According to a report by Arizton, the US plant-based meat market is “thriving” and is expected to reach a value of $5.25 billion by 2029. This figure is up from $2.25 billion in 2023, meaning the market will grow at a CAGR of 15.18%, finds this projection from Arizton.
Increased concerns about health, the environment, and ethics will be the key market drivers, along with technological advancements. The growing availability of plant-based products will also help to drive growth.
Consumers demand clean-label products & lower prices
Consumers will increasingly demand clean-label plant-based meats over the forecast period, seeking options perceived as less processed and more natural. By becoming aligned with clean-label standards, plant-based meat producers can present their products as a healthy option. For example, the report cites Beyond Meat’s latest Beyond Burger and Beyond Beef versions, which are said to be the first plant-based meat products to receive Clean Label Project Certification.
Increased investments in the plant-based meat market are expected over the forecast period, as food technology advances and there is a global push towards more sustainable food systems. This expected trend will fuel further growth and innovation in the industry.
However, the often higher price of plant-based meat relative to animal-based products could restrain the market. Technologies such as protein extraction, fermentation, and texturization are more complex than conventional meat production and often require specialized equipment or ingredients; R&D also adds to the cost. This may make it difficult for plant-based products to compete with meat. Initiatives such as those adopted by many European supermarkets, which are pricing plant-based products at parity with their animal-based counterparts, could help to address this.
Frozen & pea protein-based products dominate
Pea protein-based products are expected to see the highest growth rates over the forecast period due to their nutrient density. By storage type, frozen products will dominate due to factors such as convenience, accessibility, and extended shelf life.
By distribution channel, online platforms — including e-commerce sites and direct-to-consumer platforms — will exhibit the highest growth. This is due to convenience, variety, and the ability for consumers to have products delivered to their doorsteps.
“Increasing consumer awareness about plant-based meat in the U.S. is a significant factor driving the market’s growth,” says the report. “This heightened awareness stems from various sources and contributes to a shift in consumer preferences towards more sustainable, ethical, and healthier food choices.”