The global food industry is undergoing a profound transformation, with plant-based meat emerging as a leading trend. According to a study by Facts and Factors, the global plant-based meat market was valued at approximately USD 7.5 billion in 2021, and it’s predicted to reach around USD 15.8 billion by 2028, with a compound annual growth rate (CAGR) of approximately 15% between 2022 and 2028.
This remarkable growth is indicative of a significant shift in consumer preferences towards healthier and more sustainable eating habits.
Plant-Based Meat: A Brief Overview
Plant-based meat products are crafted solely from vegetables or plants and do not contain any animal-derived ingredients. These products are at the forefront of the global vegan movement, which is gaining momentum worldwide. A growing segment of society is seeking purely plant-based alternatives due to concerns about the potential side effects associated with animal-based dairy products. Traditional dairy products have faced declining popularity, partly due to concerns about their long-term impact on human health.
For instance, women with conditions such as Polycystic Ovary Syndrome (PCOS) or severe acne are often advised to avoid animal-based dairy products due to their potential to exacerbate these conditions by causing hormonal changes.
As a result, healthier substitutes like coconut milk, soy milk, hemp seeds, and dairy-free yogurt have gained popularity. These products offer benefits such as lower calorie counts, reduced fat content, lower sugar levels, and higher protein content, contributing to the global market’s growing appeal.
Key Insights from the Plant-Based Meat Market:
- Impressive Growth Trajectory: The global plant-based meat market is anticipated to grow at an annual CAGR of approximately 15% from 2022 to 2028. In 2021, the market was valued at around USD 7.5 billion and is projected to reach USD 15.8 billion by 2028.
- Chicken Takes the Lead: Among various plant-based meat types, chicken was the dominant choice in 2021, showcasing its potential to capture market share.
- Burgers Lead the Way: In terms of product segmentation, plant-based burgers led the way in revenue generation in 2021.
- North America Leads Regionally: North America emerged as the leading revenue generator in 2021, driven by high awareness and the disposable income of its population.
Factors Driving Growth
The growth of the global plant-based meat market can be attributed to several key factors:
- Health Concerns: Increasing debates and concerns about the potential long-term health effects of consuming meat have led to a shift toward plant-based alternatives. Studies have linked long-term red meat consumption to cardiovascular diseases, higher mortality rates, type 2 diabetes, and certain cancers, driving consumers to seek healthier options.
- Environmental Impact: Growing awareness of the environmental impact of meat production, including greenhouse gas emissions and deforestation, has encouraged many individuals to choose plant-based alternatives.
Challenges Ahead
While the plant-based meat market is poised for growth, it faces some challenges:
- Labelling Concerns: Debates over the labelling of plant-based meat have arisen, with regulatory bodies questioning whether these products can be called “meat.” Such concerns may impact the market’s growth.
- Premium Pricing: Plant-based meat products are often priced at a premium compared to their animal-based counterparts due to due to various factors such as government meat subsidies and higher production costs, making them less affordable for some consumers.
Opportunities for Expansion
The market’s expansion is also driven by opportunities such as:
- Increasing Market Players: The rise in the number of companies producing plant-based meat reflects the growing interest in this market. Mergers, acquisitions, collaborations, and joint ventures are facilitating further growth.
In conclusion, the global plant-based meat market is undergoing a significant transformation driven by health consciousness, environmental concerns, and shifting consumer preferences. As the market continues to expand, it offers both challenges and opportunities for producers and consumers alike. It’s clear that the plant-based revolution is here to stay, reshaping the way we approach food consumption and sustainability.
