Vegan Ice Cream Market

Vegan Ice Cream Market Overview:

The global vegan ice cream market size reached US$ 671.4 Million in 2023. Looking forward, IMARC Group expects the market to reach US$ 1,006.4 Million by 2032, exhibiting a growth rate (CAGR) of 4.5% during 2024-2032. There are several factors that are driving the market, which include rising awareness about environmental sustainability and animal welfare concerns, increasing prevalence of lactose intolerance and dairy allergies, and escalating demand for plant-based diets and health consciousness among individuals.

Vegan Ice Cream Market Analysis:

• Major Market Drivers: One of the key market drivers are innovations in product development. Moreover, the increasing rising social media influence is acting as a growth-inducing factor.
• Key Market Trends: The market demand is impelled owing to numerous primary trends, which include the rising awareness about environmental sustainability and animal welfare and the escalating demand for plant-based diets.
• Geographical Trends: As per the report, Europe exhibits a clear dominance, accounting for the largest market share due to the increasing adoption of healthier and more sustainable food choices.
• Competitive Landscape: Various vegan ice cream companies are Arctic Zero, Booja-Booja, Double Rainbow Ice Cream, HappyCow, Morrisons, NadaMoo!, Over The MOO, Perry's Ice Cream, SorBabes, Tofutti Brands Inc., Unilever PLC, Van Leeuwen Ice Cream., among many others.
• Challenges and Opportunities: One of the key challenges hindering the market growth are labeling and certification. Nonetheless, the rising focus on health and wellness and thriving e-commerce sector represents key vegan ice cream market recent opportunities.
   

Vegan Ice Cream Market Trends:

Rising Awareness of Environmental Sustainability and Animal Welfare Concerns

The increasing consumer consciousness regarding the environmental impact of food production and the welfare of animals is supporting the market growth. Besides this, rising concerns about greenhouse gas (GHG) emissions, water usage, and deforestation associated with traditional dairy farming are leading many individuals to seek sustainable and ethical alternatives. Vegan ice creams are free from animal-derived ingredients and perceived as an eco-friendlier option. Ethical considerations such as animal welfare and the desire to reduce animal exploitation, also play a vital role in driving the vegan ice cream demand. On 9 October 2023, Michelin Star pastry chef Olivia Green’s ‘Crème de la Crop’, a new vegan ice cream shop received a national award from people for the ethical treatment of animals (PETA), the world’s largest animal rights organization.

Increasing Prevalence of Lactose Intolerance and Dairy Allergies

One of the main factors driving the market growth is the increasing frequency of dairy allergies and lactose intolerance in the general population. A large percentage of people worldwide suffer from lactose intolerance, which is the inability to digest the sugar found in dairy products. This condition is leading to a higher demand for vegan ice cream. Similar to this, allergic reactions to dairy products can range in severity from minor discomfort to life-threatening allergic reactions. Because of this, people with these ailments are looking for dairy-free substitutes, which is offering a positive vegan ice cream market outlook. These ice creams are produced using cashew, almond, coconut, or soy as plant-based milk substitutes. In addition, major companies are broadening their range of products to accommodate people who struggle with these problems. On 20 February 2023, Keventers, an iconic Indian dairy brand with a legacy of 97 years best known for its milkshakes and ice-creams, expanded its product portfolio pan India with the launch of its first line of vegan delicacies. This brand-new range is 100% plant-based and gluten-free, a treat for people with dietary restrictions including gluten intolerance and dairy allergies. With no artificial ingredients or added flavor, it is a suitable choice for all, especially for those who prefer lactose-intolerant diets.

Growing Health Consciousness and Demand for Plant-Based Diets

On 11 January 2023, Magnum unveiled a raft of new products for 2023. It launched two new double flavors, Starchaser and Sunlover, as well as new additions to its vegan and minis multipack ranges. Along with popcorn, caramel ice cream, and caramel sauce, Starchaser is a confection of milk chocolate with caramelized corn covering. Furthermore, the growing demand for plant-based diets, along with the increasing awareness about health issues, are propelling the vegan ice cream market growth. Consumers who are concerned about their health are looking for healthier options without sacrificing flavor or enjoyment. Vegan ice creams are created without cholesterol or saturated fats, a component found in regular dairy-based ice cream, which makes it a healthier alternative. Furthermore, plant-based diets are gaining popularity owing to their associated health advantages such as better weight control and cardiac health. As a result, consumers are seeking to adopt plant-based diets and turning to vegan ice cream as a satisfying dessert option that aligns with their health goals. 

