Protein Alternatives Market

[300 Pages Report] The global protein alternatives market is estimated at USD 15.7 billion in 2024; it is projected to grow at a CAGR of 9.9% to reach USD 25.2 billion by 2029. The protein alternatives market has experienced rapid growth and diversification in recent years, driven by increasing consumer demand for sustainable, health-conscious, and ethically produced food options. Key drivers of this market include rising concerns over the environmental impact of traditional animal agriculture, health benefits associated with plant-based diets, and ethical considerations regarding animal welfare. Major segments within the protein alternatives market include plant-based proteins, insect-based proteins, microbial protein. Companies like Beyond Meat, Impossible Foods, and Oatly have become household names, reflecting the mainstream acceptance and expanding consumer base for these products. Technological advancements and significant investments from both food industry giants and venture capitalists have further accelerated the development and accessibility of innovative protein alternatives.

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Protein Alternatives Market Dynamics

Driver: Increasing Demand for Alternate Protein

The increasing global population underscores the necessity for alternative protein sources. Over the past decade, significant efforts have focused on developing proteins from non-traditional crops and livestock. This trend is particularly noticeable in Europe and North America, where consumer interest and investment in alternative proteins have surged. The conventional sources of animal protein like pork, beef, and chicken are projected to be insufficient to meet future demands, creating opportunities for the expansion of the insect protein market. In addition to proteins and fats, insects are valued for their rich mineral and vitamin content. Among younger demographics, particularly in sports nutrition, insect proteins, such as cricket flour, are gaining popularity and are being incorporated into various nutritious food products. For instance, startups like Next Step Foods in the UK produce cricket protein bars like "Yuana" available in multiple flavors.

The shift to alternative proteins also promises environmental benefits, notably in reducing greenhouse gas emissions compared to traditional meat production, as highlighted by the World Economic Forum in 2019. Moreover, adopting alternative proteins addresses diet-related health concerns in developing countries and promotes healthier lifestyles in developed regions such as North America and Europe. These areas have already embraced alternative protein sources such as edible insects, plant-based meat, plant protein ingredients, and cultured meat. Industry experts predict significant market growth potential for these products, with cultured and plant-based meat alone expected to see over 40% growth in the coming years.

In 2022, a study funded by the European Regional Development Fund revealed that 22% of UK consumers preferred alternative protein sources over meat, with the younger demographic showing an even higher preference exceeding 25%. These trends underscore the growing market opportunities in the insect protein sector..

Restraint: Microbial Risk and Allergic Reactions

Food allergies are widespread globally and have seen increased prevalence. While insects offer nutritional benefits, their introduction into food and feed poses potential allergic risks for both animals and humans. Due to the novelty of incorporating insects into diets, understanding and treating these allergies is currently limited, thereby raising concerns for consumers. Risks associated with insect consumption include possible contamination by chemicals like heavy metals and microbiological agents. Moreover, certain insects can elicit allergic reactions through ingestion, inhalation, direct contact, stings, and bites. Cross-reactivity with allergens from related foods such as crustaceans and environmental allergens like dust mites further complicates the allergy landscape associated with insect consumption.

Research from the University of Nottingham's School of Biosciences and Department of Nutritional Sciences highlights that in North-eastern Thailand's Isan region, approximately 7.4% of individuals reported adverse reactions to edible insects, with 14.7% experiencing multiple reactions. Notably, 46.2% of those affected had pre-existing food allergies exacerbated by insect consumption. Gastrointestinal symptoms such as diarrhea and vomiting were commonly reported. This underscores the significant allergy-related challenges facing insect protein adoption, particularly in Western cultures.

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 protein alternatives market.

Challenge: Replicating meat and dairy textures challenges due to consumer expectations

Developing plant-based proteins that convincingly replicate the taste, texture, and mouthfeel of traditional meat and dairy products is a multifaceted challenge in the protein alternatives market. Meat and dairy products are deeply ingrained in culinary cultures worldwide, and consumers have well-established expectations regarding their sensory experiences. Mimicking the savory umami flavor, juicy texture, and tender bite of meat, for example, requires intricate formulation of plant proteins and other ingredients. Achieving a similar experience to dairy products like cheese or yogurt involves not just replicating taste but also mimicking the creamy texture and richness that dairy fats impart.

