Market Trends of South America Meat Substitute Industry
Emerging Vegetarian Diet Culture
- In the past decade, the vegan population has been growing
- steadily owing to the rising awareness regarding healthy and sustainable foods, which increases the demand for plant-based meat alternatives in the market studied. With changing lifestyles, the need for plant-based foods also increased due to the growing awareness about the benefits of a vegetarian diet.
- Implementing a vegetarian diet can reduce the risk of several diseases. Plant-based meat can help reduce the risk of cancer and lower cholesterol. Most vegetarians include middle- or upper-class urban dwellers from the country's central and southern parts.
- A vegetarian diet can positively affect the environment, one of the significant reasons for boosting the region's per capita spending on meat substitutes. According to an online study by Mapa Veg in September 2022, Sao Paulo had the most significant percentage of self-described vegetarians, vegans, and supporters in Brazil, with more than 4.2 thousand respondents. With around 2000 inhabitants, Rio de Janeiro had the second-largest population.
Textured Vegetable Protein as the Largest Segment
Textured Vegetable Protein (TVP) is also known as soy protein, a soy flour product. It holds a major share of the meat substitute market. It is used in many meat products such as burger patties, frankfurters, nuggets, sausages, and meatballs. The major features of textured vegetable protein are to provide the desired quality, texture, binding ability, and the appropriate amount of chewiness. It has an elastic and spongy texture that makes it suitable for products such as patties, sauces, and stews.
There are mainly two types of TVPs: wheat-based TVP and soy-based TVP. Due to the increase in the demand for such sources, the production of wheat and soy has been increasing in the Latin American regions.
For example, according to the Brazilian Institute of Geography and Statistics, in terms of value, soybeans were Brazil's most significant crop in 2021, accounting for 46% of the nation's agricultural output. The country's soybean production was 138.15 million metric tons in 2020/21, according to CONAB, which was higher than the production in the previous year.
Furthermore, TVPs are a blend of soy isolates and soy concentrates or wheat gluten and wheat protein. Wheat-based TVP is lighter in color, while soy-based is darker. The lighter is used for substitutes such as meats like pork and turkey, and the darker is used as a substitute for red meat. Thus, the consumers get both taste and protein while using TVP, which is one of the major reasons for its demand growth.
