Going Gaga over a Ketogenic Diet? Here’s What You Need to Know about How the Keto Food Market is Thriving!

by Indira

04/08/2022 5 min read

Going Gaga over a Ketogenic Diet? Here’s What You Need to Know about How the Keto Food Market is Thriving!

With “keto” the most Googled term in 2020, the ketogenic diet has ever since taken over the world by storm. It is the most happening thing at the moment and everyone is curious about what it means and entails. What is a ketogenic diet and why are people going gaga over it? Well, a ketogenic diet is a low carb, high fat, and moderate protein diet, such that the maximum calorie intake is from fats and proteins, with little to negligible carbohydrates consisted in it. A ketogenic diet has given rise to people opting for healthy food options including ketogenic beverages and food. With the advent of COVID-19, a ketogenic diet caters to enhancing weight loss, improving the digestive system, keeping one fit, and generally improving the quality of life, which are the primary goals the world is shifting towards. With the planet being more and more health-conscious, the ketogenic diet has slithered its way and climbed up the chart of the healthiest diet options.

What Are the Current Trends of the Ketogenic Diet Market?

Ketogenic products include beverages, snacks, supplements, and dairy products. Poultry, seeds nuts, dark chocolate, sweeteners, and condiments are all various ketogenic products available on the market. Supplements are taking the market by storm as more and more people become focused on physical activities. A keto diet includes vegan options for plant-based proteins too in form of snacks and beverages. Now, these products are readily available across the globe through e-commerce platforms like online stores, retail stores, supermarkets, mom-and-pop stores, and so on.

The biggest Keto food online shop based in the US is the Thrive Market. With a range of products starting from snacks, cookies, bars, chips, crackers, crispbread, candies, chocolate, poultry, and fish, this market has established itself as the go-to for keto staples. They provide over 1,100 options of different food categories to choose from. Jimmy John’s keto-friendly menu has taken over the topmost sandwich chain in America. It caters to special keto-friendly diet options for sandwiches, cookies, and beverages for its consumers. In Canada, Natura Market is providing keto-friendly staples in the form of keto baked goods like pizza, cakes, pancakes, muffins, and so on. They also have a wide variety of beverages like coffees, energy drinks, snacks, nut butter, condiments and sauces, and nuts and seeds.

Some household names like Nestlé, Perfect Keto, LLC, Glanbia PLC, Zenwise Health, Know Brainer Foods, Pruvit Ventures, Inc, Ample Foods, Danone S.A, Bulletproof 360, and Keto and Company are providing keto diet-friendly products which are readily consumed by the ketogenic diet seeking individuals. The stores have started doling out cereals, protein bars, snacks, sugar-free cookies, and so on to stay on top of the trends. Even supermarkets like Walmart now have their special section for keto food.

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How are New Members of Keto Market Staying on Toes?

Some novice brands selling ketogenic products in the US that are rising up the list are Base Culture, Eat Me Guilt Free, and Miss Jones Baking Co. Base Culture has taken over with a wide variety of options for individuals in their products like gluten-free, grain-free, and non-GMO edibles. They are bringing in sales through their baked goods and almond butter which they sell through various online and offline stores. Similarly Eat Me Guilt Free is attracting customers with its name which resonates with the products they sell, which are non-GMO and preservatives-free. They too sell a wide variety of bread and other baked goods. Focusing on individual customer demands of the ever-growing keto market, Miss Jones Baking Co is doling out plant-based products, mainly condiments, made of organic and simple ingredients.

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What Are the Factors Propelling the Population toward a Keto Diet?

Obesity is a worldwide health hazard that takes around 2.8 million lives every year. It has been observed from an analysis that from 1988-1989 to 2017-2018, obesity prevalence in the United States has increased from 22% to 34% among adults and from 5% to 17% among children and adolescents. In 2018, the figures have risen to as high as 42.4%. Everyone looks forward to a less laborious and time-saving approach toward a diet that they can be sustained and the keto market delivers it.

Obesity graph from 1988 to 2018

There is an abundance of popular celebrities like LeBron James, the Kardashians, Vanessa Hudgens, and even social media influencers recommending this diet, with its effects made visible to them. Besides dietary guidelines being published by national governments and most diseases finding their solutions in low intake of carbohydrates, the keto diet is constantly gaining more popularity than it did the day before. Undoubtedly, COVID-19 plays a massive role in this shift to the keto diet being incorporated by consumers. With a wide variety of products available in the keto market, there is a massive shift in the popularity of such a diet.

Who Is Ahead of the Competition in the Market?

Region-Wise Domination

As the ketogenic market size increases, in 2020, the market size value was recorded as USD 10.1 billion. On SkyQuest’s analysis, it can be seen that North America is dominating the list of countries (including South America, Europe, the Middle East, Africa, and the Asia Pacific) retailing keto staples and products. It is also observed that the Asia Pacific is topping the category of the fastest-growing ketogenic market. With the increase in the overweight or obese population in this region, it is a matter of time till this market catches up with the rest of the globe. 

