The global vegan margarine market size is estimated to reach USD 1,133 million in 2024. Displaying a CAGR of 1.9% through 2034, the industry is slated to be worth USD 1,363 million by the end of the forecast period.
Rising vegan population of the world is the prime growth factor influencing the vegan margarine market. The resistance against animal cruelty is making more people turn to vegetarian and vegan diets. As such, options for vegan versions of the product are also being explored. Thus, the vegan version of margarine is seeing increasing adoption.
The global demand for vegan margarine is being boosted by the increasing clamor for vegan options for breakfast. Vegan consumers are just as enamored of spreads like margarine for breakfast, enjoying the taste of the delicacy over bread. Thus, the vegan version of margarine is becoming more common as a breakfast option.
The HoReCa sector is also offering vegan versions of margarine on an increasing basis as a breakfast option. Although the product is still a niche for food service restaurants, struggling to reach the heights of alternatives such as vegan butter, there are still prospects for investors.
Emerging trends for vegan margarine include the fortification of the product. Functional versions of the product are helping the margarine type to make more of an impact. As the trend of healthy breakfasts intensifies, the product is set to gain more momentum.
Global Vegan Margarine Industry Assessment
| Attributes | Description |
|---|---|
| Historical Size, 2023 | USD 925 million |
| Estimated Size, 2024 | USD 1,133 million |
| Projected Size, 2034 | USD 1,363 million |
| Value-based CAGR (2024 to 2034) | 1.9% |
Analysis of the vegan margarine market shows that a significant number of people are embracing margarine as an alternative to butter. Butter has developed many detractors over the years, for its taste as well as for its fat content, and thus margarine is being embraced to a greater degree. Margarine’s different taste compared to butter is a significant calling card for the industry.
Innovations in the vegan margarine industry keep the sector chugging along. Non-GMO, gluten-free, and more such additions keep the demand for the product fresh. Thicker spreads also help in spreading the word about the product. The introduction of new flavors and textures also keeps the consumers coming back.
Restraints faced in the vegan margarine market include the lack of awareness of the product among consumers and the objections against standard margarine carried over. Investors face the challenge of spreading the word about the product throughout the world as the margarine type is still seen as a niche.
A significant portion of consumers already have a distaste for margarine, due to its taste and closeness to butter. These consumers are even less likely to go for the vegan version of the product.
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Plant-based Products to Gain Significant Edge
There has been a noticeable surge in demand for products made from plant-based ingredients. The vegan version of margarine is made from such products as canola oil, palm fruit oil, and soybean oil.
Plant-based ingredients are winning over not only the vegan population but also other sub-segments. Vegetarians, flexitarians, and even meat-eaters are becoming enamored of the plant-based nature of certain food products. This is typical of the ongoing trend of more natural and organic ingredients being desired, and used, in food products.
The desire for organic ingredients in food products is being driven by ongoing fitness and health trends. Social media influencers and the rising obese population in countries like the United States and China are influencing the need to eat healthier.
Vegan Bakery Products Drive Demand for Vegan Margarine
Though vegans shun dairy, it seems they continue to have a sweet tooth. Thus, there is considerable demand for vegan bakery products. The propelling of the vegan bakery sector benefits the vegan margarine industry too.
Vegan versions of products like biscuits, muffins, and plum- cakes are being produced at a higher rate. More bakeries and eateries are also concentrating on their vegan consumers. The making of these delicacies necessitates the use of vegan ingredients like margarine made from plant-based resources. Thus, the bakery sector has a significant part to play in the landscape.
An increase in the number of bakeries, cafes, restaurants, and more catered towards vegans also helps the sector’s prospects. By getting featured in more menus, the profile of the product catapults.
Price Acts as a Significant Barrier to Progress
As with other vegan food products, the sector faces the question of appealing to consumers whose budgets are tight. Typical of vegan products, vegan versions of margarine are costly in nature. Consumers are wary of making a dent in their pockets for the purpose of shopping for vegan products and thus the rise in demand is curtailed.
The reason for the prices of the product being high involves heavy production costs, as well as raw material supply uncertainty. Manufacturers are advised to concentrate on cutting production costs to keep the prices of the product in check.
By keeping prices in check, manufacturers have the ability to reach a greater number of consumers. Manufacturers can also target geographical expansion by keeping prices low, as the product faces trouble in making its mark in underdeveloped and developing countries.
