The Global Plant-Based Protein Market was valued at USD 13.00 Billion in 2022 and is projected to reach USD 23.00 Billion by 2030, registering a CAGR of 7.10% for the forecast period 2023-2030.
Market Definition
Consumer tastes have significantly changed and there is an increase need for plant-based protein substitutes in the global food business. This pattern is reflection of shifting consumer demand of sustainability, ethical issues and health. More and more customers are searching for products that fit their dietary requirement and tastes as they become more health conscious, this factor driving the growth of plant-based protein market. The growing acceptance of plant-based protein can also be attributed to its environmental sustainability, a growing number of customers are choosing plant-based food as more sustainable option due to growing concerned about environmental effects of traditional animal agriculture. Accessibility to a variety of innovative plant-based protein products is another driving force. With advancements in food technology and culinary innovation, there is now a wide range of plant-based protein options available, from plant-based burgers and sausages to meatless chicken and fish alternatives. The market for plant-based protein is anticipated to grow even more as this trend pick up steam, due to high investment toward research and development, a wide range of plant-based product options and larger customer base. Plant based protein substitute are changing the way people think about and eat protein, weather for ethical, health or environmental reasons, this reflects dynamic shift in the plant-based protein market.
Market Size:
- 2022: USD 13.00 Billion
- 2030: USD 26.00 Billion
- CAGR (2023-2030): 7.10%
Plant-Based Protein Market Dynamics
Drivers : Growing number of vegan and vegetarian are fueling the market expansion
The increasing number of vegans and vegetarians is driving a large portion of the market for plant-based protein. The growing number of people choosing to adopt vegan, vegetarian or flexitarian diet has boosted the demand for plant-based protein alternatives. The consumer base for vegan and vegetarian diets has grown as a result their increasing appeal among mainstream society and niche demographics. More people are deliberately reducing their consumption of animal products due to ethical, environmental, and health concern. Vegetarians and vegans abstain from eating animal products such meat, poultry, fish, and dairy. To satisfy their nutritional needs, plant-based proteins present a workable and compassionate substitute. Legumes, soy, tempeh, tofu, seitan, and plant-based protein powders are among the forms of plant-based protein that these people actively seek out. Due to the increase in vegan and vegetarian lifestyle adoption, there is a greater demand for these items. vegans and vegetarian refrain from consuming animal products such dairy, meat, poultry and fish. Plant based protein offer a practical and human alternative to meet their nutritional demand. These folks actively seek out plant-based protein sources such as legumes, soy, tempeh, tofu, seitan and plant-based protein powder. The growing popularity of vegan and vegetarian lifestyle has increased demand for these products. For instance, in 2022, according to Plant-Based Foods Association, Plant-based foods, however, maintained 6.6% sales growth in 2022, up from 5.9% in 2021, with only a 10% increase in average retail price, plant-based milk category grew 9% to $2.8 billion, plant-based meat dollar sales remained remarkably stable at $1.4 billion, plant-based creamer grew by 24% in dollars, Plant-based cheese sales reached $230 million in 2022.
For instance, according to World Population Review, compared to all other countries in the world, the UK has the most vegans. In 2017 there were 60,000 searches for vegan restaurants, while in 2020, there were over 200,000. Plenty of advertisements and famous media personalities push the many benefits of veganism in the UK, adding to its popularity.
The market for plant-based protein is expanding due to growing consumer interest in meat alternatives
Interest in the creation and manufacturing of cell- and plant-based substitutes for farmed meat has increased within the last ten years. Meat substitutes are plant-based goods that resemble and taste like meat and may be a major factor in encouraging dietary changes. Plant-based protein is extremely important on a global scale. As a result of increased criticism of high meat consumption for social, ethical, and environmental grounds, there is growing interest in its potential to supply the growing need for protein from non-meat sources. studies that attempt to demonstrate the connection between the intake of processed meat products and health issues frequently focus on processed meat in general. Red meat is categorized as a possible carcinogen by the International Agency for Research on Cancer (IARC), which also lists processed meat as a carcinogen that causes cancer. Consequently, the American Cancer Society advises against eating a lot of red and processed meat. Selecting beans over red meat and processed meat is advised by the American Cancer Society Guidelines on nutrition and physical activity for cancer prevention. Compared to meat, plant-based meat substitutes have less saturated fat, Plant-based meat substitutes have been identified as healthy sources of protein that, in comparison to meat, offer several social, environmental, and health benefits and may play a key role in reducing meat consumption.
