Plant-Based Proteins Market Definition

The plant-based proteins market consists of sales of proteins by entities (organizations, sole traders, and partnerships) that are derived from plant-based sources at the end product manufacturing level. Plant-based proteins are becoming more popular alternatives to meat substitutes because not only are they are highly nutritious and include nutrients such as fibre, vitamins, and minerals in addition to proteins, but also there are growing environmental pressures around livestock farming.

The main types of plant-based proteins are isolates, concentrates and textured. Plant-based protein isolates are consumed in an isolated form after being chemically extracted into a powder from the whole food. Such protein isolate is almost entirely isolated amino acids, with little fat, fiber, or other substances. These are digested more slowly and are typically less allergenic than other protein sources . Plant protein concentrates include corn gluten, wheat gluten and less abundant protein concentrates such as soy protein concentrate, pea protein concentrate, potato protein concentrate and rapeseed protein concentrate. Texturized vegetable protein (TVP) is a highly processed vegan meat substitute developed by food conglomerate Archer Daniels Midland. It is made by taking soy flour, a byproduct of soy oil production and removing the fat using solvents. The end result is a high-protein, low-fat product. Plant-based proteins are derived from various sources such as soy, wheat, pea, others and are available in both dry and liquid forms. It is used in feed, food and other applications.

Plant-Based Proteins Market Size

The global plant-based proteins market size reached a value of nearly $27,706.7 million in 2021, having increased at a compound annual growth rate (CAGR) of 14.6% since 2016. The global plant-based proteins market size is expected to grow from $27,706.7 million in 2021 to $77,159.9 million in 2026 at a rate of 22.7%. The global plant-based proteins market size is then expected to grow at a CAGR of 15.3% from 2026 and reach $156,953.8 million in 2031.  

Growth in the historic period in the plant-based proteins market resulted from the rise in disposable income, influence of digital media marketing and social media, growing number of health-conscious consumers, rising awareness associated with benefits of plant-based protein food products, rising demand for health-enriching foods. The market was restrained by talent crunch and low shelf life of plant-based protein products.

Going forward, the COVID-19 pandemic increased demand for plant-based proteins, government initiatives towards plant-based protein, change in preference of consumers for meat alternatives, rising penetration of organized retail, demographic shifts in emerging markets and rising population will drive the growth in the plant-based proteins market. Factors that could hinder the growth of the market in the future include intense competition, challenges in consistency and stringent regulations.

Plant-Based Proteins Market Drivers

Government Initiatives Towards Plant-Based Protein

The plant-based protein market growth is supported by government initiatives to recognize the nutritional need for suitable alternatives for animal-based food in public health schemes. Plant-based protein food allows vegan children to receive the best care, including balanced food. For instance, in June 2021, the Indian government along with The Good Food Institute (GFI) India created a new project to promote innovation in plant-based and cultivated foods named as “India Smart Protein Innovation Challenge” which is open to all students, researchers, and entrepreneurs, and will give participants a chance to receive support, investment or promotion from industry leaders. Additionally, in June 2021, the Japanese government proposed the use of meat alternatives to reduce carbon emissions and make an effort to achieve a decarbonized society by 2050. These initiatives are expected to boost the demand for plant-based protein in the forecast period.

Plant-Based Proteins Market Restraints

Intense Competition

High competition arising due to differences in pricing and product portfolio along with new entrants in the market during the forecast period is restricting the growth of the plant-based protein market. To increase the customer base as well as boost revenues, existing market players are offering a wider range of options at competitive prices. Moreover, the price war is expected to be the result of the increase in competition across the market. The price war can result in lower revenues and profit margins as it affects the sale of companies. This situation will also show the negative impact on the funding available for research and development projects, resulting in limiting new product launches, thereby having a negative impact on market growth.

Plant-Based Proteins Market Trends

Increasing Innovation For Plant-Based Milk Among People

Increasing Emphasis on Employees Mental Health

There is an increase in demand for plant-based milk as it is having more protein contains as compared to regular milk as people have become more health conscious and are looking to consume less diary and replace it with healthier alternatives. This increasing demand for the product is driving innovation across the plant-based protein market to offer unique products with enhanced quality. For instance, In January 2021, Danone SA subsidiary Danone North America has introduced a new multi-serve beverage namely, ‘silk ultra’ containing plant-based protein. The focused audience for the product is mostly athletes and fitness enthusiasts. The product is comprised of a total of 20gm of plant-based protein per serving. Silk Ultra can be used with coffee as well as other milk applications leading to its increasing utilization. Coconut milk or almond milk blended with pea protein is also another example of plant-based protein with increasing demand across the market.