The below table presents the expected CAGR for the global vegan margarine industry over several semi-annual periods spanning from 2024 to 2034. For the first half (H1) from 2023 to 2033, the sector is expected to grow at a CAGR of 1.8%. For the second half (H2), growth is predicted at a CAGR of 1.9%.
| Particular | Value CAGR |
|---|---|
| H1 | 1.8% (2023 to 2033) |
| H2 | 1.9% (2023 to 2033) |
| H1 | 1.9% (2024 to 2034) |
| H2 | 1.9% (2024 to 2034 |
Moving forward to the subsequent period, from H1 2024 to H2 2034, the CAGR is foreseen to be 1.9% in the first half and the same in the second half. Thus, there is not predicted to be much difference in growth dynamics in the two semi-annual periods.
Principal Consultant
The vegan margarine industry size was tipped to be USD 925 million in 2019. Throughout the historical period, the sector grew at a CAGR of 1.9%, reaching a size of USD 1,030 million in 2023.
The pandemic drove consumers to healthy foods in droves. Thus, food products like the vegan version of margarine received a vote of confidence from consumers.
The vegan population also grew considerably in the pandemic, as people became more suspect of meat products. Thus, there were a plethora of opportunities available for industry players, with vegan versions of margarine receiving more attention.
The sector is expected to climb at the same rate in the forecast period as in the historical period. Industry dynamics from the historical period are getting carried over to the forecast period.
Few of the problems that the sector faces persist. The high price of the product is a prime challenge faced by manufacturers, while the lack of awareness about the product, especially in underdeveloped and developing countries also does not help.
There are however significant growth prospects. The vegan population of the world continues to climb. A considerable number of consumers are looking at animal cruelty with disdain. Thus, manufacturers have the potential to target these consumers to increase revenue.
Tier 1 companies that have a notable presence in the landscape include Earth Balance, Miyoko's Creamery, Country Crock Plant Butter, and Wayfare Foods. Most of these companies are already renowned for their butter capabilities and are also earning acclaim for their margarine products. Tier 1 companies are in line to account for 35% of the revenue generated in the sector.
Earth Balance is a prime example of a company that dabbles in both butters and margarine. The company is known for its non-GMO margarines. Meanwhile, Miyoko's Creamery has earned fans for the creamy texture of their spreads.
Different tier 1 companies specialize in different ingredients and are reputed for them. For example, Country Crock Plant Butter’s margarine made from avocado and almond oil are famous. Meanwhile, Wayfare Foods specializes in products made from oats.
Tier 2 companies include I Can't Believe It's Not Butter! It's Vegan and Nutiva. While these tier 2 companies struggle to compete with the financial capabilities of tier 1 companies, they still control a significant portion of the revenue. Their revenue share is estimated to be 22%, which is still less than both tier 1 and tier 3 companies. I Can't Believe It's Not Butter! It's Vegan prides itself on a product that closely replicates standard butter. Meanwhile, Nutiva offers coconut oil-based products.
Few tier 3 companies prominent in the sector include Melt Organic, Spectrum Organics, and Fora Foods. These tier 3 companies dominate the sector. Their revenue generation capabilities are put forth to be 43% of the total industry share. Melt Organic counts on its vegan products made from coconut and palm fruit oils.
Spectrum Organics also offers products made from familiar oils like palm fruit and olive oil. On the other hand, Fora Foods offers a unique alternative of products made from aquafaba (chickpea water).
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Growth in e-commerce and the expansion of retail chains in countries like China, India, and Japan are enhancing the accessibility of vegetarian margarine products in the Asia Pacific. Strong regulatory support for sustainable food production powers the production of vegan sustainable margarine in Europe. A well-developed retail network, including supermarkets, health food stores, and online platforms, facilitates the widespread availability of vegan and vegetarian margarine products in North America.
| Countries | CAGR (2024 to 2034) |
|---|---|
| China | 1.8% |
| United States | 1.8% |
| United Kingdom | 1.9% |
| Japan | 1.9% |
| India | 1.9% |
| Canada | 1.9% |
| Germany | 1.9% |
| France | 2% |
| Spain | 2.1% |
| Italy | 2.2% |
| Indonesia | 2% |
| Australia | 1.9% |
The United States industry is poised to record a CAGR of 1.8% through 2034. This is attributable to growing consumer preference for natural, plant-based margarines.
Butter is a significant part of traditional breakfast in the United States. Even as a considerable number of people in the nation embrace veganism, they find it hard to let go of eating practices, like bread and butter and baked goods made from butter. For such consumers, plant-based margarines are coming to the aid.
Advances in food technology have given more room to play for manufacturers. It has also allowed manufacturers the ability to make their products as close to the real thing as possible. Thus, vegan versions of margarine in the United States are getting as close as possible to butter as possible, to the point that several consumers do not notice the difference.
Health trends are also responsible for driving sales’s growth in the United States. The obesity problem in the country is ballooning. This is seeing both medical personnel and government campaigns target getting the population to eat more healthily.
