Market Challenges And Opportunities

Market Drivers:

Growing health awareness: Growing health awareness amongst consumers is a major driver for the growth of this market. With increasing knowledge about the links between red meat consumption and health issues like heart disease and cancer, consumers are looking for more plant-based protein options. Meat substitutes provide an appealing alternative for those wanting to adopt a more vegetarian or vegan diet while still getting protein in their meals.

Product innovations are also fueling the market as companies introduce new varieties of meat substitutes made from vegetarian ingredients that closely mimic the texture and flavor of real meat. Consumers who are health-conscious but not fully vegan appreciate products that allow them to easily swap out meat in many of their regular dishes. For example, plant-based burgers, sausages, and ground meat alternatives offer a like-for-like substitution for meat without having to change cooking methods or recipes. This has supported wider acceptance of meat substitutes beyond strict vegan or vegetarian consumers.

Innovations in meat substitute product offerings: The global meat substitutes market has experienced tremendous growth over the past decade due to increasing awareness about health and environmental sustainability. Consumers are looking for alternatives to meat that can fit into their lives seamlessly. Companies have responded by developing incredibly realistic and tasty meat substitute products through continuous innovations. Products like plant-based burgers, sausages, nuggets, etc. closely mimic the taste, texture, and cooking experience of real meat. The ingredients used, such as pea protein, soy, wheat, and others, can be mixed and matched to achieve desired attributes in products. Emerging technologies are also enabling more sophisticated formulations. This has attracted both vegetarians as well as "flexitarians" looking to reduce meat consumption. According to a 2021 survey by the United Nations, 31% of global respondents said they want to eat less meat for health or environmental reasons. The availability of diverse, appealing substitute options that can be easily purchased from grocery stores or ordered online makes it more convenient for consumers to embrace sustainable diets.

Going forward, companies are investing in replicating specific cuts of meat and developing brands dedicated to particular cuisines to further expand their customer base. Cell-based meats that are grown directly from animal cells without slaughter are also an upcoming innovation. They will minimize environmental impact while offering products commercialized at scale by 2030, according to experts from the World Economic Forum.

Market Opportunities:

Growing fast food chains and food outlets adopting plant-based options: The growing adoption of plant-based options by leading fast food chains and food outlets globally provides a massive opportunity for expansion in the meat substitute market. As consumers become more health-conscious and concerned about sustainability and animal welfare, having vegetarian and vegan alternatives on the menu helps these big businesses appeal to newer customer segments.

Several fast food giants have already begun responding to flexitarian and climate-conscious customers by rolling out plant-based burger patties, nuggets, and sausages. Major chains like McDonald's, Burger King, KFC, Subway, Starbucks, and Dunkin' have introduced faux meat products developed in collaboration with innovative startups. Their widespread availability at approachable price-points exposes these novel foods to a much wider audience beyond vegan purists. The appeal increases multifold with appropriate marketing and positioning of their nutritional and environmental benefits. As per United Nations data, global beef and dairy meat consumption needs to decline 25% by 2050 to mitigate the effects of climate change. Widespread adoption of plant-based meats by mainstream retailers effectively nudges this transition. The entry and commitment of dominant food conglomerates validate emerging technologies in cultivated and plant-based meat production. It draws greater private funding into new protein sources and mass manufacturing techniques. As options multiply on menus, consumer awareness and willingness to experiment with meat analogs will grow significantly. The market is poised to expand exponentially if plant-curious flexitarians convert into regular buyers over time.

Demand for authentic meat like products: Authentic meat-like products could be a great opportunity for the global meat substitutes market going forward. Consumers today are more concerned about health, sustainability and animal welfare than ever before. Many people want to reduce their meat consumption for these reasons but also enjoy the taste and texture of meat. This is where authentic meat substitutes have a unique advantage. These products closely mimic the sensory experience of eating meat like chicken, beef or pork but are made from plant-based or cultured alternatives without any animal products involved. As consumer awareness and demand for sustainable and ethical food options grow worldwide, authentic meat substitutes are poised to capture a large part of the flexitarian consumer base seeking low to no-meat diets. Currently, manufacturers are innovating rapidly in this space using advanced food technologies to engineer meat substitutes with fibers, fat marbling and flavors that closely mimic real meat. Younger consumers today especially are more open to novel foods and care deeply about issues like climate change which drives meat production. As new generations who grew up with exposure to diverse cuisines and plant-based options become a larger part of the global population, demand for authentic and sustainable meat alternatives is expected to skyrocket in the next five years. This is an opportunity ripe for food companies to capture the shifting preferences of consumers and drive significant future growth.

Figure 2. Global Meat Substitute Market Share (%), By Source, 2024