Expanding Operations And Product Lines

As highlighted by the Plant-Based Foods Association’s (PBFA) recent report in 2020, the market for a plant-based frozen meals have grown by 29% from 2019-2020 wherein the market for the frozen food category has only shown the growth of overall 8%. The increased market-rate shows the growing demand by people for convenient, heat-and-eat meals. Some of the popular frozen meals in plant-based options that are supposed to increase the demand include burritos, pizzas, and kinds of pasta. For instance, in June 2021, Mosaic Foods, a leading American frozen plant-based food provider opened new offices on the west coast aiming to bring its frozen food line to the consumers in cities such as Los Angeles, Seattle, San Francisco, etc. Additionally, in Nov 2021, Mosaic Foods raised the funding of about $6 million through Gather Ventures. The company is planning to use this capital to launch new frozen meals directly to the consumers

Opportunities And Recommendations In The Plant-Based Proteins Market

Opportunities –The top opportunities in the plant-based proteins market segmented by type will arise in the concentrates segment, which will gain $22,563.3 million of global annual sales by 2026. The top opportunities in the plant-based proteins market segmented by application will arise in the feed segment, which will gain $20,793.2 million of global annual sales by 2026. The top opportunities in the plant-based proteins market segmented by source will arise in the soy segment, which will gain $26,827.2 million of global annual sales by 2026. The top opportunities in the plant-based proteins market segmented by form will arise in the dry segment, which will gain $32,004.9 million of global annual sales by 2026.

Recommendations –To take advantage of the opportunities, The Business Research Company recommends the plant-based protein companies to focus on expanding operations and product lines, focus on health-enriching foods, focus on collaborations and partnerships, focus on emerging markets, continue to expand in developed markets, scale up through merger and acquisition activity, offer competitive pricing, focus on market-based pricing, participate in conferences and events, leverage social media to maximize reach, increase focus on vegan and vegetarian population and focus on younger population.

Plant-Based Proteins Market Segmentation

The plant-based proteins market is segmented by type, by application, by source, by form
By Type –
The plant-based proteins market is segmented by type into

• a) Isolates
• b) Concentrates
• c) Textured

The concentrates market was the largest segment of the plant-based proteins market segmented by type, accounting for 46.7% of the total in 2021. Going forward, the isolates segment is expected to be the fastest growing segment in the plant-based proteins market segmented by type, at a CAGR of 24.3% during 2021-2026.
By Application–
The plant-based proteins market is segmented by application

• a) Feed
• b) Food
• c) Beverage
• d) Others

The feed market was the largest segment of the plant-based proteins market segmented by application, accounting for 45.6% of the total in 2021. Going forward, the beverages segment is expected to be the fastest growing segment in the plant-based proteins market segmented by application, at a CAGR of 24.8% during 2021-2026.
By Source –
The plant-based proteins market is segmented by source

• a) Soy
• b) Wheat
• c) Pea
• d) Other

The soy market was the largest segment of the plant-based proteins market segmented by source, accounting for 58.0% of the total in 2021. Going forward, the pea segment is expected to be the fastest growing segment in the plant-based proteins market segmented by source, at a CAGR of 24.9% during 2021-2026.
By Form –
The plant-based proteins market is segmented by form

• a) Dry
• b) Liquid

The dry market was the largest segment of the plant-based proteins market segmented by form, accounting for 70.9% of the total in 2021. Going forward, the liquid segment is expected to be the fastest growing segment in the plant-based proteins market segmented by form, at a CAGR of 25.9% during 2021-2026.
By Geography- The plant-based proteins market is segmented by geography into

• o Asia Pacific
  • •  China
  • •  Japan
  • •  India
  • •  Australia
  • •  Indonesia
  • •  South Korea
o North America
• • USA
o South America
• • Brazil 
o Western Europe
• • UK 
• • Germany 
• • France 
o Eastern Europe
• • Russia 
o Middle East
o Africa

North America was the largest region in the global plant-based proteins market, accounting for 37.8% of the total in 2021. It was followed by the Western Europe, Asia Pacific and then the other regions. Going forward, the fastest-growing regions in the global plant-based proteins market will be Western Europe, and North America where growth will be at CAGRs of 24.1% and 23.8% respectively. These will be followed by Asia Pacific, and South America, where the markets are expected to register CAGRs of 23.3% and 18.2% respectively.

Plant-Based Proteins Market Competitive Landscape

Major Competitors are:

Archer Daniels Midland Company

Ingredion Incorporated

Roquette Frères Le Romain

Dupont De Nemours, Inc

Wilmar International

Other Competitors Include:

Goodmylk

Proeon

ET Chem

Shandong Jianyuan Group

Beyond Burgers

Next Meats Co

Burcon Nutrascience Crop

Royal DSM N.V

Nestlé

Hero Protein

Goldand Green Foods

Royal DMS Corporation

Glanbia Nutritionals

Emsland Group

COSUCRA

BENEO

Prolupin

Aminola

Oaklins Germany

Green Wise

Welldone

Salconserv

Latraps

Vaks

Sbfoodinno

The Green Labs LLC

Parabel Burcon Nutrascience Corporation

E. I. Du Pont De Nemours And Company

Archer Daniels Midland Company

Kerry Group

Axiom Foods

Cargill

Roquette Frères

Ingredion Incorporated Glanbia Plc

JBS S. A

Alimentos Magros S.A

San Javier Caprinos S.R. L

Rolly Beef S A

Alimentaria La Pompeya

Frigorifico Cagnoli S. A

Compañía Avicola

Frigorco Pampeano

La Cooperativa Trento Chaqueña

Noelma

Frigorico Calchaqui

Frigorico Penta

Frigorífico Ciribé

Grupo Motta

Lorenzo J. Amaya E Hijos

El Cuyum Andino

Expoalimentaria Peru

R&S Blumos

Notco

The New Butchers

Aleph Farms

Gulf Business

Barentz

The Vegan Shop