The Meaning of the Alternative Protein Market

In this article, you will learn about the Demand for alternative proteins, its Growth drivers, Challenges, and Opportunities. 

Demand for alternative proteins

There's an increasing demand for protein alternatives, and the food industry is noticing it. This growth is due to the emergence of novel production methods and compositional research and the rise of consumers who don't eat animal products. As a result, plant-based kinds of milk have seen much growth in recent years. New, innovative product lines have been introduced, and there's no compromise on taste and texture. The market for alternative proteins in North America is expected to reach USD 10 billion by 2021, growing at a CAGR of 17.5% over the next six years. Rising consumer attention toward preventive healthcare and sustainability is also driving growth in this sector. In addition, consumers in North America are increasingly concerned with the ingredients in food products, and they want to avoid ingredients that could have negative health impacts.

Growth drivers

The global alternative protein market is thriving. Due to several factors, this market is poised to outpace meat-based proteins in the near future. These factors include increasing costs, structural and supply chain challenges and consumer preferences. In addition to these factors, poor harvests contribute to the increased demand for alternative proteins. While North America leads the global alternative protein market, other regions are likely to follow. The region is expected to grow at a relatively high CAGR during the forecast period, thanks to an increasing number of food manufacturers focusing on sustainable supply chains. The region also benefits from the growing awareness of healthy eating and a huge shift toward vegan and organic foods.

Challenges

Alternative protein products are a growing part of the food market in many countries. They aim to replicate the nutritional benefits and sensory experience of foods of animal origin. They can come in many forms, including snacks, beverages, and fresh products. However, to be effective, they must meet certain criteria such as clean labels, sustainability, and respect for animal welfare. Governments must make the transition easier to create a vibrant alternative protein market. For this, they must foster research on new alternatives and provide funding for their development. In addition, they must provide regulatory support and encourage investment in skills.

Opportunities

As the meat industry becomes more environmentally friendly, producers of alternative proteins see an opportunity. In addition to lowering costs, they are free of the greenhouse gas emissions produced by conventional livestock production. The growth of alternative protein products has also prompted traditional livestock producers to diversify their portfolios. However, growing these products requires significant investment and time. The market for alternative proteins is highly fragmented, with many global companies operating in this industry. 

Global market size

The global alternative protein market is expected to be between US$77 billion and US$153 billion by 2021, with the plant-based segment accounting for the largest share. Growing consumption of vegan foods and dietary supplements is expected to drive the growth of this segment. The rapidly growing nutraceutical industry also fuels the demand for protein alternatives in the food and beverage industry. This industry comprises natural foods, dietary supplements, and functional foods which contain alternative proteins. The report comprehensively analyzes the global alternative protein market, including historical data and future prospects. It also analyzes the competitive landscape and identifies the key market segments and their drivers and restraints.