Global Vegan Ice Cream Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the global Vegan Ice Cream Market is expected to record a CAGR of 10.8% from 2023 to 2032. In 2023, the market size is projected to reach a valuation of USD 685.3 Million. By 2032, the valuation is anticipated to reach USD 1,724.8 Million.

The Vegan Ice Cream Market is a rapidly growing segment within the frozen dessert industry, offering plant-based, dairy-free alternatives to traditional ice cream. These products cater to consumers with dietary preferences, lactose intolerance, and environmental concerns.

Market growth is driven by factors such as increasing health awareness, sustainability, and a surge in demand for innovative flavors. Key players in the market continually introduce new dairy-free options and expand their retail presence. The convenience of e-commerce has also played a significant role in making vegan ice cream accessible to a broader consumer base, contributing to the market’s expansion.

Vegan Ice Cream Market – Significant Growth Factors

The Vegan Ice Cream Market presents significant growth opportunities due to several factors:

• Health and Dietary Preferences: The surging demand for vegan ice cream is propelled by a significant shift in consumer health consciousness and dietary preferences. Individuals increasingly adopt vegan and lactose-free diets due to various health considerations, allergies, or ethical choices, making vegan ice cream a sought-after choice for those seeking dairy-free, plant-based alternatives.

• Sustainable Packaging: Implementing sustainable packaging solutions presents a significant opportunity for vegan ice cream brands. As eco-conscious consumers seek environmentally friendly products, using sustainable packaging can not only reduce environmental impact but also enhance a product’s appeal and differentiation in a competitive market.

• Flavor Innovation: Innovation in flavor profiles is a pivotal driving force in the vegan ice cream market. Manufacturers continually introduce diverse and unique flavors, appealing to consumers seeking novel and exciting taste experiences. This dynamic approach keeps the market competitive and encourages customer loyalty through an ever-evolving variety of indulgent options.

• Retail Expansion: The strategic expansion of vegan ice cream offerings into mainstream retail channels, including grocery stores and supermarkets, contributes significantly to market growth. This enhanced retail availability improves accessibility and visibility, making it easier for consumers to purchase vegan ice cream conveniently, driving up sales and market penetration.

• Global Expansion: The vegan ice cream market offers substantial growth opportunities, particularly in emerging markets, where dietary preferences are evolving, and environmental concerns are gaining momentum. These markets represent untapped potential for manufacturers to meet the growing demand for vegan alternatives.

• Wellness Positioning: Emphasizing the health benefits of vegan ice cream, such as its lower saturated fat content, cholesterol-free nature, and fewer artificial additives, presents an opportunity for market growth. This positioning aligns with the global health and wellness trend, making vegan ice cream an attractive choice for consumers aiming for healthier dietary options while enjoying delicious frozen treats.

Vegan Ice Cream Market – Mergers and Acquisitions

The Vegan Ice Cream Market has seen several mergers and acquisitions in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the Vegan Ice Cream Market include:

• In 2022, Ben & Jerry’s collaborates with Tony’s Chocolonely to combat modern slavery in chocolate production. They commit to adopting Tony’s Open Chain principles to enhance farmers’ working conditions and address ethical concerns in the industry.

• In 2020, Subway® Restaurants and Halo Top® Creamery entered an exclusive partnership, introducing hand-spun milkshakes featuring Halo Top’s ice cream. Subway is the first brand to offer Halo Top’s delightful ice cream in a hand-spun milkshake, adding an innovative twist to their menu.

These mergers and acquisitions have helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the Vegan Ice Cream Market. The trend is expected to continue as companies seek to gain a competitive edge in the market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Vegan Ice Cream Market – Significant Threats

The Vegan Ice Cream Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Taste and Texture Challenges: While vegan ice cream has come a long way in replicating the taste and texture of traditional dairy ice cream, some challenges remain. Meeting the exact taste and texture expectations of consumers can be difficult, and any perceived shortcomings may deter repeat purchases. Overcoming these sensory obstacles is crucial for long-term market success.

