Plant-Based Protein Industry Overview

Market Overview

The global plant protein market is expected to grow at a CAGR of 8.1% from €7.4 billion in 2019A to €11.8 billion in 2025E. Main drivers are well-developed regions, such as North America, Europe and Asia-Pacific. Many large corporations are investing in plant-based food alternatives. In 2019, Unilever opened The Hive – a €85 million plant-based food innovation center in the Netherlands.Allergies and intolerances caused by animal proteins have increased among both humans and pets, causing a further rise in the demand for plant proteins

Market drivers

1. Increasing rates of obesity and diabetes see consumption behaviour move towards healthier lifestyles
2. Significant consumer shift to vegan diets and products with a high protein content
3. Growing demand for plant-based and clean sports nutrition products for muscle recovery
4. Plant proteins provide nutrients comparable to animal proteins with less fat and cholesterol
5. Plant proteins offer an effective way to reduce the exploitation of both animals and the environment
6. Increased number of investments leads to a broader range and improved products
7. Rising awareness of beneficial health aspects such as managing weight loss, anti-aging and lower blood pressure

Factors influencing market activity

• Prices will decrease because of optimized supply chains, scaling effects and reduced R&D costs. Beyond Meat, for example, has committed to sell at least one product by 2024 that is at the same price level — or cheaper — than animal meat
• The market is currently characterized by a wealth of innovation, which results in constant expansion in the market size, availability and range of plant protein products. Large sums of money are being invested in R&D, and more and more start-ups are entering the market with innovative solutions

Market Trends

1. Significant growth potential for high-protein products and sport nutrients
2. Taste and texture are key drivers behind purchase decisions
3. Consumer behaviour moving toward vegan and flexitarian lifestyles