ALTERNATIVE PROTEIN MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Alternative Protein Market Size and Trends

Alternative protein market is estimated to be valued at USD 16.44 Bn in 2024 and is expected to reach USD 26.76 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 7.2% from 2024 to 2031.

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The factors driving the market growth include rising meat consumption worldwide, growing demand for plant-based and healthier food options, and animal welfare concerns. The trend seen in this market indicates a steady rise in demand for plant-based meat, dairy, and egg alternatives. Most of the plant-based proteins such as soy, wheat and pea are being used to develop alternative meat products like burgers, sausages, and nuggets that resemble animal-based meat in terms of taste, texture and mouthfeel.

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Insights, By Source- Rising Concern for Health and Environment Boosts Demand for Plant-Based Proteins

In terms of source, plant-based proteins segment is estimated to contribute the highest market share of 32.9% in 2024, owing to growing awareness about issues related to health, environment and animal welfare. Rising rates of obesity, cardiovascular diseases and other lifestyle-related health problems have prompted many consumers to shift towards plant-based sources of proteins that are low in fat and cholesterol.

Insights, By Form- Convenience Drives Preference for Dry Alternative Proteins

In terms of form, dry segment is estimated to contribute the highest market share of 58.5% in 2024. Dry plant and insect proteins have an elongated shelf life as these do not require refrigeration during storage. These are also more convenient to store, handle and transport without the mess caused by liquids. Dry plant protein powders and flakes are versatile ingredients that can be easily mixed into various food preparations ranging from beverages, yogurt, baked goods to meat substitutes.

Insights, By Application- Rising Culinary Applications Propel Food & Beverages Segment

In terms of application, food and beverages segment is estimated to contribute the highest market share of 29.3% in 2024, owing to exponential growth in culinary applications of alternative proteins. Restaurant chains and food brands are responding to rising flexitarian consumer base with innovative plant-based and cultivated meat offerings. Rise of plant-based meat, dairy alternatives, and other vegan food products can boost the growth of mainstream food sector.

Regional Insights

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Dominating Region- North America

North America dominates the alternative protein market with an estimated market share of 47.5% in 2024, due to the region's well-established market ecosystem and supportive government policies that promote research and development of plant-based and cell-cultured meat products. Major companies like Beyond Meat and Impossible Foods have gained widespread popularity and availability in this region, contributing to its leading position.

Fastest-Growing Region- Europe

Europe exhibits the fastest growth due to rising health consciousness, environmental awareness, and increasing affordability of alternative proteins in major markets like U.K., Germany, and France. Rapid urbanization and growing middle class have boosted demand for sustainable food options.

Alternative Protein Market Outlook for Key Countries

Leading Hub for Plant-Based and Cell-Cultured Innovation in the U.S.

The U.S. alternative protein market is led by pioneers in the plant-based and cell-cultured meat industries. Growing demand for plant-based proteins, cultured meat, and fermentation-based alternatives is fueled by rising number of health-conscious and environmentally aware consumers. For instance, in 2020, as per the survey conducted by Faunalytics, 72% of consumers expressed concern over the environmental impact of meat production, which has contributed to an increased interest in plant-based and cultured alternatives.

Stronghold in Europe’s Shift Toward Sustainable Food in Germany

Germany is one of the Europe’s largest markets for alternative protein, with significant growth expected as consumer preferences shift towards sustainable options. The government supports this sector as part of its sustainability goals. Plant-based proteins are well-established in Germany, and there has been an emerging interest in insect protein and lab-grown meat. For instance, as per the data released by Proveg International in 2023, German government has committed a pioneering investment of US$ 40.28 Mn to promote the development and adoption of alternative proteins.

Sustainability, Health, and Innovation at the Core in Canada

Canada's alternative protein sector is expanding, supported by its strong agricultural foundation, particularly in crops like peas and lentils, crucial for plant-based protein production. Growing health awareness and environmental concerns are driving market demand. Government incentives and funding in Agri-tech and food-tech further support this growth. For example, in 2021, The Honorable Marie-Claude Bibeau, Canada's Minister of Agriculture and Agri-Food, announced an investment of over US$ 4.3 million to help farmers meet the increasing demand for sustainable, high-quality plant-based proteins.

Organic Focus Meets Culinary Tradition Towards the Alternative Proteins in France

France’s alternative protein market is growing, but at a slower rate than in some other European nations. Traditional culinary preferences create unique challenges and opportunities. There has been strong preference in France for organic, non-GMO ingredients. Nearly 70% of French consumers prefer organic products, which has spurred alternative protein companies to focus on clean, organic, and non-GMO labels. French companies are increasingly creating premium plant-based products to meet this demand.

Driven By Health, Sustainability, and Flexitarian Demand for Alternative Proteins in U.K.

The U.K. has a robust market for alternative protein, with growth supported by both consumer demand and favorable regulatory environment for plant-based products. Health, sustainability, and ethical concerns are primary drivers, with rising population of flexitarians and vegans. For instance, according to U.K. Research and Innovation in 2023, an estimated 7% of U.K. consumers identify as vegan or vegetarian, with 39% identifying as flexitarian. This flexible approach to diet is a major driver of this market as more consumers look to reduce, but not eliminate, meat consumption.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Alternative Protein Market Players

• Established players invest heavily in research and development to create innovative products. Meat alternatives closely mimic the taste and texture of meat. Companies like Beyond Meat and Impossible Foods are investing into lab-grown meat research. These aim to make cultured meat economically viable and scalable.
• Mid-level players focus on cost-effective solutions to attract price-conscious consumers. These ensure quality products at affordable prices. Tale & Lyle PLC also form strategic collaborations to improve technologies, boost production, and expand market reach. Partnerships provide access to new resources and capabilities beyond individual abilities.
• Small scale players specialize in niche markets with unique offerings. These target customers looking for highly specialized products tailored to niche preferences. Glanbia Plc adopts cutting-edge solutions to compete effectively. Some companies form local partnerships with startups and regional producers to gain market entry and increase visibility while working within limited budgets.