• Market Saturation: With a continuous influx of new brands and products into the vegan ice cream market, oversaturation is a potential threat. This can lead to intensified competition, price wars, and shrinking profit margins. As the market becomes increasingly crowded, businesses may face challenges in differentiating their products and maintaining sustainable growth.

• Ingredient Supply and Price Volatility: The vegan ice cream market heavily relies on key ingredients like nuts and plant-based milk. The supply and pricing of these ingredients can be vulnerable to fluctuations and supply chain disruptions. This volatility can significantly impact production costs, potentially leading to price increases that may discourage consumers.

• Regulatory Compliance: Evolving and varying regulations about labelling, food standards, and health claims represent a compliance challenge for vegan ice cream manufacturers. Non-compliance with these regulations can lead to legal challenges and damage brand reputation. Staying updated on regulatory requirements and ensuring full adherence is crucial for maintaining consumer trust and market access.

• Allergen Cross-Contamination: Vegan ice cream products often use ingredients like nuts, soy, and gluten, which can be common allergens. Cross-contamination during production and handling processes poses a threat, as it can lead to unintentional exposure to allergens, resulting in safety concerns and potential legal liabilities for manufacturers. Ensuring rigorous allergen control measures is imperative to mitigate this risk.

Report Scope

Category-Wise Insights

By Source:

• Coconut Milk: Coconut milk, derived from the pulp of coconuts, serves as a creamy and versatile base for vegan ice cream. It imparts a distinctly tropical flavor and rich texture to dairy-free frozen desserts. Coconut milk remains a popular choice due to its natural sweetness, while trends indicate an ongoing preference for coconut-based vegan ice cream for its tropical appeal, especially in exotic flavor combinations.

• Soy Milk: Soy milk, made from soybeans, is a well-established dairy milk alternative used in vegan ice cream. It provides a neutral base and a creamy consistency. Soy milk remains a prominent segment in the vegan ice cream market, as the latest trends favor organic and non-GMO soy-based offerings. This shift is a response to consumer demands for healthier, sustainably sourced alternatives, highlighting soy milk’s enduring significance in the market.

• Almond Milk: Almond milk, crafted from ground almonds, delivers a slightly nutty and subtly sweet profile. It’s a popular choice for creating a creamy and flavorful base for vegan ice cream. Almond milk remains a favored ingredient in vegan ice cream, with trends showcasing innovations in texture and an array of new almond-based flavors to cater to diverse consumer preferences.

• Cashew Milk: Cashew milk, derived from ground cashews, imparts a rich, smooth, and slightly nutty character to vegan ice cream. Cashew milk has gained popularity as a base due to its excellent creaminess. Trends include the use of cashew milk in gourmet and premium vegan ice cream offerings, often featuring indulgent and complex flavor profiles.

• Others: The “Others” category includes diverse plant-based milk sources like oats, rice, and hemp, contributing to the versatility of vegan ice cream formulations. Diverse milk alternatives continue to expand the range of vegan ice cream products, with notable trends including the rise of oat milk as a creamy, nut-free alternative, and the use of hemp and rice milk for those seeking unique and allergen-friendly options.

By Flavor

• Chocolate: Chocolate-flavored vegan ice cream provides a dairy-free alternative with a rich cocoa taste. It mimics the creaminess of traditional chocolate ice cream using plant-based ingredients. The vegan chocolate ice cream segment continues to grow, with trends focused on improving the depth and quality of cocoa flavors. Innovations include dark chocolate options, incorporating vegan mix-ins like cookies or brownies, and a shift towards reduced sugar content.

• Caramel: Caramel vegan ice cream offers a sweet, buttery flavor without dairy, achieved through plant-based ingredients and natural caramel extracts. The market sees trends in salted caramel variations, adding complexity to the flavor profile. Innovations involve creating swirls and ribbons of caramel to enhance taste and texture, making it a popular choice among consumers.

