The Rise of the Flexitarian: How Changing Consumer Values are Fueling the Plant Protein Boom
- Published | 17 June 2024
As the world's population surges towards 8.5 billion by 2030, concerns about sustainable food production have never been more pressing. According to data from the United Nations, meeting the nutritional needs of this expanding population will require producing more food in the next 40 years than in the past 8,000 years combined. This necessity has sparked a significant shift towards alternative protein sources, particularly plant proteins. One of the primary drivers of this shift is the heightened consumer demand for health-forward solutions. Modern consumers are increasingly focused on their health and wellness goals, seeking protein
alternatives that support not just their physical health but also their mental and emotional well-being.
Market Overview
The global plant protein market revenue is expected to grow at a CAGR of 8.9% between 2024 and 2025, from a market value of US$ 11.5 billion to US$ 19.2 billion. This surge is driven by technological advancements in food processing which have improved the taste and texture of plant-based products, making them more appealing to a broader audience. Additionally, the growing vegan and vegetarian population, along with flexitarians reducing meat consumption, fueled market expansion. Major food manufacturers are investing in research and development to innovate and expand their plant-based product lines, ensuring they meet evolving consumer demands for healthier and more sustainable food options.
Millennials and Gen Z Drive Demand for Plant-Based Proteins Amid Environmental Concerns
Environmental concerns, particularly among younger generations like Millennials and Gen Z, are further accelerating the demand for plant-based proteins. The food supply chain contributes significantly to greenhouse gas emissions, with livestock alone accounting for 14% of global emissions. Transitioning from animal proteins to plant-based alternatives is expected to substantially reduce these emissions. Millennials and Gen Z, who are actively engaged in climate change advocacy, form a substantial consumer base for plant-based products. For instance, in the USA 25% of 25–34-year-olds identify as vegan or vegetarian.
Replacing just 10% of global meat consumption with plant-based alternatives by 2030 is expected to yield significant environmental benefits. This includes saving up to 176 million tonnes of carbon dioxide emissions, freeing up 38 million hectares of land, and saving 8.6 billion cubic meters of water. These figures underscore the environmental imperative driving the global shift towards plant proteins.
Regional Perspectives on the Rise of Plant-Based Protein Demand
Regionally, different factors contribute to the demand for plant-based proteins. In North America, a strong focus on health-conscious eating and the success of companies like Beyond Meat reflect consumer preferences for plant-based alternatives. South America is witnessing a shift towards plant-based dishes due to urbanization, industrialization, and changing lifestyles. In Asia-Pacific, cultural influences such as Hinduism and Buddhism, along with growing awareness about sustainable eating habits, drive demand for plant-based options.
Europe and Africa also demonstrate significant demand for plant proteins. In Europe, increasing production of plant protein products indicates a growing market trend. African countries, with their rich tradition of vegetarian and vegan options, are also embracing plant-based alternatives to meet the nutritional needs of their growing populations.
Start-ups Strategically Seizing Opportunities in the Plant-based Protein Market
Many new competitors in the alternative protein field are already introducing novel products to establish themselves in the market.
For instance,
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In April 2024, Parisian food tech startup Edonia raised €2 million in a pre-seed funding round to produce its nutrient-dense, sustainable, plant-based protein from microalgae.
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In August 2023, ENOUGH, a Glasgow-based food technology startup focused on high-scale sustainable protein production, successfully secured €40 million in growth funding.
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In February 2022, Green Butcher, an Indonesian plant-based meat startup, has secured up to $2 million in a seed funding round led by Singapore-based venture capital firm Teja Ventures and global alternative protein investor Unovis Asset Management, DealStreetAsia has learned.
Plant Protein – by Application
Key applications encompass protein bars, protein beverages, dairy alternatives, sports nutrition, meat alternatives, baked goods, and nutrition supplements. These segments represent the primary drivers of market growth, reflecting widespread consumer adoption. Whereas, Emerging applications include infant formula, indicating new avenues for market growth. The incorporation of plant proteins in infant formula addresses parental concerns about allergens and the environmental impact of traditional dairy-based formulas, showcasing innovation in meeting niche market demands.
Plant Protein: by Product Demand among Consumers
The plant-based cheese commands a significant 29.5% share owing to the rising demand for dairy-free cheese options that cater to lactose-intolerant individuals and those pursuing vegan lifestyles. The development of plant-based cheeses that closely mimic the taste and texture of traditional dairy products has further propelled this segment.
Conclusion
The global demand for plant proteins is fueled by a convergence of factors including sustainability concerns, health-conscious consumer preferences, environmental advocacy among younger generations, and regional market dynamics. As the world grapples with the challenge of feeding a growing population sustainably, plant proteins are emerging as a crucial component of the future food landscape.
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