The Alternative Protein Market is projected to reach $40.7 billion by 2030, at a CAGR of 13% during the forecast period of 2023 to 2030. The growth of the alternative protein market is mainly driven by rapid urbanization and growing consumer aspirations, increasing venture investments in the alternative protein industry, innovations in food technologies, the high nutritional value of edible insects, and the environmental sustainability of alternative protein production and consumption. However, the higher costs of alternative protein compared to conventional protein and consumers’ high preference for animal-based products restrain the growth of this market. Furthermore, consumers’ increasing inclination toward plant-based foods is expected to generate growth opportunities for the players operating in the alternative protein market.
Increasing Venture Investments Driving the Growth of the Alternative Protein Market
Well-established meat and dairy product manufacturers are being targeted by civil society groups and new food businesses due to ethical and animal welfare concerns. Plant-based products, including protein, are animal cruelty-free and, therefore, ethical and more sustainable. Protein diversification has the potential to transform food companies’ core business and value proposition due to its higher profitability, lower risk exposure, and the ability to compete and innovate.
The growing trend of millennials adopting flexitarian and meat-free diets indicates a change in consumption habits, a significant shift from earlier generations. Companies across the food value chain, from producers to retailers, are already investing in these opportunities. Some companies are hedging against or preparing for a decline in the demand for animal products and investing in companies that produce plant-based alternatives. In the past few years, market players have received investments/funding from several high-profile individuals, financial investors, and companies. According to the Good Food Institute, In 2023, the alternative protein industry received USD 2.9 billion in disclosed investments. In the same year, plant-based meat, egg, and dairy companies received USD 1.9 billion in investments, a significant increase over USD 693 million raised in 2019. Plant-based meat, seafood, egg, and dairy companies have raised USD 6.3 billion in investments since 2010.
Some of the recent key developments in this market are as follows:
- As of September 2022, InnovaFeed SAS (France) had raised USD 250.0 million in Series D funding to increase its Black Soldier Fly (BSF) production capacity.
- As of March 2022, Australia had invested USD 262.6 million (AUD 378.0 million) in transforming South Australia into a plant-based protein manufacturing powerhouse. Three new production plants will be constructed using the investment to supply to domestic and international partners. The entire project falls under the AUD 1.3 billion Modern Manufacturing Initiative.
- In April 2021, Archer-Daniels-Midland Company (ADM) (U.S.) opened a new cutting-edge, plant-based innovation lab in the company’s Biopolis Research Hub in Singapore. This lab was designed to develop next-level, on-trend, and nutritious products to meet the growing demand for food & beverage products in Asia-Pacific.
- In June 2020, Canada invested CAD USD 100.0 million (USD 74.0 million) in Merit Functional Foods (Canada), a provider of ingredients for plant-based foods. This investment was aimed at supporting the production of high-quality pea and canola protein.
- In June 2020, nextProtein SA (France), a producer of insect-based animal feed and fertilizers, raised EUR 10.2 million (USD 11.2 million) to scale up its production. The company plans to scale its production to 100,000 tons annually by 2025.
- As of February 2020, Archer-Daniels-Midland Company (ADM) (U.S.) had expanded the production of its non-GMO soy protein concentrate at its facility in Europoort (Netherlands). This expansion was aimed at meeting the growing demand for high-quality plant-based protein in the European market.
Thus, increasing venture capital investments supporting plant-based product manufacturers is driving the growth of the global alternative protein market.
