Alternative Protein Market size is poised to surpass USD 40 billion by the end of 2035, growing at a CAGR of 11% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of alternative protein was over USD 15 billion. The growth of the market can be attributed to the increasing number of vegans and vegetarians. Alternative proteins are the area from where vegan people can suffice the need for their protein diets. In the survey of around 12,000 people from the UK, USA, Canada, and New Zealand. Around 52% of people who turned vegan were vegetarians before and around 43% of people use to consume animals before turning vegan.
In addition to these, factors that are believed to fuel the market growth of alternative protein include the rise in the number of livestock which is expected to increase the demand for animal feed. The most significant and preferred source of high-quality vegetable protein for the production of animal feed continues to be soybean. According to reported data, the number of livestock in the EU is significant, in December 2021, there were 142 million pigs, 76 million cattle, 60 million sheep, and 11 million goats. In addition to this, the overall population of livestock in India is 514.11 million in rural areas and 22.65 million in urban areas.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~11% |
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Base Year Market Size (2022) |
~ USD 15 Billion |
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Forecast Year Market Size (2035) |
~ USD 40 Billion |
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Regional Scope |
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Type (Plant-Based Protein, Insect-Based Protein, Microbial-Based Protein)
The global alternative protein market is segmented and analyzed for demand and supply by type into plant-based protein, insect-based protein, and microbial-based protein. Out of the three types of alternative protein, the plant-based protein segment is estimated to gain the largest market share in the year 2035. The growth of the segment can be attributed to the increasing awareness and demand for plant-based food. Plant-based alternative milk products represented around 16% of all milk sales during the 52 weeks that ended July 3, 2021. In addition to this, in the United States, around 52% of consumers are eating plant-based foods for a healthier life.
Application (Food & Beverages, Animal Feed & Pet Food, Nutraceuticals)
The global alternative protein market is also segmented and analyzed for demand and supply by application into food & beverages, animal feed & pet food, and nutraceuticals. Amongst these three segments, the food & beverage segment is expected to garner a significant share in the year 2035. People are becoming more aware of the importance of proteins in their diet which is creating lucrative opportunities for alternative proteins. Alternative proteins are used in making meat-free protein and dairy-free products. The growth of the segment is expected on the account of rising prevalence of lactose intolerance among people. Almost 80% of African Americans are lactose intolerant. Moreover, around 60% of the Indian population is living with milk intolerance. On the other hand, the rising population of vegans is also expected to boost the growth of the food & beverages segment in the market.
Our in-depth analysis of the global market includes the following segments:
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By Type |
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By Application |
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North American Market Forecast
The North American alternative protein market, amongst the market in all the other regions, is projected to hold the largest market share of about ~35% by the end of 2035. The growth of the market can be attributed majorly to the increasing population of vegans and vegetarians. Around 2% of Americans, aged 17 and older, in a sample of 11,000 persons, identify as vegetarians. Moreover, less than half percent of adult Americans in the USA, or one in four vegetarians, identify as vegan and around 2 million Americans are vegans in America. On the other hand, in 2018, there were about 2 million vegetarians living in Canada. Another less than 1 million customers in Canada identified as vegans. In that year, vegetarianism and veganism were most prevalent in British Columbia.
APAC Market Statistics
The Asia Pacific alternative protein market, amongst the market in all the other regions, is projected to hold the second largest share during the forecast period. The growth of the market can be attributed majorly to the increasing demand for plant-based diets. The consumers' desire to enhance their general physical health is the key factor driving their interest in plant-based foods. Around 34% of Indian consumers say they are driven to eat exclusively plants. Moreover, the launch of new plant products increased by around 2 % in October 2022 in India. In addition to this, rising efforts by private companies to boost the innovation of alternative protein are also expected to boost the market growth in the region. For instance, to fulfill the rising demand for food and beverages in the Asia-Pacific area, ADM launched a new innovation lab in Singapore for plant-based food. the lab is likely to create items that are revolutionary and nutritious.
Europe Market Forecast
Further, the market in Europe, amongst the market in all the other regions, is projected to hold a significant share by the end of 2035. The growth of the market can be attributed majorly to the increasing consumption and demand for alternative protein. Proteins such as plants, plant-based meat, fungi, and other sources are excellent source of proteins and are gaining popularity among people. Around 48% of European consumers are inclined to add soy to their diet as a healthy and nutritious option. Moreover, around 33% of people in the United Kingdom and nearly 22% of German consumers are willing to get plant-based alternatives for fish and other protein source.
Calysta Inc. raised an investment of USD 39 million in a financing round driven by bp ventures. With this investment, Calysta aims to worldwide scale up of production of Calysta's FeedKind protein. It also involves scoping and preliminary planning for the company's future manufacturing location outside of Asia.
Archer Daniels Midland Company ADM announces the collaboration with Marel, a major provider of advanced food processing solutions. With the joint venture, the company plans to develop an innovation hub on the Wageningen Campus, in the heartland of the Dutch food valley.
Author Credits: Anil Kumar, Ipsheeta Dash
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