Is Vegan Food in Decline? Separating Fact from Fiction

December 15, 2025 •

3 min read

While some headlines suggest consumer interest is waning, research shows that a record 25.8 million people tried veganism in January 2025 alone. However, a closer look reveals a nuanced picture, prompting the question: is vegan food in decline or simply undergoing a major transformation?.

Quick Summary

This article analyzes market reports, consumer insights, and industry trends to explain whether the vegan food market is shrinking or adapting to new consumer demands. It covers shifts in retail, the rise of flexitarianism, and ongoing product innovation.

Key Points

Market Perception vs. Reality: While some vegan brands and product segments faced recent setbacks, the overall global market continues to experience long-term growth.
Rise of Flexitarians: The market is shifting to cater to flexitarian consumers, who eat less meat without fully committing to a vegan diet, rather than relying solely on full-time vegans.
Price and Taste Barriers: Key challenges include the price premium of many plant-based alternatives and the underwhelming taste and texture of some earlier products, which deter mainstream consumers.
Health and Whole-Foods Focus: Consumers are increasingly wary of highly processed meat mimics and are driving a trend toward cleaner labels, natural ingredients, and whole-food plant-based meals.
Reshaping, not Retreating: The industry is not in decline but is undergoing a refinement phase focused on product quality, affordability, and meeting the demands of a wider, more health-conscious audience.
Strong Global Outlook: Despite some regional maturation, market growth is projected to continue, especially in the fast-growing Asia-Pacific region, fueled by health and environmental awareness.

Understanding the Vegan Food Market's Recent Performance

Recent reports of declining sales for some vegan food products have led to speculation about the market's health. High-profile companies in the meat alternative sector have reported revenue drops, and some retailers have reduced their plant-based offerings. While this suggests a potential slowdown compared to the rapid growth of previous years, it doesn't tell the whole story.

The Rise of the Flexitarian

Much of the reported decline relates specifically to meat and dairy alternatives and is concentrated in developed markets. This isn't necessarily a move away from plant-based eating, but rather a shift in how people approach it. The rise of the 'flexitarian' consumer is a key factor. Flexitarians, who aim to reduce meat consumption without eliminating it entirely, are a significant market segment. These consumers often prefer less processed, whole-food options over expensive meat substitutes. Brands are now focusing on appealing to this broader audience.

Challenges Facing the Plant-Based Industry

Several factors have contributed to recent performance challenges in the vegan food sector. High prices for plant-based alternatives compared to animal products remain a barrier for many consumers, particularly during times of economic pressure. Taste and texture have also been cited as reasons for low repeat purchases of some early plant-based products. Furthermore, there's growing consumer preference for less processed products with cleaner labels. Market saturation after a boom period has also led to consolidation.

The Real Story: Growth and Rebalancing

Despite challenges, the overall outlook for the vegan food market remains positive. Analysts predict continued global growth in the coming decade, driven by health and wellness trends, environmental concerns, and expanding markets, particularly in the Asia-Pacific region. Younger generations also show strong engagement with plant-based products, indicating future market strength.

Comparison of Market Performance: Peak vs. Rebalancing


Feature	'Peak Vegan' (approx. 2019-2022)	'Vegan Rebalance' (approx. 2023-Present)
Market Driver	Rapid growth, venture capital hype, trend-following	Stable, sustainable growth, consumer-led innovation
Key Consumer Segment	Niche vegans and curious early adopters	Broader flexitarian and health-conscious consumers
Product Focus	Heavily-processed meat and dairy 'mimicry'	Whole-food ingredients, cleaner labels, less processed
Sales Performance	Explosive, double-digit growth	Slowed growth in some segments, declines in specific brands
Market Strategy	Rapid expansion, new product launches	Consolidation, focus on product quality and value

Future Trends Reshaping the Vegan Market

Future trends include a continued focus on whole-food ingredients and cleaner labels. Efforts will be made to achieve price parity with animal products, improve taste and texture, and specifically target flexitarian consumers. Global expansion, particularly in Asia and Latin America, is also expected to be a major driver of growth.

Conclusion: Not Decline, but Refinement

Reports claiming vegan food is in decline are inaccurate. The market is not failing but is undergoing a natural adjustment period after rapid growth. A decrease in sales of certain processed vegan products reflects a shift towards healthier, more natural, and affordable options. The long-term drivers of plant-based eating remain strong. The industry is refining its strategy to focus on quality, taste, and value to meet evolving consumer demands. This represents a strategic evolution rather than a market retreat.

Sources

Atmos. (2025, April 10). Steak, Not Veganism, Is the New Status Symbol—What Gives? [Online] Available at: https://atmos.earth/art-and-culture/why-steak-not-veganism-is-the-new-status-symbol/ Vegan Food & Living. (2023, September 25). As vegan meat sales fall, is this the end of the plant-based market? [Online] Available at: https://www.veganfoodandliving.com/features/plant-based-meat-market-decline-vegan-sector/ MediaCat UK. (2023, November 9). Brands navigate waning vegan appetite as veganism drops. [Online] Available at: https://mediacat.uk/veganism-drops-by-29-as-cost-of-living-takes-precedence/ Grocery Gazette. (2023, November 20). Demand for vegan food plummets as meat sales soar. [Online] Available at: https://www.grocerygazette.co.uk/2023/11/20/demand-vegan-plunge-meat-soar/ GFI Europe. (2025, June 11). European plant-based sales data. [Online] Available at: https://gfieurope.org/european-plant-based-sales-data/ The Vegan Society. Worldwide growth of veganism. [Online] Available at: https://www.vegansociety.com/news/media/statistics/worldwide Kroll. (2024, March 19). Challenges for Plant-based Meat Alternatives. [Online] Available at: https://www.kroll.com/en/publications/restructuring-advisory/challenges-for-plant-based-meat-alternatives Green Queen. (2023, September 6). Plant-Based 2.0: Addressing the Industry's 10 Biggest Challenges. [Online] Available at: https://www.greenqueen.com.hk/plant-based-2-0-addressing-the-industrys-10-biggest-challenges/

Frequently Asked Questions

No, the claim that vegan food is in decline is misleading. While sales growth has slowed for some specific processed alternatives in developed markets, the overall global market for vegan food continues to grow, and demand for plant-based products remains strong.

Some plant-based brands are struggling due to several factors, including recent high-profile bankruptcies in the alternative meat sector, a post-pandemic shift in consumer priorities, and a market correction after a period of over-hyped growth.

The biggest challenge is the price premium of many plant-based alternatives compared to animal products. This, coupled with the rising cost of living, deters budget-conscious consumers who might otherwise buy these products.

Yes, interest in plant-based eating is still growing, especially among younger generations like Gen Z and Millennials. A significant portion of the population identifies as 'flexitarian,' actively reducing meat consumption without going fully vegan.

No, consumers are not rejecting all vegan products. There is a market shift away from highly processed meat and dairy mimicry toward healthier, whole-food options with cleaner labels. Taste and texture are also key factors for repeat purchases.

Companies are adapting by focusing on product innovation, improving taste and texture, prioritizing cleaner ingredient lists, and focusing on affordability. They are also marketing more to flexitarian consumers rather than just committed vegans.

While the North American and European markets are maturing, the Asia-Pacific region is experiencing the fastest growth in the vegan food market, driven by rising health consciousness and increasing disposable income.