Key Players
The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios and geographic presence and the key growth strategies adopted by them in the last 3–4 years. Some of the key players operating in the global alternative protein market are Archer-Daniels-Midland Company (U.S.), Cargill, Incorporated (U.S.), Roquette Frères (France), Ingredion Incorporated (U.S.), Kerry Group plc (Ireland), International Flavors & Fragrances, Inc. (IFF) (U.S.), Now Health Group, Inc. (U.S.), Tate & Lyle Plc (U.K.), Axiom Foods Inc. (U.S.), Burcon NutraScience Corporation (Canada), BENEO GmbH (A Part of Südzucker AG) (Germany), Glanbia Plc (Ireland), Sotexpro (France), Farbest-Tallman Foods Corporation (U.S.), CHS Inc. (U.S.), Ÿnsect (SAS) (France), Enterra Feed Corporation (Canada), Protix B.V. (Netherlands), Entomo Farms (Canada), Global Bugs Asia Co., Ltd. (Thailand), Aspire Food Group (U.S.), EnviroFlight, LLC (U.S.), Haocheng Mealworm Inc. (China), JR Unique Foods Ltd. (Thailand), Armstrong Cricket Farm Georgia (U.S.), Rocky Mountain Micro Ranch (U.S.), Cricket Lab Limited (U.K.), DIC Corporation (Japan), Cellena Inc. (U.S.), Taiwan Chlorella Manufacturing Company (Taiwan), Cyanotech Corporation (U.S.), Bluebiotech International GmbH (Germany), Pond Technologies Holdings Inc. (Canada), E.I.D.-Parry (India) Limited (India), Tianjin Norland Biotech Co., Ltd. (China), MycoTechnology Inc. (U.S.), Enough. (U.K.), Corbion NV (Netherlands), Sun Chlorella Corporation (Japan), Plantible Foods, Inc. (U.S.), Parabel Nutritional, Inc. (U.S.), Far East Bio-Tec Co., Ltd. (Taiwan), Far East Microalgae Industries, Co. Ltd. (Taiwan), Roquette Klötze Gmbh & Co. Kg (Germany), Yaeyama Shokusan Co., Ltd. (Japan), Unibio Group (Denmark), String Bio (India), Calysta, Inc. (U.S.), Angel Yeast Co., Ltd (China), and Lesaffre (France).
Key Findings in the Alternative Protein Market Study:
In 2023, Plant Protein Segment to Dominate the Alternative Protein Market
Based on type, the alternative protein market is segmented into plant protein, insect protein, and microbial protein. In 2023, the plant protein segment is expected to account for the largest share of the alternative protein market. The large share of this market is mainly attributed to the growing demand from food & beverage manufacturers, huge availability of raw materials for processing, and lower cost than other alternative protein.
However, the insect protein segment is expected to grow at the highest CAGR during the forecast period of 2023–2030. The high growth rate of this segment is mainly driven by the growing demand for environmentally friendly protein-rich food and the rising investments in edible insect farming.
In 2023, Soy Protein Segment to Dominate the Plant Protein Market
Based on type, the plant protein market is segmented into soy protein, wheat protein, pea protein, canola protein, potato protein, rice protein, corn protein, and other plant protein. In 2023, the soy protein segment is expected to account for the largest share of the plant protein market. The large share of this segment is attributed to its easy availability, lower price of soy protein, increased demand for meat protein alternatives, a wide range of applications in various products, and multiple health benefits.
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In 2023, Crickets Segment to Dominate the Insect Protein Market
Based on type, the insect protein market is segmented into crickets, black soldier fly (BSF), and other insect protein. In 2023, the crickets segment is expected to account for the largest share of the insect protein market. The large share of this segment is attributed to its high nutritional value, the ease of farming and processing of crickets, the incorporation of crickets into various food recipes and products, and the increasing demand for cricket-based products, such as protein powders, protein bars, and snacks. However, the black soldier fly segment is expected to register the highest CAGR during the forecast period.
In 2022, Algae Segment to Dominate the Microbial Protein Market
Based on type, the microbial protein market is segmented into algae protein, fungal protein, and bacterial protein. In 2023, the algae protein segment is expected to account for the largest share of the microbial protein market. The large market share of this segment is mainly attributed to the growth of the dietary supplements industry, the rising preference for spirulina-sourced products, and the increasing number of products that include algae as ingredients.
Moreover, this segment is expected to grow at the fastest CAGR during the forecast period. The high growth rate of this segment is driven by factors such as the increasing vegetarian population, the rising incidences of diet-related diseases, such as malnutrition, the growth of the nutraceutical industry, and the increasing usage of chlorella in aquaculture diets.
In 2023, Plant Protein-based Applications Segment to Dominate the Alternative Protein Market
Based on application, the global alternative protein market is mainly segmented into plant protein-based applications, insect protein-based applications, and microbial protein-based applications. In 2023, the plant protein-based applications segment is expected to account for the largest share of the alternative protein market. The large share of this segment is attributed to the growing vegetarian and vegan population, consumers' rising demand for clean-label products, and the increasing investments and expansions by plant-based product manufacturers. However, the insect protein-based applications segment is expected to record the highest CAGR during the forecast period.
In 2023, Food & Beverage Segment to Dominate the Plant Protein Market
Based on application, the plant protein market is segmented into food & beverage, animal feed, nutrition & health supplements, pharmaceuticals, and other plant protein-based applications. In 2023, the food & beverage segment is expected to account for the largest share of the global plant protein market. The large market share of this segment is mainly attributed to increasing consumer preference for plant-based foods and ingredients, the growing awareness and demand for protein-rich food products, the versatile functionality and compatibility of plant-based protein with vegetarian and vegan lifestyles, and the rise of clean-label trends.
