Europe Plant-based Beverages Market - 2025-2032

Europe Plant-based Beverages Market reached US$ 9.65 billion in 2024 and is expected to reach US$ 22.03 billion by 2032, growing with a CAGR of 10.87% during the forecast period 2025-2032.

A rising health consciousness among consumers is leading to increased demand for plant-based alternatives to dairy products. The growing prevalence of lactose intolerance and milk allergies is prompting more individuals to seek non-dairy options.

Environmental concerns, including better animal welfare and reduced pesticide usage, are also influencing consumer choices toward plant-based beverages. The expansion of the food and beverage sector, along with technological advancements, is facilitating the development and availability of diverse plant-based drink options. The popularity of vegan and vegetarian diets, as well as flexitarian lifestyles, is contributing to the market's growth.

Innovations in flavor and product offerings are attracting a broader consumer base. For instance, in May 2021, Linda McCartney's has expanded its product offerings with the launch of its first-ever line of vegan milk alternatives in UK. The new portfolio includes Barista Style oat and coconut variants, along with organic soy and organic rice options.

Dynamics

Driver 1 - Growing Demand for Vegan and Plant-Based Diet

The growing demand for vegan and plant-based diets is a key driver for the Europe plant-based beverages market. As more consumers adopt vegan, vegetarian and flexitarian diets for health, ethical and environmental reasons, the demand for plant-based alternatives to traditional dairy and animal-based beverages has surged. The Smart Protein Report (2021) highlights rapid growth in the European Plant-based Beverages market, with nearly all countries showing double-digit growth in sales volume and value between 2018 and 2020.

Germany leads with a 97% increase in sales value and 80% in volume, followed by the UK, Austria and Romania. Other countries, including the Netherlands, Spain and Denmark, also saw significant growth, while Italy had more modest increases of 1% in sales value and 5% in volume, though still representing EUR 490 million in growth. Plant-based beverages, such as almond, oat, soy and coconut milk, offer a sustainable and cruelty-free alternative to dairy products, which resonates with consumers who are increasingly concerned about animal welfare and environmental sustainability.

Additionally, these beverages cater to those with lactose intolerance, dairy allergies or sensitivities, further expanding their appeal. The increasing popularity of plant-based diets has led to more product innovation and variety in the plant-based beverage segment, offering consumers a wide range of choices that align with their dietary preferences. As a result, plant-based beverages have become mainstream, available in supermarkets, cafes and restaurants, which has significantly contributed to market growth across Europe.

For instance, according to the Vegan Society, In 2020, every one of the top ten UK restaurants and food-to-go outlets introduced a vegan or plant-based offering, reflecting the growing consumer demand for plant-based options. As a result, plant-based offerings became a significant trend in the foodservice industry, boosting the visibility and accessibility of plant-based drinks in the region.

Restraint: High costs and inflation impacting market adoption

The Plant-based Beverages market in Europe faces a significant restraint: its premium pricing compared to conventional alternatives. Inflation and rising food costs exacerbate this issue, making plant-based products less accessible to budget-conscious consumers. Many plant-based items, such as meat substitutes and dairy alternatives, are priced two to four times higher than their traditional counterparts. This price disparity deters widespread adoption, particularly in regions where affordability is a key factor in purchasing decisions.

Inflationary pressures across Europe further strain consumer spending, limiting the market's growth potential. Addressing this challenge requires scaling production, optimizing supply chains and innovating to narrow the cost gap, ensuring plant-based products can compete on price without compromising quality.

Segment Analysis

The Europe plant-based beverages market is segmented based on ingredients, products, type, packaging, end-user and country.

Rising demand for plant-based milk in Europe driven by health and accessibility

Milk holds a significant share in the European plant-based drinks market, primarily due to the rising demand for alternatives to dairy products. Oat milk, almond milk, soy milk and other plant-based milk have gained popularity among European consumers due to various factors such as lactose intolerance, dietary preferences and environmental concerns. Oat milk, in particular, has seen a rapid increase in adoption, with its creamy texture and mild flavor making it a popular choice for coffee drinks and everyday consumption.

