The global meat substitute market size was valued at USD 5.41 billion in 2021. The market is anticipated to surge from USD 5.88 billion in 2022 to USD 12.30 billion by 2029 at an 11.11% CAGR during the forecast period. Fortune Business Insights™ has deep-dived these inputs in its latest research report, titled, “Meat Substitute Market, 2022-2029.”
According to the study, plant-based products have become sought-after in minimizing the issues of dependence on livestock production for meat products. Clean meat substitute will gain further traction with the rising trend of vegan and vegetarian diets. Environment-friendly food products will continue to be sought globally. The Economist asserted that the number of vegans in the U.S. rose from 0.4% to 3.5% in 2021.
While the influence of the COVID-19 pandemic triggered food insecurity, industry players exhibited profound traction for clean meat products. The outbreak disrupted the supply chain of pea and soy and had a notable influence on processed food manufacturing. Meanwhile, the rising footprint of the e-commerce industry augured well for the industry outlook—growing preference for online stores amidst the pandemic prompted investments across emerging and advanced economies. In a bid to boost customer purchasing experience, companies shifted their attention toward e-commerce sites.
Soy-based Ingredients to Remain Dominant with Growing Demand from Vegan Population
With respect to source, the market is segregated into wheat-based ingredients, soy-based ingredients, other grain-based ingredients, and textured vegetable proteins. The soy-based ingredients segment could remain dominant due to growing traction among the vegan and vegetarian population. Moreover, the soaring popularity of tofu and tempeh across North America and Europe will boost ingredient adoption.
Mass Merchandiser to Grow with Easy Product Availability
With respect to distribution channel, the market is segmented into other retail channels, mass merchandisers, online retail, specialty stores, and food service. The mass merchandisers segment will exhibit notable growth due to easy availability and prevalence of discounts.
The report provides a holistic view of the market size, share, revenue, and volume. It has deep-dived into SWOT analysis. Moreover, qualitative and quantitative assessments have provided a holistic view of the market. The primary interviews validate assumptions, findings, and the prevailing business scenarios. The report also includes secondary resources such as annual reports, press releases, white papers, and journals. The research report also delves into pre and post-COVID-19 analysis to provide a comprehensive perspective of the market.
Drivers and Restraints
Advanced Form of Packaging Design to Reinforce Growth Potentials
Developed and developing countries have exhibited an increased inclination for clean products with carbon labeling. Of late, millennials and Gen Z populations have shown traction for advanced packaging with respect to environmental impact. Growing preference from health-conscious consumers could foster meat substitute market share during the forecast period. Besides, escalating risk of cardiovascular disease, diabetes, and cancer due to consumption of red meat will further encourage the consumption of plant-based protein foods. However, difficulty in mirroring the meat color and challenges with respect to manufacturing meat flavor could dent the market growth.
Stakeholders Invest in Mergers & Acquisitions to Boost Portfolios
Major companies could invest in product launches, mergers & acquisitions, and technological advancements to bolster footprint. Besides, an influx of funds into R&D activities will encourage well-established players and new entrants to propel their portfolios.
Europe to Gain Prominence from Soy-based Ingredients
Stakeholders anticipate Europe to witness investments abound with the rising trend for soy-based ingredients and wheat-based ingredients. With a notable shift toward a sustainable trend, plant-based products will be sought across the U.K., France, Germany, and Italy. The growing trend for gluten-free and vegan diets will bode well for regional growth.
The Asia Pacific meat substitute market growth will be pronounced with rising emphasis on the vegan population. Moreover, consumers have spurred investments in high-quality, nutritious, and protein-rich food products. With the growing focus on sustainability, hotels and restaurants could invest in plant-based products.
North America could contribute notably toward the global market share due to the soaring popularity of vegan meat burgers and sausage. Manufacturers of meat substitute are likely to inject funds into nutritious, tastier, and high-quality plant-based products. Clean products are expected to gain ground across online channels and will continue to be sought across retail food chains.
Key Industry Developments
February 2022: Beyond Meat, Inc. announced a three-year global strategic agreement with McDonald’s Corporation. Under this agreement, Beyond Meat, Inc. has become the preferred supplier for a new plant-based burger patty for McPlant, a plant-based burger.
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