Plant Based Protein Market: Global Industry Analysis and Forecast (2024-2030)

Plant Based Protein Market Overview

The plant-based protein market has experienced a surge in popularity because of consumers seeking alternatives to traditional animal-derived protein sources. This trend is driven by health, ethics, environmental awareness, and personal dietary preferences. Many people choose plant-based protein products because of allergies, dietary restrictions, or a healthier lifestyle. The demand for low-calorie, sugar-free formulations is also increasing. Key market drivers include increasing health and wellness awareness, growing vegan and vegetarian populations, environmental sustainability concerns, technological advances, product availability, government policies, and celebrity endorsements.

Despite meat being the dominant protein source in developed economies, emerging markets are showing increasing interest in alternative options. The market has expanded beyond meat and dairy substitutes to include performance nutrition and infant nourishment. The functional benefits of plant-based protein have also gained recognition, with potential health benefits such as improved brain function, eye health, heart health, muscle endurance, strengthened immunity, and weight management.

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Plant Based Protein Market Dynamics

The market of plant-based proteins is growing because of the increasing number of vegans and vegetarians who are adopting vegan, vegetarian, or flexitarian diets. This shift has expanded the consumer base, attracting more people who prioritize moral, environmental, and health considerations. Plant-based proteins, such as legumes, soy, tempeh, tofu, seitan, and plant-based protein powders, are seen as a more sustainable and nutritious alternative to animal products. Health-related reasons also drive the demand for plant-based proteins. They are often considered better options because of their higher fiber content and lower cholesterol and saturated fat content compared to animal proteins.

A plant-based diet has been related to a lower risk of chronic situations like heart disease, type 2 diabetes, and some cancers. Animal compassion, sustainability, and environmental concerns are driving the vegan and vegetarian community to adopt plant-based proteins. These proteins have a smaller ecological impact, use fewer natural resources, and emit fewer greenhouse gases. Vegans and vegetarians who choose plant-based protein options align with their moral principles, creating a more compassionate and sustainable food system. This aligns with the growing demand for plant-based protein products.

The plant-based protein market is growing, but some restraints such as taste and texture, higher production costs, supply chain restrictions, and regulatory hurdles hamper its full potential. Consumers find plant-based choices less satisfying than animal-derived proteins, and supply chain restraints limit manufacturing capacity. Also, these obstacles, growing consumer consciousness of health and eco-friendly benefits, and technological developments in ingredient invention and production procedures are gradually mitigating these obstacles and driving the market's growth.

The global market is for functional foods is facing significant challenges because of fluctuating prices of raw materials containing high protein levels. This has led to manufacturers struggling to meet demand and supply, resulting in increased costs for plant-based products like snack bars and supplement powders. The lack of production capacity, which is crucial for the manufacturing process, has also hindered market growth. Concerns over economic feasibility are negatively impacted overall market growth. Additionally, environmental challenges, such as droughts, floods, storms, earthquakes, and volcanic eruptions, have severely damaged crops and plants, impacting the production cycle and increasing production costs. These factors are expected to hinder market growth during the forecast period. Therefore, food developers need to find valuable uses for pea starch to ensure the sustainability of the plant-based protein market.

Plant Based Protein Market Segment Analysis

Based on Type, Protein isolates are a refined form of protein powder with high protein content, typically around XX%. Despite their higher cost, they are preferred for their digestibility and adaptability across various food products. Originating from legume sources like soy and pea de-oiled cake, they are considered safe for infant nutrition. The plant-based protein market is expected to see significant growth because of their concentrated protein content, making them suitable for nutritional and functional foods like snacks, cereals, beverages, and plant-based meat substitutes. Pea protein isolates have emerged as a valuable protein source because of the nutritional industry's increasing demand for high-protein offerings. Plant-based protein manufacturers are introducing novel isolates to cater to this demand and capitalize on associated business opportunities.

Plant Based Protein Market Regional Analysis

The Asia Pacific region has been experiencing rapid growth in the plant-based protein market because of increasing consumer awareness of health, immunity, and environmental sustainability. This shift towards plant-based protein sources is driven by health benefits like reduced chronic disease risks and improved immune function. Concerns about environmental sustainability, such as carbon emissions and land use linked to animal agriculture, are also driving consumers towards plant-based alternatives.

Innovative food technologies and diverse culinary preferences in the region are supporting this trend. The Asia-Pacific region is becoming a significant influencer in shaping the global plant-based protein market, with China holding the largest market share and the Indian market being the fastest-growing in the region. The market is composed for continuous growth and innovation in the upcoming years.

Plant Based Protein Market Competitive Landscape

• May 2, 2024 — IFF, a global leader in food and beverage, home and personal care, and health, is introducing its full suite of plant-based and cellulosic-derived solutions for dietary supplements and over-the-counter (OTC) drugs at Vitafoods Europe 2024. This is the first time IFF Pharma Solutions has showcased its full clean-label portfolio for oral dosage forms at Vitafoods Europe.

• May 15, 2024 — Burcon NutraScience Corporation (“Burcon” or the “Company”) (TSX: BU) (OTCQB: BRCNF), a global technology leader in the development of plant-based proteins for foods and beverages, is pleased to announce that its common shares have begun trading in the United States on the OTCQB Venture Market (“OTCQB”), under the symbol “BRCNF”, effective May 8, 2024. We are excited to announce improved access for US investors by initiating trading on the OTCQB,” said Kip Underwood, Burcon’s chief executive officer.  “This move provides more investors the opportunity to be a part of Burcon’s success.  Our focus areas for the balance of 2024 include ramping production to meet hempseed protein demand and launching additional plant proteins to market via our capital-light business model.  Through these actions and others, we continue our path toward becoming a profitable business fueled by plant protein innovation.

Key Player in the Plant Based Protein Market

1. Kerry Group PLC - Ireland
2. Cargill - United States
3. GoodDot - India
4. International Flavors & Fragrances Inc. - United States
5. Ingredion - United States
6. EVO Foods - India
7. Wilmar International Ltd. - Singapore
8. Glanbia - Ireland
9. PlantMade - India
10. AGT Food and Ingredients - Canada
11. Burcon NutraScience Corporation - Canada
12. Emsland Group - Germany
13. Bioway Organic Group Limited - China
14. BENEO - Germany
15. AMCO Proteins - United States
16. Axiom Foods, Inc - United States
17. ETChem - China
18. Australian Plant Proteins Pty Ltd - Australia
19. SOTEXPRO - France
20. ADM (Archer Daniels Midland) - United States
21. XX.inc