Plant-Based Meat Market

Market Overview

The Global Plant-Based Meat Market size was valued at USD 6.02 billion in 2022 and is projected to reach USD 28.57 billion by 2031, with a CAGR of 18.9 % during the forecast period 2023–2031.

Plant-based meat products are alternatives to animal meat that are produced only from plants. The fundamental idea is to avoid using animals to transform vegetation into the meat. Organic goods include the same nutrients as animal meat: fat, protein, minerals, vitamins, and water. Due to technological advancements, the new range of plant-based meat has the same taste, appearance, and texture as animal meat. Even though talks regarding plant-based alternatives have existed for decades, they have only lately gained steam due to the efforts of numerous domestic and international organizations to raise awareness about the advantages of converting to plant-based foods in general. In contrast to animal meat, one of the most important factors in the manufacture of these meat products is the absence of external antibiotics. 

It is projected that the misuse of antibacterials would lead to the development of antibiotic-resistant superbugs, leading to the loss of viable antibiotics. Therefore, it is essential to seek alternatives so that antibiotic use can be drastically decreased. Potentially eliminating the possibility of future pandemics or other fatal diseases transmitted from animals to humans by eliminating the usage of animals in any form or process during food production. As a result of continual virus mutation, the majority of these diseases lack definitive treatments, making them more lethal and dangerous.

Market Dynamics

What are the Driving Factors for The Global Plant-Based Meat Market?

The enormous growth in the plant-based meat market is primarily due to the increasing prevalence of chronic conditions such as obesity and cardiovascular diseases (CVDs) among people, the increasing adoption of the vegan trend, and the entry of innovative market leaders such as Unilever into this industry. Plant-derived meat products have seen a significant increase in sales in recent years, owing to the health benefits afforded by these products, which include no cholesterol, less saturated fat, and no antibiotics. According to records, the PLANT-BASED FOODS ASSOCIATION saw a 23% increase in sales of plant-based meat products in July 2020, when these items were exhibited in meat stores. Moving forward, global industry giants are formally entering the plant-derived meat business, which may positively impact the global market.

Additionally, the Increasing population and consumer demand for meat products contribute to the over-slaughtering and depletion of animal supplies caused by the increased demand for meat. This is causing sustainability to become an increasingly important purchasing factor among the populace, especially among millennials and GenX. Environmental and animal welfare concerns among consumers are fueling the demand for meat replacements. In addition, tight rules imposed by numerous state and federal governments on the rearing and slaughtering of meat animals contribute to the expansion of the market for plant-based meat. On the demand side, the rising incidence of food-borne diseases, particularly those caused by animal meat and milk products, encourages consumers to seek out healthy plant-based alternatives, hence accelerating the expansion of plant-based meat products.

What are the Challenges for The Global Plant-Based Meat Market?

Plant-based meat products are more expensive than animal-based meat products due to high production and raw material costs, which will limit the expansion of the plant-based meat market. Although companies are attempting to lower the pricing of plant-based meat products, the plant-based sector is being hampered by the high prices of plant-based meat over conventional meat.

What are the Future Opportunities for the Global Plant-Based Meat Market?

Increased government activities to raise awareness about the importance of plant-based meats are expected to drive market expansion and present considerable potential prospects in the future years. For example, in 2018, the Indian Ministry of Health and Family Welfare launched the "Eat Right India" campaign to encourage a sustainable diet rich in plant-based foods to aid in the fight against climate change. This was a significant step because animal agriculture is a major contributor to climate change; agriculture produces over 32,000 million tonnes of CO2 per year and accounts for nearly 18% of global greenhouse gas emissions. These factors are expected to fuel the growth of the plant-based meat products industry and drive market growth in the approaching years.

The growing popularity of the vegan diet among consumers is also a key plant-based meat market trend. Rising awareness regarding the welfare of animals is also helping consumers to shift their focus towards veganism. Consumers prefer a vegan diet as it is rich in fiber and antioxidants and has other beneficial plant compounds. Additionally, it helps improve kidney functions, lower blood sugar levels, as well the risk of heart disease. Furthermore, the increasing vegan population across the world, especially in countries like the U.S., the U.K., etc., will also positively impact the demand for plant-based meat in the market.

Regional Analysis

The global market for Plant-Based Meat has been segmented based on geography into North America, Europe, Asia Pacific, and LAMEA.

In 2021, North America dominated the market and accounted for 38.6% of total sales. Rising consumer awareness of the risks connected with consuming tainted meat products and the rising use of meatless meat products have contributed to the expansion of the industry in this region. As a result of the increased use of plant-based meals, such as plant-based meat, consumers' opinions of the sustainability and safety of food are anticipated to evolve further. In 2020, Starbucks added a breakfast sandwich to the menus of the majority of its U.S. stores. To suit consumer demand, the sandwich incorporates vegetarian sausage.

The European market is predicted to experience the highest growth rate over the forecast period, Due to a favorable consumer attitude toward vegetarian and vegan-meat products and the implementation of tough rules against animal cruelty. Key manufacturers are pursuing strategic initiatives such as capacity development, product innovation, and mergers and acquisitions to grow their sales in the regional market. In June 2020, for example, Beyond Meat announced the expansion of its production capacity in Europe with the acquisition of a new production unit in Enschede, the Netherlands, and the launch of a new co-manufacturing facility with Zandbergen World's Finest Meat in Zoeterwoud, the Netherlands.

