Introduction
The plant-based meat market is witnessing significant growth due to growing vegan and flexitarian population across the world, rising awareness about the health benefits offered by plant-based meat over animal meat, and growth in government initiatives along with significant investments are driving the global plant-based meat market.
The European market is going to dominate the global market, due to innovative product development in the region, backed by appropriate research and development facilities available in the region.
Plant-based meat products are significantly replacing conventionally processed meat products such as burgers, sausages, and nuggets.
Plant-based meat contains lower levels of saturated fat, cholesterol, and calories than animal-based meat. They often contain higher levels of micronutrients, such as zinc, iron, and calcium.
Despite a growing demand for plant-based meat, a high price is one of the major restraining factors in this market.
Table of Contents
Market Overview
The plant-based meat market is estimated to be valued at USD 4.3 billion in 2020 and is projected to reach USD 8.3 billion by 2025, recording a CAGR of 14.0%
North America is the largest market and accounted for over 39.0% of the global revenue share in 2019
Europe is anticipated to witness the fastest growth over the forecast years on account of positive consumer outlook on vegetarian and vegan-meat products and stringent regulations against animal cruelty
Key Trends
Plant-based meat products are significantly replacing conventionally processed meat products such as burgers, sausages, and nuggets. Plant-based meat contains lower levels of saturated fat, cholesterol, and calories than animal-based meat. They often contain higher levels of micronutrients, such as zinc, iron, and calcium. For instance, products like the Impossible burger, Beyond Meat burger and LightLife Italian sausage are gaining popularity among consumers.
Key Market Players
Growth Drivers and Challenges
The market is witnessing significant growth due to growing vegan and flexitarian population across the world, rising awareness about the health benefits offered by plant-based meat over animal meat, and growth in government initiatives along with significant investments are driving the global plant-based meat market.
The European market is going to dominate the market, due to innovative product development in the region, backed with appropriate research and development facilities available in the region. Excessive consumption of animal-based meat may result in diet-related diseases such as obesity, type-2 diabetes, heart disease, and certain cancers. On the other hand, the consumption of plant-based meat does not give rise to such diseases. Moreover, they aid in building better immunity. The nutritional benefits of plant-based meat and their safety compared with conventional meat are also some of the important factors that have been contributing to gaining the attention of consumers.
Despite the opportunities created due to the rising demand, challenges remain. For example, a high price for these products is a restraining factor. Plant-based meat is more expensive than regular meat. The prices of plant-based meat products are further expected to increase due to trade barriers, disruptions in the supply of raw materials, and inefficient distribution channels due to COVID-19.
Another challenge is that most consumers are disappointed by the taste and variety of meat substitutes. Consumers have a perception that there is a significant compromise in taste if they opt for meat substitutes. For instance, the off-flavor of soy protein makes it undesirable for consumption.
However, there are opportunities for companies in this market. They should cater to demand among consumers, such as health-conscious consumers, vegetarians, flexitarians, and vegans. Using appropriate labeling and the right sales channels can also accelerate market growth.