USA, San Francisco. A new market study published by Global Industry Analysts, the premier market research company, released its report titled "Protein Alternatives - Global Market Trajectory & Analytics". The report presents fresh perspectives on opportunities and challenges in a significantly transformed post Covid-19 marketplace.
Safety of food has become the top concern for people in countries around the world, amid the pandemic situation. With the world at a high risk of zoonotic diseases like the Covid-19 outbreak along with Influenza, Ebola and measles among others in the past, the focus shifted onto alternative meat.
Alternative protein or alternative meat is anticipated to be increasingly integrated into the global protein supply industry going forward as people realize the risks associated with consuming animal protein. Already, products with alternative proteins, for example Beyond Meat and Impossible Burger, have been attracting consumers in a big way, in the recent years.
Consumers wary about animal suffering and with an intention to reduce personal environmental footprint started consuming such products and with increasing demand, many more manufacturers emerged offering similar products. Beyond Meat burger makes use of 99% less water and 93% less land and generates 90% less emissions when compared a regular beef burger, as per its life-cycle assessment, reasons enough for making the product popular among consumers intending to 'save the earth'.
Furthermore, it is a known fact that plant-based foods lower chronic diseases and mortality rates. This had also created interest in such alt-meat based products among consumers. Even though currently alt-meat products are more expensive compared to options with animal protein, over the coming years, the prices are likely to reduce due to technological advancements in manufacturing methods and identification of low-cost plant raw materials.
Amid the Covid-19 crisis, the global market for protein alternatives estimated at $ 2.8 bn. in the year 2020, is projected to reach a revised size of $ 4.4 bn. by 2026, growing at a CAGR of 8% over the analysis period. Plant Protein, one of the segments analyzed in the report, is projected to record a 9.2% CAGR and reach $ 1.7 bn. by the end of the analysis period.
After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Insect Protein segment is readjusted to a revised 8.1% CAGR for the next 7-year period.
The protein alternatives market in the US is estimated at $ 1.2 bn. in the year 2020. China, the world`s second largest economy, is forecast to reach a projected market size of $ 322.5 mill. by the year 2026 trailing a CAGR of 9.5% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 7.1% and 7.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 7.3% CAGR.
Strong growth is projected for alternative protein products in the coming years driven by rising acceptance of products that include such ingredients, particularly in functional foods and dietary supplements categories. There is a growing awareness with regard to health and wellness among population across the world. Rise in interest among consumers for protein-based diets is encouraging companies, including both animal and plant based protein ingredient companies, to develop advanced technologies for extracting protein alternatives and also seek new and more sustainable protein sources.
The trend towards high nutrition, proteins-rich diets is driven by the growing awareness about health benefits of such foods particularly in muscle building, ensuring satiety and assisting in weight loss. The demand for proteins continues to grow among athletes, teenagers, children and the elderly. Expanding population base and rising income levels are expected to significantly impact the demand for protein alternatives in the coming years.
Increasing incidence of chronic diseases such as CVD, diabetes, various cancers, and osteoporosis, and the urgent need for adequate intake of proteins in combating these diseases represent another important growth driver. Other factors poised to benefit market prospects in the near term include wide ranging applications of soy proteins owing to their widespread availability and favorable clinical research supporting its health and nutritional advantages; and surging popularity of pea protein alternatives with their health benefits and high nutritional value in terms of high in fiber, starch, vitamins, proteins, and minerals.
Emergence of newer sources of proteins such as insect proteins, chickpeas, cricket proteins, and algae protein, etc. and the myriad health benefits offered by them in terms of maintaining general health and well-being, weight loss and weight management, as well as muscle building and muscle maintenance is also expected to provide additional impetus to market growth.
In the global Mycoprotein segment, USA, Canada, Japan, China and Europe will drive the 6.4% CAGR estimated for this segment. These regional markets accounting for a combined market size of $ 510.5 mill. in the year 2020 will reach a projected size of $ 787.1 mill. by the close of the analysis period.
China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach $ 48.1 mill. by the year 2027.