Plant-based Protein Market

[350 Pages Report] The market for plant-based protein is estimated at USD 14.2 billion in 2024; it is projected to grow at a CAGR of 8.1% to reach USD 20.5 billion by 2029. The plant-based protein market has experienced a significant increase in popularity as consumers seek alternatives to traditional animal-derived protein sources. This trend is driven by a multitude of factors, including concerns about health, ethics, environmental awareness, and personal dietary preferences. Many individuals are opting for plant-based protein products due to reasons such as allergies, dietary restrictions, or a preference for a healthier lifestyle. Furthermore, there is a growing demand for plain formulations in this sector, particularly those that are low in calories and free from added sugars.

Plant-based protein represents a burgeoning opportunity in today's market for alternative protein sources. While meat has historically been the dominant source of protein in developed economies, there is an increasing interest in alternative options in emerging markets. Shifting consumer preferences towards plant-based protein sources, motivated by factors such as nutritional value, trends towards clean eating, health considerations such as lactose intolerance, environmental consciousness, and concerns for animal welfare, have propelled the expansion of this market. Plant-based protein has transcended its traditional applications in meat and dairy substitutes to encompass segments such as performance nutrition and infant nourishment. The acknowledgment of the functional benefits of plant-based protein has contributed to its growing acceptance among consumers. Additionally, the incorporation of plant-based protein into supplements has been associated with various health advantages, including improvements in brain function, eye health, heart health, muscle endurance, strengthened immunity, and weight management.

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Plant-based Protein Market Dynamics

Driver: Growing interest in health-centric food and beverages

The growth of the plant-based protein market is being propelled by evolving consumer preferences, notably among a significant portion of Western millennials, who are gravitating towards healthier dietary options. There is a noticeable surge in the demand for organic and plant-based food products, driven by their perceived health advantages, particularly in terms of digestive health and the prevention of obesity and chronic illnesses.

The expanding vegan and flexitarian demographic is expected to be a key driver of the plant-based protein market in the foreseeable future. With increasing health consciousness among consumers, various food items, such as meat patties and sausages, are being substituted with plant-based or plant-infused alternatives, which is anticipated to positively influence the demand for plant-based protein. According to data from The Food Science and Health Database Organization, approximately 22 million UK citizens have embraced a flexitarian lifestyle, indicating a significant shift towards healthier eating habits, particularly among influential millennials.

Retail sales of plant-based alternative food and beverages in the United States, designed to replace traditional meat, dairy, eggs, and seafood products, reached USD 7.4 billion in 2021, reflecting a 6% increase from the previous year, as reported by the Plant-based Foods Association (PBFA). Notably, during the COVID-19 pandemic, sales of plant-based food and beverages in the US surged by 90% in March 2020 compared to the previous year, underscoring a heightened consumer interest in these products. The Good Food Institute (GFI) highlights a remarkable surge in demand for plant-based products in the US, driven by consumers' growing inclination towards sustainable and health-conscious choices, thereby fostering a burgeoning market for plant-based foods and beverages.

Restraint: Possibility of nutritional deficiencies among vegans

While vegan diets can offer health benefits, eliminating animal-derived foods entirely may raise concerns about obtaining essential nutrients. Although there are numerous plant-based protein sources like lentils, beans, chickpeas, nuts, seeds, soy products, and whole grains, some vital nutrients found primarily in animal products may be lacking in a vegan diet. Many individuals assume that meeting protein needs on a plant-based diet is straightforward, but the absence of animal products can lead to deficiencies in vitamin B12, omega-3 fatty acids, iron, and creatinine.

Vitamin B12, crucial for red blood cell formation and neurological health, is exclusively present in animal-derived foods such as fish, meat, dairy, and eggs, with minimal amounts found in certain seaweeds. Without supplements or fortified foods, vegans face a heightened risk of vitamin B12 deficiency. Creatinine, a compound abundant in animal products, plays roles in muscle development and brain function. While primarily stored in muscles, it also contributes to brain health, serving as a readily available energy source for muscle cells, enhancing their endurance and strength.

Opportunity: Changes in consumer lifestyles

The global population's expansion is placing heightened strain on limited resources, with escalating energy prices and raw material expenses impacting food costs, particularly affecting lower-income demographics. Additionally, the strain on food resources is being intensified by water scarcity, notably prevalent across Africa and Northern Asia. Within the Asia Pacific region, there exists a cost advantage in terms of both production and processing, fostering high demand and offering favorable conditions for dairy alternative suppliers and manufacturers to target this market.

As lifestyles evolve rapidly, there's a noticeable shift towards more nutritious and health-conscious food options. The distinction between fast food and junk food is anticipated to grow, with consumers increasingly seeking quick yet wholesome alternatives. Recognizing naturally rich nutritional products presents a significant opportunity for suppliers and manufacturers to meet evolving consumer preferences.

Furthermore, the rise in disposable incomes is driving demand for convenient, healthy, and highly nutritious products across Asia Pacific nations. Emerging economies within the region present substantial opportunities for growth within the plant-based protein market.

Challenge: Concerns over quality of food and beverages due to adulteration of GM ingredients

Soy, wheat, and peas are key sources utilized for extracting plant-based protein and are extensively cultivated in Brazil, the US, Argentina, China, and India. As consumer demand for plant-based food and beverages grows, so does the demand for these crops. However, there's a rising concern about adulteration with Genetically Modified (GM) ingredients to meet the increasing demand. While non-GMO soybeans are primarily used for human consumption, GM soybeans are predominantly used in livestock feed. Producing non-GMO soybeans requires extra attention and effort from producers, leading to higher production costs and lower profits.

A significant portion of GM soy is processed with hexane, which poses health risks if consumed in large quantities. Consequently, the consumption of plant-based products made from GM soybeans has become a global concern among consumers.

Government regulators in regions like the Asia Pacific and Europe have mandated the declaration of GM/non-GM status on food packaging. GM ingredients are linked to allergic reactions and may contain herbicidal residues, posing challenges for their production and use in plant-based foods. For example, the launch of GMO-based soybean burger patties by Impossible Burgers (US) has faced skepticism from consumers due to the inclusion of inorganic ingredients and herbicides.

Plant-Based Protein Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of plant-based protein. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include ADM (US), Cargill Incorporated (US), International Flavors & Fragrances Inc. (US), Roquette Frères (France), Ingredion (US), Wilmar International Ltd. (Singapore).

Based on type, the isolates sub segment is estimated to grow at the fastest CAGR during the studied period.

Protein isolates represent a refined form of protein powder distinguished by its remarkable purity and exceptionally high protein content, typically averaging around 90%. Despite their higher cost compared to other plant-based protein options, plant protein isolates are preferred for their outstanding digestibility and adaptability across various food products. Typically derived from legume sources such as soy and pea de-oiled cake, they are widely regarded as one of the safest protein sources, suitable even for infant

nutrition. The plant-based protein market anticipates significant growth prospects for isolates owing to their concentrated protein content, rendering them highly suitable for incorporation into nutritional and functional foods like snacks, cereals, beverages, and plant-based meat substitutes. Pea protein isolates, in particular, have emerged as a valuable protein source, responding to the nutritional industry's increasing demand for high-protein offerings.

The market demand for plant protein isolates, notably those sourced from peas, is on the rise due to expanding business prospects and consumer preferences. Plant-based protein manufacturers are introducing novel isolates to cater to this demand and leverage the associated business opportunities. For Instance, in July 2023, Burcon NutraScience Corporation, a Canadian firm, unveiled a hempseed protein isolate aimed at enriching the nutritional composition of snacks, as well as protein-rich food and beverage items. This strategic move by the company was prompted by the escalating consumer interest in plant protein isolates.

The feed application in the plant-based protein market is forecasted to register the most significant CAGR over the projected period.

The demand for plant-based proteins in animal feed is steadily increasing, reflecting the rise in consumption of various products in developed countries. North America and Asia Pacific play significant roles in both meat production and feed consumption. Although plant-based sources have been used in the food industry for some time, they have typically been processed and utilized in a relatively basic protein form. However, there is a noticeable trend towards the development of higher-quality protein-based feeds, such as isolates, indicating an enhancement in feed quality. Pea protein isolates, particularly favored in aquafeed, and potato proteins, widely used in compound premixes to improve overall yields, are gaining popularity. This shift towards plant-based proteins in feed applications is driven by growing concerns about sustainable agricultural practices, aiming to mitigate the environmental impact of future food production.

The Asia Pacific region is anticipated to experience the most rapid growth between 2024 and 2029.

The Asia Pacific region is experiencing rapid growth within the plant-based protein market, primarily due to increasing awareness of health, immunity, and environmental sustainability among consumers. This shift towards plant-based protein sources reflects a growing understanding of the health benefits associated with a plant-focused diet, including reduced risks of chronic diseases and improved immune function. Moreover, mounting concerns about environmental sustainability, such as carbon emissions and land use linked to animal agriculture, are driving consumers towards plant-based alternatives. This trend is further supported by innovative food technologies offering a wide variety of plant-based protein products that cater to the region's diverse culinary preferences. As a result, the Asia-Pacific region is becoming a significant influencer in shaping the global plant-based protein market, poised for continuous growth and innovation in the foreseeable future.

Key Market Players

Key Market Players in this include Tate & Lyle PLC (London), Kerry Group PLC (Ireland), DSM Firmenich (Switzerland, ADM (US), Cargill Incorporated (US), International Flavors & Fragrances Inc. (US), Ingredion (US), Roquette Frères (France), Wilmar International Ltd. (Singapore), Glanbia plc (Ireland), Kerry Group PLC (Ireland), DSM-Firmenich (Switzerland), AGT Food and Ingredients (Canada), Burcon NutraScience Corporation (Canada), Emsland Group (Germany), PURIS (US), COSUCRA (Belgium), Tate & Lyle (UK).

Other players include BENEO GmbH (Germany), SOTEXPRO (France), Shandong Jianyuan group (China), AMCO Proteins (US), Axiom Foods, Inc (US), Aminola (Netherlands), The Green Labs LLC. (US), Australian Plant Proteins Pty Ltd (Australia), ETChem (China), PROEON (India), Nutraferma, Inc. (US), MycoTechnology (US), European Protein A/S (Denmark), naVitalo (Germany), Bioway Organic Group Limited (China).

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Scope of the Report

This research report categorizes the plant-based protein market based on source, type, form, nature and application and region.

Plant-based protein market:

By Source

• Soy
• Wheat
• Pea
  • Yellow Split Peas
  • Chickpeas
  • Lentils
• Canola, Oats, Rice, & Potato
• Beans & Seeds
• Fermented Protein
  • Soy
  • Pea
  • Rice
  • Others
• Other Sources

By Type

• Concentrates
• Isolates
• Textured

By Form

• Dry
• Liquid

By Nature

• Conventional
• Organic

By Application

• Food & beverages
  • Meat Alternatives
  • Dairy Alternatives
  • Bakery Products
  • Performance Nutrition
  • Convenience Foods
  • Other Food & Beverages Applications
• Feed

By Region

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World (RoW)

These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific, and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.

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