Plant-based milk is increasingly viewed as a healthier option, often lower in calories, saturated fat and cholesterol compared to traditional dairy milk. According to GIF Europe (The Good Food Institute Europe), In 2023, plant-based milk and drinks led the market, accounting for 41% of total plant-based sales value across six countries. This sector's dominance highlights the growing consumer preference for plant-based beverages.

As plant-based diets gain momentum in Europe, the demand for plant-based milk continues to rise, with consumers increasingly choosing these alternatives in their daily routines. Major retail chains and e-commerce platforms have also embraced this trend, making plant-based milk more accessible to a wider audience. In August 2023, Swedish oat milk manufacturer Oatly expanded its partnership with Amazon to make its plant-based milk more accessible across Europe.

The new pan-European deal includes Oatly's popular products like Barista Edition, Oatly Light and Oatly Whole, available on Amazon's platforms in Germany, France, Italy, Spain, Netherlands and Belgium. Amazon Prime members will benefit from fast delivery and subscription savings.

Geographical Penetration

Sustainability and innovation drive growth in Germany

Germany's strong consumer demand for health-conscious and sustainable food options has driven the growth of plant-based beverages like almond, oat and soy milk. Germany's well-established organic food culture, combined with increasing awareness of environmental and health concerns, has made plant-based drinks a popular alternative to dairy products.

In August 2023, Oatly Group AB (Nasdaq: OTLY), the world's largest oat drink company, expanded its partnership with Deutsche Bahn (DB), one of Europe's largest railway companies, to introduce Oatly's plant-based Vanilla Soft Serve in all 16 DB lounges across Germany. Starting this summer, Oatly's soft serve will be available at self-service stations in DB lounges, allowing guests to enjoy a plant-based dessert. This expansion builds on the companies' ongoing collaboration, reinforcing their commitment to sustainable and innovative Plant-based Beverages options for travelers.

Furthermore, Germany's commitment to reducing carbon emissions and promoting vegan and vegetarian diets has created a favorable environment for plant-based products. In October 2023, German oat dairy brand Velike! has introduced NOT M'LK, a fresh oat milk range packaged in returnable glass bottles. This innovation is being marketed as the first refillable vegan milk available on refrigerated shelves. This eco-friendly move aligns with the growing trend of sustainable packaging, offering a more sustainable alternative to traditional single-use containers.

Competitive Landscape

The major Europe players in the market include Nestle, Danone, Hain Celestial Group, Inc., The Coca-Cola Company, Rude Health, PepsiCo, Plenish Drinks, Huel Limited, The Healthy Protein Co and Valsoia.

Sustainability Analysis

Sustainable Sourcing of Ingredients: Ingredients (e.g., oats, almonds, soy) should be sourced from sustainable and ethical suppliers. Establishing partnerships with farms or cooperatives that prioritize fair trade, ensures that local communities benefit economically while preserving the environment. This can include promoting agroforestry practices that maintain biodiversity and soil health.

Eco-friendly Product Formulation: The formulation of plant-based drinks includes natural organic and sustainably sourced ingredients where possible. Avoiding using harmful chemicals or artificial additives that could impact the environment or consumer health. Companies should opt for ingredients that are certified organic or grown using eco-friendly practices to support sustainable agriculture.

Sustainable Packaging: Brands should prioritize using recyclable, biodegradable or compostable packaging materials, such as plant-based plastics or paper cartons from sustainably managed forests. Companies should reduce packaging weight to decrease transportation emissions and explore reusable packaging models, such as refillable bottles or bulk containers for retail and food services.

Transparency and Consumer Education: Brands should provide transparency regarding the sustainability of raw material sourcing and production processes. Educating consumers about the benefits of plant-based products emphasizes the importance of supporting sustainable and ethical products. This builds trust and encourages informed purchasing decisions that align with environmental and social values.

Consumer Behaviour Analysis

The European plant-based drinks market is witnessing robust growth driven by rising health consciousness, environmental awareness and the increasing prevalence of lactose intolerance. Consumers are shifting towards these alternatives as part of a broader focus on health and wellness, perceiving them as nutritious and sustainable options.