Texture plays a crucial role in consumer acceptance of plant-based alternatives. The fibrous structure of meat or the smooth consistency of dairy products is often difficult to replicate with plant-derived ingredients alone. Innovations in food science have led to the development of techniques such as extrusion, fermentation, and blending of proteins to enhance texture and mouthfeel. However, balancing these efforts with clean label requirements and natural ingredient preferences adds another layer of complexity. Moreover, ensuring that these products remain stable during cooking or processing without compromising taste or texture is a continuous challenge that requires ongoing research and development.

Protein Alternatives Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of protein alternatives. 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 nature, the organic sub segment is estimated to grow at the fastest CAGR during the studied period.

Consumers are increasingly turning towards plant-based and organic protein sources as they become more health-conscious and environmentally aware. This shift is driven by concerns over animal welfare, sustainability, and the desire for cleaner, healthier eating options. Organic protein alternatives, such as plant-based meats, dairy substitutes, and protein-rich grains like quinoa and lentils, are gaining popularity due to their perceived health benefits and minimal environmental impact. Companies in this sector are innovating rapidly to meet rising demand, offering a diverse range of products that cater to various dietary preferences and nutritional needs. As a result, the protein alternatives market is not only expanding in size but also evolving in terms of product offerings and market reach.

Moreover, the growth in the protein alternatives market is bolstered by changing consumer behaviors and preferences towards more sustainable lifestyles. As awareness of climate change and resource depletion increases, consumers are seeking out products that align with their values of sustainability and ethical sourcing.  Protein alternatives not only offer a viable substitute to traditional animal-based proteins but also often boast certifications that ensure they are produced using environmentally friendly practices. This growing market trend is attracting investment from both established food companies and startups alike, driving further innovation and market expansion. Overall, the organic nature of the protein alternatives market reflects a broader societal shift towards healthier, more sustainable food choices, shaping the future landscape of the food industry.

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

The demand for protein alternatives in animal feed is steadily increasing, reflecting the rising consumption of various products in developed countries. North America and Asia Pacific are key players in both livestock production and feed consumption. While plant-based sources have been utilized in the food industry for some time, they have typically been processed and used 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 improvement in feed quality. Insect proteins, increasingly favored in poultry and aquaculture feeds, and microbial proteins, widely integrated into compound premixes to enhance nutritional profiles, are gaining traction. This shift towards alternative protein sources in feed applications is driven by mounting concerns about sustainable agricultural practices aimed at reducing the environmental impact of future food production.

In March 2022, Global Bugs' (Thailand) successful partnership with Smart Vet Group (Thailand) highlighted a strategic move towards meeting the rising market demand for alternative protein sources in pet food. By focusing on formulating and producing pet foods and supplements containing whole roasted crickets and cricket powder, they are tapping into a growing trend where consumers are increasingly seeking sustainable and nutritious options for their pets. This collaboration not only underscores the potential of insect-based proteins in the pet food industry but also demonstrates a commitment to innovation and meeting evolving consumer preferences.

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

The protein alternatives market in the Asia Pacific region is witnessing rapid expansion, driven by heightened consumer awareness of health benefits, immunity enhancement, and environmental sustainability. This shift towards protein sources beyond traditional animal products underscores a growing recognition of the health advantages associated with plant-centric diets, including lower risks of chronic illnesses and bolstered immune systems. Concurrently, rising concerns over environmental sustainability, such as the impact of animal agriculture on carbon emissions and land use, are prompting consumers to adopt plant-based alternatives. This evolving trend is bolstered by advanced food technologies that offer a diverse array of plant-based protein products tailored to meet the region's diverse culinary preferences. Consequently, the Asia Pacific region is emerging as a significant force in shaping the global protein alternatives market, poised for sustained growth and continuous 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 (Canada), Ynsect (France), Global bugs (Thailand), and Innovafeed (France).

