The Keto Diet Market and Trends 2020
For any business to be successful, it is crucial to understand how the market is moving and how growth trends are impacting the economic sector. For Keto and low carb food brands, recent market growth trends reveal and increased consumer demand for healthy, organic, low carb food products. One the most general level, recent research confirms that the health and wellness food sector is expected to see a growth rate of 5.7 percent and could reach an expected market size of 1,253 billion dollars by 2024. There has never been a better time for entrepreneurs and small business owners to either start up a Keto food brand, or for existing brands to expand their product offerings to include healthy, low carb food alternatives. Below, we take an in-depth look at the Keto Diet market growth and industry trends from 2020 to help construct a better business growth strategy for 2020 and beyond.
Consumer Interest and Awareness on the Keto Diet
Before we look at the market numbers, several vital statistics exhibit the increasing popularity and acceptance of the Keto Diet around the world. Consumer acceptance and approval is obviously at the core of any economic growth. What was once a specialized diet directed towards people who suffered from epilepsy has today become one of the leading healthy lifestyle trends. In fact, in 2018, the word “Keto” was the most ‘Googled’ food-related topic in the world. That trend has continued into 2020 and is dwarfing interest in other formerly popular diets such as the Atkins Diet and intermittent fasting.
While it is hard to put an exact number on how many people are currently following the Keto diet, research has shown that low carb diets have never been more popular. In Canada, a Dalhousie University poll reveals that 26 percent of the Canadian population has either ultimately adopted the Keto Diet or has either tried it or considered trying it in the past year and a half. Similar figures can be expected in the United States.
The popularity of the Keto diet also becomes apparent by merely taking a walk through your local supermarket. Major food retailers like Target, Kroger, and Costco have all expanded their offering of low carb and Keto-friendly food products, often with dedicated sections to low carb foods. Companies like Wal-Mart even have Keto shopping lists and advice that they publish on their website, where they also have a dedicated Keto section.
Lastly, the popularity of the Keto diet is also revealed in the growth figures related to the overall US Diet sector. One recent study found that the meal replacement product category grew by 12 percent from 2012 to 2017. The same study found that the supplement nutrition drink category grew by 23 percent. While neither of these categories relates explicitly to the Keto Diet, there are hundreds of Keto Certified food brands that specialize in Keto-friendly products including nutritional supplements, medium-chain triglycerides (MCTs), nootropics, and more.
A Look at the Numbers of Keto Market Growth
A recent market study by Mordor Intelligence, titled “Ketogenic Diet Food Market – Growth, Trends, And Forecast (2019 – 2024),” finds that, on a global level, the ketogenic diet food market is projected to grow at a compound annual growth rate of 5.3 percent. The report bases its findings on the rising demand for Keto-friendly food options at restaurants and eateries. It specifically mentions how BurgerFi, an American restaurant chain introduced the KetoFi to precisely target customer demand for low-carb food options. While many people might associate the Keto Diet with the health-conscious consumers in the United States and Canada, the report actually found that the expected fastest-growing market for Keto products over the next five years was the Asia-Pacific region.
Another study quantified the expected market growth of the Keto Diet and estimates that it could grow from US $9.6 billion in 2018 US $15.6 billion by 2027. The anticipated growth of the Keto Diet market obviously opens opportunities for thousands of smaller Keto and low carb food brands to establish a growing business.
Future Trends for the Keto Industry
While no one can precisely determine how the Keto Diet industry will evolve, several trends offer evidence for future growth opportunities.
• Growth of Keto Snack Products: People love to snack, with the global snack revenue amounting to US$161,937m in 2019. Unfortunately, most snack food items are high in carbohydrates. However, as more people adopt the Keto Diet, consumer demand for low carb snack alternatives will undoubtedly continue to grow.
• Grass-fed Meat and Dairy Products: Because people get their energy from healthy fats on the Keto Diet, large amounts of meat and dairy products are consumed. Unfortunately, the meat and dairy industries have long been dominated by huge agro-industries, which produce unhealthy meat products that are often contaminated with antibiotics and growth hormone residues. Consumer demand for locally produced grass-fed meat and dairy products corresponds with the broader interest in healthy eating and livelihoods and intersects with the Keto Diet. According to our partners at SPINS.com, grass-fed meat makes up 15 percent of total meat sales in retail outlets that are part of the natural channel, and is a $254mm segment growing at +16% in the past year.
• Celebrity endorsements: While the Keto Diet is a restrictive diet, it continues to gain more celebrity endorsements. The Keto Diet has famous celebrity advocates, from LeBron James to the Kardashians, and even social media icons that play an integral role in influencing consumer habits. According to a poll conducted by Harris Interactive, almost one in three individuals report being influenced by celebrities when considering a new diet.
• Rise of the Keto Vegan: When you think of a keto diet, most often you think of a diet that is animal-rich with protein and fat sources like beef, chicken, pork, fatty fish, cheeses, and eggs. But did you know that you can still follow this high-fat, low-carb diet keto diet and still eat plant-based? Well, many vegans have come to figure this out, and more resources for the Keto Diet are aimed at plant-based consumers as the Keto Diet grows in popularity for its weight loss benefits, and as a potential treatment for a variety of ailments from epilepsy, to autism.
• Rise of Overweight and Obesity: New data shows that the obesity has reached epidemic proportions since the turn of the century. Estimates suggest that more than 75% of the US population is overweight, and that the obesity rate is more than 40%. Because the Keto diet has clinical evidence for reducing weight and body-fat percentage more rapidly than other diets in obese and diabetic consumers, the growth in the prevalence of overweight and obesity will likely be a key driver in the growth of the keto market during the forecast period.
• Availability of Keto Diet Products: One of the key drivers for the Keto diet market will be the increasing availability of keto products across various distribution formats, thereby increasing the visibility and awareness of the Keto Diet. Improving market dynamics by carrying keto products across online channels, specialty stores, and supermarkets and MULO stores will also help fuel the growth of the market during the forecast period.
Current market growth and trends offer clear evidence that the Keto Diet will only continue to grow in popularity, thus creating favorable market conditions for low carb and keto food brands.