Vegan Luxury Market: Growth in 2023 and Future Expectations

“Vegan luxury has experienced a solid growth during 2023. Thanks to various factors, the general luxury sector reached a market value of $3,927,853 million in 2022. However, the real protagonist has been vegan luxury, driven by the growing awareness and popularity of plant-based products.

Growth in 2023

The growth of the vegan luxury market during 2023 has been significant. Claudia D’Arpizio, a partner at Bain & Company and author of the “Spring Luxury Study 2023,” highlights several factors that have contributed to this growth.
Among them, the lifting of zero COVID policy restrictions and the recovery of local consumer confidence in Europe, which facilitated an increase in the consumption of luxury products.

Additionally, changes in consumption trends and the increasing demand for vegan products have played a major role. According to data from Veganuary 2023, 72% of participants plan to make a significant change in their diet, eliminating meat and animal products at least by half.

The rise of veganism by sectors

The vegan food industry has also experienced exponential growth. In 2022, the global vegan food industry generated $24.59 billion. The expectation for 2023 is an annual compound growth rate (CAGR) of 10.1%.

For example, egg alternative manufacturers have seen an increase in interest from 2023 due to the egg shortage caused by avian influenza. This trend shows how the growth of vegan food is influencing the luxury market.

Vegan fashion and vegan jewelry have gained a lot of traction in recent years. This is partly due to a social shift towards greater empathy and concern for animals, and partly due to improvements in technology that have made a wider range of vegan options possible.

Vegan fashion is no longer limited to dreary colors and hippie-style clothing. Synthetic leathers are now available for handbags, with alternatives to traditional furs including options made from high-quality polyurethane, cork, bark cloth, waxed cotton, and plant-based skins made from fruits and vegetables.

A significant emphasis on vegan fashion is sustainability. Many fashion brands are starting to adopt eco-friendly practices, such as the use of recycled materials and manufacturing on demand. Some of the top sustainable fashion trends for 2023 include the use of recycled materials such as polyester, cotton, and nylon, and sustainable fabrics made from natural materials such as organic cotton, hemp, bamboo, and plants like corn, cactus, and apple.

Future Prospects

The future prospects for the vegan luxury market are promising. The vegan food industry is expected to generate $43.8 billion by 2028, evidencing the potential of vegan luxury in the future.
Furthermore, the increasing number of greenhouse gas emissions in the diet is contributing significantly to global warming, which will likely drive further interest in vegan products.

According to a Bloomberg report cited by Autónomos y Emprendedor, vegan product business turnover is expected to increase by 250% in the next decade. This growth is reflected in specific markets. For instance, the Spanish Institute for Foreign Trade (ICEX) ranked Spain as the fifth country in the world with the highest investment in vegan items, with the Spanish market for plant-based substitutes being the second in Europe, with sales of 448 million euros.

In terms of vegan cosmetics, this market is expected to grow at a compound annual rate of 6.5% during the period from 2021 to 2026. This suggests that consumers are increasingly interested in vegan products across various sectors.

In Latin America, the consumption of plant-based protein products is expected to grow by 14% towards 2035, showing a significant shift in consumption patterns in this region.

It’s clear that, although the vegan population is still minority in many countries, veganism and the consumption of vegan products are gaining more and more acceptance. Therefore, we are likely to continue seeing steady growth in this industry in the coming years.“