There are different estimates about the size and growth expectations of the global alternative protein market. Based on these estimates, it is possible to say that the market size was around USD 17.6 billion in 2022, will grow at an average CAGR of 12% in the coming period and will reach an average market size of USD 55 billion in 2032. The largest share in this growth is expected to belong to the plant-based proteins segment, especially soy-based proteins. Insect-based proteins are estimated to be the fastest growing alternative protein segment during the forecast period 2023-2030.
By Derya YILDIZ
Alternative proteins are proteins produced from different sources as an alternative to traditional animal proteins. Today, these proteins are utilised in many different fields such as food and beverage, animal feed and pet food, nutrition and health supplements, and medical products.
The aim of alternative proteins evaluated for human food is to develop products with the same taste, appearance and texture as traditional animal-derived proteins. However, these products should have the same or lower production costs than animal proteins. Otherwise, it is difficult to evaluate it as a real alternative. In the search for alternative proteins in animal feed, the aim is to find feed ingredients with lower cost, less environmental impact and therefore more sustainable.
Nowadays, the mainstay of alternative proteins developed for both human and animal nutrition is sustainability. Alternative proteins are considered sustainable due to their advantages such as less land and water use, less greenhouse gas emissions and pollution, and less pressure on limited natural resources. In addition to all these, meeting the increasing need for food with the increase in the world population, consumer sensitivities such as animal rights and welfare, vegan, vegetarian and healthy eating trend are among the reasons for the interest in alternative proteins.
According to the Global Food Institute (GFI), alternative proteins offer a better way to feed the world. The Institute explains this as follows: “Alternative proteins offer a better way to feed the world. Globally, meat consumption is the highest it has ever been, with global meat demand projected to increase at least 50 percent by 2050. By making meat from plants and cultivating meat from cells, we can modernize meat production in ways that massively reduce the environmental impacts of our food system, feed more people with fewer resources, avoid contributing to the growing threat of antibiotic resistance, and free up land and ocean ecosystems for biodiversity restoration and recovery.”
ALTERNATIVE PROTEINS MARKET BY TYPE
The alternative proteins market is segmented on the basis of type such as plant-based protein, insect-based protein, cell-based protein. Plant-based proteins are among the best known and most common alternative protein sources today. The use of these sources in the production of plant-based food products such as meat and milk is becoming widespread, especially due to vegan diets. Soy is the most popular protein source in this group. Although soy-based meat and dairy products are becoming increasingly common, the most common use of soy is still animal feed. Apart from soy, wheat, peas, chickpeas, rice and many other cereals, legumes and nuts can be used as alternative protein sources.
The plant-based protein segment dominates the global alternative protein market, according to DataM Intelligence’s report. Increasing demand from food and beverage manufacturers, availability of large quantities of raw materials for processing, and lower costs compared to other alternative proteins are cited among the reasons for the dominance of this segment in the market.
Insect-based proteins have been remarkably strengthening their presence in the alternative protein market in recent years. Attracting interest as a nutritious, environmentally friendly and sustainable source for both human food and animal feed, insect-based proteins are expected to be the segment growing at the highest CAGR in the coming years, according to Meticulous Market Research’s report. Investments in industrial-scale production facilities, which have been increasing in recent years, also support this.
Microbial proteins derived from single-celled microorganisms such as algae, fungi, yeasts and bacteria, or single cell proteins, continue to attract interest as a sub-segment of the alternative proteins market. This group is expected to see a significant increase in demand, especially for algal proteins.
Cell-based proteins, referred to as cell-based proteins, cell-based meat or cultured meat, which are obtained by reproducing animal cells in a laboratory environment, are also considered among the new alternative proteins. However, these are largely developed for direct human nutrition. Another alternative use for these products is pet food. In this very new field, production costs are still very high and there is a need to reduce production costs through industrialised production.
MARKET SIZE AND GROWTH EXPECTATIONS
There are different estimates about the size and growth expectations of the global alternative protein market. Here we will try to make an estimate based on the reports of 5 research companies updated in 2023. The first of these reports belongs to Research Nester. According to the company’s report, the global alternative proteins market, which was USD 15 billion in 2022, will grow at a CAGR of 11% during the forecast period 2023-2035 and will reach a size of USD 40 billion by the end of 2035.
Based on the data in another report prepared by Meticulous Market Research, the size of the market in 2022 is USD 15.3 billion. According to the report, the alternative proteins market, which will grow at a CAGR of 13% during the forecast period 2023-2030, will reach a size of USD 40.7 billion by 2030.
InsightAce Analytic also points to a similar market size in its report. According to the company’s report, the global alternative proteins market size, which was around USD 15 billion in 2022, will reach USD 38 billion by 2031, at a CAGR of 11.06%.
Another report containing data close to the forecasts of all three companies belongs to Maximize Market Research. According to the company’s report, the global alternative protein market, which was USD 16.8 million in 2022, will reach USD 32.5 billion between 2023 and 2029, at a CAGR of 9.84%.
