Plant-based Protein Processing Equipment Market (2022-2029)

The growth of this market is driven by the growing need to increase productivity, the increasing focus of plant-protein manufacturers to reduce production costs, increased investment in the plant-based protein industry, and increased usage of plant protein as an ingredient in various food & beverage products. Moreover, the growing markets such as Asia, Latin America, and Africa and the increasing plant-based food market are expected to create lucrative opportunities for players operating in this market. However, its high equipment cost and preference for animal-based protein ingredients are expected to hinder the growth of this market to some extent.

Various restrictions imposed by the national and local governments, such as lockdowns and restrictions related to limited workforce, resulted in shutdowns of various manufacturing facilities. Due to these lockdowns, the revenues of the majority of companies were at the risk of stagnancy, owing to which the companies are now hesitant to invest huge amounts as capital investments in these types of machinery. Several plant-based protein processing companies have also reduced their functions by closing certain operations for a certain period, reducing the requirement for expansion and limiting the demand for machinery. The COVID-19 volatile environment impacted the supply chain of companies operating in the plant-based protein processing equipment market due to increased costs and more complex and time-consuming routing of goods. Due to disrupted supply chain and logistic facilities, the global players operating in the plant-based protein processing market faced challenges in providing their services and products at their optimum capacity compared to pre-COVID-19. All these factors cumulatively restrained the market from growing. However, factors such as a limited workforce directed many companies to invest in automated plant-based protein processing equipment, boosting the market at a relatively positive rate for companies offering automated plant-based protein processing equipment.

In the era of modernization, there is a huge change in eating habits and consumer behavior. Consumers are shifting from animal-based products to plant-based alternatives, as they have various products to choose from. Additionally, each plant-based product offers a unique nutritional profile, with a wide range of values for protein, carbohydrates, and fats, along with vitamins and minerals. The factors attributed to driving the plant-based products are the increasing popularity of vegan products, the rising incidences of allergies such as lactose intolerance, the increasing adherence to a vegan/plant-based diet, and consumer concern over saturated fat levels, hormone content, and antibiotic use in dairy cattle.

According to the meat atlas of the friends of the earth and the Heinrich Boll Foundation, 9% of the world’s population was vegetarian in 2019. In recent years, the plant-based food industry has witnessed large investments looking to capitalize on the veganism trend and surging demand for sustainable foods. Alongside the growing risk profile of livestock production, well-established meat and dairy players are increasingly under attack. This protein diversification has the potential to transform a food company’s core business and value proposition due to its growth, profitability, risk exposure, and ability to compete and innovate. In 2020, plant-based meat, egg, and dairy companies across the globe received more than USD 3.1 billion in investments. This is the most capital raised in any year in the industry’s history (Source: Good Food Institute). This record surge in capital investment was three times more than what was raised in 2019 and 4.5 times more than in 2018. The pandemic has reshaped the North American food market, where plant-based meat sales increased by 200% compared to last year in the last week of April 2020.

Thus, the growing venture capital investments, which support the growth of plant-based product companies, are expected to drive the global plant-based protein market, showing the potential for the plant-based protein processing equipment market.