Market Research Report
Meat Substitutes Market - Growth, Trend and Forecast (2022 - 2027)
|Meat Substitutes Market - Growth, Trend and Forecast (2022 - 2027)|
Published: January 17, 2022
Mordor Intelligence Pvt Ltd
Content info: 110 Pages
Delivery time: 2-3 business days
The global meat substitutes market is projected to grow at a CAGR of 7.91% during the forecast period (2021- 2026).
The current COVID-19 pandemic is re-shaping the meat substitute market from the regional economies to product categories, pricing, and stock availability to consumer behaviour as the growing fear among consumers of an increasing number of animal-borne diseases such as coronavirus, growing health concerns, and demand for clean label products and natural products, are some of the major factors are boosting the demand for plant-based meat products during the ongoing coronavirus crises. Furthermore, due to the sudden rise in demand for plant-based food products, many companies have already started changing their business strategies. Companies, such as Beyond Meat Inc., Impossible Foods Inc., and Tofurky Co., are ramping up their production, and offering discounts on their plant-based meat products to increase consumer base, expanding stores, and completing partnership with the stakeholders.
Additionally, companies are investing heavily in the retail sector because of lockdowns imposed due to the COVID-19 outbreak. According to the Plant Based Foods Association (PBFA), retail plant-based food sales experienced a significant spike in mid-March owing to the panic buying because of the lockdown situation in the United States. During this time, plant-based foods were up a whopping 90% when compared to last years' sales.
Over the long term, rising consumer awareness of negative health effects, associated with the consumption of meat, is leading to a shift toward a vegan diet. This is most likely to contribute to the evolution of meat substitutes, globally. Additionally, the benefits of cholesterol-free protein, with meat-like texture, are one of those key factors promoting the growth of meat substitute products.
High processing cost involved in the production of meat substitutes, as compared to natural meat, has led to a high price of meat substitute products, like Tofu, Tempeh, and other protein alternatives, and this is expected to hinder the market growth, especially in countries, like India, Brazil, Mexico, etc. For meat substitutes, like Tempeh, Tofu, and Seitan, which originated from Asian countries, like Indonesia, China, and Japan, respectively, the market recorded a high penetration rate in the Asia-Pacific region.
Product innovation is considered as a key growth driver in the market, as lack of similarity in taste and texture to traditional meat products is major barrier in the market
The market for meat-based proteins recorded high demand, globally, in the past decade, with most of the population in Europe and North America highly dependent on the meat products for necessary, daily protein intake. Though meat proteins provide the required content of amino acids for the body, they are highly associated with cholesterol content, which proved to be a leading cause of serious health issues. This became the primary reason for an increase in the demand for plant-based protein food, especially in developed countries, like the United States, Germany, France, and the United Kingdom. With modified technologies, the companies are targeting consumers, by coming up with innovative products with similar properties as real meat. These meat substitutes are made with a combination of soy, wheat, and pea protein to attain the desired structure. With the adoption of western cuisine, the countries in Asia are also shifting toward meat substitutes, which is expected to drive the market. Australia and China are the two major countries that are rapidly shifting toward plant-based proteins.
The shift towards the consumption of meat alternatives in the western part of the world is largely driven by the growing millennial, where the demographics at most, consider in understanding the food source, animal welfare issues, and impact on the environment while making decisions related to purchasing. The market across the United Kingdom is one of the frontrunners in scaling the demand for meat substitutes, where consumer ate approximately 4.4. billion meat-free dinners in 2018, according to statistics shared by supermarket sales. Apart from meat-free products, consumers were also inclined toward purchasing free-from products, such as gluten-free. Some of the key factors facilitating the demand for meat substitutes include health consciousness, ethics related to safeguarding the environment, and surging cost of meat, motivating consumers to seek alternative sources in Europe.
The meat substitutes market is highly competitive, due to the presence of numerous small players. Key players, like Kellogg's, Conagra Brands Inc., and The Campbell Soup Company, entered the market, by acquiring small meat substitute companies. In 2017, Campbell Soup Company acquired the Pacific Foods of Oregon LLC for USD 700 million. This acquisition is expected to help in strengthening Campbell's health and well-being portfolio in the growing natural and organic category.
Other major players such as Amy's Kitchen Inc., Beyond Meat Inc., and Impossible Foods Inc., are focusing on gaining significant market shares in the meat substitutes market. In Europe, the sales volume of companies, such as Quorn, Vivera, Beyond Meat, and Schouten has been increasing, since the past few years, owing to the high demand for meat substitute products.