Vegan Dessert Market Size, Share, and Industry Analysis By Type (Cakes & Pastries, Frozen Dessert, and Others), By Distribution Channel (Food Service and Retail Channel [Supermarket/Hypermarket, Convenience Stores, Online Stores and Others]), and Regional Forecast, 2026-2034

The global vegan dessert market size was valued at USD 4.86 billion in 2025. The market is projected to grow from USD 5.43 billion in 2026 to USD 13.23 billion by 2034, exhibiting a CAGR of 11.77% during the forecast period.

According to Vegan and Plant-Based Diet Statistics of 2023, the demand for vegan alternatives to milk and meat grew by about 54% from 2018 to 2021. The market growth is attributed to the increasing demand from restaurants and cafes featuring vegan dessert options on their menus. The growth of veganism across the world is, therefore, promoting the expansion of the global market.

The COVID-19 pandemic had a significant impact on the market. The strict regulations from the government resulted in the temporary shutdown of manufacturing activities. This significantly hampered the market growth during the pandemic period. The majority of individuals started adopting healthy dietary habits to prevent lifestyle diseases and maintain overall well-being. The potential health benefits associated with vegan products resulted in the expansion of the market during the post-pandemic period.

Vegan Dessert Market Driver

Growing Number of Health-Conscious Individuals to Uplift the Market

Increasing health consciousness among consumers is one of the key factors driving the growth of the market. On the other hand, the rising awareness regarding the negative health impact of white sugar has encouraged manufacturers to utilize healthy ingredients in their foodstuffs, which is anticipated to increase the demand for vegan products. Consumers are avoiding white sugar in their food items to prevent the risk of health ailments. The manufacturers in the vegan dessert industry have, therefore, started using sugar alternatives in their desserts. For instance, in January 2022, leading wholesale food supplier Brakes (Brake Bros Ltd.) announced the launch of a new range of traditional vegan desserts. The new range of vegan enlisted British classic hot pudding desserts, which includes raspberry jam pudding, syrup sponge pudding, and sticky toffee pudding.

Vegan Dessert Market Restraint

Limited Availability of Vegan Products May Hamper the Market Growth

The limited accessibility of vegan products is one of the major challenges to the growth of the market. The fewer varieties of vegan products in the mainstream channels where the products are offered at a practical and reasonable price range to the customers is expected to restrict the demand. The limited availability of vegan products restricts consumers from exploring the array of options in the vegan dessert segment, which is projected to hamper the growth of the market during the forecast period.

Vegan Dessert Market Opportunity

Increasing Product Innovations to Accelerate the Demand

The market players are actively involved in manufacturing new products in the market, which is subjected to create lucrative opportunities for the expansion of the global market. The manufacturers are producing products with innovative flavors and formulas using natural ingredients to cater to the consumer demand for natural products offering indulgent tastes and new flavors. For instance, in September 2021, the producer of plant-based bakery products and egg alternatives, OGGS, announced plans to launch vegan hot puddings offering two flavors, including chocolate fudge pudding and sticky toffee pudding. These products are manufactured using OGGS' egg alternative, Aquafaba. The company aimed to expand its product portfolio and offer innovative alternatives to vegans and environmentally conscious consumers.

Segmentation

Key Insights

The report covers the following key insights:

• Overview of the Global Parent Market
• Supply Chain Analysis
• Regulatory Analysis
• Industry SWOT Analysis
• Key Industry Developments
• Qualitative Analysis Related to COVID-19

Analysis by Type

Based on type, the market is divided into cakes & pastries, frozen dessert, and others.

The cakes & pastries segment is expected to hold the largest share of the market. The growing demand from consumers seeking cakes and pastries made with low fat, less sugar, and free from egg content is anticipated to fuel the segment growth. The manufacturers of vegan desserts offer a number of varieties of vegan sweet dishes in this segment through innovate product developments. For instance, in May 2021, the leading producer of bakery products, Just Love Food Co., launched a vegan caterpillar cake called Archie. The company claimed that the product is also egg, peanut, nut, and milk-free.

The frozen desserts segment is anticipated to grow significantly during the forecast period owing to the growing demand for ice creams manufactured using plant-based milk and fat. Consumers who are lactose intolerant prefer vegan frozen desserts over traditional varieties. The key players are manufacturing dairy-free desserts to cater to a wide consumer base seeking lactose-free products. For instance, in November 2021, the food company Oatly Group AB announced plans to launch vegan oat milk chocolate ice cream bars at 3,000 stores across the U.S. market. These bars are available in four flavors, including chocolate, strawberry, salted caramel, and vanilla.

Analysis by Distribution Channel

Based on distribution channel, the market is subdivided into food service and retail channel.

The food service segment is expected to hold the largest share of the market. The segment growth is attributed to the increasing consumer demand for convenient accessibility of vegan desserts at restaurants, cafes, fast-food chains, bakeries, and other quick-service chains. Increasing consumer spending on premium quality food products coupled with the availability of a wide range of options is projected to propel the growth of the segment.

The retail channel segment is anticipated to grow significantly during the forecast period. The retail segment offers a variety of vegan desserts at low prices as compared to the food service segment. The convenience offered by the retail channel to choose from a wide range of product categories enables impulse purchases of the products.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America is expected to account for the largest share of the market during the forecast period. The region is highly concentrated, with a health-conscious population adopting preventive measures against lifestyle diseases. The majority of consumers practice healthy lifestyle habits and prefer health-efficient food products. The growing consumption of plant-based food products in the region is one of the major factors responsible for the segment growth.

Europe is projected to be the fastest-growing region during the forecast period. The growth of the market in the region is attributed to a wide range of availability of plant-based milk, which has accelerated the supply of vegan desserts in the region. Consumers are becoming more aware of plant-based desserts such as soy-based and oat-based desserts, owing to which there is a surge in demand for vegan desserts in the region.

Furthermore, key manufacturers are producing vegan desserts with different flavors made with natural ingredients such as nuts, fruits, soy, oats, and others to cater to the rising demand from consumers seeking organic and natural food products. For instance, in March 2022, the leading manufacturer of dairy products, DMK Group, announced plans to launch of plant-based vegan desserts under its MILRAM brand. The company launched oat-based vegan desserts with vanilla and chocolate flavors, manufactured with natural bourbon vanilla and Rainforest Alliance-certified cocoa, respectively.

Key Players Covered

The market is characterized by the presence of large number of global players operating across various regions. The major companies in the market are involved in product innovations, collaborations, partnerships, strategic alliances, joint ventures, and other industrial developments to expand their consumer base.

The report provides the profiles of the following key players:

• Unilever PLC (U.K.)
• Danone S.A. (France)
• Grupo Bimbo (Mexico)
• Daiya Foods Inc. (Canada)
• Alternatives Food Corporation (Philippines)
• Ben & Jerry's Homemade, Inc. (U.S.)
• Bliss Unlimited, LLC. (U.S.)
• Cado Ice Cream (U.S.)
• HP Hood LLC (U.S.)

Key Industry Developments

• In September 2024, the producer of plant-based bakery products and egg alternatives, OGGS, announced plans to launch vegan lemon drizzle loaf cake in supermarkets in the U.K. The company aimed to cater to the growing demand for vegan, egg-free, and dairy-free products in the market through this development.
• In August 2024, the U.K.-based leading provider of plant-based products, Ambrosia, launched a vegan version of canned custard called Ambrosia Plant Based.