Expected growth of the ketogenic market by 2028

Market-wise domination

Market-wise domination would include household names like Nestlé, Perfect Keto, LLC, Glanbia PLC, Zenwise Health, Know Brainer Foods, Pruvit Ventures, Inc, and so on. While other ketogenic products market is growing at a gradual rate, the top of the list is the supplements market. In 2021, the supplements market share was the highest with 39.8%, making USD 48.8 billion globally, as the popularity of this diet had received a moderate push.

Distribution Channel-Wise Domination

When distribution channels are compared, our analysts observed that in 2018, the online markets made the top of the dominating list valuing around USD 4 million. The reason was quite evident as the growing market has started to fairly shift towards online buying. In 2021, the shift was towards supermarkets and hypermarkets, which held a market share of 50% when compared to the rest of the channels. 

How is Innovation Playing a Massive Role in the Keto Market?

Innovation is the way to outshine in the fast-growing keto markets. Companies are competing to dole out products that are healthy, and cater to the prerequisites of individuals, while also never compromising on the taste or quality. As a tool for weight management, keto diet industries are flourishing and continuously landing new innovative marketing strategies. Starting from new products to collaboration to the expansion of the distribution channels, they are gearing up to stay ahead of this growing market. Such instances were found after SkyQuest’s analysis. In January 2019, Gratitude Health Inc came up with the world’s first ready-to-drink beverage line in form of shakes, KetoRefuel which can replace meals. In December 2019, Keto and Co also launched a ready-to-drink meal shake. In April 2020, Keto Farms relaunched their best-selling low-carb crunchy snack made of cheese and nuts.

PepsiCo’s PantryShop.com is offering its customers to order specialized product ‘bundles’. One such instance is, ‘Rise & Shine’, the food bundle consisting of keto-friendly bars and high-protein snacks among other products. In June 2021, Zenwise launched vegan Kombucha, a new line of products as well as Supplements catering to a ketogenic diet. It is also recorded that in January 2022, Sunbasket, a meal kit company merged with keto lifestyle company, Pruvit Ventures to provide fully ketogenic meal kits catering to consumers at home. Sunbasket and Pruvit have now become wholly-owned subsidiaries of PSB holdings, a new holding company with this all-stock deal. PepsiCo and Coca-Cola are incentivizing the craze over keto products as they continue to sell their “zero-calorie” drinks, which align with the demands of the keto diet consumers.

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Global ketogenic diet market began to be dominated by the increasing demand for supplements


What Is the Fate of the Keto Market?

It is paramount to know how the business is developing and impacting the FMCG sector before delving deep into a business. With a market size of USD 10.1 billion in 2020, the keto diet market value is forecast to reach USD 14.63 billion by 2027. It is significant to take a look at the CAGR (Compound Annual Growth Rate) whose growth rate from 2020 to 2027 is expected to be around 5.5%. Due to an increase in veganism and focus on a plant-based diet, the plant-based keto market is flourishing and is expected to grow by 100x by 2050. Based on the past and present trends, North America is expected to main the top position in the keto market till the period of 2030. The Asia Pacific’s fast-growing keto market is expected to have a CAGR of 6.2% from 2020 to 2027. Online markets, more so than offline ones are expected to be the fastest growing market, owing to the pandemic and need for instant deliveries, a CAGR of 6.2% is expected from 2020 to 2027. It is evident from SkyQuest’s analysis that the snacks segment of the keto market is expected to grow the fastest, owning to its readily available option with a 6.1% CAGR between 2020 to 2027. According to US’ ketogenic market analysis, supplements are expected to equally dominate the product segment. Meat and dairy products growth has recorded over 16% for the past year.  The keto snack replacement market is anticipated to grow rapidly as the global snack revenue amounted to USD 161 billion in 2019. It is evident that health-conscious population will always look for keto substitutes for snacks.

In a survey, it is found that while some consumers find it a more expensive diet, others find it cheaper. While big firms are quickly catching up with doling out keto-friendly substitutes for almost every product, there are various startups popping up in the market, solely to cater to keto staples and other products. For instance, Keto India and Livofy were given a whopping offer of 1.6 crores after pitching their healthcare idea on Shark Tank. It is found that the keto diet as compared to the other ones like the Atkins diet, is the cheapest, with a monthly average of only around USD 2,500 needed to be spent on it. However, it is still a costlier diet than the traditional ones. There are few restrictions on the market’s growth due to the high cost of the products and people’s shift towards veganism. This makes it evident that there is a gap in the market for such plant-based keto products that desperately need to be fulfilled.

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