The highest estimate of the market size and growth potential is included in DataM Intelligence‘s report. According to the report, the global alternative proteins market was valued at USD 25.7 billion in 2022 and will reach USD 81.9 billion by 2030, exhibiting a CAGR of 15.6% during the forecast period 2023-2030.
Based on the averages of the data in these five reports, it is possible to say that the global alternative proteins market size was around USD 17.6 billion in 2022, will grow at an average CAGR of 12% in the coming period and the average market size will reach USD 55 billion in 2032.
Some of the major players:
AB Mauri
ADM
AgriProtein
Agronutris
Aleph Farms
AlgaeCan Biotech
Algatechologies
Algenex
All Things Bugs LLC
Alltech
AMCO Proteins
Amy’s Kitchen
Angel Yeast
Appleton Meats
Armstrong Cricket Farm Georgia
Asia Co. Ltd.
Aspire Food Group
Avant Meats
Axiom Foods
Balletic Foods
Batory Foods Chapul.
BEC Feed Solutions
BENEO
Beta Bugs
Beta Hatch Inc.
Beyond Meat
Biofood Systems
Biomin
BioPhero
BioProcess Algae
Biotech Foods
BlueBioTech
BlueNalu
Burcon NutraScience
Calysta
Cargill
Cell Sustainable Nutrition
Cellena
Cellular Revolution
Chapul Cricket Protein
Charoen Pokphand Food
CHS Inc.
Church & Dwight
CJ CheilJedang
CJ Selecta
Coalo Vally Farms
Corbion
Cosucra Group
Cowboy Cricket Farms
Crescent Biotech
Cricket Lab Limited
Cyanotech
Darling Ingredients
Deep Branch
Deli Bugs Ltd.
Devenish Nutrition
DIC Corporation
Dsm-firmenich
DuPont (Danisco)
Emsland Group
Enterra Corporation
Entobel Holding
EntoCube
Entofood
Entomo Farms
EnviroFlight
Evershining Ingredients
Evonik Industries
F4F SpA
Far East Bio-Tec
Far East Microalgae
Farbest Brands
Farbest-Tallman Foods
FermBiotics
Field Roast
Finless Foods
Fork & Goode
Future Meat Technologies
Gardein Protein
Glanbia Plc
Global Bugs
Gold&Green Foods
Goterra
Hamlet Protein
Haocheng Mealworm
Hargol FoodTech
Hexafly
Higher Steaks
IFF (International Flavors & Fragrances)
Impossible Food
Ingredion
Innovafeed
Integriculture
Jimini’s
JR Unique Foods
Just, Inc.
Kerry Group
Lab Farm Food
Lallemand
Lesaffre
Lightlife Foods
Maple Leaf Foods
Memphis Meats
Microalgaetech International
Morningstar Farms
Mosa Meat
MycoTechnology
Naturli´ Foods
New Age Meats
Next Protein Inc.
Norbite
Nordic Soy Oy
Novel Farms
Novozymes
Novus International
Now foods
Now Health Group
Nutraferma
Nutreco
Nutrition Technologies
ORF Genetics
Oxitec
Pakmaya
Parabel Inc.
Parry Nutraceuticals
Peace of Meat
Plantible Foods
Pond Technologies
Protenga
Protifarm
Proti-Farm Holding
Protix
Puris
Quorn Foods
Rocky Mountain Micro Ranch
Roquette Frères
Roquette Klötze
Schouten
SFly Comgraf SAS
Sibö
Smart Resilin
Sojaprotein
Solar Foods
Sotexpro
Sun Chlorella Corporation
Sunfed
Supermeat
Swarm Nutrition
Sweet Earth Foods
Taiwan Chlorella Manufacturing
Tangshan Top Bio Technology
Tate & Lyle Plc
Tebrio
Thailand Unique
The Better Meat
The Scoular Company
Tianjin Norland Biotech
Tiny Farms
Titan Biotech Limited
Tofurky
Turtle Tree Labs
Unibio
Valensa International
VBites Foods Limited
Wild Earth
Wilmar International
Yaeyama Shokusan
Ÿnsect
FACTORS SUPPORTING THE GROWTH OF THE MARKET
The market for alternative proteins that directly target human nutrition is shaped by consumer preferences. According to Research Nester’s report, as of September 2021, there are approximately 79 million people worldwide who have adopted veganism, accounting for approximately 1 per cent of the total world population. The growing trend of consumers shifting from animal-based foods to plant-based foods, especially this growing vegan and vegetarian diet, stands out as one of the most important dynamics of the plant-based protein segment. In addition, sensitivity towards animal welfare, increased perception of naturalness, health and nutritiousness are also considered as a driving force especially for the plant-based protein market.
