July 12, 2024
Meat Substitute Market

Meat Substitute Market Estimated to Witness High Growth Owing to Rising Consumer Preference for Plant-based Diet

The Meat Substitute Market is estimated to be valued at US$ 12.95 billion in 2022 and is expected to exhibit a CAGR of 43.6% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Meat substitutes are meat alternatives made from non-meat products like grains, soy, wheat, or other ingredients. Popular meat substitutes include tofu, tempeh, seitan, and textured vegetable protein. They offer protein as well as other nutritional benefits like fiber, vitamins, and minerals. With growing concerns about health, animal welfare, and environmental sustainability, meat substitutes provide an alternative for consumers looking to limit meat consumption.

Market key trends:

The rising popularity of vegan and vegetarian diets among consumers is driving the growth of the meat substitute market. According to statistics, around 8% of Americans currently follow a vegan or vegetarian diet due to health, ethical or environmental reasons. The versatile and meat-like texture of plant-based meat substitutes appeals to both meat-eaters and non-meat eaters alike. Additionally, tech advancements in food processing have led to major improvements in replicating the sensory characteristics of meat such as taste, juiciness and chewiness using plant-based ingredients. This has increased the palatability and acceptance of meat substitutes among regular consumers. The growing mainstreaming of meat substitutes is expected to continue fueling the market over the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the meat substitute market is moderate. Large capital requirements for R&D, production facilities and distribution channels pose barriers for new players.

Bargaining power of buyers: The bargaining power of buyers is moderate to high due to availability of several alternatives and easy availability of substitutes. However, growing health consciousness is driving demand for meat substitutes.

Bargaining power of suppliers: The suppliers of raw materials like soy, wheat, etc have moderate bargaining power due to availability of multiple suppliers. Suppliers also face pressure to reduce costs due to price sensitivity of buyers.

Threat of new substitutes: Threat of new substitutes is high due to growing popularity of vegan diet and rising health concerns over red meat consumption. Companies are innovating variety of plant-based and lab-grown meat substitutes.

Competitive rivalry: Competition in the market is high due to presence of many global as well as local players.

SWOT Analysis

Strengths: Growing consumer demand for plant-based diets, increasing prevalence of flexitarian consumers, and innovative product launches.

Weaknesses: Higher prices compared to animal-based meat, limited usage occasions, and lack of taste and texture equivalent to animal meat.

Opportunities: Untapped growth potential in developing regions, expansion in retail channels and focus on improving taste, texture and nutrition content.

Threats: Fluctuations in prices of raw materials, long product development cycles and difficulty in changing consumer mindset favoring conventional meat products.

Key Takeaways

Global Meat Substitute Market Demand is expected to witness high growth, exhibiting CAGR of 43.6% over the forecast period, due to increasing awareness about health and nutritional benefits of vegan and vegetarian diets. North America dominates the market currently due to large adoption of veganism driven by animal welfare and environmental concerns. The Asia Pacific region is anticipated to be the fastest growing market during the forecast period due to growing health consciousness, expanding middle class and rising awareness in developing countries like India and China.

Key players operating in the Meat Substitute market are DowDuPont Inc., Archer Daniels Midland Company, Amy’s Kitchen Inc., MGP Ingredients, Inc., Beyond Meat Inc., Sonic Biochem Extractions Ltd., VBites Foods Limited, The Nisshin OilliO Group, Ltd. Garden Protein International, MorningStar Farms, and Meatless BV. These players are focusing on new product launches, capacity expansions and mergers & acquisitions to strengthen their market presence.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it