However, the nutrition & health supplements segment is expected to record a CAGR during the forecast period. The growth of this segment is mainly attributed to changing lifestyles, growing health & wellness trends, and the increasing prevalence of diseases.
In 2023, Processed Whole Insects Segment to Dominate the Insect Protein Market
Based on application, the insect protein market is segmented into food & beverage and animal feed. In 2023, the food & beverage segment is expected to account for the largest share of the global insect protein market. The large share of this segment is driven by the growing food shortage worldwide, the increasing consumption of processed whole insects as food, and the rising demand for high-quality alternative protein and amino acid sources among end users.
In 2023, Nutraceuticals Application Segment to Dominate the Microbial Protein Market
Based on application, the microbial protein market is segmented into nutraceuticals, food & beverage, animal feed, cosmetics, and other microbial protein-based applications. In 2023, the nutraceuticals segment is expected to account for the largest share of the overall microbial protein market. The large share of this market is mainly attributed to the wide use of microbial protein in health supplements and the improved nutritional value of these products with the addition of microbial protein ingredients. This segment is expected to grow at the fastest CAGR during the forecast period.
Asia-Pacific: Fastest Growing Market
Based on region, the alternative protein market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2023, North America is expected to account for the largest share of the global alternative protein market. The prominent position of North America in the alternative protein market is attributed to the increasing focus on producing protein using sustainable methods due to the rising environmental concerns and ethical aspects associated with animal protein, the increasing vegan population, the rising number of investments in alternative protein products, the increasing demand for healthy & nutritional products, and technological advancements in the food industry.
However, Asia-Pacific is expected to record the highest CAGR during the forecast period. The growth of this regional market is mainly attributed to the increasing awareness regarding the importance of protein-rich diets, the increasing technological advancements in the food & beverages industry, the fast-growing economy, and the wide availability of raw materials.
Scope of the Report:
Alternative Protein Market Assessment, by Type
- Plant Protein
- Soy Protein
- Soy Protein Concentrate
- Soy Protein Isolate
- Textured Soy Protein
- Other Soy Protein
- Wheat Protein
- Vital Wheat Gluten
- Wheat Protein Isolate
- Hydrolyzed Wheat Protein
- Textured Wheat Protein
- Pea Protein
- Pea Protein Isolate
- Pea Protein Concentrate
- Textured Pea Protein
- Pea Protein Hydrolysate
- Pea Flour
- Other Pea Protein
- Canola Protein
- Canola Protein Isolate
- Canola Protein Concentrate
- Other Canola Protein
- Potato Protein
- Potato Protein Concentrate
- Potato Protein Isolate
- Rice Protein
- Rice Protein Isolate
- Rice Protein Concentrate
- Rice Protein Hydrolysate
- Corn Protein
- Corn Protein Isolate
- Corn Protein Concentrate
- Corn Protein Hydrolysate
- Other Plant Protein
- Insect Protein
- Crickets
- Black Soldier Fly
- Other Insect Protein
- Microbial Protein
- Algae Protein
- Fungal Protein
- Mycoprotein
- Mushroom Protein
- Yeast Protein
- Bacterial Protein
Alternative Protein Market Assessment, by Application
- Plant Protein-based Applications
- Foods & Beverage
- Meat, Poultry, and Seafood
- Bakery
- Meat Analogs
- Dairy Alternatives
- Cereals & Snacks
- Beverages
- Other Food & Beverage Applications
- Animal Feed
- Nutrition & Health Supplements
- Pharmaceuticals
- Other Plant Protein-based Applications
- Insect Protein-based Applications
- Food & Beverage
- Processed Whole Insects
- Processed Insect Powder
- Insect Protein Bars & Shakes
- Insect Baked Products & Snacks
- Insect Confectioneries
- Insect Beverages
- Other Food & Beverage Applications
- Feed
- Animal Feed
- Aquaculture Feed
- Pet Food
- Microbial Protein-based Applications
- Nutraceuticals
- Food & Beverage
- Animal Feed
- Cosmetics
- Other Microbial Protein-based Applications
Alternative Protein Market Assessment, by Geography
- North America
- Europe
- Germany
- France
- U.K.
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- Rest of Asia-Pacific
- Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Chile
- Peru
- Ecuador
- Rest of Latin America
- Middle East & Africa
Key Questions Answered in the Report: