The global Plant-Based protein market is expected to reach a valuation of USD 18.6 billion by the year 2024, accelerating with a CAGR of 8.6% by 2024 to 2034.
The move to alternatives of protein is taking place globally, thereby forcing manufacturers to seek novelty ways of increasing their shares of the market. Among these, increasing the number of capacities is highly important in view of the fact that consumers are demanding such alternatives to meat at a rapid rate.
As a result, the companies manufacturing them are investing massively in new facilities, thereby expanding their capabilities to produce in large numbers without much hassle. Besides this, growing consumer awareness regarding the environmental impact of animal farming, coupled with increased demand for high-protein diets, is promoting further demand for more feasible protein sources.
This increased interest by the consumers has made the manufacturers develop a wider range of protein varieties by diversifying various dieting options. The companies are also working on inventing new, advanced processing techniques, which would enhance the texture and taste of these products to simulate traditional meat experience and improve consumer acceptance. In addition, strategic marketing and affiliation with food-service chains have increased the awareness of these alternatives among the people.
| Attributes | Description |
|---|---|
| Estimated Global Industry Size (2024E) | USD 18.6 billion |
| Projected Global Industry Value (2034F) | USD 42.5 billion |
| Value-based CAGR (2024 to 2034) | 8.6% |
Consequentially, the market sees growth due to increasing vegetarians, vegans, and flexitarians, among others, seeking a healthier and more sustainable source of protein. Health and environmental issues have proved to be significant drivers for plant-based diets, thereby making alternatives favoured for proteins.
The increased consumption of proteins is not constrained in developed nations but also is ousted in emerging markets. Companies also target these markets by launching a range of products with local tastes, for which they go on an expansion drive globally. In all, the rise in production capacity and demand for healthier, more environment-friendly sources of protein drives the surging interest in these alternatives globally.
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The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for global business landscape.
This analysis reveals crucial shifts in sector performance and indicates revenue realization patterns, thus providing stakeholders with a better vision about the growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
| Particular | Value CAGR |
|---|---|
| H1 | 8.2% (2023 to 2033) |
| H2 | 8.5% (2023 to 2033) |
| H1 | 8.3% (2024 to 2034) |
| H2 | 8.8% (2024 to 2034) |
The above table presents the expected CAGR for the global sales over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 8.2%, followed by a slightly higher growth rate of 8.5% in the second half (H2) of the same decade.
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 8.3% in the first half and continue the growth at 8.8% in the second half. In the first half (H1) the industry witnessed an increase of 20 BPS while in the second half (H2), the industry witnessed an increase of 30 BPS.
Innovation by manufacturers focusing on healthy meat alternatives
To produce meat substitutes, manufacturers are trying to steer outside traditional methods by making use of innovation to produce meat like texture, taste and nutrient content. In response to consumer demand for healthier alternatives, producers are working on creating balanced products with high protein content that are tastier in spite of the nutritional gains. In recent times, people have resorted to using fermentation technology for protein products, which has improved the quality of the products to the consumers.
These improvements also concentrate on the reduction of the use of synthetic content and preservatives in line with the health-conscious consumers. Besides, there is a push for the development of these substitutes that will contain enough protein, essential amino acids, and other nutrients that can make them the best alternatives to animal products. The goal is not only to provide a replacement but also to develop better alternatives to meet the rising requirements for clean and sustainable products.
Crave for vegan diets fuelling the industry
Veganism is not just a fashion statement for animal rights enthusiasts anymore; it is a way of life for a significant portion of the population. With more consumers gravitating towards veganism, the producers are exploring new frontiers while creating and producing products that meet this particular market segment. Some of the reasons why more people are pursing the vegetarian diet include health concerns, ethics and concern for the environment.
This upsurge is being taken advantage of by manufacturers who are coming up with new and improved plant-based alternatives, which makes the eating experience quite similar to that of meat. Further, enterprises are adopting hard-core advertising techniques to display the moral and ecological advantages of making vegan diets, therefore attracting more people.
These efforts have been supplemented by the introduction of a wide range of vegan foods inclusive of snacks, instant meals and non-dairy drinks, which other than being purely veggie allows people to switch diets and be satisfied without sacrificing good food and convenience.
Hunger of Gen z for plant based meats bolstering the sales
Gen Z is turning out to be a market force since the Generation focuses more on sustainability and ethical consumption compared to any other generation. Plant-based meat’s appeal to this generation is also health considerations coupled with the willingness to minimize their carbon footprint.
Companies are adapting their products to cater for generation Z by providing options that deliver protein but also come in energy efficient packs and claim to be green. Social media has also enhanced this as viral market campaigns by Gen Z with regard to these products have been the norm. Their willingness to embrace new cuisine and the ethical cause that is present within this generation makes the sales go up fast.
Furthermore, children are in love with such protein alternative manufacturers are producing with nice twists that cut across to the younger generation of today making such products a lifestyle choice.
Nutritional claims by several manufacturers fetching an attraction among the consumers
The increased awareness of the influence of nutrition on consumer behaviour brought about a trend of manufacturers making prominent nutritional statements on the packaging of their products in relation to attracting buyers who are consulted about their health. There is more emphasis on protein, fortified vitamins, and essential amino acids to convince the consumers of the values of the plant-based substitutes.
