Plant-Based Meat Market

SKU: DMFB1555 | Last Updated On: Aug 18 2022 | Available Formats

> Plant-Based Meat Market Expected to reach a high CAGR of 19.1% By 2029: DataM Intelligence

Plant-based Meat Market is segmented by Source (Soy, Wheat, Pea, Quinoa, Oats, Beans, Nuts), by Product (Burger Patties, Sausages, Strips & Nuggets, Meatballs), by Type (Pork, Beef, Chicken, Fish), Process, and Region, and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029

Plant-based Meat Market Demand Growth Trends Insights

The plant-based meat market is valued at USD XX million in 2020 and is forecasted to reach USD XX million by 2028, growing at a CAGR of 19.1% during the forecast period (2022-2029). Plant-based meat is a meat substitute derived from plant and other non-animal products to mimic natural meat in flavor, texture, and all other properties. These products are majorly designed to be used as an effective alternative to chicken meat, pork, and beef. These plant-based meat products are considered a sustainable solution to environmental concerns. Retail stores across the western countries are focusing on the sale of these products to cater to the demand from the growing vegan and vegetarian population.

Increasing consumer notice of plant-based diets, coupled with the increasing awareness of animal rights over numerous welfare organizations is anticipated to drive the plant-based meat market. The market is seeing substantial growth owing to the rising flexitarian and vegan population throughout the globe, increasing consciousness about the health benefits obtainable by plant-based meat over animal meat, and development in government creativities along with major investments are driving the global plant-based meat market. The European plant-based meat market is going to control the global market, owing to new product advances in the region, supported by proper research and development services offered in the European region.

Expense is one of the key restraining issues in the plant-based meat market. Plant-based meat is uneconomical when compared to animal-based meat, which is probable to influence its development in cost-sensitive markets such as China, India, and South Africa.

Market Dynamics

Growing demand for meat coupled with a rising population

The growing demand for meat coupled with rising population and consumer preferences towards meat products is resulting in over-slaughtering and depletion of animal sources. This is resulting in the evolution of sustainability as a key purchasing factor among the population, particularly among millennials and GenX. Consumer concern toward the environment and animal welfare are driving the demand for meat substitutes. Furthermore, stringent regulations laid by several state and federal governments towards raising and slaughtering meat animals are boosting the growth of the plant-based meat market. On the demand side, the growing outbreak of food-borne diseases particularly due to animal meat and milk products is motivating consumers towards healthy plant-based alternatives, thus boosting the growth of plant-based meat products.

The growth of the market is also attributable to the health benefits associated with plant-derived diets. The growing trend of veganism and vegetarianism is providing immense growth potential to the market in the future. The total number of vegans worldwide in 2021 amounts to about 79 million. About 9.7 million people follow a vegetarian-based diet in the US. Israel has the largest concentration of vegans in the world. However, the GM issues associated with plants are the primary factor hindering the growth of the plant-based meat market.

Plant-based Meat Market Scope

Report Metrics

Details

Market CAGR (2022-2028)

19.1%

Highest Share

North Amerca Plant-Based Meat Market

Segments Covered in the market report

By Source, By Product, By Type, By Region

Major Regions Classified in the global market

North America, Europe, Asia Pacific, Latin America, Middle East, and Africa

Key Companies Covered in the Global Market Report


Conagra Brands, Inc., Beyond Meat, Impossible Foods Inc., Tofurky, VBites Foods Limited, and MorningStar Farms

Market Segmentation

The burger is the largest segment of the market owing to the established consumer base for burgers across the globe

The plant-based burgers segment led the market and accounted for more than a YY% share of the global revenue in 2020. Ingredients in these burgers strive to imitate the aroma, flavor, and texture of meat. Impossible Foods’ product, Impossible Burger, is made with a genetically modified form, mimicking the natural heme-iron present in an animal, which gives their burger a distinctive meaty flavor. Kellogg NA Co., Quorn, Amy’s Kitchen, Inc., and Beyond Meat are some of the companies offering distinguished plant-based burgers.

With a share of over 30%, soy evolved as the major plant source of meat owing to a wide range of applications for soy-based meat in the preparation of sausages, burgers, and meatballs. Wheat, oats, pea, and beans are also holding a significant share of the market. The growing production of soy across the globe is also attributed to the growth of the soy-based meat market. According to The United States Department of Agriculture, soybean production for 2020 totaled 4.14 billion bushels, up 16% from 2019.

