The market share of vegan marshmallows is predicted to grow from USD 74.6 Million in 2023 to over USD 172.6 Million by 2033. Vegan marshmallows are gaining traction because of the growing vegan population around the globe. Growing concerns about animal welfare are also driving demand for vegan marshmallows to register a CAGR of 9.8% between 2023 and 2033.
In recent years, manufacturers have developed more innovative products and flavor combinations based on the growing demand for plant-based products in various parts of the world. In recent years, marshmallows have been incorporated into hot chocolate, treats, and candies because of their sweet texture. Moreover, marshmallows' availability in a variety of delicious flavors, such as lemon curd, coconut, mojito, maple gingerbread, and others, also contributes to their market growth.
Additionally, the rising consumption of vegan food products is also expected to contribute to the growth trajectory of the global vegan marshmallow market in the coming years. In their true form, marshmallows are vegan and serve as excellent substitutes for milk-based deserts, which is driving the growth of the vegan marshmallow market globally.
New varieties and food concepts for marshmallows have been introduced by manufacturers as consumer tastes and preferences have changed. Bonds confectionery, for example, introduced sour marshmallow clouds in February 2016, including strawberry, lemon, cherry cola, and others.
Additionally, plant-based marshmallow manufacturers are introducing vegan marshmallows that have unique flavor combinations in response to an increased demand for clean-label certifications across prominent regions.
A major factor driving the vegan marshmallow market is the increase in consumers' demand for innovative food products due to their evolving taste preferences. It has recently become popular among consumers to find new specialty marshmallow varieties such as gourmet and vegan. Further, manufacturers have launched several flavors such as banana, strawberry, coffee, gingerbread, and others which have also driven its market growth.
Eating too much sugary food can lead to obesity, diabetes, and other health issues. Marshmallows are a sweet and puffy confectionery item that contains a high amount of sugar. This factor may negatively influence sales in the vegan marshmallow market in the coming years.
| Attributes | Details |
|---|---|
| Vegan Marshmallows Market Value (2023) | USD 74.6 Million |
| Vegan Marshmallows Market Expected Value (2033) | USD 172.6 Million |
| Vegan Marshmallows Market Projected CAGR (2023 to 2033) | 9.8% |
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The global vegan marshmallow market is witnessing prolific growth, poised to expand at over 9.8% CAGR through 2033. As noted, the historic CAGR was 10.4%. Growth is being driven, in part, by heightened awareness of environmental sustainability and reducing the environmental footprint in the future.
Plant-based products are sure to gain in popularity, thanks to the growing demand for clean-labeled products during this pandemic crisis. Manufacturers announce their latest products and create unique flavors to meet this demand.
Short Term (2022 to 2025): Business players need to be more vigilant and forward-looking to stay ahead of the competition due to the massive changes brought about by the pandemic in the vegan marshmallow supply chain. Different countries/markets experience different economic and social impacts of COVID, and Vegan Marshmallows market players are developing strategies specific to each country.
Medium Term (2025 to 2028): A distinctive lifestyle on its own, veganism continues to shift product offerings in the food industry, with vegan marshmallows being no different - a number of established companies as well as new entrants are looking to scale, and consolidate their position.
Long Term (2028 to 2033): With millennials and emerging markets driving demand, vegan marshmallow market revenues are expected to grow at a healthy CAGR. Technological advancements enable efficient production, expanding product portfolios, sophisticated designs and packaging, effective operational maintenance, and monitoring of sales in the vegan marshmallows market.
| Historical CAGR (2016 to 2022) | 10.4% |
|---|---|
| Historical Market Value (2016, 2021, 2022) | USD 34.0 Million, USD 61.5 Million, USD 67.7 Million |
| Forecast CAGR | 9.8% |
Growing Trend Towards Flexitarian Diets
Increasingly, consumers around the world are turning to flexitarian diets as environmental concerns over meat consumption gain precedence. According to a popular study published by the University of Oxford, reducing meat and dairy consumption by nearly 73% reduces a person's carbon footprint.
The study posits that if animal-based food consumption is completely eliminated, global farmland usage could decrease by 75%, equivalent to the area of the USA, China, the EU, and Australia combined. In response to this, plant-based snack alternatives are becoming increasingly popular.
As a result of the above developments, vegan marshmallow consumption in the upcoming forecast period will experience significant growth. Players such as CEAMSA have become increasingly popular in recent years, offering a line of gelatin-free marshmallows that offer a similar texture to that of a regular marshmallow.
Concerns About Animal Welfare are Increasing
A report released by World Animal Protection estimates that livestock production will double by 2050 compared to 2000. Approximately 70 billion animals are farmed for food every year. Approximately 60% of these animals thrive in conditions that do not allow them to move freely.
