Nebraska Ag Connection - Global Meat Substitutes Expected to Grow 6 Percent Through 2023

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Global Meat Substitutes Expected to Grow 6 Percent Through 2023
Nebraska Ag Connection - 01/22/2020

The global meat substitute market is expected to register a CAGR of 5.8% during the forecast period, 2018-2023. Currently, the global campaign of 'go vegetarian' is the most powerful influencer of the demand for such products. Health benefits of this cholesterol-free protein, with meat-like texture, is the main factor promoting the growth of meat substitute products. Soy-based products such as tofu, miso, yaso, natto, and seitan are fast becoming popular among consumers. For market growth, product innovation and artificial meat taste are incorporated in the meat substitute products.

Soylent is a brand that launched a new product like chewable nutrition bar. The food bar is nut-free, vegan, and lactose-free, and uses soy protein, algal flour, beet sugar, and other vitamins and minerals. Sporting a label of "food bar," the new product promises to fill 12.5 percent of a person's daily caloric needs.

Development of nutrient supplements like FortiSoy for infant nutrition and other products for pregnant women, have helped increase the health profile of both mother and child.

California start-up brings meatless burger to Asia: Impossible Foods, which makes a product that tastes like ground beef, but is made from plants, is on the road to diversify its product portfolio to include something similar to steak. The company's new target will be Asia, after gaining attention for its food technology in Silicon Valley, where it attracted funds from big names.

Veganism is trending, as people are up to find that the plant-based proteins are complete proteins, if eaten in the right combination for the right body type. They can work better than animal protein, mainly because of the absence of hormones and enzymes. Going vegan and consuming plant protein, has shown extraordinary results in reduction of cholesterol, treating PCOS and preventing menopausal complications. Around 13% of the millennial are vegetarians and 4% are vegans who avoid dairy products, thus, resulting in increased demand for the most suitable alternative like soy and pea protein. These inclination trends towards plant-based diet are associated with different factors, such as sustainability issue, health awareness, ethical or religious views, environmental and animal rights.

Soy is the most common source of meat substitutes in Asia-Pacific. Increasing demand for tofu from food service and beverage manufacturers depicts its popularity. Soy-based products are rich in amino acids, vitamins, fibers, omega-3, and flavones, in addition to being cholesterol-free and low in saturated fat. Soya meat is extremely rich in protein, with a protein content over 50%. Owing to these advantages, soy-based meat substitutes are anticipated to increase their market presence. A hydrolyzed or textured soy "veggie" burger is a meat analogue, mostly because the taste and texture is similar to meat. The transition from animal protein to plant protein can be possible only in a gradual, smooth and orderly fashion by utilizing high protein mixture, isolated protein and concentrated proteins from plant sources. Soy meat alternatives are closer to the taste and texture of meat, than in the past, because of newer technology. These developments have led to increased demand of these substitutes from the consumers.

Europe is the largest market for meat substitute products, by revenue, accounting for 39% of the global market share. Asia-Pacific is the fastest-growing region registering a 5.3% CAGR; due to the huge support from the large population, rising urbanization, increasing incomes and rapid adaptation of processed foods in the market.

There is moderate competition in the meat substitute market. The top global players account for majority of the market share, with the rest being fragmented among small and regional players, across the world. The market entry for new players is moderately difficult, due to the availability of high number of alternatives in the market. New product launches that include innovative flavors, textures, organic, and non-GMA products, and mergers & acquisitions with local players have been strong business strategies for market growth. Various players are entering the market, to tap the untapped potential of the region. An advanced distribution network gives an upper edge to the manufacturers.

Major key players include Impossible Foods, California; Amy's Kitchen, California; Cauldron Foods, United Kingdom; Quorn Foods, United Kingdom; and Morningstar Farms, a division of Kellogg Company, Michigan.

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