Vegan Ice Cream Market Segmentation:

IMARC Group provides an analysis of the key vegan ice cream market trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on source, flavor, sales type, and distribution channel.

Breakup by Source:

• Coconut Milk
• Soy Milk
• Almond Milk
• Cashew Milk
   

Almond milk accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the source. This includes coconut milk, soy milk, almond milk, and cashew milk. According to the report, almond milk represented the largest segment.

Popular plant-based milk substitute almond milk is a suitable base for vegan ice creams because of its nutty flavor and creamy texture. Almond milk appeals to consumers looking for dairy-free solutions because of its inherent sweetness and lower calorie content as compared to cow milk. It offers high calcium and vitamin E content, which is beneficial in improving the nutritional value of vegan ice creams. It is also free of lactose, which makes it an excellent option for people who have dairy allergies or lactose intolerance issues. This feature expands the market for vegan ice cream made with almond milk, satisfying the demands of people looking for a non-dairy frozen treat without sacrificing flavor or texture.

Breakup by Flavor:

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

Caramel holds the largest share of the industry

A detailed breakup and analysis of the market based on the flavor have also been provided in the report. This includes chocolate, caramel, coconut, vanilla, coffee, and fruit. According to the report, caramel accounted for the largest market share.

A popular flavor, caramel is distinguished by its rich, sugary, and buttery flavor. It is when paired with the smooth and creamy texture of vegan ice cream produced from plant-based milk substitutes like soy, almond, or coconut, provides a delightful and fulfilling treat for individuals. Moreover, the rising demand for caramel vegan ice cream among individuals with lactose intolerance or dairy allergies because it has no animal-derived ingredients contributes to the market growth. Besides this, consumers are seeking alternatives that align with their values and preferences while still delivering on flavor and indulgence. Furthermore, the growing interest in plant-based diets and the desire for diverse gourmet dessert choices are positively influencing the market. Companies in the market are introducing caramel flavors to attract a wider consumer base. For instance, Over The Moo, a plant-based ice cream brand, added a new chocolate flavor to its range of bite-sized frozen treats in the UK on 9 May 2024. Consisting of chunks of coconut-based ice cream coated in dark chocolate, the snacks are available in two flavors such as vanilla and caramel.

Breakup by Sales Type:

• Impulse
• Take Home
• Artisanal
   

Take home represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the sales type. This includes impulse, take home, and artisanal. According to the report, take home represented the largest segment.

The increasing popularity of plant-based diets and veganism are leading to a rise in the demand for dairy-free alternatives in various food categories, including ice cream. Consumers are actively seeking convenient options to enjoy vegan ice cream at home without compromising on taste and quality, which is creating a positive market expansion. Furthermore, the convenience factor plays a significant role in the growing demand for take-home vegan ice cream. Ready-to-eat (RTE) pints and containers allow consumers to indulge in their favorite flavors at their convenience, providing a quick and satisfying dessert option. In addition to this, as the retail availability of vegan ice cream expands and more innovative flavors and brands enter the market, consumers are encouraged to explore and integrate these products into their regular grocery shopping, further driving the demand for take-home ice creams. On 21 December 2023, Salt & Straw announced that it is bringing back the Dairy Free Decadence Series for a limited time. The series includes five vegan ice cream flavors. The limited-time flavors will be available at in-store locations and via online orders, providing convenience to the population.

Breakup by Distribution Channel:

• Supermarkets and Hypermarkets
• Convenience Stores
• Online Stores
• Others
   

Supermarkets and hypermarkets exhibit a clear dominance in the market 

A detailed breakup and analysis of the market based on the distribution channel have also been provided in the report. This includes supermarkets and hypermarkets, convenience stores, online stores, and others. According to the report, supermarkets and hypermarkets accounted for the largest market share.

Supermarkets and hypermarkets are one-stop solutions for food purchases. They offer a wide range of vegan ice cream varieties to cater to a broader consumer base. Moreover, the mainstream acceptance of veganism and plant-based products, prompts these retail giants to allocate more shelf space to vegan ice cream options from various brands and flavors, making it easier for shoppers to discover and purchase these products. Additionally, aggressive marketing and promotional campaigns by vegan ice cream manufacturers within these retail settings are creating higher visibility and consumer interest, further propelling the demand for vegan ice cream via supermarkets and hypermarkets. As the demand for plant-based alternatives grows, supermarkets and hypermarkets play a crucial role in influencing consumer choices and improving market expansion. Apart from this, companies are investing in the opening of offline shops. For example, on 5 July 2023, Oatly opened the first vegan soft serve ice cream pop-up shop in central Amsterdam, as part of its “Oats on Tour” summer activation. The shop marks the company’s efforts and ambition to democratize oat-based alternatives and increase consumption occasions for oat-based products.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Europe leads the market, accounting for the largest vegan ice cream market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Europe represents the largest regional market for vegan ice cream.

Europe shows a significant rise in health awareness and a growing interest in plant-based diets because consumers are seeking healthier and more sustainable food choices. Vegan ice creams are made from plant-based milk alternatives that offer a guilt-free indulgence while aligning with dietary preferences of individuals. Secondly, the region is witnessing a surge in the number of individuals adopting vegan and vegetarian lifestyles, influenced by ethical considerations surrounding animal welfare and environmental sustainability. Furthermore, manufacturers are introducing a diverse range of innovative flavors and premium offerings to increase the vegan ice cream market revenue. Additionally, the availability of vegan ice creams in various supermarkets, specialty stores, and online platforms are making them easily accessible to consumers across Europe, contributing to its growing popularity and driving the expansion in the region. On 9 March 2023, Italy’s leading producer of plant-based products Valsoia launched a new line of Italian vegan gelato for consumers across Europe. New flavors such as espresso cones with chocolate chips and triple pistachio mini sticks, join an extensive non-dairy range which includes cocoa swirl and roasted almond cones, as well as vegan ice cream sandwiches. Valsoia’s plant-based gelato comes in sustainable packaging that is Forest Stewardship Council (FSC) certificated and all products carry the V-label certification.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the vegan ice cream industry include Arctic Zero, Booja-Booja, Double Rainbow Ice Cream, HappyCow, Morrisons, NadaMoo!, Over The MOO, Perry's Ice Cream, SorBabes, Tofutti Brands Inc., Unilever PLC, and Van Leeuwen Ice Cream.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• The competitive landscape of the global vegan ice cream market is characterized by intense competition among established players and the emergence of new entrants. Numerous companies are aiming to capitalize on the rising demand for plant-based frozen desserts. Established ice cream manufacturers are diversifying their product portfolios to include vegan offerings. At the same time, numerous specialized and niche brands are focusing solely on vegan ice cream production, catering to the specific dietary requirements of vegan and health-conscious consumers. On 14 November 2023, Singaporean oat milk maker OATSIDE unveiled a line of vegan ice creams in the city-state, starting with three flavors. The ice creams come in chocolate, peanut butter cookie dough, and coffee with mini chocolate chips varieties, and are described as having a creamy texture with the malty base of its oat milk. The company also launched an OATSIDE Ice Cream Excuses promotional campaign to go along with the launch.

Vegan Ice Cream Market Recent Developments:

• 18 May 2023: Häagen-Dazs introduced a line of brand-new frozen treats made with plants. This new oat-based collection aims to increase the plant-based intake and enhance taste than other frozen sweets made from plants. These products are made in London, Ontario, and are vegan-approved.
• 29 March 2023: Booja-Booja relaunched its dairy-free ice cream collection, with four new flavors, three recipe updates, and a striking new look launched to the trade. The new flavors are cookie dough, mango and raspberry, deeply chocolate, and chocolate fudge brownie, alongside new improved editions of three existing varieties, caramel pecan praline, chocolate salted caramel and vanilla. The ice creams are all organic, vegan, dairy free, soya free, gluten free, and kosher.

Vegan Ice Cream Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, vegan ice cream market forecast, and dynamics from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global vegan ice cream market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the vegan ice cream industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of vegan ice cream companies.