Now, the market is such that there is an increased competition to provide products, which are more nutritious, including the addition of nutrients like omega 3 fatty acid, iron, fibres as well as increasing the grams of proteins per ration. These arguments are usually accompanied by the certificates issued by various bodies, which to some extent enhance the confidence of the clients especially the ones who are new to the situation having switched from the normal meat.
Similarly, brands are taking advantage of the clean-label trend by advertising the absence of artificial ingredients, GMOs, or unhealthy oils. The manufacturers are successfully gaining such clients and loyal consideration against the company products due to the nutrition credibility and transparency.
Clean labelled solutions and widespread efforts promoting sustainable practices
The clean-label trend is flourishing, fuelled by consumers' desire for simplicity and transparency in food consumption. Manufacturers have responded with foods that have fewer ingredients and do not contain artificial colours, flavors, or preservatives. The clean-label phenomena align with the underlying appetite for healthier, less processed foods, and build consumer trust through transparency.
Furthermore, sustainability plays a key role in the clean-label product phase, with companies even taking strides to adopt environmentally sustainable practices. Some examples of these practices include biodegradable packaging and reduced water and carbon footprints.
Well-known brands are going to great lengths to bring their raw materials to market sustainably and are buying into agricultural programs that promote eco-friendly farming methods, which serve to reduce environmental impact and appeal to the environmentally-conscious consumer and they become magnified across different demographics.
Rising expenditure on premium products in populated countries
Disposable incomes in densely populated countries like China, India, and Indonesia continue to rise, resulting in a trend to premium food. Consumers in these countries are increasingly willing to spend money on products that are higher quality, more nutritious, or reflect their ethical or environmental ideals. The growing demand for premium food is encouraging food manufacturers to develop luxury or premium products.
As an example, companies are producing premium, protein-heavy options and making these available to affluent and health conscious consumers. Additionally, gourmet or premium products tend to offer prides of higher quality, organic ingredients, or allergy-free options, which appeal to buyers that are more selective. This premium food movement is not just a phenomenon in developed countries but is becoming standard in emerging economies as health consciousness rises with disposable income.
Principal Consultant
During the period 2019 to 2023, the sales grew at a CAGR of 7.9%, and it is predicted to continue to grow at a CAGR of 8.6% during the forecast period of 2024 to 2034.
People who follows the vegan diets have been shown to possess higher levels of empathy towards animals than those who do not have any at all. As animal lovers, it is only natural for them to prefer diets that promote their general well-being. Nevertheless, this ambition often collides with philosophies promoting zero/low consumption of animal-based products. Often times referred to as “the vegetarian’s dilemma,” such ethical conflicts are common among those who maintain vegetarian diets themselves.
To address this moral confusion over whether or not one should feed meatless meals made from vegetables only canines, vegetarian and vegan diets have been introduced to the ecosystem for human food consumption. At times, it is about social influences such as culture or religion that may determine whether an individual would buy plant-based food for himself or herself. For instance, people who follow religions like Buddhism, Seventh Day Adventists and Hare Krishna are likely to avoid meat and/or other animal products thereby making this decision when purchasing food.
Health benefits persuade consumers into choosing plant based food. The increase in demand of organic and high quality constituents has resulted in the popularity of plant-based diets. Such diets can help minimize allergies, skin concerns, improve bad breath, and maintain weight. Plant Based proteins continues growing with more adoptions of vegetarianism, which has led to increased consumption. The two most influential groups in this expansion are Gen Z, single person households and aging population.
Tier 1 companies comprise industry leaders with revenue of above USD 30 million capturing a significant share of 50% to 60% in the global business landscape. High production capacity and a wide product portfolio characterize these leaders. These leaders are distinguished by their extensive expertise in manufacturing and reconditioning across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base.
They provide a wide range of series including reconditioning, recycling, and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality. Prominent companies within tier 1 include Glanbia Plc., Archer-Daniels-Midland Co., Cargill Incorporated, Kerry Inc., Burcon Nutrascience Corporation, E.I. du Pont de Nemours & Co. and few others.
Tier 2 companies include mid-size players with revenue of USD 10 to 30 million having a presence in specific regions and highly influencing the local commerce. These are characterized by a strong presence overseas and strong business knowledge.
These players in the arena have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 include Royal Avebe UA, Cosucra Groupe Warcoing, Ingredion Inc., Corbion, Tate & Lyle Plc., CHS Inc., Roquette Freres, and others.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche economies having revenue below USD 10 million. These companies are notably oriented towards fulfilling local demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized ecosystem, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
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The following table shows the estimated growth rates of the significant five geographies sales. USA and Germany are set to exhibit high consumption, recording CAGRs of 5.3% and 6.9%, respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 5.3% |
| Germany | 6.9% |
| India | 9.4% |
The rising consumption of convenient and quick meal solutions is propelling the development of protein-rich fast food alternatives in USA. The increasing preference for plant-derived options in fast food chains has pushed companies to develop new products that cater to this trend.
