The U.S. plant-based food market is expected to grow at a CAGR of 12.53% from 2025 to 2032, increasing from USD 12.84 billion in 2024 to USD 33.11 billion by 2032. This growth is driven by rising awareness of the health and environmental benefits of plant-based diets, shifting consumer preferences, and advancements in food technology.
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Expanding Demand for Plant-Based Foods
The plant-based food sector in the U.S. is rapidly expanding as consumers seek healthier and more sustainable food choices. These products, made from plant-derived ingredients like vegetables, fruits, grains, legumes, and nuts, exclude animal-based components such as meat, dairy, and eggs. With nearly 8% of the U.S. population identifying as vegetarian and 3% as vegan, demand for plant-based alternatives—including meat substitutes, dairy alternatives, snacks, and beverages—continues to grow. This evolving market presents opportunities for innovation and expansion within the food industry.
Rising Availability of Plant-Based Ingredients Boosts Market Growth
The wider availability of plant protein sources such as flaxseed, quinoa, pea protein, chia, and oats has enhanced the nutritional profile of plant-based foods, making them viable alternatives to meat, dairy, and eggs. However, a common misconception that plant-based meals are more expensive than traditional options, along with limited accessibility for lower-income consumers, poses challenges to market growth. Despite this, new and existing players are introducing innovative solutions to improve affordability and availability. For example, in March 2024, Israeli food-tech company Yo Egg launched its vegan poached and sunny-side-up eggs in U.S. retail locations, beginning in Los Angeles. These products, made from soy protein, chickpeas, and sunflower oil, cater to growing consumer demand for plant-based alternatives.
Health-Conscious Consumers Drive Market Expansion
The increasing availability of plant-based food options in U.S. supermarkets and restaurants reflects rising consumer interest in healthier diets. Products such as plant-based meat alternatives, dairy-free milk, and vegan cheese offer health benefits, including improved blood sugar control and lower cholesterol levels. In response, major food brands are expanding their plant-based product lines. For instance, in February 2024, Califia Farms introduced “Califia Farms Complete,” a plant-based milk alternative rich in protein, amino acids, and essential nutrients while containing less sugar than dairy milk. Made from a blend of chickpea, pea, and fava bean protein, this product supports the shift toward plant-based nutrition. The U.S. plant-based food retail market reached USD 8 billion in 2023, with plant-based milk accounting for USD 2.8 billion and achieving more than 40% household penetration.
Sustainability and Ethical Concerns Fuel Market Growth
Environmental sustainability and ethical considerations play a significant role in the rising demand for plant-based foods. Many consumers are opting for plant-based alternatives due to concerns about the environmental impact of animal agriculture, as plant-based products generally have a lower carbon footprint. Additionally, concerns over animal welfare are influencing purchasing decisions, particularly among younger generations like Gen Z and Millennials. Companies are responding by expanding their plant-based offerings. In March 2024, Kraft Heinz Not Company launched its first plant-based meat products, including NotHotDogs and NotSausages, providing a smoky, savory taste experience while catering to consumers seeking sustainable alternatives.
Plant-Based Dairy Segment Leads the Market
The growing popularity of plant-based diets has contributed to the dominance of the dairy alternatives segment within the U.S. plant-based food market. This trend is largely driven by the high prevalence of lactose intolerance, affecting approximately 36% of the U.S. population. Currently, plant-based milk accounts for 15% of the total U.S. milk market. Beyond lactose intolerance, the shift toward vegan lifestyles and environmental concerns has also fueled demand for dairy alternatives. Advances in texture and taste have enhanced consumer acceptance of fortified plant-based dairy products. In November 2024, Bel Brands USA’s The Laughing Cow introduced a plant-based spreadable cheese made from almond milk, catering to consumers seeking plant-based dairy alternatives.
Future Market Trends (2025–2032)
- Expanding plant-based meal options with improved flavors, textures, and nutritional content is expected to attract a broader consumer base.
- Both established brands and startups are likely to increase investments in plant-based food innovation, driving market growth.
- Consumer demand for sustainable, ethical, and health-conscious food choices will continue to shape the market’s trajectory.
Market Insights and Forecast
The “United States Plant-Based Food Market Assessment, Opportunities, and Forecast, 2018-2032F” by Markets and Data provides an in-depth analysis of the industry’s current landscape, trends, and challenges. The report includes insights on market size, segmental shares, growth trends, and forecasts for 2025-2032, along with profiles of leading market players, their competitive strategies, and business models.
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