Global Alternative Proteins Market - 2020-2027
The global alternative proteins market size was worth US$ XX billion in 2019 and is projected to show significant growth by reaching up to US$ XX billion by 2027, growing at a CAGR of XX% during the forecast period (2020-2027).
Alternative proteins are the protein source that is obtained from a plant source. These proteins are associated with meat-free and dairy-free diets. The proteins are generally classified into plant-based, insect-based and lab-grown meat. They are the products that replicate animal agriculture products and offer consumers products that save similar texture, taste and look to animal-based meat products but with lower sustainability impact.
Alternative proteins provide a substantial amount of protein but require significantly less natural inputs to produce the most common protein source, fish and meat. Continuous innovation in food technology is accelerating and creating protein production opportunities with the capability to disrupt the incumbent industry. Alternative proteins offer better nutritional profiles than meat and promise significant advantages in reducing pressure on dwindling natural resources and cutting down the ongoing emission.
The global alternative protein market is majorly driven by increasing intolerance towards animal protein and increasing consumer interest in non-meat-based protein options worldwide. Continuous developmental innovation in food technology has refined alternative proteins, thus aspiring consumers to shift their belief to alternative proteins.
The growing demand for protein-rich food and reduced consumption of meat in economically developed countries is creating lucrative opportunities for the alternative market to proliferate in the forecast period. The rising number of non-meat consumers has increased the vegan population's percentage in developing and developed countries, creating a significant market for alternative protein in recent times.
As per the reports, since 2018, plant-based food sales rose 17% and the user number is further expected to grow at a higher rate in the forecast period. Currently, the market for alternative protein is nearly $2.2 billion compared to the global meat market, which is approximately $1.7 trillion, making alternative proteins' growth rate marginal to the overall meat market.
Since the past few decades, a sudden change in consumer preference is witnessed towards adopting a more nutritional diet and focusing towards a more sustainable lifestyle and low dependency on animal proteins. It leads to creating lucrative opportunities for the key players to bring the latest innovation in the food tech market, which focused on bringing improved products coupled with higher nutritional efficiency at a cheaper cost.
A significant percentage change of the millennial population in many western countries has been observed regarding their changing behavioral pattern and shift from conventional animal-based products to organic plant-based food products. This convention is turned out to be an ideal food solution creating a market for the product to grow in recent times.
The environmental effect of traditional meat production is dangerous. In response, this alternative protein production does not emit greenhouses and thus they do not cause any harm the environment. It is only possible due to continuous efforts from different players who invested a significant amount in building an environmentally positive product with high nutritional efficiency at a cheaper cost.
Across the food value chain, different companies are focusing to generate growth through innovation and product development in their alternative proteins products, within their legacy brands and also by creating new product offerings. Thus, the company's growing investments in R&D and creating advanced food products are building high opportunities for alternative proteins' future market. For instance, in April 2019, Nestle came up with a plant-based burger in the U.S under the brand of sweet earth. The same product came under the Garden Gourmet brand in Europe.
COVID-19 Impact Analysis
The global outbreak of coronavirus has shown a positive impact on the alternative proteins market in recent times. The growing rumors about the transmission of viruses with meat have severely impacted many meat production companies' global businesses. Raising awareness among the consumers towards adopting plant-based food products has accelerated alternative proteins in recent times.
It resulted in a sales surge of over 500% for meat alternative brands. An alternative protein-based diet can decrease the virus's effects on at-risk people as macronutrients, micronutrients and antioxidants are abundant. Thus, where the globe is fighting with the ongoing pandemic, alternative protein manufacturing industries got their highest sale and has influenced the sales of plant-based snacks, dairy alternative and supplements consumer move towards adopting a more safe and healthier lifestyle.
The global alternative proteins market is segmented based on type, source, form, application and region.
The alternative proteins market can be segmented into insect protein, algal protein, plant protein, mycoprotein, cultured meat and others in terms of application. Plant protein is dominating the global market alternative in recent times as compared to other sectors. Plant proteins are manufactured using fruits, soy-based ingredients and nuts, which play a vital role in providing texture and flavor to meat and other food ingredients in different dishes.
Changing consumer preference patterns driven by awareness towards meat sourcing practices, animal-borne diseases and their ecological impact have led to more consumers opting out of meat consumption. It leads to a change in customer preference from conventional animal-based proteins to plant-based alternatives.
The growing number of vegans has also uplifted the number of manufacturers' presence in the sector, thus building opportunities for the market to grow during the forecast period. For instance, since 2018, ingredients maker ADM is developing a wide range of plant-based ingredients and protein ranges that manufacturers can easily use.
Asia-Pacific region dominated the global market of alternative proteins in recent times. Among all regions, Asia-Pacific is proliferating, mainly due to rising knowledge of protein-rich diets, increasing health awareness, increasing technological developments in the food & beverage industry, coupled with cheap raw material factors that drive the region's alternative protein market.
China is expected to build the highest market of alternative proteins in the forecast period to rising government investments on related R&D projects and growing demand for alternative proteins coupled with adoption of emerging technologies for product innovation is creating immense opportunities for the alternative proteins in the region.
On the other side, North America is expected to grow at the fastest rate during forecast period due to rising concerns over animal products and proteins, the growing vegan population in the region and increasing investments in alternative protein products. A major key player in the region is creating opportunities for the alternative proteins market to grow in the North American region.
The alternative proteins market is highly fragmented with the presence of global companies. Some of the key players contributing to the market's growth include Cargill, Inc, Kerry Group, DuPont de Nemours, Inc, Wilmar International Limited, Agriprotein Holdings Ltd, Ingredion Incorporated, DSM, Emsland Group, Cosucra Group, Batory Foods and among others.
The major players are adopting several growth strategies such as product launches, acquisitions and collaborations, contributing to the growth of the alternative proteins market globally. However, many key players focused on this market prefer to expand or collaborate with other firms to build their system's revenue.
In January 2019, ADM expanded its existing unit in Brazil while constructing of new soy protein production complex in Campo Grande, Brazil, at a value of USD 250 million. The unit is set up to manufacture a wide range of functional protein concentrates and isolates for ADM's current production line
Overview: It is a multinational corporation active in various fields such as health, nutrition and materials. The company started in 1902 in the Netherlands and at the end of 2017, DSM employed 21,054 people in approximately 50 countries and posted sales worth US$ 9,267 Million (EUR 9267 Million).
Product Portfolio: The company has a product portfolio of alternative proteins includes:
CanolaPRO: CanolaPRO is a sustainable, plant-based protein source from the canola plant that improves vegan and vegetarian products. The product delivers a clean taste with good texture and a smooth mouthfeel coupled with high nutritional quality.
On 8 July 2019, DSM announced its collaboration with Avril to produce a unique protein-based, non-genetically modified canola. It offers excellent functional quality, high nutritional value and a balanced taste profile.
The global alternative proteins market report would provide access to 69 market data tables, 65 figures and 255 pages.