According to a report by SNS Insider, the alt protein market is expected to grow with a significant CAGR of 16% through to 2030, with its valuation surging from $19.11 billion to $62.65 billion.
A key driver will be increased health awareness, as consumers become more aware of the link between meat consumption and chronic illnesses such as heart disease. Plant-based proteins are also typically lower in saturated fats, cholesterol, and calories than animal proteins.
The market is said to be experiencing a “paradigm shift”, with plant-based products increasingly dominating the food industry. Consumers are demanding more sustainable products, and the plant-based sector is seeing an increase in technological advancements and investments. Further innovation, product development, and availability of plant-based options will continue to drive growth.
North America currently dominates the alt protein market due to consumer preferences, technological advancements, a favorable regulatory environment, and established distribution networks. This is likely to continue, but companies in the region will need to continue innovating as the landscape is competitive.
Intensified interest
The report also takes into account the effects of challenging economic circumstances on the market. Recession could reduce consumers’ purchasing power and cause supply chain disruption, but there may also be benefits such as cost-effectiveness and increased consumer awareness of plant-based products.
Last October, another report found “intensified” interest in alternative proteins, with significant opportunity for further investments and growth. Funding in the sector reached $1.7 billion in the first half of 2022, a rise of 2% compared to the previous year; alt proteins are now expected to represent 10-45% of the global protein market by 2035, and 25%-50% by 2050.
“Technology investors, sensing an opportunity to capitalize on the increasing globalization and industrialization of food, are investing heavily in startup companies, which pitch alternative methods of growing, manufacturing, processing, and distributing food. The scale of interest and investment in alternate proteins seems to have intensified, and there is a growing consensus that this trend is here to stay,” said Pranjali Mujumdar, Disruptive Tech analyst at GlobalData.
