The global plant-based meat market size by revenue is likely to cross USD 12 billion by 2025, growing at a CAGR of more than 18% during the forecast period. The industry landscape is currently witnessing increasingly frequent product launches, representing a growing investment in R&D that continues to stimulate the development of highly sophisticated products. The taste, texture, and mouthfeel of products will continue to improve with further ingredient and processing advancements. Globally, consumers are becoming aware and are increasingly looking for healthy, ethical, and cost-effective products with a low environmental impact, which is driving the demand for plant-based alternatives.
With the growing global population and a major shift in food production and consumption, there has been a demand for rich protein-based food. As people around the world are becoming affluent with veganism, flexitarians, and the impact of meat on the environment, the industry is expected to grow significantly. However, despite the rapid success of this type of food, the sector requires overcoming several challenges to become reliable sources of food and proteins.
The current COVID-19 pandemic is re-shaping the plant-based meat market in terms of product categories, pricing, and stock availability to consumer behavior. With the impact of COVID-19, the industry is expected to witness a growth of 20% by the end of 2020. Europe is currently leading the market in terms of revenue, whereas APAC is projected to grow significantly during the forecast period.
- The adoption of plant-based products by renowned celebrities and world-class athletes and large companies such as Google is expected to augur well for the growth of the market across the globe.
- The plant-based industry is expected to grow significantly due to the increasing trend and popularity of veganism and flexitarianism worldwide.
- The U.S. plant-based meat market is witnessing growth on account of the increased adoption of products with clean labeling or transparency in the US consumer landscape.
GLOBAL PLANT-BASED MEAT MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Meat type
INSIGHTS BY SOURCE
Soy accounts for the largest share of plant-based meat protein sources globally, contributing approx.—67% of the global plant-based meat market share. The growing health concerns associated with the consumption of animal protein-sourced foods and the adoption of flexitarian and vegetarian diets are expected to drive the consumption of soy in the global vegan market in the future. However, the demand is projected to decline during the forecast period due to the high prevalence of soy allergies.
Although soy and wheat have traditionally been used for producing plant-based substitutes, the pea is gradually becoming a primary choice among consumers due to its high nutrition profile and rich protein content. The segment accounted for over 15% of the market share in 2019. The growing desire among consumers for the protein that is a clean label, including non-GMO and organic, is leading to the exponential growth of pea protein. The pea protein consumption has doubled to 275,000 tons from 2015, which is expected to grow another 30% in 2020, hoping to reach 580,000 tons in 2025.
Wheat has been a traditional protein source in plant-based meat. The demand for wheat protein products has been declining considerably, owing to the growing incidence of gluten allergies. The rising health consciousness among consumers is also boosting the demand for gluten-free products.
INSIGHTS BY MEAT TYPE
Manufacturers are coming up with plant-based beef substitutes, which offer natural, organic, and vegan alternatives. The alternative beef market witnessed enormous growth, with over 25% YOY increase in the US in 2018 compared to 5% in the beef segment. Increased efforts to enhance consumer awareness of the environmental impact of beef consumption is driving consumers to opt for sustainable substitutes. Beef substitutes are expected to continue to drive market growth in the future. Plant-based beef is still a niche segment in the global plant-based meat market and has enormous growth opportunities in the recent future, with growing penetration and demand for plant-based substitutes.
The rise in chicken consumption is primarily driven by the perceived benefits of chicken over beef and pork. Chicken is considered a healthier form of lean protein and a better alternative to red meat, such as pork and beef. However, the rapid growth of the chicken industry has caused an enormous environmental impact. Poultry farming creates a significant amount of land, water, and air pollution in communities around the world. Plant-based chickens provide the perfect solution in terms of sustainability and the widespread appeal of chicken-centric dishes. Plant-based chicken can help bolster chain restaurants appeal in the young generation.
INSIGHTS BY STORAGE
The frozen plant-based meat market accounted for approximately 65% of the shares in 2019. Traditionally, veg and meat burgers have been available in frozen aisles; however, plant-based meat has followed suit. With the growing awareness among consumers, plant-based items from the frozen aisle are expected to grow in demand during the forecast period. Since frozen aisles in retail stores are overflowing with premium offerings, including plant-based cheese, meat and products, they are expected to appeal to consumers.
As meat consumption is decreasing, the demand for an alternative product among non-vegan consumers. The positioning of vegan meat in the chilled meat department is expected to witness significant growth in demand. Moreover, Generation Z and millennial consumers are particularly perceiving chilled foods as more premium and fresher than frozen food, which is expected to boost the refrigerated meat market growth. These products are selling off from shelves faster than they can be replaced, mainly owing to the lack of production capacities that are failing to catch up with the intensifying demand. Refrigerated products are more sensible from the producer’s perspective that emphasizes on expanding the shelf-life of their products. Besides, millennials are driving the market mainly because 55% of the generation looks for “easy” food options, which has led to the demand for flavorsome heat-and-eat products.
INSIGHTS BY DISTRIBUTION
In terms of distribution, the global plant-based meat market was dominated by supermarkets and hypermarkets, which accounted for a share of over 59% in 2019. Consumers will always prefer retail sales through these stores because of the presence of all types of grocery products under one roof. In North America, Walmart, Whole Foods Market, Costco, and Kroger are the major retailers of plant-based protein products. Retail supermarkets are increasingly incorporating vegan food and beverages, owing to the growing consumer demand.
The sale of animal-based meat has been rising drastically both in online and offline channels. Limited shelf space in physical stores and the availability of limited specialty products to consumers have provided opportunities for online channels to capture the market share. In 2018, the online sale of vegan substitutes increased by 40% to nearly $22 million.
Another key trend in the market is the growth of the direct to consumer (D2C) model, which is becoming increasingly popular in the food and beverage sector. The growth of D2C business models is facilitated by the increase in online shopping and the growth in social media platforms to reach a wide consumer base with relatively lower cost while avoiding the need to route products through traditional wholesale and retail operators.
INSIGHTS BY GEOGRAPHY
Europe accounted for the largest plant-based meat market globally, accounting for over approx. 39% of the market revenue in 2019. One of the major factors that are driving the demand for plant-based meat, especially in the UK, is the rise of ethical and health-conscious consumer segments. This growth is partly led by the millennial generation and the emergence of the ‘flexitarian’ consumer. Further, significant media coverage of the impact of meat and dairy product production on global warming and resource consumption on greenhouse gases. The growth of animal welfare rights groups has gained significant traction and has caused a significant switch in consumer preferences. There are numerous reports on the potential link between high consumption of processed or red meat and cancer, which has led to the growth in the adoption of plant-based diets.
INSIGHTS BY VENDORS
The focus of vendors in the global plant-based meat market has primarily been to draw the attention of consumers and generate appeal for vegan meat. Impossible Foods, Beyond Meat, and several other not-so-established start-ups are trying to find the right combination of coconut oil, peas, potato, or other proteins and other plant-based ingredients to create a product that is comparable to conventional meat products such as ground beef. Plant-based and cultured meat companies are actively pursuing to satisfy carnivorous-leaning taste buds. Vendors are trying to layer flavor over flavor, color over color, texture over texture.
The global plant-based meat industry analysis report includes in-depth coverage of the market with revenue and forecast insights for the following segments:
Segmentation by Source
By Meat Type
- Supermarkets & Hypermarkets
- Convenience Stores
- Specialty Stores
- Online Stores
- North America
- Latin America
- Middle East & Africa