Published on: January 17, 2020
Plant-based meat products are produced using plant ingredients, such as pea protein, soy protein, and wheat protein. They are usually combined with other plant-based ingredients to mimic the taste and texture of meat products. In terms of calorie content, plant-based meat products are healthier than animal meat products. The global plant-based meat market is a part of the overall packaged foods and meat market, which covers companies that manufacture packaged foods and also produce dairy products, fruit juices, meats, poultry, fish, and pet foods.
Our report encompasses a holistic analysis, market size and forecast, trends, growth drivers, challenges, as well as vendor analysis. The plant-based meat market is estimated to grow at a CAGR of more than 15% till 2024. Based on product type, the plant-based beef segment dominates the market with approximately 45% market share, but plant-based chicken is expected to have the highest growth rate during the forecast period.
Global plant-based meat market can be segmented into the following:
Many factors are expected to drive growth in the plant-based meat market during the forecast period. Our analysis identifies the following factors to be driving the growth of plant-based meat market:
The demand for plant-based meat products is growing among consumers, owing to their increasing health consciousness and concerns about the environment. Animal meat production is responsible for the emission of significant amounts of greenhouse gases. For instance, for every gram of beef produced, 221 grams of carbon dioxide are emitted. To meet the growing demand for plant-based meat products across the globe, vendors are launching new products. Successful new product launches help to increase the revenue stream and market presence of vendors.
Increasing investments by vendors can influence the growth of the global plant-based meat market positively during the forecast period. Vendors are investing in product innovations and expanding their production and distribution capabilities. Large companies are also investing in small companies that are engaged in the development of innovative technologies. For instance, V2 Food, an Australian start-up that produces plant-based meat products, announced that it raised $35 million in a Series A funding. The company announced its plan of using the capital for R&D and in building a new production facility in Australia.
With the rising number of people following the vegan lifestyle, the demand for plant-based meat products is increasing. Veganism is a way of life that excludes all forms of animal exploitation and cruelty for producing products such as food and clothing. The vegan diet is rich in fiber, antioxidants, and beneficial plant nutrients. It also helps to improve kidney functions, lower blood sugar levels, and lower the risk of heart diseases. The number of people who follow the vegan lifestyle is expected to increase during the forecast period in countries such as the US and China. The vegan population in Germany increased by about 44% between 2014 and 2017. In the UK, around 1% of the total population followed the vegan lifestyle in 2019, and the number is expected to increase during the forecast period.
Meanwhile, the vendors operating in the market face numerous challenges in increasing their sales and improving profitability. Some of those challenges are:
The increasing consumption of animal meat can hinder the growth of the global plant-based meat market during the forecast period. The consumption of animal meat and related products is expected to increase during the forecast period, owing to the growing population, increasing disposable income, and the rising demand for protein-rich food products. The consumption of meats such as pork, beef, and chicken are increasing in several countries, such as the US, China, India, and Russia.
The development of cell-based meat products is one of the challenges that can impede the growth of the market during the forecast period. Increasing investments and product launches in the cell-based meat market can further challenge the growth of the global plant-based meat market. For instance, the state of Maharashtra in India and the Institute of Chemical Technology signed an agreement with the Good Food Institute (GFI) to set up the Centre for Excellence in Cellular Agriculture. GFI plans to offer taste tests of lab-grown meat from the samples of animal tissues by 2020. Thus, the increasing competition from cell-based meat products can negatively influence the growth of the global plant-based meat market.
Stringent regulations related to the labeling of products and other factors such as the entry of new players, the introduction of new products, and product quality can impede the growth of the global plant-based meat market. Governing bodies in various countries lay down different sets of regulations. It is difficult for vendors that have a presence in multiple countries to adhere to the different sets of regulations prevalent in various countries. Regulations related to the labeling of plant-based meat products are one of the main challenges faced by vendors operating in the market in focus. Bills have been introduced in 25 US states and are already passed in states such as Mississippi, Oklahoma, Arkansas, Missouri, Montana, South Carolina, North Dakota, and South Dakota to prevent plant-based and cell-cultured products from being labeled as meat products. In April 2019, the European Parliament proposed an amendment to the European Union’s Common Agricultural Policy, which approved a ban on the producers of vegetarian food from using a nomenclature that is otherwise used to describe meat. Thus, stringent regulations pertaining particularly to the labeling of plant-based products will hinder the growth of the global plant-based meat market during the forecast period.
Some of the trends that are expected to influence the market during the forecast period are listed below:
The increasing number of mergers and acquisitions and strategic partnerships between vendors is one of the positive trends that can influence the growth of the global plant-based meat market during the forecast period. M&A allows companies to expand into new markets, gain a competitive edge over their competitors, and acquire new technologies and skillsets. For instance, Beyond Meat formed a strategic partnership with Zandbergen to produce its plant-based products in Europe. The products will be produced at a new manufacturing facility that is constructed by Zandbergen in Zoeterwoude, the Netherlands.
The increasing prominence of private label brands is another positive trend that can influence the growth of the global plant-based meat market. Private label products are manufactured and sold by retailers. Major retailers across the globe are coming with their own brands of plant-based meat products after realizing the growth potential of plant-based meat products. The private label product segment grew in terms of scope and size over the past decade. Unlike branded products, private label products are available at a lower price. Thus, price-sensitive customers are more likely to purchase private label products.
The endorsement of plant-based meat products by various celebrities can influence the growth of the global plant-based meat market during the forecast period. Celebrities have a significant fan base, and the endorsement of plant-based meat products by various celebrities helps in increasing the popularity of these products among their fans. In addition to endorsements, many celebrities have started investing in plant-based meat companies, such as Beyond Meat and Impossible Foods. While Beyond Meat has received investments from celebrities such as Kyrie Irving, Shaquille O’Neil, and Chris Paul, Impossible Foods has received investments from celebrities such as Jay-Z, Trevor Noah, Katy Perry, and Serena Williams.
Our report on the global plant-based meat market covers several large and small vendors active in the market including Beyond Meat Inc., Gathered Foods Corp., Impossible Foods Inc., Maple Leaf Foods Inc., and The Kraft Heinz Co.
The following are some of the key developments mentioned in our global plant-based meat market report:
Backed with competitive intelligence and benchmarking, our plant-based meat market research report is designed to provide entry support, customer and M&A assessment, as well as go-to-market strategy support.
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