The Global Alternative Protein Market was valued at USD 24.88 Billion in 2022 and is projected to reach USD 52.18 Billion by 2030, registering a CAGR of 11% for the forecast period 2023-2030.
Meat alternative is another name for global alternative proteins. They are created and manufacture to take place of meat products, when taking into account the global ecosystem, these are highly significant. These encourage less water use and less land and feed consumption, which lessens the environment impact. Rapid urbanization and rising consumer expectation, rising venture capital investment in the alternative protein sector, advancement in food technology, the high nutritional content of edible insects and the environmentally sustainable nature of alternative protein production and consumption are the primary factors driven the growth of alternative protein market. Demand for the products is expected to rise due to the rise clean protein consumption as well as consumer growing awareness of and acceptance of sustainability derived proteins. The growing awareness among consumers of the benefit of clean protein in their diet for energy and weight control is expected to have beneficial effect on the growth of the plant based and vegan goods is a key element anticipated to propel market revenue expansion. This is anticipated to spur market revenue growth and raise demand for substitute protein products.
- 2022: USD 24.88 Billion
- 2030: USD 52.18 Billion
- CAGR (2023-2030): 11%
Alternative Protein Market Dynamics
Drivers Propelling the Demand for Alternative Protein include
The alternative protein market is growing due to rise in venture investment:
Due to ethical and animal welfare concern, new food enterprise and civil society organization are focusing on well established makers of meat and dairy products. Protein and other plant-based products are ethical and more sustainable because they don’t involve animal abuse. Due to its better profitability, lower risk exposure, and capacity for competition and innovation, protein diversification has potential to completely change the value proposition and core business of food firms. This increase number of millennials choosing meatless and flexitarian diets suggest a major shift in their consumption pattern compared to previous generation. Business from growers to retailers along the entire food value chain are already making investment in these prospects. Certain companies are companies are taking precaution against or getting ready for drop in the market for animal products by making investment in business that make plant-based substitute. Market participants have gotten money and investment in recent years from well known people, business, and financial investors. Alternative protein companies are also receiving money from venture capital fund to increase their production capacity. This is contributing to the decreasing cost and increasing accessibility of alternative protein products for consumers. Due to this factor, fueling the growth of alternative protein market.
For instance, in February 2023, according to Good Food Institute, the alternative proteins sector has attracted $14.2 billion in private capital, with annual investments nearly doubling every year on average (though with high variance, which is standard for a young industry). Investments accelerated in recent years through 2021.
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 alternative protein. The growing number of people choosing to adopt vegan, vegetarian or flexitarian diet has boosted the demand for alternative 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, alternative proteins present a workable and compassionate substitute. Legumes, soy, tempeh, tofu, seitan, and plant-based protein powders are among the forms of alternative 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 alternative protein sources such as legumes, soy, tempeh, tofu, seitan and alternative protein powder. The growing popularity of vegan and vegetarian lifestyle has increased demand for alternative protein market. 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.
- February 2022
Kerry Group plc the global taste and nutrition company today announces it has reached agreement to acquire 92% of the issued share capital of c-LEcta GmbH for a consideration of USD 139m, with management to retain the balance. This follows the acquisition of 100% of the issued share capital of Enmex S.A. de C.V. on 14 December for a consideration of €62m.
- November 2021
ADM, a global leader in nutrition and agricultural origination and processing, announced today that it has completed its acquisition of Sojaprotein, a leading European provider of non-GMO soy ingredients. The addition represents a significant expansion of ADM’s global alternative protein capabilities and its ability to meet growing demand for plant-based foods and beverages.
Restraint in the Alternative Protein Market
Growth hampered by strict regulatory compliance and incapacity to digest protein:
There is lack regulatory clarification regarding edible insects’ usage in food business. The approval procedure can be complicated by the fact that different people may experience different people may experience different results from consuming edible insects. Consequently, it limits the expansion of protein derived from insects. Moreover, allergies related to alternative protein, like those derived from plants and insects, impede the expansion of the industry. Furthermore, the cattle industry strict adherence to feed regulations is impeding market expansion. Even though the market offers a wide range of protein, not all of them are good for human or the livestock business, it results in significant financial outlay for the investigation of substitute protein for various animal species. Most consumer are still getting used to the taste of protein, despite the fact that the number of lactose intolerant people is requesting alternative proteins, some protein sources, like soy and pea protein, are difficult for some people to digest. Adoption alternative protein products may be hampered by this since customer could be reluctant to try something they are not sure they can stomach, due to this factor, market is moving more slowly, and hindered the growth of the alternative protein market.
For instance, in June 2023, according to U.S. Food and Drug Administration, FDA regulates both finished dietary supplement products and dietary ingredients. FDA regulates dietary supplements under a different set of regulations than those covering "conventional" foods and drug products. Under the Dietary Supplement Health and Education Act of 1994.
Challenges in the Alternative Protein Market
The disadvantage linked to substitute protein.
The main factor posing a challenge to the expansion of the alternative protein market throughout the forecast period is allergies to various alternative protein, including those derived from plant, insects, and another animal. In the food industry, there is lack of regulatory clarity on edible insects, which is limiting development of insect-based protein. Furthermore, during the forecast period market expansion is somewhat hampered by the strong performance of animal-based goods and high cost of alternative protein markets. Changes in market regulation, strategic market growth analysis, value chain optimization, application dominance, and niches, product approvals, launches, geographic expansion, and technology advancement in the industry. Because their flavor and texture can differ from of typical meat products, alternative protein products like plant-based meat and culture meat are sometime criticized for this season. Some customers may find this obstacle to adoption. Certain plant-based protein sources might not have the same nutritional value as conventional animal products. For example, compared to conventional meat products, some plant-based meat alternatives could be lower in iron and zinc, this are the challenges for the alternative protein market.