The sector is set to register a CAGR of 2.2% over the forecast period in Italy, making it a highly fertile country for the industry. One of the main points for the growth of the sector in the country is the strong culinary tradition of Italy.
Consumers in Italy do not want to sacrifice taste and quality even when it comes to vegan options. Thus, margarine made from plant-based ingredients is earning admirers in the country.
The common nature of lactose intolerance in Italians leads to greater demand for food that does not use milk in any way, shape, or form. Thus, vegan margarine is becoming more common in the country.
The United Kingdom industry is expected to register a CAGR of 1.9% over the forecast period. Sustainable farming has received increased importance in the nation as the population becomes more eco-friendly.
The government in the country is also aiding the sustainability drive of the population. Thereby, the ingredients for the making of the product are coming by more easily in the United Kingdom. Sports players are a significant consumer base for the product. As sports culture shows no signs of waning in the United Kingdom, the sector is in for a good time over the forecast period.
The section below offers in-depth insights into leading segments. Detailed vegan margarine market segmentation can help players invest in popular forms to stay ahead. Spreadable is the top product type. The food sector is where the product‘s use is zapping along.
| Segment | Spreadable (Form) |
|---|---|
| Value Share (2024) | 76.4% |
Spreadable margarine is expected to take up 76.4% of the industry share in 2024. The use of spreadable margarine is surging as the demand for convenience in foods shoots up.
For a considerable number of consumers, butter is an essential in breakfast. The spreading of butter on bread is as much an essential of their morning routines as brushing their teeth or going to the toilet.
With increasing knowledge about the fats and oil content in butter, a significant portion of people are, however, seeking alternatives. This trend is especially emerging among the younger generation, who do want convenience foods but also want to maintain healthy diets. In steps plant-based margarine allows consumers to have their fill of buttery spread without guilt.
While the spread segment triumphs over the stick segment, the latter is also in for progress over the forecast period. Increasing application in baking is seeing the segment develop.
| Segment | Food Industry (Application) |
|---|---|
| Value Share (2024) | 43.5% |
The food industry is anticipated to account for a revenue share of 43.5% in 2024. While household application accounts for a majority of the use in the segment, food service use is speeding along at a faster rate.
The number of food service units being opened that are catered to vegans is positively impacting the growth of the segment. Cafes and other eateries that offer healthy margarine are getting propelled too. The number of bakeries and confectionaries shooting up is also positive news for the industry.
The competitive landscape of the product is fragmented in nature. Low barriers to entry and the rising demand for vegan food fuels the competitiveness of the vegan margarine space. Leading players are constantly introducing vegan products in innovative packaging to attract consumers.
Several players are also locking horns with big giants by using excessive branding strategies. Companies also use mergers, partnerships, acquisitions, and distribution agreements to stay ahead of the competition.
Key Industrial Developments
Based on its form, the vegan margarine market is divided into spreadable and stick.
Based on sales channel, the industry has been segmented into the following segments: hypermarkets and supermarkets, convenience stores, specialty stores, e-retailers, and others.
Based on the application, the vegan margarine market can be divided into the household and food industry. The food industry segment is further sub-segmented into bakery, confectionary, spreads and sauces, and others.
The sector has been analyzed with the following regions covered: North America, Latin America, Europe, South Asia, East Asia, Oceania, and the Middle East and Africa.
The size of the vegan margarine market is estimated to be USD 1,133 million in 2024.
The industry is expected to increase at a CAGR of 1.9% over the forecast period.
The vegan margarine market is forecast to reach a size of USD 1,363 million by 2034.
NMGK Group and ConAgra.
Demand in the United States is expected to rise at a CAGR of 1.8% through 2034.
Sales in India are set to soar at a CAGR of 1.9% from 2024 to 2034.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Form 7.1. Spreadable 7.2. Stick 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application 8.1. Household 8.2. Food Industry 8.2.1. Bakery 8.2.2. Confectionery 8.2.3. Spreads and Sauces 8.2.4. Others 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Sales Channel 9.1. Supermarkets/Hypermarkets 9.2. Convenience Stores 9.3. Specialty Stores 9.4. E-Retailers 9.5. Others 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 10.1. North America 10.2. Latin America 10.3. Western Europe 10.4. South Asia 10.5. East Asia 10.6. Eastern Europe 10.7. Middle East & Africa 11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. Sales Forecast 2024 to 2034 by Form, Application, and Sales Channel for 30 Countries 19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 20. Company Profile 20.1. Unilever 20.2. Bunge 20.3. NMGK Group 20.4. ConAgra 20.5. Zydus Cadila 20.6. Wilmar-International 20.7. Sunnyfoods 20.8. Cargill 20.9. Yildiz Holding 20.10. Grupo Lala 20.11. NamChow
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Vegan Margarine Market
