The plant-based food market is expected to grow at a CAGR of 11.9% from 2020 to 2027 to reach USD74.2bn by 2027, according to a new market research report titled “Plant Based Food Market by Product Type (Dairy Alternatives, Meat Substitute, Plant-Based Eggs, Confectionery), Source (Soy Protein, Wheat Protein), and Distribution Channel (Business to Business and Business to Customers) – Global Forecast to 2027” by Meticulous Research.
The plant-based products sector is growing rapidly, due in part to customers’ attention to increased greenhouse gas emissions and rising pressure on land and water usage during the production of animal protein. This has opened a great opportunity for plant-based products, such as meat substitute, dairy alternative, and plant-based eggs, which have the capability to satisfy food need with the high nutrition and environmental sustainability. On the other hand, the effects of COVID-19 pandemic are giving the plant-based products industry a boost, as medical studies show that the coronavirus disease has an overwhelming impact on people with underlying health conditions like diabetes, hypertension, and heart disease.
COVID-19’s association with animal sources will result in a large population shifting from animal-based proteins to plant proteins due to various health and environmental concerns. Moreover, plant-based products are generated with less dependence on labor, making it less prone to staffing scarcity as opposed to red meat, which is relatively labor-intensive, thereby encouraging the production of plant-based products, the report shows.
The study also mentions that the pandemic has led to some best practice models for the alternative protein industry, as an otherwise restrictive industry has seen some regulations eased temporarily. The government of some countries announced a relaxation in regulatory requirements placed on alternative proteins, mainly for plant-based protein products and insect proteins.
According to the Good Food Institute (GFI), 2019 was a record-breaking year for plant-based meat, egg, and dairy companies in the US, who received more than USD747m in investments. Global cultivated meat companies raised more than USD77m in capital in 2019, for a total of USD824m in alternative proteins. However, investment in the US plant-based meat, egg, and dairy companies in just the first quarter of 2020 was a staggering USD741m, almost as much as for the entirety of 2019.
Based on product type, the dairy alternatives segment is estimated to dominate the overall plant-based food market during the analysis period. Geographically, Europe is estimated to command the largest of the overall plant-based food market in 2020, which is primarily attributed to the well-established food sector in the region with huge demand for processed foods, higher vegan & vegetarian trend, higher awareness on protein rich diet consumption, and high investments into the innovation of plant-based products sector.