People are rapidly switching to plant-based meat products due to the rising awareness about the negative effects of meat consumption and the livestock industry on the environment, and the ill effects of consuming processed meat products on health. The production of plant-based ham products can help minimize carbon footprints, save water and other natural resources, and reduce the overall environmental impact. These factors are primarily driving the growth of the plant-based ham market.
In 2021, Europe held the largest share of the plant-based ham market. However, North America is estimated to register the highest CAGR during the forecast period. The high nutritional value of plant-based ham products, including slices & strips, rolls, and roasts, has triggered their demand in North America over the last few years, especially among young adults. The plant-based ham market in North America comprises several start-ups and established players. Hain Celestial Canada ULC; Tofurky Co., Inc.; Lightlife Foods Inc.; and Vbites Foods Ltd. are a few companies operating in the region. In addition, people from North American countries are well aware of the harmful effects of frequent meat consumption due to significant public awareness initiatives and publicity campaigns. The rising vegan population is another factor boosting the demand for plant-based ham products in North American countries.
During the initial phase of the COVID-19 pandemic, the demand for plant-based ham increased considerably due to a significant shift in the dietary preference of consumers. The World Health Organization (WHO) published a guideline on food products that should be consumed or avoided during the COVID-19 pandemic. The guideline suggested limiting red meat consumption due to its high percentage of saturated fats. Moreover, people focused on reducing their overall meat consumption and shifted to vegetarian and vegan diets to improve their immunity, which created a massive demand for alternate proteins, including plant-based ham. However, manufacturing units were compelled to keep shut in 2020 and early 2021, leading to a decline in production. Small and medium-sized manufacturers faced significant challenges due to raw material shortages and low inventory levels. This created a gap between the demand and supply sides.
Rising health consciousness among the population and growing awareness regarding environmental sustainability and animal welfare were key factors that propelled the growth of the plant-based ham market before the onset of the COVID-19 pandemic. According to the International Food Information Council (IFIC) report published in January 2020, 45% of surveyed consumers believed plant-based meat products are healthier than animal meat, on the basis of the ‘Nutrition Facts’ label. However, after COVID-19 outbreak in 2020, food & beverages and many other industries faced unpredictable challenges as they struggled through supply chain constraints due to lockdowns, trade bans, and travel restrictions. Supply chain disruptions led to a shortage of raw materials, leading to a surge in raw material prices. According to the United States Department of Agriculture (USDA), disruptions in supply chains soared the prices of pea protein, which is one of the common ingredients used in plant-based ham. Moreover, difficulties pertaining to container transportation during the initial months of the COVID-19 pandemic contributed to a spike in prices of pea protein isolate from US$ 3.40/kg to over ~US$ 5.00/kg.
In 2021, various economies resumed operations as governments revoked the restrictions. Manufacturers were allowed to operate at full capacities, which helped them overcome the demand–supply gap and mitigate other repercussions. Moreover, a large percentage of citizens of several countries were fully vaccinated by the end of 2021. These factors are expected to provide profitable growth opportunities to plant-based ham producers in the coming years.
In September 2022, Quorn Foods Ltd launched vegan deli slices range named Yorkshire Ham, Finely Sliced Ham, and Roast Beef or Roast Chicken Style Slices. The products are ready-to-eat meat-style slices, ideal for sandwiches, salads, and wraps.
Based on product type, the plant-based ham market is segmented into slices and strips, rolls, and roasts. The slices and strips segment held the largest market share in 2021. However, the roasts segment is expected to register the highest CAGR from 2022 to 2028. The sliced form of plant-based ham provides a tender mouthfeel. These slices warm faster due to the large, exposed surface area and release flavors distinctly when used in food preparations. Moreover, due to their wide consumption range, plant-based ham slices and strips are broadly available through various distribution channels. These factors are significantly driving the market growth in the segment.
Based on Distribution Channel, the plant-based ham market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others. The supermarkets and hypermarkets segment held the largest market share in 2021, whereas the online retail segment is projected to register the highest CAGR during the forecast period. Supermarkets and hypermarkets are large retail establishments that offer a wide variety of food and beverages, groceries, and other consumer goods. Products from various brands are organized into separate sections for convenient shopping. Moreover, supermarkets and hypermarkets focus on maximizing product sales to increase profit margins. Therefore, these stores offer attractive discounts, multiple payment options, and a better customer experience.
The regional trends and factors influencing the Plant-Based Ham Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Plant-Based Ham Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2022 | US$ 494.17 Million |
| Market Size by 2028 | US$ 1,010.45 Million |
| Global CAGR (2022 - 2028) | 12.7% |
| Historical Data | 2020-2021 |
| Forecast period | 2023-2028 |
| Segments Covered |
By Product Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Plant-Based Ham Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Plant-Based Ham Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
Hain Celestial Canada ULC; Tofurky Co., Inc.; Lightlife Foods, Inc.; Vbites Foods, Ltd.; Nestle SA; Quorn Foods Ltd.; Meliora Foods Pty Ltd.; Zebra Food Ltd.; Gourmet Evoution, LLC; and Worthington Food Inc. are a few major players operating in the plant-based ham market. These companies mainly focus on product innovation to expand their market size and follow emerging market trends.
Based on the distribution channel, online retail segment is projected to grow at the fastest CAGR over the forecast period. The growth of this segment can be attributed to several benefits, such as convenience in shopping, ease of buying remotely, and product delivery.
Many dieticians and health practitioners recommend reducing meat consumption and switching to a vegetarian diet to reduce the risks of chronic health issues, such as obesity, heart diseases, hypertension, and digestive disorders. Recently, the rising health concerns among people due to the increasing prevalence of obesity, diabetes, and other diseases are compelling people to change their dietary habits. Plant-based ham is generally perceived to be healthier than their animal-based counterparts. Plant-based ham has lower saturated fat and calorie content than conventional ham. These factors are boosting the consumption of plant-based ham.
Europe accounted for the largest share of the global plant-based ham market. Europe is one of the most significant regions for the plant-based ham market due to consumer inclination toward plant-based products. The shift in preference from animal-based diet to plant-based diet has led to the consumers in the UK seeking proteins sourced from plants. The popularity of these products is evident through trends in retail chains, and hospitality sector in the UK.
Based on product type, slices and strips segment holds the largest revenue share. Plant-based ham strips are consumed as side dishes, usually during breakfast, but can also be added cold to salads or vegetable stir-fry. Moreover, due to their wide consumption, plant-based ham slices and strips are broadly available through various distribution channels.
The major players operating in the global plant-based ham market are Hain Celestial Canada ULC; Tofurky Co., Inc.; Lightlife Foods, Inc.; Vbites Foods, Ltd.; Nestle SA; Quorn Foods Ltd.; Meliora Foods Pty Ltd.; Zebra Food Ltd.; Gourmet Evoution, LLC; and Worthington Food Inc.
Plant-based ham is gaining huge traction across European countries as consumers in the region are reducing their meat, pork, and beef consumption in an attempt to lead a sustainable and healthy life. According to Finder.com Comparison UK Limited, as of 2022, 14% of adults in the UK (7.2 million) are following a meat-free diet. Moreover, consumers in developed countries pay more attention to product labels and ingredients used in processed food products. Plant-based, and organic products are gaining popularity owing to their perceived health benefits.