The Asia-Pacific plant-based meat market share is anticipated to increase at a CAGR of 18.9%. This expansion is mostly attributable to supporting government policies, rising disposable income throughout Asia, and technical advancements in the food and beverage industry, particularly in China, India, and Japan. Following the adoption of healthier lifestyles, plant-based food items are gaining appeal in Asia-Pacific, prompting consumers to choose natural ingredients. This is anticipated to increase plant-based food sales. In addition, it is anticipated that the demand for plant-based meat products will expand in the coming years due to rising consumer health concerns over animal-based protein sources, ethical concerns, and environmental concerns.

Segmental Analysis

The global market for Plant-Based Meat is categorized by Source, Product, Type, End-user, and Storage.

The market for plant-based meat can be divided into various categories, including pea, wheat, soy, and others, based on the sources from which it is created. Among these, however, the soy sector is the most popular and is anticipated to be the market leader during the projection period. Soy milk and soy chunks are exceptionally nutrient-dense and have a notably lower carbon footprint. These are also quite tasty and contribute to the growth of robust muscular mass in the human body.

On the other hand, peas are anticipated to have the greatest CAGR and become the segment with the quickest growth. Pea is one of the most recent and most well-liked replacements for animal flesh that have become accessible over time. It is rich in important nutrients and relatively simple to cultivate. Vitamin K, C, fiber, and manganese, among others, are essential for human health and can be found in peas. Furthermore, pea patties and other items can easily replace foods containing chicken, pork, and beef. These properties of ease of accessibility and meat-like consistency are anticipated to be significant market growth factors.

Based on Product, The market for this plant-based meat is classified into numerous categories, including burgers, patties, ground, sausages, nuggets, tenders, cutlets, and others. Burgers are anticipated to be the most popular product category and to account for the biggest market share. Burgers are one of the world's most popular foods and are devoured by people in every nation. A substantial quantity of plant-based meat is used to replace the typical animal meat in the burger. Additionally, many businesses have begun serving entirely plant-based burgers.

On the other hand, it is anticipated that the sausage segment will experience the highest growth rate throughout the forecast period. The vegan sausages come in various flavors, including sweet Italian, hot Italian, with pepper, spinach pesto, etc. As one of the most commonly consumed breakfast protein-based foods, sausages are in high demand worldwide. And as more people become aware of the benefits of consuming plant-based meat, the market for these sausages is likely to expand rapidly during the forecast period.

Based on Type, The market for plant-based meat can be segmented into various divisions, such as chicken, beef, pork, and fish. Due to the widespread consumption of chicken as a primary source of animal protein worldwide, this segment is predicted to acquire the greatest market share during the next five years. Chicken is also one of the essential elements in various national cuisines. It is both healthful and delicious. Because of this, plant-based meat is anticipated to outnumber poultry by the greatest margin. Sources like soy and peas provide comparable quantities of nutrients, texture, and consistency after cooking. The ability to easily substitute plant-based meats for chicken is projected to be the most important element in the growth of this market throughout the forecast period.

Based on end-users, the market can be divided into two major segments, hotel/restaurant/café (HORECA) and retail. Despite the fact that the retail segment is expanding rapidly as an increasing number of consumers replace their traditional animal meats with plant-based meats due to rising awareness about the consumption of non-animal foods, the other segment of hotel restaurants and cafes, or HORECA, is anticipated to account for the majority of the global market in terms of revenue and demand. Many restaurants and fast-food businesses serve completely plant-based meat products worldwide, particularly in North America and Europe. In addition, an increasing number of consumers are requesting non-animal vegan items in a range of restaurants and dining establishments, resulting in soaring sales of plant-based meat.

Based on Storage, The market can be classified into refrigerated, shelf-stable, and frozen. During the projected period, the sector of frozen plant-based meat is anticipated to account for the highest share of worldwide sales. This market's quick expansion of the frozen sector is mostly attributable to easy storage and preparation characteristics.

On the other hand, shelf-stable items are also increasing rapidly and are anticipated to be the segment with the highest growth rate over the projected period. Due to the arrival of the pandemic in the year 2020, many customers began purchasing these items in large quantities and storing them due to the temporary closure of shops and stores. This has increased the demand for these shelf-stable plant-based meat alternatives, which is anticipated to continue to rise during the projected period.

Recent Developments

• In January 2022, Beyond Meat (US) partnered with Pizza Hut (Canada) to launch Beyond Italian Sausage Crumble as a permanent menu item to address consumers' growing demand.
• In December 2021, Imperial Tobacco Company of India Limited declared its intention to introduce plant-based meat products to the Indian market.
• In May 2021, Unilever announced that it would collaborate with food technology company ENOUGH to introduce new plant-based meat products. ENOUGH technology utilizes a novel zero-waste fermentation process to cultivate high-quality protein. Wheat and corn feed natural fungi, producing ABUNDA mycoprotein, an essential food element.
• In January 2021, Taco Bell partnered with Gold&Green Pulled Oats to provide a brand-new selection of plant-based fillings for its signature tacos. The new vegetarian option will be ideal for people seeking to eliminate meat from their diets. Additionally, it will provide something novel and delicious to meat eaters.
• In June 2020, Fitday.in announced the launch of a new line of plant-based meat products.