts are expected to be sold at the same price as traditional donuts; this is anticipated to make the decision to select the vegan alternative even less difficult.
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The Vegan Donuts market is estimated to be worth USD 120.4 Million in 2023.
The Vegan Donuts market is expected to be valued at USD 273.8 Million by 2033.
The Vegan Donuts market expanded at 9.6% CAGR in the last five years, from 2017 to 2022.
Flavoured segment accounted for nearly 78.9% market share in the global Vegan Donuts market in 2023.
1. Executive Summary | Vegan Donuts Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Flavor Type 5.1. Unflavored 5.2. Flavored 5.2.1. Vanilla 5.2.2. Chocolate 5.2.3. Strawberry 5.2.4. Pineapple 5.2.5. Other Flavors (Blueberry, etc.) 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Sales Channel 6.1. B2B/ Food Service 6.1.1. Hotels 6.1.2. Restaurants 6.1.3. Cafes 6.2. B2C 6.2.1. Hypermarkets / Supermarkets 6.2.2. Convenience Stores 6.2.3. Mom-and-Pop Stores 6.2.4. Discount Stores 6.2.5. Food & Drink Specialty Stores 6.2.6. Independent Small Groceries 6.2.7. Online Retail 6.2.8. Other Retail Formats 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Europe 7.4. East Asia 7.5. South Asia 7.6. Oceania 7.7. Middle East and Africa (MEA) 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. HP Hood (Planet Oat) 17.2. Unilever 17.3. Danone S.A. 17.4. Cado 17.5. Bliss Unlimited, LLC 17.6. Daiya Foods Inc. 17.7. Alternative Foods 17.8. Ben & Jerry's Homemade, Inc. 17.9. BOSH! 17.10. Grupo Bimbo 17.11. OGGS 18. Assumptions & Acronyms Used 19. Research Methodology
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