For instance, in March 2022, Beyond Meat, Inc. and PepsiCo, Inc. announced the debut of Beyond Meat Jerky. The delicious and convenient plant-based jerky is the first product from the two companies joint-venture, Planet Partnership, LLC. Rolling out at stores nationwide starting in March, Beyond Meat Jerky offers a full-flavored, on-the-go snack experience that furthers Beyond Meat and PepsiCo's shared passion for creating products that are better for both people and the planet.
Recent Developments
In March 2022, Otsuka Pharmaceutical Co., Ltd. has announced the launch of SOYJOY Plant-Based, a new series in the SOYJOY line of delicious, convenient whole-soy nutrition bars. Made with 100% plant-based ingredients, the new SOYJOY Plant-Based bars will be launched in two flavors.
In August 2023, Nestlé is expanding its portfolio of plant-based products to give consumers more options for nutritious, tasty alternatives to meat. The company recently launched a range of shelf-stable plant-based cooking solutions in Chile under the Maggi Veg brand that are certified as vegan.
Restraint : Increasing soy-free and gluten-free trend hinder the growth of plant-based protein
One of the specialized food fads that is expanding the fastest is the free-from. The diet that excludes gluten and soy has emerged as the most rapidly expanding nutritional trend due to its numerous health and medicinal advantages. The rise in food sensitivities, regional dietary preferences, an increase in celiac disease diagnoses, and the concept of utilizing food as medicine are the main causes of the surge in soy-free and gluten-free food products. In a rule, the USFDA clarified what gluten-free meant on food labels. Customers, particularly those suffering from celiac disease, were reassured by the definition that gluten-free claims made on food items will be dependable and uniform throughout the food business. It provided them with a standardized instrument to manage their food consumption and overall health. The global trend of consumers favoring soy-free and gluten-free food products poses a certain challenge to the soy protein and wheat protein markets.
For instance, in December 2022, DSM launches world’s first textured vegetable protein that is a complete protein, soy-free and gluten-free.
Challenges : Economic limitations on the processing of pea protein
There has been a noticeable increase in the use of peas as a plant-based protein source, nonetheless, producers of pea protein encounter a major obstacle because of inadequate processing capabilities. Food makers must identify beneficial applications for pea starch, which makes about 60% of the pea volume but is usually wasted in pea protein-based products, in order to make production economically feasible. Selling the protein without losing money on the starch could make the procedure economically viable, depending on whether the protein or starch is sold. Recently, the US-based company Beyond Meat and the French company Roquette signed a three-year contract with the intention of satisfying the growing demand for plant-based food and beverages. In order to increase the amount of premium pea protein it produces, Roquette intends to invest more than $500 million. Premium food product makers have turned to pea protein to meet consumer expectations for a niche ingredient known for its health benefits, hypoallergenic properties, and other functional qualities. While some food manufacturers, especially those producing products like veggie burgers, have relied on soybean protein due to lower costs and a stable supply, pea protein is also a viable option.
Opportunities : Pay attention to aquatic plants as novel and cutting-edge protein sources
While plant-based foods and beverages provide numerous health advantages and necessary minerals, some people may develop allergies to them, which poses an obstacle to the market's expansion. For example, soybeans have anti-nutritional elements that might cause allergies even though their profile is nutrient-rich. Among the Big Eight allergens that account for 90% of food allergies are soy, cow's milk, eggs, peanuts, tree nuts, wheat, seafood, and shellfish. When the immune system misinterprets innocuous soy proteins as dangerous, it can result in soy allergy and allergic responses. Furthermore, soy protein has a high phytic acid content, which can prevent the body from absorbing essential minerals including calcium, magnesium, copper, iron, and zinc. This can result in symptoms like bloating, diarrhea, nausea, and abdominal pain, as well as itching, hives, and bloating. Concern about its harmful impact on health have grown in recent years, especially in North America, Europe. Gluten protein derived from wheat can cause a number of negative reactions, such as non-celiac gluten sensitivity, allergies, and celiac disease. An allergic response to gluten in diet cause celiac disease which frequently starts in infancy and cause inflammation and inner lining damage of small intestine. The world market for plant-based protein is anticipated to grow more slowly throughout the forecast because to allergies connected to particular plant-based component.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 13.00 Billion |
| Market Forecast in 2030 | USD 26.00 Billion |
| Compound Annual Growth Rate (CAGR) | 7.10 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Raw Material, By Product, By Distribution Channel, By Application & By Region |
| By Raw Material |
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| By Product |
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| By Distribution Channel |
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| By Application |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Plant-Based Protein Market
The Plant-Based Protein Market is segmented by raw material, product, distribution channel, application and region.
