Global Meal Replacement Drinks Market - 2023-2030

Overview

Global Meal Replacement Drinks Market reached US$ 5 billion in 2022 and is expected to reach US$ 9 billion by 2030, growing with a CAGR of 7.6% during the forecast period 2023-2030.

Meal replacement drinks are highly designed to substitute regular meal patterns of consumers with health products that are packed with essential nutrients with fewer calories. The increasing consumer participation in physical fitness activities positively impacts the market growth. These products help in managing appetites and help in reducing the meal intake that leads to higher calorie intake.

According to the World Obesity Federation 2022, almost 2.3 billion children and adults are dealing with obesity globally. On the other hand, according to the International Diabetes Federation, 537 million adults were suffering from diabetes in 2021. To decrease the prevalence of these diseases and to live a healthy lifestyle, consumers are opting for meal replacement products that are packed with controlled calorie intake and added essential nutrients.

Increasing demand for meal replacement drinks in the market encourages manufacturers to set up new manufacturing facilities. For instance, in August 2023, the nutrition division of GC Ingredients, Primaria Nutrition, invested in the development of a new manufacturing facility in Atlanta, that helps in the manufacturing of food, supplements and value-added products in powder and liquid forms. These product facilities also include meal replacement product productions.

Dynamics

Availability of Vegan and Natural Meal Replacement Drinks

Meal replacement drinks are now popularly adopted by various health-conscious consumers who are determined to maintain a healthy intake. The increasing vegan population is driving the need for plant-based products in this category motivating manufacturers to focus on plant-based and nutritious meal replacement drinks production.

The high involvement of specialists in the production of these products is positively attracting the consumer's focus towards these products. For instance, in September 2021, Novagevity Incorporated, launched Sperri, a new plant-based meal replacement beverage. The product is designed by a team of doctors and dieticians and it is claimed to be Canada's first organic and non-GMO plant-based meal replacement.

Similarly, in November 2022, Levana Nourishments, a New York-based food tech startup, introduced a next-generation nutritional shake into the market. The product is used as a complete meal replacement. The nutritional shake is formulated with plant-based ingredients and is gaining wide popularity due to its natural and clean-label nature.

Nutritional and Convenient Benefits of Meal Replacement Drinks

Meal replacement drinks are highly preferred by health-conscious people who are determined to have complete control over their food intake to maintain limited calories with all essential nutrients. The availability of these products in ready-to-drink and shake premix types makes the consumer choose their convenient form of product expanding product reach to consumers. High flavor choices help in the wide expansion of the market.

In June 2021, Arla Food Ingredients announced the launch of a new product line including RTD beverages, high-protein bars and protein shakes. These products are packed with essential nutrients including proteins, carbohydrates and lipids. The products are also rich in vitamins and minerals. They are quick to prepare and easy to consume providing consumers with meal replacements that are rich in nutritional ingredients such as casein and whey proteins.

High Costs and Lack of Awareness

The lack of proper consumer awareness about the existence of meal replacement drinks and their health benefits acts as a major restraining factor for the market. Most people especially fitness enthusiasts and athletes are now adopting the use of protein shakes during their workouts and physical training to meet the required protein content. But most people assume meal replacement drinks same as protein shakes. This misinterpretation is hindering the market growth as it draws most attention towards protein shakes.

Meal replacement drinks are packed with all essential nutrients that are necessary to maintain the same level of nutritional benefits as regular meals such as breakfast, lunch and dinner. To maintain such nutritional status, these products will be going through additional processes that add productional costs for the manufacturers, resulting in high cost of the product. The high costs of these drinks can be another hindering factor as low and moderate-economy consumers refuse to obtain high-cost products.

Segment Analysis

The global meal replacement drinks market is segmented based on type, flavor, distribution channel and region.

Convenience and Versatility of Ready-to-Drink Products

The global meal replacement drinks market is segmented based on the ready-to-drink and shake premix types. The ready-to-drink segment accounted for the largest share of the global meal replacement drinks market. The convenience and versatility of the ready-to-drink drive the segment's growth. The grab-and-go nature of this product helps the customer readily meet their daily dietary requirements replacing the actual meals.