Governments around the world are striving to sensitize consumers about this disturbing trend, urging them to adopt plant-based and vegan diets. In recent years, significant progress has been made in this area. For example, leaders at the G-20 summit called for an agreement to stop wildlife trade at the recent summit.
While the Food and Agricultural Organization predicts that meat production will grow to 376 million tons by 2030, vegan food popularity is rising at the same time. It is not surprising that vegan marshmallows appear to have a positive market outlook with a market valuation of over USD 7 billion in the next half-decade for vegan foods.
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Issues with Labeling and Packaging that have Existed for Decades
A significant issue expected to hamper the market for vegan marshmallows is the use of on-pack claims. With the upsurge in demand for vegan food products, concerns about branding, labeling, and packaging have also arisen.
As a result, regulatory authorities are launching a variety of product recalls that substantially restrict sales. Therefore, an effective manufacturing strategy is needed, which consists of building a framework that identifies what constitutes vegan and vegetarian claims.
Therefore, the European Commission announced the establishment of a legal definition as part and parcel of its Regulatory Fitness and Performance (REFIT) program in 2019. As a result of this development, vegan products may be able to overcome potential bottlenecks in the manufacturing process.
By ingredients, the vegan marshmallows market can be segmented into vanilla, pumpkin, peppermint, and chocolate.
| Segment | Ingredient |
|---|---|
| Attributes | Vanilla |
| Market Share | 28.9% |
Throughout the forecast period, vanilla vegan marshmallows are expected to retain their profitability, registering nearly seven out of ten sales. Consumption is likely to increase due to widespread application as flavorings and icings in various desserts. Customers are also searching for new flavors to enrich their sensory experiences in the upcoming forecast period.
However, peppermint marshmallows are also becoming increasingly popular as consumers seek new tastes to enhance their sensory perceptions. Through 2033, this segment is expected to grow by over 10% Y-o-Y. A prominent manufacturer of peppermint marshmallows is Dandies.
By distribution channel, the vegan marshmallows market can be segmented into hypermarkets/supermarkets, convenience stores, drug stores & pharmacies, health & wellness stores, and online retailing.
| Segment | Distribution Channel |
|---|---|
| Attributes | Hypermarkets/Supermarkets |
| Market Share | 36.7% |
Supermarkets and hypermarkets are likely to hold the greatest share of 36.7% of the global market. Since supermarkets and hypermarkets offer a wide range of products to consumers as well as ease of shopping. As the supply chain network grows, vegan marshmallows are becoming easier to find in supermarkets and convenience stores.
Additionally, products can be selected freely, bundling schemes can be applied, and different aisles can be designated for each product, which has contributed to the increased sales of marshmallow products.
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| Regions | North America |
|---|---|
| Countries | United States of America |
| Market Share | 26.5% |
| Market Value (2022) | USD 18 Million |
| Regions | Europe |
|---|---|
| Countries | Germany |
| Market Share | 18.3% |
| Market Value (2022) | USD 12.4 Million |
| Regions | Europe |
|---|---|
| Countries | United Kingdom |
| Market Share | 11.4% |
| Market Value (2022) | USD 6 Million |
| Regions | Asia Pacific |
|---|---|
| Countries | China |
| Market Share | 6.4% |
| Market Value (2022) | USD 6.3 Million |
| Regions | Asia Pacific |
|---|---|
| Countries | Japan |
| Market Share | 4.3% |
| Market Value (2022) | USD 2.9 Million |
| Regions | Asia Pacific |
|---|---|
| Countries | India |
| Market Share | 9.9% |
| Market Value (2022) | USD 2.5Million |
It is expected that the vegan marshmallows market in the USA will exceed its market share by 26.5% in 2023 with a market value of USD 18 Million. The reason for the larger share can be attributed to the importance of the confectionary industry in the American way of eating.
The growing inclination of regional populations in the USA towards consuming non-chocolate, sweet, and ready-to-eat packaged snacks is supporting the growth trajectory of the global market. Also, the popularity and preference for vegan marshmallows as snacks are positive indicators for the global marshmallow market.
Furthermore, due to the presence of fast-food giants in the region, the USA holds the largest market share in the North American region for vegan marshmallows. A result of this has been the expansion of the regional vegan marshmallow market, prompting companies like Campfire, Trader Joe's, Kroger, and Dandies to ramp up their marketing and tap into the ever-proliferating consumer market for vegan marshmallows.
For instance, the popular vegan marshmallow brand is Dandies. It’s a Chicago-based company that sells all-natural marshmallows made from carrageenan (or Irish moss), which is used as an alternative to gelatine. The other ingredients in these vegan marshmallows include Tapioca Syrup, Cane Sugar, Filtered Water, Tapioca Starch, Carrageenan, Soy Protein, and Natural Vanilla Flavour. The sugar used by Dandies is also vegan since the company confirms that the product is 100% vegan.
In addition to being a favorite vegan marshmallow product, Trader Joe's also has gelatine-free and gluten-free options. It's interesting to note that they use the same ingredients as Dandies in their confections, specifically carrageenan.
In key countries like the UK, healthy eating has become more prevalent, making Europe an attractive investment opportunity for prominent vegan marshmallow manufacturers. Counting USD 6 million in market value, the vegan marshmallow market in the United Kingdom is expected to exceed its market share by 11.4% in 2023.
In a popular Veganz survey, it was discovered that the number of vegans has risen from 1.3 million in 2016 to 2.6 million currently, representing a two-fold increase in the past 4 years, and representing 3.2% of the European population.
In response to the rising number of deaths attributed to red meat consumption, which leads to cardiovascular and colorectal cancers, as well as type-2 diabetes, this change is taking place. Plant-based marshmallows are therefore becoming more popular among vegan companies.
Several vegan marshmallow brands are available in the UK, including Ananda, which uses a different formula than other brands. They offer five flavors, including Vanilla, Caramel, Strawberry, Coconut, and Raspberry.
The Asia Pacific vegan marshmallow market is expected to grow at a staggering rate. With a market value of USD 2.5 million, the vegan marshmallow market is expected to exceed its current share by 9.9% in India by 2023.
Growth is primarily driven by an increase in disposable income levels in emerging countries, enabling consumers to access premium confectionery products. There is consequently an increasing number of confectionery manufacturers entering the Indian market.
Indian consumers have adapted to western cultures, resulting in a rise in the use of vegan products in their diets. These factors have combined to fuel the growth of vegan marshmallow markets.
Additionally, Cargill Foods successfully signed an agreement to build a manufacturing facility in western India to boost chocolate production for direct and indirect consumption. These milestones are expected to boost the vegan marshmallow market across the region.
Manufacturers are coming up with creative vegan products and flavor combinations because of the growing vegan population. A marshmallow root supplement has also been shown to relieve respiratory symptoms, including a sore throat.
In response to consumers' heightened concerns about health, manufacturers have introduced tasty products with innovative flavor combinations derived from non-GMOs and naturally derived sources. The companies are also working on enhancing their production capacity through acquisition, collaboration, and partnership efforts.
In addition to expanding income pools, increased purchasing power is an efficient growth accelerator for rising demand. Among the many companies making inroads into lucrative markets throughout the poor world are Dandies vegan marshmallows and Doumak.
For instance, Dandies, Chicago Vegan Foods' vegan marshmallow product, has entered the European market with a listing in Asda, the UK grocer. The product has been a huge hit in Europe, showing the growing veganism trend that is sweeping the region.
In contrast, vegan marshmallows that are affordable are predicted to remain popular for a long time to come. This is because a large portion of the world's population has a moderate income.
Various prominent vegan product manufacturers are flooding regional markets with innovative flavors based on the prevailing clean-label product consumption trends, driving the global vegan marshmallows market. Some of the prominent players in the vegan marshmallows market are as follows:
Recent Development
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2023 |
| Market Analysis | USD Million for Value and MT for Volume |
| Key Regions Covered | North America; Latin America; Europe; The Middle East and Africa; East Asia |
| Key Countries Covered | USA, Canada, Brazil, Mexico, Chile, Peru, Germany, UK, Spain, Italy, France, Russia, Poland, China, India, Japan, Australia, New Zealand, GCC Countries, North Africa, South Africa, and Turkey |
| Key Segments Covered | Ingredient, Distribution Channel, Region |
| Key Companies Profiled | Freedom Confectionery; Chicago Vegan Foods; Mr. Mallo Group; The Naked Marshmallow Co.; Ananda Foods Ltd.; The Marshmallowist |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
North America is a lucrative market for vegan marshmallows and is expected to dominate throughout the forecast period.
The global market of vegan marshmallows is projected to reach a valuation of USD 172.6 Million by 2033.
Vanilla is the key driver in the vegan marshmallows market.
The global market of vegan marshmallows is projected to grow at approximately a CAGR of 9.8%.
1. Executive Summary | Vegan Marshmallows 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 Ingredient 5.1. Vanilla 5.2. Pumpkin 5.3. Peppermint 5.4. Chocolate 5.5. Others 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Distribution 6.1. Hypermarkets/Supermarkets 6.2. Convenience Store 6.3. Drug Stores & Pharmacies 6.4. Health & Wellness Stores 6.5. Online Retailing 6.6. Other Retailers 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. Freedom Confectionery 17.2. Chicago Vegan Foods 17.3. Mr. Mallo Group 17.4. The Naked Marshmallow Co. 17.5. Ananda Foods Ltd. 17.6. The Marshmallowist 17.7. Other Players 18. Assumptions & Acronyms Used 19. Research Methodology
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Vegan Marshmallows Market