• Coconut: Coconut-based vegan ice cream has a creamy and tropical coconut flavor, appealing to those seeking an exotic and dairy-free dessert. The coconut segment is marked by innovations in texture and flavor. Trends include introducing unique coconut varieties like toasted coconut and incorporating coconut chunks for added texture and tropical flair.

• Vanilla: Vegan vanilla ice cream offers a classic, creamy, and comforting flavor, using vanilla bean extracts and non-dairy bases. Trends in the vegan vanilla segment focus on enhancing the quality of vanilla extracts used. Bourbon vanilla and Madagascar vanilla options are gaining popularity, providing a rich and authentic flavor profile to meet consumer expectations.

• Coffee: Coffee vegan ice cream combines the bold flavors of coffee with a creamy, dairy-free base, offering an indulgent coffeehouse experience. The coffee segment reflects trends toward creating more robust coffee profiles. Innovations include the use of cold brew coffee, espresso swirls, and the incorporation of coffee-infused mix-ins, catering to caffeine lovers.

• Fruit: Fruit-based vegan ice cream explores a wide range of fruity flavors, capturing the essence of various fruits in dairy-free frozen desserts. The fruit segment sees trends in exotic and unique fruit combinations, such as mango and passionfruit or mixed berry varieties. There is also a focus on natural fruit purees and reduced added sugars to enhance the fruitiness of these products.

• Others: The “Others” category encompasses a diverse range of vegan ice cream flavors, including unconventional and specialty flavors beyond the traditional spectrum. This category showcases diverse trends, such as botanical-infused ice creams (lavender, rose), regional specialties (matcha, taro), and limited-time seasonal flavors, catering to adventurous consumers seeking novel taste experiences within the vegan ice cream market.

By Sales Type

• Impulse: Impulse sales refer to the purchase of vegan ice cream on a spontaneous basis, often at ice cream parlours, food trucks, or casual eateries. These sales are driven by immediate cravings and the desire for a quick, indulgent treat. Impulse sales in the Vegan Ice Cream Market are rising due to increased availability in dessert shops and mobile food vendors. Unique, on-the-go flavors and smaller portion sizes cater to consumer cravings for immediate gratification.

• Take-Home: Take-home sales involve the purchase of vegan ice cream from retail stores or online, for consumption at home. These sales cater to consumers who prefer enjoying vegan ice cream at their convenience. Take-home sales are surging as brands expand their presence in grocery stores and e-commerce. The convenience of enjoying vegan ice cream at home aligns with the growing trend of healthier and ethical dessert choices.

• Artisanal: Artisanal sales entail purchasing vegan ice cream from small, locally owned shops or independent producers. These sales emphasize craft and unique, handcrafted flavors. The artisanal sector in the Vegan Ice Cream Market is flourishing as consumers seek premium, hand-crafted options. Artisanal brands are focusing on innovative flavors and sustainable practices to meet consumer demand for exclusive, high-quality offerings.

By Distribution Channel

• Supermarket/Hypermarket: Supermarkets and hypermarkets are large retail outlets that offer a wide range of consumer products, including vegan ice cream. These channels provide convenience and accessibility for customers seeking vegan frozen treats. The supermarket/hypermarket distribution channel continues to dominate the vegan ice cream market, offering extensive variety, and driving sales through discounts and promotions. Consumer demand for dairy-free options contributes to shelf space expansion for plant-based products.

• Specialty Store: Specialty stores are niche retail shops that focus on specific product categories, such as health food stores or vegan specialty shops. They offer a curated selection of vegan ice cream and cater to consumers with specialized dietary preferences. Specialty stores are experiencing growth as vegan and health-conscious consumers seek unique flavors and artisanal options. These stores often emphasize organic and locally sourced ingredients to meet consumer demands for quality and sustainability.

