New Survey Suggests that Plant-Based Meat Alternative Food Market will Reach USD 140 Billion by 2029

Delvens has recently conducted a survey related to growth of plant-based alternative products around the globe. According to survey, companies from all sectors are now significantly investing in acquiring and developing new brands and goods to satisfy the growing customer demand for plant-based products.

The emergence of practical plant-based substitutes in a variety of categories is the primary cause of the unprecedented amount of competition and disruption currently affecting the global meat and dairy industries. The popularity of "Veganuary" and the fact that big multiple retailers have quickly increased their shelf space and own label new product development for plant-based items both highlight the sector's rise year over year. As the popularity of a vegan or even flexitarian diet continues to rise, many restaurants, casual dining establishments, and fast food franchises now feature specific "meat-free" portions on their menus. It should be highlighted that "plant-based" goods have long existed and were already a key component in the food & beverage sector, despite the recent extensive coverage of plant-based growth in particular. Additionally, "plant-based alternative" goods aren't a new concept either. For instance, plant-based margarine has been used as a butter alternative for many years.

The survey was conducted online and circulated worldwide among a cross-section of 10,000 adults aged 18 and over

When asked, 26% of vegetarians and meatless food consumers said they would be persuaded to try meat-free dishes that taste like meat.

If the alternatives had more intriguing flavors, 23% would be encouraged, and 18% would be if they had the same texture as meat.

76% of Americans believe that plant-based diets are healthful, and 46% believe that plant-based protein is healthier for you than animal-based ones.

Less than half of people, 46%, say, they believe the claims made about the health benefits of plant-based foods.

Even though vegetarian, vegan, and free-from foods have come to be viewed as healthier alternatives, 67% of people still believe that meat is necessary for a balanced diet.

For sustainability-related reasons, 44% of individuals moved to plant-based alternatives between 2021 and 2028.

In Europe, 39% of consumers purchase plant-based goods. A request for certain items is made for environmental and health concerns.

To improve their sense of well-being, 41% of processed meat consumers in the UK agree to consume less of it.

To protect the ecology and the climate, 29% of Germans consume less meat.

Taste (52%), health (39%), the environment (13%), and animal welfare (11%), according to consumers, are the top reasons for consuming plant-based proteins

Lab-grown meat substitutes and plant-based meat analogs are generating enormous interest. Rising meat consumption and an expanding population are expected to boost the market share of meat alternatives from today's 1% to 10% in 2029 of the current 1.4 trillion dollar meat market.

Although, given the nuances of consumer behavior in purchasing and dietary decision-making, the boundaries between “plant-based” and “plant-based alternative” products are not always clearly defined - or indeed necessarily relevant to many consumers.

Plant-based M&A activity is on the rise, with price tags to match. In recent years, the market for plant-based alternatives has seen significant and rising M&A activity, driven by:

The market for plant-based alternatives is expanding quickly and established food and beverage corporations and financial investors are getting access to it.

Companies seeking to enlarge and consolidate their current positions to realize economies of scale and/or expand into other geographies

Startup businesses need funding from private, public, or institutional investors to maximize their growth potential.

There are several variables influencing the shift to plant-based products, including:

There has been extensive media coverage of the effects of resource consumption and greenhouse gas emissions related to the production of meat and dairy products on global warming.

Animal welfare organizations have grown significantly, and consumer preferences have changed as a result of how animals are handled throughout product production.

Numerous reports on the potential links between high consumption of processed or red meat and cancer.

Direct-to-consumer (D2C) model emergence in the plant-based industry

In the food and beverage industry, direct-to-consumer (D2C) models have gained importance as they enable processors to acquire useful insights into consumer behaviour and adopt a more specialized approach to marketing and differentiation. When used properly, this approach also makes it possible to achieve bigger margins. The growth of social media and online shopping has aided in the expansion of the direct-to-consumer (D2C) business model because they make it possible for companies, including startups, to reach a large market at a low cost and without the need to go through conventional wholesale and retail operators.

The demand from customers for a better experience and more individualized and tailored service has also contributed to the rise in D2C. D2C enables businesses to interact directly with customers in a way that is not possible through traditional normal channels.

In the market for plant-based substitutes, examples of D2C models in use include:

All plants, a UK meal-kit delivery service that offers wholesome, plant-based, frozen, and ready-to-eat meals, raised £7.5 million in Series A venture capital funding.

Daily Harvest, a US plant-based vegan fast food company that offers a build-your-box service and doorstep delivery, is funded by Serena Williams and Shaun White.

Amy’s Kitchen, a US-based manufacturer of vegan and vegetarian goods, developed “Amy’s Drive Thru” which is the first plant-based fast food restaurant.

All regions are predicted to experience high development in the market for plant-based substitutes, with North America expected to experience greater growth than Europe. Strong growth is also forecast in APAC and LAMEA, though from a smaller base than in Europe. By 2028, the North American market for meat replacements is projected to rise by 82%, to USD 1.8 billion. By 2028, the APAC and LAMEA markets are expected to increase significantly, reaching market sizes of USD 1.5 billion and USD 0.8 billion, respectively. The opportunity to innovate and expand market share is presented by this expanding market for both established players and disruptive businesses. If established businesses ignore this expanding market, they run the danger of losing market share.

What aspects affect consumers' decisions to purchase plant-based proteins the most?

Factor	Response (%)
Taste	68
Natural Ingredients	46
Protein Content	39

What encourages people to choose a vegetarian or vegan diet?

Factor	Response(%)
Animal Welfare	59
Health	47
Environment	39
Don’t like Meat	30
Reasons for Taste	24
Fashionable	3

Q&A Session with the Experts

• Is it better to invest in the business's present core product or should it branch out into the plant-based market (which may be viewed as a next-generation product)?
• Does the business possess the necessary expertise to succeed in this market?
• How is the plant-based sector evolving?
• Should the business expand through M&A or new product development to achieve organic growth?
• Does a company's current brand have the standing and strength to expand into the plant-based market?
• Why are plant-based foods and beverages necessary?
• Should the business focus on less developed markets with possibilities for additional white space, or should it target more developed regions like the UK?
• What actual application areas do you think plant-based alternatives will expand into?
• How much room does the market have for growth?