By Raw Material
The soy segment held the largest market share in 2022:
By raw material is sub segmented into soy, spirulina, pumpkin seed, wheat, hemp, rice, pea, others. The soy segment accounted for highest market share 26.5% in global plant-based protein market for 2022. The expansion of the market can be attributed to the rising popularity of soy protein as a plant-based protein source and the addition of additives like glutamine and BCAAs, which promote quick absorption and muscle recovery. In addition, soy proteins strengthen immunity, support healthy bones, and aid in the prevention of cardiovascular disease. Over the estimated timeframe, there will likely be a surge in demand for soy-based protein supplements due to growing awareness of lactose intolerance and glutamic disorders in developed markets like the U.S. and Germany. Since soy protein is a complete protein and includes all of the essential amino acids, it is regarded as a high-quality protein source. Its protein content makes it especially appreciated. Because of its versatility, soy protein can be found in many different food products, such as baked foods, dairy replacements, meat substitutes, and more. It has been a preferred option for food manufacturers due to its versatility.
On the other hand, the pea segment has the significant market share over the forecast period, because of its growing appeal to a wide range of consumers, including vegetarians, vegans, and people who are allergic to dairy and egg proteins. Pea protein is also derived from green peas and is hypoallergenic, gluten-, cholesterol-, and fat-free, which makes it more appealing to a wider range of consumers. Pea proteins are considered to be a high-quality protein that is also a rich source of iron. They are utilized in the production of several protein supplements, including shakes, smoothies, energy beverages, and powders.
By Product
The protein powder segment was the leading segment in 2022:
By product, which is divided into protein powder, protein bars, ready to drink, others. The protein powders segment accounted for largest share 43.9% in global plant-based protein market for 2022. Several uses and the integration of protein powder in final industries like food and drink. The rise of protein powder is being influenced by factors such as increased online sales, mass distribution, and the emergence of new brands from well known companies including Glanbia Plc, Health Science International Inc, and Nature Bounty Co. protein shake, protein pancakes, and protein muffins are just few of the dishes and beverages that may be prepared with protein powder. Because of its flexible ingredient that can be employed to suit different dietary requirement. When compared to other plant-based proteins sources like tempeh, and tofu protein powder is typically less expensive, for customers, this makes it more accessible option. The increased popularity of vegetarianism and veganism is also helping the protein powder market.
On the other hand, the protein bars segment is anticipated to expand over the forecast period, because protein bars are widely used by consumers since they are convenient and portable. Protein bars boost protein synthesis and support lean body mass. Convenient, on-the-go snack options with nutritional content are in high demand due to busy lifestyles and lack of time for preparing balanced and healthy meals. Additionally, it is anticipated that elements like the quick energy and nourishment that protein bars offer would fuel the segment's expansion.
By Distribution Channel
The offline segment was the leading segment in 2022:
By distribution channel, which is divided into supermarkets/hypermarkets, online stores, others. The online stores segment accounted for largest share 60% in global plant-based protein market in 2022. Manufacturing is focusing on shorter approaches to consumers due to growing consumer demand and an emphasis on core capabilities. Online sales of plant-based protein supplements are increasing due to easy access to products, straightforward online ordering process and large selection of products from different companies. Online sales of plant-based proteins supplement are anticipated to grow during forecast period due to industry high fragmentation and limited consumer loyalty.
Supermarket/hypermarket segment is anticipated to register rapid growth in forecast period, Supermarkets, hypermarkets, and pharmacies are examples of offline retail establishments that sell a variety of dietary supplements, including plant-based protein supplements. An improvement in the retail industry is one element increasing sales of wellness and health products. The growing global presence of retail giants such as Walmart, Tesco, Target businesses Inc., Sainsbury’s, and Asda has led to a growing number of well-known businesses choosing supermarkets as a significant platform for selling plant-based protein supplements.