Another important factor that will contribute to the growth of the alternative proteins market – perhaps the main reason – is the food demand of the growing world population. According to Research Nester’s report, in order to meet the food demand of the world’s growing population, alternative proteins, other than animal protein, are expected to play a vital role and drive market growth. According to the Food and Agriculture Organization of the United Nations, by 2050, demand for cereals is expected to increase from the current level of 2.1 billion tonnes to nearly 3 billion tonnes for both food and animal feed.
On the animal nutrition side, the increasing number of animals is thought to be one of the factors that will drive the demand for alternative protein used in animal feed. Again, according to Research Nester’s report, there were approximately 996 million cattle in the world in 2021, and this number reached approximately 1 billion in 2022. This is leading to increased demand for alternative proteins from the animal nutrition industry, particularly soy, which is the primary ingredient for animal feed. However, an important factor to consider here is the animal nutrition industry’s search for new feed ingredients that will not compete with human food. There is a significant demand from the industry for alternative protein sources that have less environmental impact and will improve production performance by reducing the environmental footprint of animal husbandry. Insect-based proteins and single cell proteins are some of these important sources.
Finally, technological developments and innovation are also expected to contribute to the growth of the market. Increasing investments in alternative protein development are expected to provide a significant impetus to the market. In addition, the development of technologies that will enable the industrial production of alternative proteins will contribute to the growth of the market by making alternative proteins more accessible in terms of quantity and cost.
FACTORS THAT MAY RESTRICT MARKET GROWTH
The major restraining factors for the alternative protein market are currently said to be high production costs and low production quantities. These two major factors prevent the widespread use of alternative proteins, both as human food and as an animal feed ingredient, and slow the growth of the market.
Concerns about the effects of some alternative protein sources on both human and animal health are also considered as a limiting factor. The long-term health effects of many alternative protein sources have not yet been adequately investigated. For example, some alternative protein sources can have serious allergic reactions. Research Nester draws attention to this issue in its report and explains it as follows; ” Silkworm, mealworm, locust, grasshopper, cicada, bee, clanis bilineata, and the food additive carmine have all been linked to food allergies to insects. Tropomyosin and arginine kinase, two pan-allergens recognized for their cross-reactivity with homologous proteins in crustaceans and house dust mites, have both been discovered as allergens from insects. Therefore, the rising risk of allergy to both humans and animals is expected to hamper the market growth.”
Legislation for the use of newly developed alternative protein products as human food or animal feed ingredients is another factor that may cause the market to grow rapidly or slowly. The intensity of research and trials to be conducted by entrepreneurs on the health and environmental impacts of alternative proteins and their verification and validation by independent organisations may accelerate the enactment of appropriate legislation.
MARKET SITUATION ON REGIONAL BASIS
Asia Pacific, North America and Europe are characterised by their decisive role in the development of the alternative protein market in different directions. According to the reports of research companies, North America is projected to have the highest share in the alternative proteins market. North America’s prominent position in the alternative protein market is attributed to growing environmental concerns, ethical aspects associated with animal proteins, growing vegan population, increasing number of investments in alternative protein products, growing demand for healthy and nutritious products, and increasing focus on protein production through sustainable methods thanks to technological advances in the food industry. However, the dense livestock population and high meat consumption, as well as the development of the pet food sector, also mediate the growing demand for alternative protein for feed in the region.
Nonetheless, the Asia-Pacific alternative protein market is expected to register the highest CAGR during the forecast period 2023-2030. The growth of this regional market is mainly attributed to the growing awareness regarding the importance of protein-rich diets, increasing technological advancements in the food & beverage industry, rapidly growing economy, and ample availability of raw materials. In addition to this, increasing efforts of private companies towards boosting alternative protein innovation is also expected to drive the market growth in the region.
Europe is another major regional force in the alternative protein market. For similar reasons as in North America, the demand for alternative protein options from both the food and feed sectors continues to grow rapidly here. Yet, stringent legislation in the region is considered to be an important factor causing the market to grow at a slower rate.
References:
1. F&A Alternatif Proteins Edition, March 2023 Issue – October 2023 Issue, https://www.feedandadditive.com/fa-alternative-proteins-edition/
2. Good Food Institute Europe, https://gfieurope.org/industry/
3. Research Nester, Alternative Protein Market Size, Growth Analysis 2023-2035, March 2023, https://www.researchnester.com/reports/alternative-protein-market/4748
4. Meticulous Market Research Pvt. Ltd., Alternative Protein Market – Global Forecast to 2030, November 2023, https://www.meticulousresearch.com/product/alternative-protein-market-4985
5. Research and Markets, Alternative Protein Market by Type, Application, and Geography – Global Forecast to 2030, November 2023, https://www.researchandmarkets.com/report/alternative-protein
6. DataM Intelligence, Alternative Proteins Market Size, Share, Industry, Forecast and Outlook (2023-2030), October 2023, https://www.datamintelligence.com/research-report/alternative-proteins-market
7. InsightAce Analytic Pvt. Ltd., Alternative Proteins Market Share, Size, Growth and Forecast to 2031, https://www.insightaceanalytic.com/report/global-alternative-proteins-market/10851
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