Mintec by Expana, a global price reporting agency and market intelligence company, has released its Plant-Based Protein “Monthly Market Insight,” revealing that consumer demand for plant-based foods is beginning to increase after a previously “lackluster year.”
According to the report, there is an 18-37% year-over-year growth in plant-based purchases and a shift from animal products “across all categories” by new buyers. Meanwhile, the Plant-Based Food Association noted increased spending on plant-based milk, frozen meat, and frozen meals, indicating growing customer loyalty, Mintec notes.
And according to GFI’s latest analysis, plant-based food sales in Germany, France, Italy, the Netherlands, Spain, and the UK reached €5.4 billion in 2023, up 5.5% from 2022, while volume sales were up 3.5%.
Higher prices for pea and soy proteins
Mintec says that buyers report that suppliers are offering pea and soy protein isolates at higher prices compared to a year ago. Some buyers noted a price increase of about 5%, with a few negotiating it down to 2.5%, albeit with some volume loss. The report says supply-side costs are increasing by 15-20% due to the poor raw material supply and rising labor and energy costs.
In this scenario, North America’s pea and soy protein prices remain stable because companies are supplying from inventory stocks rather than new supplies. For example, pea protein concentrate prices were up only 2% month-on-month and 7% year-on-year to $1.39 per pound, according to Mintec.
However, prices in the US have remained higher than in Europe, as anti-dumping tariffs on Chinese pea protein imports affect domestic prices in the US and Canada, the market research firm says. Anticipating this tariff consequences, the Californian company Axiom Foods has expanded the production of its pea protein concentrate to offer a reliable and affordable supply, and Protein Industries Canada started a new project to advance pea and fava protein ingredients for meat alternatives.
Getting back to the report, in addition to pea and soy protein, prices for starches are increasing in different regions. European buyers report a 14% YOY increase for starch ingredients. Wheat starch prices decreased over the summer but are now on the rise as negotiations resume, while potato starch prices are rising due to both reduced potato planting areas and adverse weather conditions.
Decreased production by European suppliers
The report shows that suppliers in Germany and France are reducing pea protein production by 50% year-over-year due to weather-related challenges like heavy rains, flooding, and crop diseases.
Survey participants stated that Canada’s pea crop offers better quality this year than Europe’s and that there is a high demand for pea protein concentrates from India. Interestingly, just last week, Chicago’s Ingredion Incorporated and Sweden’s Lantmännen, announced an agreement to develop a portfolio of protein isolates derived from locally sourced yellow peas to supply the European market.
The report also highlights other price drivers, such as inflation, energy prices, and currency values influencing economic strategies and expectations for the plant-based protein market.
“Negotiations are underway as the year winds down, and bullish factors including limited supply, increasing labor costs, and growing consumer demand are impacting offers,” states the report.
