Global Egg Substitute Market 2024-2031

Global Egg Substitute Market Size, Share & Trends Analysis Report by Form (Dry and Liquid), by Application (Bakery and Confectionery, Savories, Sauces, Dressings, and Spreads), and by Distribution Channel (Online Stores, Supermarkets and Hypermarkets, Convenience Stores, and Specialty Stores) Forecast Period (2024-2031)

The global egg substitute market is anticipated to grow at a significant CAGR of 13.3% during the forecast period (2024-2031). An egg substitute refers to any ingredient or product used as a replacement for eggs in recipes due to dietary restrictions, allergies, or ethical reasons. These substitutes mimic the binding, leavening, or moisture-retaining properties of eggs.

Market Dynamics

Surging Demand for vegan and Vegetarian Diets Drive Egg Substitute Market Growth

A major driver of the global egg substitute market's growth is the surging popularity of vegan and vegetarian diets. Consumers are increasingly embracing plant-based lifestyles, motivated by a desire for ethical treatment of animals, environmental sustainability, and potential health benefits. For instance, India's plant-based meat market is projected to experience significant growth, soaring from an estimated $30-40 million to $500 million. The broader vegan food sector is anticipated to achieve a compound annual growth rate of 11.32% between 2022 and 2027. Egg substitutes perfectly address this shift by offering a reliable plant-based alternative that allows vegans and vegetarians to enjoy baked goods and other dishes traditionally reliant on eggs. This growing segment of the population creates a significant demand for innovative and effective egg substitutes, further propelling the global market forward.

Convenience and Storage Capacity Drive Egg Substitute Appeal

The global egg substitute market is flourishing due to the unmatched convenience and extended shelf life these products offer. Compared to fresh eggs, which require specific storage conditions and have a limited lifespan, egg substitutes boast significant advantages. Dry substitutes, like powdered egg replacements, offer exceptional shelf life, making them ideal for long-term storage and emergency preparedness. They also require minimal storage space, eliminating the need for dedicated space in the refrigerator. Liquid substitutes, while not as shelf-stable as their dry counterparts, often provide superior ease of use and can be conveniently stored in a pantry for extended periods. This convenience factor, coupled with the extended shelf life of egg substitutes, makes them a compelling choice for busy individuals and households that do not require frequent egg consumption.

Market Segmentation

Our in-depth analysis of the global egg substitute market includes the following segments by form, by application, and distribution channel:

• Based on the form, the market is sub-segmented into dry and liquid.
• Based on application, the market is bifurcated into bakery and confectionery, savories, sauces, dressings, and spreads.
• Based on distribution channels, the market is augmented into online stores, supermarkets and hypermarkets, convenience stores, and specialty stores.

Liquid Egg Replacers Take the Lead in Global Market Growth

Globally, the liquid egg replacer segment is witnessing rapid growth within the market. This surge can be attributed to several factors, including the convenience and versatility offered by liquid formulations. Food manufacturers worldwide are increasingly turning to liquid egg replacers due to their ease of incorporation into various recipes and formulations, thereby enhancing production efficiency. For instance, in February 2022, Plant B announced a lupin-based liquid egg substitute launch in Germany after 15 months of development. Claiming to mimic chicken eggs with fewer calories, it targets baking, cooking, and standalone meals. Addressing animal welfare and environmental concerns, lupin beans offer protein and minerals. Moreover, liquid egg replacers often boast longer shelf lives compared to their dry counterparts, appealing to manufacturers seeking extended product stability. Additionally, the liquid form allows for precise dosage control, ensuring consistent product quality. As consumer demand for plant-based and allergen-free alternatives continues to rise on a global scale, the liquid egg replacer market is poised for further expansion and innovation.

Online Stores Poised for Dominance in Egg Substitute Distribution

The distribution landscape for egg substitutes is witnessing a shift towards online stores as the fastest-growing segment. This trend can be attributed to the increasing convenience and accessibility online platforms offer. Consumers can browse and purchase a wider variety of egg substitutes catering to specific dietary needs and preferences, all from the comfort of their homes. This growth coincides with the overall rise in e-commerce adoption, where online shopping has become increasingly popular for various consumer goods. For instance, In the fourth quarter of 2023, adjusted U.S. retail e-commerce sales reached $285.2 billion, showing a 0.8% increase from the previous quarter. Total retail sales for the same period were estimated at $1,831.4 billion, marking a 0.4% rise. E-commerce sales surged by 7.5% compared to the fourth quarter of 2022, while total retail sales increased by 2.8%. E-commerce sales represented 15.6% of total sales in Q4 2023. As a result, online stores are well-positioned to play a leading role in the distribution of egg substitutes in the near future.

Regional Outlook

The global egg substitute market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

North America Holds Major Share in Global Egg Substitute Market

The popularity of plant-based diets in North America is a major driver behind the thriving egg substitute market. Consumers are increasingly embracing vegan and vegetarian lifestyles due to a confluence of ethical, environmental, and health-related concerns. For instance, In the US, the plant-based eggs category is rapidly expanding, driven by rising consumer acceptance, enhanced product availability, and ongoing innovation. Sales of plant-based eggs soared by 14.0% in dollars and 21.0% in units in 2022. Overall, the plant-based foods market saw a 6.6% increase in dollar sales to $8.0 billion, while units declined by 3.0%, paralleling trends in total food and animal-based products. For those who avoid animal products entirely, egg substitutes offer a perfect plant-based alternative that allows them to enjoy baked goods and other dishes traditionally reliant on eggs. This shift towards vegan and vegetarian diets creates a significant demand for reliable and innovative egg substitutes, further propelling the market growth in North America.

Asia-Pacific to Exhibit the Highest CAGR During the Forecast Period

The rising prevalence of egg allergies within the Asia-Pacific region has become a significant catalyst pushing the expansion of the egg replacer market. This trend is attributed to heightened awareness regarding food allergies, coupled with advancements in diagnostic techniques. For instance, according to Australian Eggs Limited, food allergy is prevalent in Australia, impacting over 10% of infants by the age of 12 months. The most common allergens include cow's milk, eggs, and nuts. Raw egg allergy is particularly widespread, affecting nearly 9.0% of children at one year of age. As consumers seek alternatives to traditional egg-based products, the demand for egg replacers continues to surge, thereby fostering the growth of this market segment. Manufacturers are responding to this growing need by innovating and introducing a diverse range of egg substitute products to cater to the preferences and dietary requirements of consumers with egg allergies.

The major companies serving the global egg substitute market include Archer Daniels Midland Company, Arla Foods Ingredients Group P/S, Cargill Inc., Danone Nutricia, and International Flavors & Fragrances Inc. (DuPont de Nemours, Inc.) among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market.