The burgeoning demand for plant-based alternatives is giving a significant push to the Vegan Fish Sauce Market, predicted to expand at a Compound Annual Growth Rate (CAGR) of 8.9% between 2023 and 2033. According to ‘Future Market Insights’ (FMI) report, the market is set to cross the US$ 67.8 million mark in 2023 and further skyrocket to an estimated value of US$ 146.5 million by 2033.
The boom in vegan alternative packaged foods and condiments derived from a variety of plant-based sources, such as soy, pea, or novel cultured meat, is encouraging market leaders to introduce a range of plant-based proteins and ingredients. Meanwhile, the worldwide sales of vegan fish sauce for the year 2023 are estimated to round off at US$ 598.6 million.
Global awareness of sustainable eating habits and environmental concerns has driven the momentum of vegetarianism and animal welfare activism, primarily in advanced nations. Yet, questions persist about potential nutritional deficits related to vegan or plant-based food options. With consumers turning to healthcare specialists to construct balanced vegan diets based on the vegan-food pyramid, it’s expected that the use of vegan fish sauce will be bolstered in the market.
Despite numerous companies championing plant-based alternatives, the higher costs and different flavor and texture profiles compared to traditional animal-based products may deter some consumers. This could potentially slow down market penetration for the vegan fish sauce sector until these challenges are overcome.
Several opportunities present themselves within this growing industry. Among these are the rising demand for plant-based alternatives and increasing awareness of sustainability and environmental concerns. Partnerships with chefs and restaurants and educating consumers about the benefits and versatility of vegan fish sauce also present unique avenues for growth.
Looking at the market historically, in 2018, the vegan fish sauce sales were estimated at a modest US$ 44.4 million. The market value peaked at US$ 62.3 million by the end of 2022, indicating a CAGR of 8.1% during 2018 to 2022.
Despite a substantial global market for plant-based proteins and plant-based milk (US$ 12,000 million and US$ 15,000 million respectively), the sales of vegan fish sauce make up only about 1.5% of the market. As the plant-based protein market continues to grow, there is potential for vegan fish sauce to increase its market share.
While brick-and-mortar stores dominate sales, representing 81.4% of total sales in 2022, online distribution is showing promising growth potential. With improvements in technology and logistics, the online platform opens up new opportunities for market players to reach a wider consumer base globally.
Regional analysis indicates that the United States holds the largest market share, 27.1%, followed by Germany at 8.4% and Japan at 4.9%. Notable market players in the US are expanding to Latin American and Asia Pacific countries for better opportunities. Europe, with nations such as Germany and the United Kingdom, is a promising market, demonstrating a decrease in per-capita meat consumption. Meanwhile, Asia is witnessing a surge in demand for vegan fish sauce, with countries like China and Japan leading the way.
Adopting the health and wellness trend as a key strategy, market players are highlighting the health benefits of vegan fish sauce, including its low calorie and cholesterol content. They’re also harnessing the power of digital marketing and social media to reach a wider audience and establish a stronger brand presence.
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