As more Americans look for quick, protein-packed meal options without compromising their health, fast food outlets and quick-service restaurants are offering a variety of options like protein burgers, nuggets, and bowls. Additionally, ready-to-eat meals and pre-prepared frozen foods enriched with these alternatives are gaining popularity, providing convenient solutions for busy lifestyles. The combination of convenience and health-conscious choices is driving this trend.
Strong consumer inclination towards organic and naturally sourced food, which has prominently influenced the trend alternative and vegetarian protein sources. Population in Germany is known for their strong preferences for premium, high quality, and organic food products including protein sources. As such, manufacturers are focusing on offering organic protein alternatives that align with the country's strict standards.
The growing awareness of sustainability and ethical food production has also driven this trend. Organic certifications are highly sought after, and products that meet these criteria tend to perform better in the German market. This trend is likely to continue as consumers prioritize clean, natural foods that also meet their ethical and environmental values.
Significant portion in India follows the vegetarian diets; protein fortification provided by manufacturers aligns with this trend. Considerable urban consumers in India are becoming gradually aware of the importance of the protein in their diets. The traditional Indian diet often lack of sufficient protein to address this deficiency several key players are developing the functional protein to meet the rising consumer demand.
Lentil, chickpea, and pea-derived proteins are among the most popular choices in fortified foods such as snacks, dairy alternatives, and beverages. The trend is also driven by increasing health consciousness, with many consumers seeking protein-enriched foods to complement their vegetarian lifestyle without compromising on nutrition.
| Segment | Wheat Protein (Product Type) |
|---|---|
| Value Share (2024) | 35.3% |
Since very long time, wheat derived protein has gained noteworthy popularity as a versatile option due to its unique functional properties. It is particularly favoured for its ability to mimic the texture and chewiness of meat, making it a preferred choice in various protein alternatives. Moreover, wheat protein offers a high protein content, and when combined with other sources like soy or pea, it helps to create a balanced amino acid profile. Manufacturers are leveraging this protein because it’s cost-effective and easily accessible, especially in regions where wheat is a staple crop.
Its mild flavor also allows for easy incorporation into a range of products without overpowering the other ingredients, making it suitable for different cuisines and dietary preferences. Furthermore, wheat-based protein is widely used in baked goods, snacks, and processed foods, which increases its appeal among consumers seeking familiar textures and flavors.
| Segment | Wheat Protein (Product Type) |
|---|---|
| Value Share (2024) | 28.3% |
The rising demand for ready-to-eat (RTE) foods has significantly contributed to the increased use of protein alternatives in various packaged meal options. As consumers look for convenient and healthy meal solutions that fit into their busy lifestyles, manufacturers are responding by incorporating protein-rich alternatives into their RTE offerings.
These meals are designed to provide the nutritional benefits of traditional protein sources without the need for preparation time. Additionally, with the growing health consciousness among consumers, there is a preference for protein-packed snacks and meals that are both nutritious and easy to prepare.
The global business landscape for plant-based protein is revolving around the innovations and product expertise of the several key players across the globe. Companies are applying the unique strategies like infusion of value added ingredients in their products according to the consumption trends, diversified and sustainable sourcing of raw materials, and continuous innovation for unrivalled portfolio.
These strategies are helping the key brands like PURIS™, HarvestPro® and ProDiem™ etc to increase their market presence and gain popularity among the end user industries. These functional solutions provided by several manufacturers creating a diversity and demand among the global nutrition industry. The growth of the several players propelled over the past few years due to extensive product portfolio, solutions to the rising vegan demand and widespread distribution network.
Advaned extraction techniques and digitalization in the manufacturing sector helping these players to increase their efficiency and production to meet the rising consumer demand. This increased efficiency and production becoming the prominent reason of strategic collaboration partnerships and product launches in global business landscape.
For Instance
The industry analysis explored through product types like Soy Protein, Wheat Protein, Pea Protein, Others
Verities of forms like Isolates, Concentrates and Hydrolysates are included in the report
By nature segment industry has been categorised into Organic and Conventional
End use applications like Nutritional Products, Sports Nutrition, Medical Nutrition, Infant Nutrition, Bakery, Ready-to-eat, Snacks & Cereals, Dairy, Confectionary and Dessert, Convenience Food, Beverages, Animal Feed and Others
Industry analysis has been carried out in key countries of North America, Latin America, Europe, Middle East and Africa, East Asia, South Asia, and Oceania
The market is expected to grow at a CAGR of 8.6% throughout the forecast period.
By 2034, the sales value is expected to be worth USD 42.5 billion.
Increased product innovation and demand for new products with nutritional balance are expected to boost sales.
Europe is expected to dominate the global consumption.
Some of the key players in manufacturing include Glanbia Plc., Archer-Daniels-Midland Co., Cargill Incorporated, Kerry Inc., Burcon Nutrascience Corporation, E.I. du Pont de Nemours & Co., Royal Avebe UA, Cosucra Groupe Warcoing, Ingredion Inc., Corbion, Tate & Lyle Plc., CHS Inc., Roquette Freres and a few others.
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Plant-Based Protein Market
