The market for plant-based meat is on a high flame these days, with the latest research projecting a 15 percent compound annual growth rate (CAGR) through 2025.
In terms of dollar amounts, the the current plant-based meat market is estimated at $12.1 billion and anticipated to reach $27.9 billion by 2025.
Driving the growth, according to the authors at MarketsandMarkets, are escalating health concerns regarding the consumption of animal protein, which in turn has led consumers to opt for alternative protein sources, boosting the sales of plant-based meat products.
The pea segment is projected to be the fastest-growing in the plant-based meat market during the forecast period.
Pea protein is gaining popularity among plant-based meat manufacturers at a global level owing to its high protein content, and health benefits offered such as reduced cholesterol and lower blood pressure. Leading players in the global plant-based meat industry are now shifting their interest toward pea and have also started developing pea-based meat products such as patties, sausages, and slides, which have a high protein value.
For instance, in May 2019, Lightlife (US), an alternative protein company, launched a pea-based meat burger to replace beef burgers. In addition to this, Good Catch Foods’ fish-free tuna and the UK-based Nomad Foods’ Green Cuisine line (that includes meatless burgers, sausages, and Swedish meatballs) also include pea as one of the key ingredients.
The burger patties segment is projected to record the fastest growth during the forecast period.
Burger patties are one of the most popular plant-based meat products available in the market. Impossible Foods (US) and Beyond Meat (US) are the two leading market players that are offering burger patties.
These companies are backed by a robust distribution network, which enables them to cater to the demand for burger patties across the US. The expansion of distribution channels of these key players and the rising sales of burgers are projected to drive the global plant-based meat market.
Impossible Foods (US) has a widespread presence in the US market, with its products being distributed in over 4000 locations in the country. Apart from this, Beyond Meat (US), in 2018, formed a partnership with PHW Group (Germany) for the distribution of its plant-based burgers in Europe.
The North American region is projected to account for the largest market share during the forecast period.
The North American plant-based meat market is projected to account for the largest share by 2025. There are various on-going developments in the region in terms of expansion and new product launches.
For instance, in 2018, Alpha Foods (US) had its plant-based meat products available in over 5,000 stores in the US. Apart from this, in Canada, the plant-based meat is an emerging area, with consumers willing to add plant-based foods owing to the health concerns related to the consumption of animal protein products.
Furthermore, according to Google Canada, the phrase “plant-based diet” was a top search in their “Kitchen” category in 2017. In March 2018, the government of Canada announced an investment of USD 150 million for the country’s plant protein industry.
In Mexico, as well, there is a rise of vegan and vegetarian eating; the consumers in the region are opting for meatless versions of their popular traditional cuisines such as tacos. Companies, both start-ups and established companies, are entering the plant-based meat market. These companies are expanding their presence by forming partnerships with retail chains or restaurants for the distribution of plant-based meat products. Apart from this, consumers in the region are adapting flexitarian diets.
These factors are expected to drive the plant-based meat market in the region.