By Application
The functional food segment was the leading segment in 2022:
By application, which is divided into sports nutrition, functional food. The functional food segment accounted for largest share 60% in global plant-based protein market in 2022. As a consumer become more aware of leading a healthy, active lifestyle and comprehend the connection between eating a nutritious well-balanced diet and keeping an active lifestyle, there is an increasing demand for functional food that are high in protein. Furthermore, its expected that shifting dietary practices and the rising incidence of cardiovascular disease brought on by sedentary lifestyle, especially in 30–40-year-old age range. Will increase consumer awareness of the benefit of consuming food high in functional protein and aid in segment growth.
On the other hand, sport nutrition accounted for significant revenue share during the forecast period, the main cause of this development is the introduction of new product the rise in young customer who choose to purse careers in sports, and the expansion of both domestic and international athletic events, Professional athletes and strength, core, and endurance athletes are anticipated to drive the growth of this market due to the increased demand for sports nutritional supplements. Along with an increase in the number of individuals visiting the gym, increased demand for sports nutritional supplements to support lean muscle growth, enhance performance, aid in weight loss, and raise stamina are also anticipated to fuel the segment's growth in the upcoming years.
Regional Analysis
North America occupied the largest market share in 2022:
North America has the largest revenue market share 50% in 2022, The substantial market for sports nutrition products in nations like the United States and Canada is credited with the increase. The availability of raw materials is also expected to drive the market's expansion, as will the stronghold of major industry players. In June 2020, the federal government of Canada proposed investing USD 74 million in a local plant-based protein manufacturer called Merit Functional Foods. By addressing the increase in demand, this program aims to improve the penetration of these items across the nation.
On the other hand, Europe is anticipated for significant market share during forecast period, Over the course of the forecast period, it is expected that the region's demand for these products would increase due to a number of factors, including a growing emphasis on healthy living and preventive health care, as well as increased demand from countries like Germany and the UK as a result of the region's growing vegan population.
List of the prominent players in the Plant-Based Protein Market
- Archer Daniels Midland Company
- Cargill
- Incorporated
- Roquette Frères Le Romain
- Ingredion Incorporated
- Kerry Group
- DuPont de Nemours, Inc.
- Now Foods
- Tate & Lyle PCL
- Axiom Foods Inc.
- AMCO Protein
- Burcon NutraScience Corporation
- BENEO GmbH
- Glico Nutrition Co., Ltd
- Glanbia plc
- Cosucra Groupe Warcoing SA
- Sotexpro
- Farbest Brands
- Crespel & Deiters GmbH & Co.
- Wilmar International
- CHS Inc.
Segmentation Analysis of the Plant-Based Protein Market
By Raw Material
- Soy
- Spirulina
- Pumpkin Seed
- Wheat
- Hemp
- Rice
- Pea
- Others
- Protein Powder
- Protein Bars
- Ready-to-Drink
- Others
- Supermarket/Hypermarket
- Online
- Others
- Sports Nutrition
- Functional Food
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the Plant-Based Protein Market:
Industry for plant protein has responded to the challenge with great vibrancy. There is rare chance to a hasten the adoption of plant protein-based goods because traditional goods because traditional meat sources are becoming scarcer on grocery store shelves. The meat processing sector is expected to see a downturn over the next several years as a result of the closure of some major plants by meat processing corporation like Tyson and Smithfield owing to COVID 19 outbreak. A possible scarcity of meat is approaching customers are gravitating toward plant-based diets as a result of the major meat producers suffering severe loss. The conventional protein supply chain's disruption has led to a rise in demand for plant-based proteins, although this will not substantially lower the amount of protein derived from animals. Out-of-home usage is expected to increase if the situation starts to stabilize. The industry that processes meat will likewise carry on as before. These factors will partially mitigate the unexpected spike in sales once more. Plant protein producers must now defend their product lines, revisit their sourcing strategy, and make use of their supply chains' speed and flexibility as well as their channels for getting their products to market. Networks for distribution and e-commerce need to be streamlined and optimized. Additionally, businesses will have to reevaluate their pricing and marketing plans in light of the fluctuations in commodity prices as well as other costs-to-serve.