Opportunities in the Alternative Protein Industry
Growing demand for clean protein:
The growing consciousness among consumers regarding the significance of clean protein in their daily diet for managing weight and energy is anticipated have favorable effect on the expansion of alternative protein market. An increase in clean protein consumption along with increased consumer awareness and acceptance of sustainability generated protein are expected to fuel product demand and create massive growth potential for the alternative protein market. The alternative protein is a healthy option to drive the market for food application and encourage market expansion because it strengthens the immune system and improves the body nutritional makeup. Additionally, producing alternative proteins does not release greenhouse gases into the atmosphere, unlike producing traditional meat, puts the environment in danger. Additionally, consumer are searching healthier protein source as they become more health conscious compared to typical animal meat and alternative protein frequently have lower cholesterol and saturated fat protein, some people are deciding to eat less or no meat at all because they are because they are worried about the moral ramification of animal husbandry, customers can still benefit from protein without consuming animal products by using alternative products, This will present a future opportunity for producers of alternative protein in the alternative protein market.
|Market Size in 2022
|USD 24.88 Billion
|Market Forecast in 2030
|USD 52.18 Billion
|Compound Annual Growth Rate (CAGR)
|Revenue (USD Million) and Volume (Kilo Tons)
|By Source, By Application, By Form & By Region
|2018 - 2022
|2023 - 2030
Segment Analysis of the Alternative Protein Market
The Alternative Protein Market is segmented by Source, application, Form and region.
The plant protein segment held the largest market share in 2022:
By Source is sub segmented into plant protein, mycoprotein, algal protein, insect protein. The plant protein segment accounted for highest market share in global alternative protein market for 2022. Simply said, plant protein is a valuable source of protein derived from plants. Plant protein is important for better immune system and growing health consciousness has increased demand for plant-based protein include improved metabolism and digestion. Additionally, rapid growth of nutraceuticals industry is another factor that is expected to drive market revenue growth. Nutraceutical industry consists of mainly three segments: functional foods, dietary supplements, and herbal/natural products. Rising consumer awareness about a healthy diet has led to a preferential shift toward healthy and nutritious nutraceutical products, due to this factor this segment is increases rapidly.
On the other hand, mycoprotein segment is anticipated to expand over the forecast period, Mycoprotein products mimic the taste and texture of actual meat than other substitutes like tempeh or seitan. These are high vitamin, high protein vegetable ingredients. These are factors are expected to contribute to the growth of this segment in the same forecast period
The food and beverages segment were the leading segment in 2022:
By component, which is divided into food and beverage, dietary supplements, animal feed and pet food, personal care, cosmetics. The food and beverages segment accounted for largest share 40% in global Alternative Protein market for 2022. Insect based, plant based and other substitute product are extensively used in the food and beverage sector. This market significant share is primarily due to consumer preference for plant-based food and ingredients, rising clean label trend, increase consumer awareness of and demand of food products high in protein and the adaptability and compatibility of plant-based protein with vegetarian and vegan lifestyle.
On the other hand, the dietary supplement segment is anticipated to expand over the forecast period, this is related to need healthcare sector for protein supplements. Doctors will very certainly advice dietary protein supplement to patient with disorder like with kwashiorkor and cachexia, which are protein deficient condition.
The offline segment was the leading segment in 2022:
By Form, which is divided into wet form, dry form. The dry form segment accounted for largest share 60% in global alternative protein market in 2022. Food and beverage producers find dry ingredient more appealing since they have longer shelf life than liquid component. Since alternative protein products are frequently more recent and less well established than traditional meat products, this is crucial. Compared to wet component, dry ingredient can be employed to make a greater variety of goods. Dry plant-based protein powder for example, can be used to create vegan burgers, sausages, nuggets and smoothies. Compared to wet component, dry ingredient is frequently less expensive. The increase demand for convenience food is also helping the dry form category.
Wet form segment is anticipated to register rapid growth in forecast period, a protein mixture found in liquid items, like water is referred to as a wet form of protein. Liquid protein is utilized by people in a variety of ways. Pharmacies, supermarket stores, bodybuilding stores, and health food stores all stock this product. In order to offer consumer a nutritional form that is balanced, wet forms of protein also frequently include vitamins and mineral.
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. Rise of new start-ups and businesses are providing numerous alternative protein-rich products in order to meet the rising demand for healthy protein-rich food. These factors are expected to drive market revenue growth.
On the other hand, Asia Pacific accounted for the significant share over the forecast period, The growing middle class, growing health and nutrition consciousness, and the growing trend of food and beverage protein and baked goods, confections. Furthermore, rising demand for protein-rich dietary intake is another factor contributing to market revenue growth. Demand for insects as food has increased along with rise in living standards and globalization of foods in Asian countries, where cost of insects can exceed the cost of more conventional animal meats.
List of the prominent players in the Alternative Protein Market:
- Archer Daniels Midland Company
- Roquette Freres
- Ingredion Incorporated
- Kerry Group
- E.I. Dupont De Nemours and Company
- Now Foods
- Tate & Lyle Plc
- Axiom Foods Inc.
- Burcon Nutra Science Corporation
- Beneo GmbH
- Glanbia Plc
- CHS Inc
- Agri Protein
- Enterra Feed Corporation
Segmentation Analysis of the Alternative Protein Market
- Plant Protein
- Algal protein
- Insect protein
- Food and Beverages
- Dietary supplements
- Animal feed and pet food
- Personal care
- Dry Form
- Wet Form
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the Alternative Protein Market:
Industry for alternative 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 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 alternative proteins. 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.