Beyond Meat uses pea protein for producing meat alternatives, lending a chewy, meat-like texture to their products. Beyond Meat’s veggie burger consists of pea as one of the key ingredients. The company is joined by Lightlife Foods, which, in 2019, expanded its plant-based meat product offerings with the launch of a veggie burger with pea as one of the key ingredients. By distribution channel, indirect sales hold the major share in terms of value owing to the rising retail channel in developing countries. The indirect channel includes sales through supermarkets, hypermarkets, and specialty food stores.

Geographical Penetration

Europe is expected to dominate the global plant-based meat market during the forecast period

The European market accounted for the largest share in 2020. In Europe, the growing vegan trend, especially in the UK, is expected to increase the demand for plant-based meat products. Key manufacturers are implementing strategic initiatives, such as capacity expansion, product innovation, and mergers & acquisitions, to increase their sales in the regional market. For instance, in June 2020, Beyond Meat announced the expansion of its production capacity in Europe by acquiring a new production unit in Enschede, the Netherlands; and by opening a new co-manufacturing facility with Zandbergen World’s Finest Meat in Zoeterwoude, the Netherlands.

On the other hand, North America is the hub for the plant-based meat market, as the region is backed by start-ups such as Impossible Foods Inc. (US) and Beyond Meat (US); which initiated the development of plant-based meat products. Plant-based food products in the Asia Pacific are gaining popularity owing to the adaptation of healthy lifestyles, urging consumers to opt for natural ingredients. This is expected to boost sales of plant-based meat. Furthermore, the demand for plant-based meat products is expected to increase in the coming years, owing to the growing health concerns among consumers related to animal-based protein sources, ethical concerns, and environmental concerns.

Competitive Landscape

The global plant-based meat market is highly competitive with a large number of global players focusing on expanding business operations in the high potential plant-based meat market. Some of the key players in the market are Conagra Brands, Inc., Beyond Meat, Impossible Foods Inc., Tofurky, VBites Foods Limited, and MorningStar Farms. Companies are involved in product launches and new geographic penetrations to enhance their business operations. The market became further competitive by the footprints of Asian companies such as GoodDot (India) and Whole Perfect Foods Co., Ltd. (China) and retail companies entering the market. The companies in the market are leveraging on new product launches to increase their market share. For example, in February 2020, Gold&Green Foods Ltd. launched its product, Pulled Oats, in the U.S. foodservice industry via Sysco, a marketer and distributor of food products to healthcare & educational facilities, and restaurants.

  1. In September 2020, Beyond Meat rolled out its new product, Beyond Meatballs, which will start being available in grocery stores across the US. This product will fulfill the consumer demand for nutritious and easy-to-prepare products made from plant-based ingredients.
  2. In August 2020, Beyond Meat launched a new e-commerce site to make its plant-based meat products more accessible to consumers. The website will give consumers easy access to the vast portfolio of plant-based meat products and will make it more convenient for them to experience Beyond Meat.
  3. In August 2020, The Kellog Co. invested USD 45 million to expand a manufacturing plant of Morningstar Farm in Ohio. The investment will include USD 25 million in upgraded equipment and USD 18 million in capacity expansion. This expansion will be dedicated to the company’s plant-based product range.

COVID-19 Impact: The pandemic had a positive impact on the plant-based meat market

As consumers became more health-conscious during the pandemic, the demand for plant-based meats increased. With the ongoing pandemic of COVID-19, which is suspected to be originated from animals, the shift of consumers from meat products to plant-based meat is inevitable. The conventional meat industry in the U.S. is in a tailspin. Owing to the risk of infection and country-wise serious lockdown, then the meatpacking plants in the U.S. are closed. This closure has led to a reduction in more than 25% of meat production and disruption in the food supply. Plant-based meat producers such as Tyson Foods have announced to take advantage of such a gap in the food supply chain across the country.

Moreover, the U.S.-based plant-based meat giants, Beyond Meats, and Impossible Foods have taken steps to increase their retail footprint. Startups focusing on plant-based protein — such as Plantable Foods, Rebellyous Foods, Livekindly, and InnovoPro — have continued securing millions in funding amid the pandemic. Demand for vegan meat has soared, with retail sales of plant-based meat alternatives reaching $7B in 2020 — an increase of 27% from 2019, according to one report.

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