Other players include BENEO GmbH (Germany), SOTEXPRO (France), Shandong Jianyuan Group (China), AMCO Proteins (US), Australian Plant Proteins Pty Ltd (Australia), nextProtein (France), Mycorena (Sweden), Burcon NutraScience Corporation (Canada), Emsland Group (Germany), COSUCRA (Belgium) and Hexafly (Ireland).

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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Scope of the Report

This research report categorizes the protein alternatives market based on source, form, nature and application, production process (qualitative) and region.

Protein Alternatives Market:

By Source

• Plant Protein
  • Soy
  • Peas
  • Wheat
  • Canola, Rice, Oats and Potatoes
  • Beans & seeds
  • Other Plant Protein
• Microbial Protein
  • Algae
  • Fungi
  • Bacteria
  • Other Microbe-based
• Insect Protein
  • Cricket
  • Mealworm
  • Locust
• Other Insect protein

By Form

• Dry
• Liquid

By Nature

• Conventional
• Organic

By Application

• Food & beverages
  • Meat Alternatives
    • Meatballs & nuggets
    • Sausages
    • Burgers
    • Other Meat Alternatives
  • Dairy Alternatives
    • Milk Substitute
    • Cheese Alternatives
    • Yogurt Substitute
    • Ice-Cream Substitute
    • Other Dairy Alternatives
  • Protein Supplements
    • Bars
    • Powders
    • Protein Shakes
    • Other Protein Supplements
  • Functional Food
    • Fortified Cereals
    • RTD Beverages
    • Other Functional Food
  • Convenience Foods
    • Baked Food
    • Snacks
    • Sauces, Gravies, & Soups
    • Spreads
    • Other Convenience Food
• Animal Feed/ Nutrition
  • Poultry
  • Swine
  • Ruminants
  • Aquaculture
• Pet Food
• Cat food
• Dog Food
• Other Pet Food

By Region

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

Recent Developments

• In January 2024, Ÿnsect became the first company authorized to commercialize mealworm proteins for dog food in the United States as of January 24, 2024. This milestone allows Ÿnsect to expand its sustainable insect protein offerings into the US pet food market, meeting the rising consumer demand for eco-friendly pet nutrition. This authorization is expected to enhance Ÿnsect's market presence and support the trend of using insect-based proteins in pet food.
• In February 2024, Roquette expanded its Nutralys plant protein line by launching four new pea protein products, encompassing isolates, hydrolysates, and textured variants. These versatile pea proteins are designed to address formulation challenges in plant-based foods and high-protein nutritional products. They pave the way for innovation in various items, including nutritional bars, protein beverages, and plant-based meat and dairy alternatives.
• In May 2023, ADM and Air Protein established a Strategic Development Agreement (SDA) to jointly develop innovative protein sources for nutrition. Air Protein produces protein through air-based techniques that bypass traditional agriculture and farmland, mitigating supply chain risks. This collaboration combines ADM's expertise in nutrition, formulation, and research with Air Protein's pioneering landless agriculture platform to enhance cost-effective protein ingredients for North American meat substitutes. The partnership includes plans to build and run the world's first commercial-scale Air Protein plant. ADM's investment, along with contributions from other partners, has been pivotal in advancing Air Protein's technology, including its Bay Area Air Farm. This agreement underscores the companies' dedication to sustainable food systems and addresses the growing global demand for protein.
• In June 2022, AMCO Proteins (US) acquired a 40,000-square-foot facility in Mountain Top, Pennsylvania, which includes five food-grade production rooms and storage space for over 500 pallets. This new facility is anticipated to boost and expand the company's spray drying, blending, and milling operations, thereby enhancing its business capabilities in these areas.
• In April 2022, ADM made a strategic investment of USD 300 million to enhance alternative protein production at its Decatur, Illinois plant, aiming to double the facility's soy extrusion capacity. This investment also includes the construction of a Protein Innovation Center, equipped with labs, test kitchens, and pilot-scale production facilities, to strengthen the company's R&D capabilities.
• In September 2021, Roquette Frères inaugurated a new plant-protein center of expertise in Vic-Sur-Aisne. This strategic initiative aimed to strengthen the company's R&D capabilities and help them adapt to the evolving needs of their customers.

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