According to the GFI Europe, in France, Between 2021 and 2023, the annual sales value of plant-based milk and drinks grew by 12%, reaching €211 million. Unit sales rose by 2.9% to 101 million units, while sales volume increased by 3.5%, totaling 102 million liters. This reflects a steady market expansion, with a slight increase in both volume and unit sales. The growth indicates a growing consumer preference for plant-based alternatives.

The gradual growth in sales volume and units indicates a broadening market, with more consumers adopting plant-based beverages. The steady rise in both sales and volume suggests that these drinks are becoming a staple in many households.

Early Stage Innovations

Novel Plant-Based Ingredients: Seaweed, kelp and algae are being explored for their rich mineral content, umami flavors and potential health benefits. They are being used to create plant-based beverages that are nutrient-dense, high in iodine, calcium and antioxidants.

Pea-based beverages, which are more sustainable than almond or soy, are emerging as a milk alternative. Peas offer a creamy texture and higher protein content and the early-stage innovation lies in improving flavor and texture to make it more appealing.

Customization and Personalization: Innovations are emerging in which consumers can personalize their plant-based beverages by selecting the type of plant base (e.g., oat, almond or coconut), flavorings, nutritional additives (e.g., protein, vitamins or minerals) and even the sweetness level. This customization is becoming possible through digital platforms, where consumers can order their exact preferences.

Nutrient Fortification and Enhanced Beverages: Early-stage innovations are focusing on adding functional nutrients like vitamin D, calcium, omega-3s and B12 to plant-based beverages, addressing common nutritional gaps in plant-based diets. The challenge lies in ensuring these fortifications maintain the natural taste and texture of the beverages.

In May 2024, Alpro, the UK's leading plant-based beverages brand, announced to shake up the market this spring with six new additions to its chilled portfolio. The lineup includes plant-based protein drinks, yogurt alternatives and a 500ml expansion of the Creamy Oat & Almond No-Sugars range.

The new Plant Protein Chocolate and Mixed Berries variants cater to the rising demand for protein-enriched products, reflecting consumer trends favoring functional benefits. Alpro's offerings boast impeccable health credentials, free from HFSS ingredients, artificial sweeteners and preservatives while being fortified with calcium and vitamins.

These innovations align with Alpro's commitment to consumer well-being and nutritious alternatives. The launch reaffirms Alpro's market leadership, meeting evolving consumer preferences with sustainable, health-conscious options.

Emerging Market Players and Strategic Initiatives

Emerging players in the Berberine HCL market are making strategic moves to enhance their market positions, focusing on innovation, research and development and regional expansions. Companies are investing heavily in the development of high-quality products and establishing strong distribution networks.

Major players in this sector include Alpro, a subsidiary of Danone, known for its diverse range of plant-based beverages; Nestle, which has expanded its portfolio to include plant-based options; and Britvic, whose acquisition of Plenish in 2021 has bolstered its presence in the plant-based drinks segment.

Strategic initiatives among companies involve launching new products, such as unconventional dairy alternatives like hemp, pea and cashew milk, to cater to evolving consumer preferences. For instance, Linda McCartney introduced a plant-based milk line in July 2021, offering barista oat, barista coconut, soy and rice milk.

Key Developments

• In August 2022, Nestle announced that KitKat V, the vegan version of the wafer snack, would be available in 15 European countries. The maker claims that KitKat V is made using coca that is sourced responsibly and has received vegan certification from the Nestle Cocoa Plan and the Rainforest Alliance.
• In May 2022, A line of cereal products made with clean ingredients from the European breakfast company Crispy Fantasy was formally launched on Amazon. According to the company, frequent customers acquire the energy they need to go through the day from these products. Additionally, the manufacturer asserted that natural components are used to make these items.

Why Purchase the Report?

• To visualize the Europe plant-based beverages market segmentation based on ingredients, products, type, packaging and end-user 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 the plant-based beverages market 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.

Europe plant-based beverages market report would provide approximately 78 tables, 83 figures and 203 pages.

Target Audience 2025

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