The new product launches in this category fuel the market growth. For instance, in August 2022, Optimum Nutrition, a global leader in sports nutrition, introduced its new Gold Standard Protein Shake. This ready-to-drink format of this drink is formulated with 24 gr of protein per serving and provides delicious and nutritious choices for the consumers. The product is available in two regular flavours including chocolate and vanilla.

Geographical Penetration

Increasing Health Concerns is Driving the Need for Healthy Meal Substitutes

North America dominated the global meal replacement drinks market with the increasing need for low calorie and healthy food products. According to Trust for America's Health's 19th annual report on the nation's obesity crisis, the organization reported that in 19 states the obesity rates are over 35 % in 2021. Similarly, according to the Centers for Disease and Prevention, about 11.3 % of U.S. population are living with diabetes in 2022.

The increasing prevalence of various lifestyle disorders such as obesity and diabetes are driving consumers to focus on a healthy and nutritious diet that is low in calories to maintain ideal weight and health conditions. Meal replacement drinks are ideally adopted by consumers of this region to deal with these diseases, driving the regional market growth. In addition, increasing the purchasing power of consumer boost the market growth.

The availability of major global market players in this region and the active participation of local companies in the expansion of meal replacement drinks in the region is positively affecting the market growth. For instance, in March 2022, Southern Charm Nutrition, the sister club of Southern Belle Nutrition in White Hall, introduced its outlet in downtown Fairmont. The store serves various products including meal replacement shakes in a variety of flavors that are low in calories and rich in proteins.

Competitive Landscape

The major global players in the market include: Amway International Inc, Abbott Laboratories, Trinkkost GmbH, Perrigo Company Plc, Herbalife International of America, Inc., Nestle SA, INLIFE Pharma Private Limited, Huel Inc, Atkins US and USANA Health Sciences Inc.

COVID-19 Impact Analysis:

The outbreak of the COVID-19 pandemic had a mixed impact on the global meal replacement drinks market. The market initially faced several challenges due to low consumer awareness and less demand in the global market. In addition, the disrupted supply chain activities impacted the production of these products with difficulties in raw material sourcing and less labor availability. The strict regulations from the government resulted in the shutdown of many manufacturing industries. The distribution channel disruptions also made it hard for the product to reach the consumer as there was a shutdown of all offline stores.

However, the improved accessibility and popularity of the e-commerce sector and the wide availability of these products in online sales improved the market sales. The high consumer awareness regarding the maintenance of health and immunity increased the demand for health and wellness products.

According to the early surveillance data that was reported to the CDC from January to May 2020, COVID-19 hospitalizations and deaths were 6-12 times higher in case people suffering from diabetes and other health issues. The increased risk for obesity and diabetic patients in the pandemic situation motivated people to choose meal replacement drinks and products to have control over their disease to protect themselves from deadly disease.

Russia- Ukraine War Impact

The Russia-Ukraine war had a negative impact on many industrial sectors, including food. The war resulted in the increase in prices of all food and non-food products. The interrupted demand-supply chains negatively impact the market growth. The disruption in the trade transitions in terms of import and export categories held the product supplies to limited areas. The political and economic uncertainty created due to the war had a negative impact on the meal replacement drinks market.

By Type

• Ready-to-Drink
• Shake Premix

By Flavor

• Vanilla
• Chocolate
• Strawberry
• Banana
• Others

By Distribution Channel

• Supermarket/Hypermarket
• Drug Stores & Pharmacies
• Convenience Stores
• E-Commerce

By Region

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

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• In June 2022, the fast-growing meal replacement brand, CTRL, which provides meal replacement shakes, announced the expansion of functional food product lines, with the launch of On-To-Bars, that conveniently used to provide consumers with the required nutrition.
• In January 2021, Herbalife, expanded their product offerings in the functional food range, with the launch of a mix to convert meal replacement shakes into nutrition-dense baked goods.
• In October 2020, Happy Family, a U.S.-based organic and baby food company, announced the launch DrMiow Professor Meal, a new nutritious meal replacement product. The company claims that one sachet of this product is equal to a meal. The product is produced with high-quality rice albumin and whey proteins that are easy to digest and provide health benefits.

Why Purchase the Report?

• To visualize the global meal replacement drinks market segmentation based on on type, flavor, distribution channel and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of meal replacement drinks market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global meal replacement drinks market report would provide approximately 61 tables, 59 figures and 203 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies