Alternative proteins market to be worth US$36.61 billion by 2029

According to a new market research report titled, Alternative Protein Market by Type (Plant Protein [Soy, Wheat, Pea], Insect Protein [Crickets, BSF], Microbial Protein [Algae Protein, Bacterial Proteins]), Application (Food & Beverages, Animal Feed and Pet Food, Nutraceuticals) – Global Forecast to 2029, the global alternative proteins market is expected to grow at a CAGR of 12.4% from 2022–2029 to reach US$36.61 billion by 2029.

A major shift in the consumer behavior of the global market has led to an interest in alternative protein sources, such as plant-based, insect-based, and microbial-based proteins. Also, a growing number of people are turning to more environment-friendly products. The demand for alternative proteins is mainly fueled by the perception that these proteins are healthier and more environmentally friendly than animal-derived proteins.

In response to the growing demands from health-conscious consumers, the global trend in food industries is to translate nutritional information into consumer reality by developing food products using alternative protein ingredients that provide superior sensory appeal and nutritional and health benefits. As a result, there has been an increased global demand for alternative proteins. In addition, factors including the potential of insect, microbial, and plant proteins, the emerging economies such as South East Asia, Latin America, and the Middle East & Africa, and the increasing inclination towards vegan diet are expected to provide significant growth opportunities for protein ingredient manufacturers.

The alternative proteins market is segmented based on type, application, and geography. The study also evaluates industry competitors and analyses the market at the country level.

Covid-19 provided a surge in sales of alternative protein-based products, which proved beneficial for all stakeholders in the space.

In 2021, retail plant-based food sales in the USA surpassed US$7 billion, an increase of 27% from 2019. As of March 2021, according to ProVeg International, the European vegan market grew by 49%, reaching €3.6 billion in sales. As of May 2020, Green Monday’s online sales doubled in the past two months. Among the most popular purchases was a pork substitute called 'Omnipork'. In April 2020, Eat Just sales of its JUST Egg product on e-commerce platforms – JD.com and Tmall – surged 30% since the Covid-19 outbreak. As of May 2020, California Farms grocery sales increased by 50% compared to 2019. An upsurge in sales was mainly attributed to increased oat milk sales and nutritional plant-based butter. In April 2020, US retail sales of fresh plant-based meat grew 279.8% on 14 March, topping a 206.4% jump the week before. Also, oat milk sales grew 476.7% on 14 March, while dairy milk sales grew 32.4%.

Based on type, the alternative proteins market is segmented into plant proteins, insect proteins, and microbial proteins. In 2022, the plant proteins segment is estimated to account for the largest share of the overall alternative proteins market. The large share of this segment is mainly attributed to the growing demand from food and beverage manufacturers, the increasing vegan population, the rising number of plant-based product launches, and the large presence of plant protein manufacturers. However, the insect proteins segment is expected to grow at the highest CAGR during the forecast period of 2022–2029.

Based on application, the alternative proteins market is mainly segmented into plant protein-based applications, insect protein-based applications, and microbial protein-based applications. In 2022, the plant protein-based applications segment is estimated to account for the largest share of the alternative proteins market. However, the insect protein-based applications segment is expected to record a CAGR during the forecast period. The rapid growth of this segment is attributed to the high nutritional value of insects, the increasing demand for novel food products, and the increasing acceptance amongst consumers towards the consumption of insect protein.

In 2022, North America is estimated to account for the largest share of the alternative proteins market. The prominent position of North America in the alternative proteins market is attributed to the increasing focus on producing protein using sustainable methods due to the rising environmental concerns and ethical aspects associated with animal proteins, the increasing vegan population, the rising number of investments in alternative protein products, the increasing demand for healthy and nutritional products, and technological advancements in the food industry. However, Asia-Pacific is expected to record the highest CAGR during the forecast period. The high growth of this regional market is mainly attributed to the increasing vegetarian and vegan population, wide availability of raw materials, and increasing technological advancements in the food and beverages industry.

The report can be purchased here