Market Trends of plant protein Industry
Growing flexitarian or vegan population is offering opportunities for manufacturers
- The changing dietary preferences of consumers are evident globally, and the low inclination toward meat-based products is visible among consumers. The percentage of consumers becoming flexitarian or vegan is offering manufacturers opportunities to introduce and innovate more in the plant protein segment. Globally, plant-based protein alternatives have become popular, as they are the most sustainable alternatives to animal-based meat, as well as due to environmental issues, ethical reasons, and health-related concerns. Germany emerged to be one of the global leaders in vegan product development and launches, accounting for 15% of the global vegan introductions between July 2017 and June 2018.
- The increasing number of young population that are indulging in sports and athletic activities, along with the shifting trends in functional ingredients fortification in the food and beverage industry due to rising demand for added health benefits in various food products, is anticipated to boost plant-based protein demand. For instance, with 210,000 clubs and over 184 million members worldwide, this is an increase of 1 million members since 2019.
- Plant proteins are healthy for all age groups, and it also helps in keeping the body fit. A project led by Merit Foods, which became a global supplier of ingredients and plant-based food, helps manufacturers reach markets by meeting the growing consumer demand. Canada's Health Ministry revamped its food guide and released it in January 2019. This new guide has three categories, namely vegetables and fruits, whole grains, and plant-based proteins. The rising awareness about protein benefits increased protein consumption. The health benefits, coupled with increasing demand from various consumer groups, are driving the demand.
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Soy, wheat, and pea production contributes majorly as raw material for plant protein ingredients manufacturers
- Plant protein ingredients from soybeans, rice, and wheat dominate plant protein consumption, thus boosting their production globally. From 2015-16 to 2018-2019, the United States was the leading global producer of soybeans, with a production volume of 120.52 million ton in 2018-2019. As of May 2020, Brazil overtook the United States as the leading soybean-producing country, with a production volume of 138 million ton in 2020-21. China and India together produced 389 million ton, accounting for more than half of the global production in 2021. They are significantly ahead of the counties ranked third and fourth, i.e., Indonesia and Bangladesh, which produced around 54.6 million ton each in the same year.
- Argentina is a significant producer of green peas. The pea production in South America tended to increase through the 1971-2020 period, reaching 167,541 ha in 2020. Accounting for around 7% of global exports, Argentina is the main producer and exporter of wheat in the region. The introduction of new greening measures in some countries like Germany under the Common Agricultural Policy (CAP) was credited in 2015, which drove the production volume of peas.
- Government initiatives in many countries are also catering to the growth of protein seed production. For instance, the Saudi Arabian government is encouraging agricultural companies to invest in foreign countries that have comparative advantages in producing certain crops and re-export their products back to Saudi Arabia. The crops targeted by this initiative include wheat, rice, barley, yellow corn, soybeans, and green forage. The Saudi Arabian government is also providing financial incentives to encourage local investors (companies and individuals) to take part in food security initiatives.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Asia-pacific held major market share
- Healthy trends in beverages impacting market growth
- Hike in the demand for single-serve packets may augment production
- Dairy alternative to witness significant growth
- Meat protein alternatives are revolutionizing the meat segment
- Healthy snacking preference to support market growth
- Growing demand for compound feed
- Growing flexitarian or vegan population is offering opportunities for manufacturers
- Strong hold of the retail sector is supporting market growth
- Growing preference for convenient breakfast options
- Rising at-home consumption and demand for healthy confectionery products
- Growing nutritional concerns for aging populations
- Ready-to-cook and frozen foods witnessed a surge in sales
- Rising health awareness and growing demand from millennials
- Natural ingredients highly driving the segmental sales