• Online: Online distribution channels involve e-commerce platforms where consumers can purchase vegan ice cream and have it delivered to their doorstep. Online shopping provides convenience and accessibility, particularly for those with dietary restrictions. The online distribution channel is rapidly expanding due to the convenience and wider product availability. Consumers appreciate the ease of ordering and home delivery, driving significant growth in the vegan ice cream market through online retailers and delivery services.

• Others: The “Others” category includes various distribution channels that may not fit into traditional retail models, such as food delivery services, food trucks, or farmers’ markets. These unconventional channels also contribute to the availability of vegan ice cream. Emerging trends in the “Others” category involve creative and alternative distribution methods. Food delivery services, for example, increasingly offer vegan ice cream as part of their dessert menus, providing a unique and convenient way for consumers to access dairy-free frozen treats.

Vegan Ice Cream Market – Regional Analysis

The Vegan Ice Cream Market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

• North America: In North America, the Vegan Ice Cream Market is witnessing a surge in demand due to increasing health-consciousness and ethical dietary choices. Consumers are gravitating towards plant-based options, with flavors like oat and almond milk gaining prominence. The market is also marked by the growing influence of sustainability, as brands prioritize eco-friendly packaging and ingredients.

• Europe: In Europe, the Vegan Ice Cream Market is flourishing as consumers seek healthier indulgences. A notable trend is the rise of artisanal and small-batch producers offering unique and premium flavors. Sustainability remains a key focus, with companies exploring local and organic ingredients. Vegan gelato is gaining popularity, combining European tradition with plant-based innovation.

• Asia-Pacific: The Asia-Pacific Vegan Ice Cream Market is expanding rapidly, driven by health-conscious consumers in countries like India and China. Coconut-based flavors are in high demand, with local variations catering to regional tastes. Innovative fusion flavors, such as matcha green tea and lychee, are also gaining traction. The market’s growth is further boosted by an increasing number of vegan-friendly restaurants and dessert shops.

• LAMEA (Latin America, Middle East, and Africa): In the LAMEA region, the Vegan Ice Cream Market is experiencing gradual growth, with consumers showing growing interest in dairy-free options. Coconut and tropical fruit-based flavors are popular, aligning with regional tastes. There’s also a notable emphasis on local ingredients and traditional flavors, making vegan ice cream a blend of global health trends and local cultural preferences.

Competitive Landscape – Vegan Ice Cream Market

The Vegan Ice Cream Market is highly competitive, with a large number of manufacturers and retailers operating globally. Some of the key players in the market include:

• So Delicious Dairy Free
• Tofutti Brands Inc.
• Oatly AB
• NadaMoo!
• The Booja-Booja Company
• Ben & Jerry’s
• Coconut Bliss
• Trader Joe’s
• Häagen-Dazs
• Nadamoo!
• LUV Ice Cream
• Bliss Unlimited LLC (Luna & Larry’s Coconut Bliss)
• Snow Monkey
• Re:THINK Ice Cream
• Forager Project
• Others

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships.

Several new players have adopted innovation and development to enter the Vegan Ice Cream Market. These entrants have leveraged creative flavor profiles, unique ingredient combinations, and sustainable practices to capture market attention and establish a foothold. They often experiment with alternative bases like cashew, hemp, or avocado.

However, the market is still predominantly dominated by key players like Ben & Jerry’s, Häagen-Dazs, and Oatly, which benefit from brand recognition, extensive distribution networks, and substantial resources for research and development. These key players continue to expand their product lines, offer diverse flavors, and emphasize sustainability, maintaining their competitive edge in the market.

The Vegan Ice Cream Market is segmented as follows:

By Source

• Coconut Milk
• Soy Milk
• Almond Milk
• Cashew milk
• Others

By Flavor

• Caramel
• Chocolate
• Coconut
• Coffee
• Vanilla
• Fruit
• Others

By Sales Type

• Impulse
• Take Home
• Artisanal

By Distribution Channel

• Supermarket/Hypermarket
• Specialty Store
• Online
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• 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