Emerging Startups in the Alternative Protein Market

• Innovative startups are developing advanced technologies with significant market potential. Companies like NotCo and Meati applies sophisticated food science and AI to construct plant-based alternatives indistinguishable from meat. Their novel solutions could transform the industry.
• Vow uses a unique approach by focusing on animals that are not traditionally domesticated for food. Its products, created in the lab from the cells of various animals, offer different flavors and textures, allowing chefs and food creators to experiment with entirely new forms of meat.
• BlueNalu is one of the first companies to focus on creating cell-based seafood, targeting products like yellowtail, tuna, and mahi-mahi. With overfishing and pollution threatening marine ecosystems, cultivated seafood provides a promising alternative.

Alternative Protein Industry News

• In December 2022, Bunge announced a US$ 550 million investment to construct a fully integrated soy protein concentrate (SPC) and textured soy protein concentrate (TSPC) facility. The facility will be built adjacent to and integrated with Bunge's soybean processing plant in Indiana, U.S. The construction is set to commence in the first quarter of 2023, with a commissioning date expected in mid-2025. This initiative will create approximately 70 full-time jobs and is projected to process an additional 4.5 million bushels of soybeans. The primary goal of this facility is to address the growing demand for key ingredients in plant-based foods, processed meat, pet food, and feed products.
• In August 2022, ADM announced a partnership with Benson Hill, an agricultural technology company, to scale its soy ingredients to cater to the growing demand for plant-based proteins. As part of the partnership, ADM processed and commercialized its proprietary ingredients derived from Benson Hill's Ultra-High Protein soybeans through an exclusive North American licensing partnership. The collaboration scaled innovative ingredients enabled by Benson Hill genetics, featuring less-processed proteins with significant water and carbon sustainability benefits. The collaboration was aimed at creating a pathway toward commercial-scale production of higher-value alternative protein products.
• In September 2021, Ingredion Incorporated introduced a line of pulse-based ingredients designed to offer great taste, nutrition, and functionality, aiming to support manufacturers in meeting the growing consumer demand for tasty, plant-protein-rich foods in the U.S. and Canada. The product line included VITESSENCE Prista P 155 pea protein concentrate and VITESSENCE Prista P 360 faba bean protein concentrate.

Key Takeaways from Analyst

• Increasing meat consumption puts significant strain on agricultural land, water resources, and contributes to carbon emissions. Plant-based and cultured meats offer an eco-friendly alternative to address these challenges. Millennials and Generation Z are increasingly adopting vegan and flexitarian diets, creating strong momentum for alternative protein categories.
• North America currently dominates the market and is expected to remain dominant over the next five years. Countries like U.S. and Canada have huge populations which are adopting Western diets rapidly. However, awareness regarding health and climate change impacts of livestock industry drives interest in alternative proteins in these developing nations.
• Europe is early adaptor of plant-based meat while cultured meat can take more time for widescale consumer acceptance in these regions. Meat analogs closely resembling texture and taste of animal meat have enhanced growth opportunities. Private label offerings can make these products affordable for the mass market.

Market Report Scope

Market Dynamics

Market Driver- Rising health and wellness awareness

As awareness of health and wellness grows, people are increasingly mindful of how diet and lifestyle impact both physical and mental well-being. Enhanced access to information through the internet and social media empowers individuals to make informed decisions, understanding the long-term effects of their food choices. The alternative protein market, including plant-based and cell-based products, is set for rapid growth. In 2022, The FAO and the International Sustainable Bioeconomy Working Group (ISBWG) organized the fifth webinar in their series on bio-innovations for transforming agrifood systems, with this session centered on alternative proteins.

Market Challenge- Taste and texture challenges

Key challenges faced by alternative protein market includes producing products with ideal taste and texture that can compete against meat and animal protein products. While manufacturers have made progress in developing plant-based and cultured meat products, consumers still perceive their taste and texture as not being at par with traditional meat options. Achieving the juiciness, tenderness and other textural qualities of conventional meat remains a difficult task. For instance, according to a 2021 report by the U.S. Environmental Protection Agency, while 30% of U.S. consumers want to consume more plant-based meat products, only 5% are frequent buyers.

Market Opportunity- Expansion into emerging markets

Major opportunity for alternative protein market lies in expanding to emerging markets across the globe. While developed markets in North America and Europe have led the early adoption of plant-based and cultured meat, there has been huge untapped potential in developing countries with rapidly growing middle-class populations and appetite for meat. Regions like Latin America, Asia Pacific and Africa are increasingly urbanizing with changing diets.

Market Segmentation

• By Source Insights (Revenue, USD Bn, 2019 - 2031)
• • Plant-Based Proteins
  • Insect-Based Proteins
  • Microbial Fermentation based
  • Cell-Based (Cultivated) Proteins
  • Others
• By Form Insights (Revenue, USD Bn, 2019 - 2031)
• • Dry
  • Liquid
• By Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Food & Beverages
  • Infant Formulations
  • Clinical Nutrition
  • Animal Feed
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
• • ADM
  • Cargill Inc.
  • Lightlife Foods, Inc.
  • Impossible Foods Inc.
  • International Flavors & Fragrances, Inc.
  • Ingredion Inc.
  • Kerry Group
  • Glanbia plc
  • Bunge Limited
  • Axiom Foods Inc.
  • Tate & Lyle PLC
  • SunOpta Inc.