The alternative protein market, encompassing meat, eggs, dairy, and seafood, is poised for substantial growth, projected to reach a minimum of US$290 billion by 2035. This surge is driven by consumers embracing plant-based, microorganism-derived, and animal-cell-based alternatives, as highlighted in a report by Boston Consulting Group (BCG) and Blue Horizon Corporation (BHC).
Titled Food for Thought: The Protein Transformation, the report projects the alternative protein market to expand from 13 million metric tons annually to 97 million metric tons by 2035, constituting 11% of the global protein market. Accelerated technological advancements and comprehensive regulatory backing could propel this figure to 22% by 2035.
Benjamin Morach, a Managing Director and Partner at BCG, emphasizes that alternative proteins are on the verge of replicating animal protein in taste, texture, and affordability. This parity is expected to drive significant market expansion, transforming a relatively young sector into a mainstream phenomenon. This transition is anticipated to yield substantial environmental benefits and accelerate growth further.
The adoption of alternative proteins will have a quantifiably positive environmental impact, aligning with several of the UN’s Sustainable Development Goals. This includes responsible production and consumption and the pursuit of zero hunger. Shifting to plant-based meat and eggs alone will reduce CO2 emissions by over 1 gigaton by 2035—comparable to Japan achieving carbon neutrality for a year. Furthermore, it will conserve 39 billion cubic meters of water.
While the environmental and food security advantages are promising, BCG emphasizes that achieving price and sensory parity with conventional animal products is crucial for widespread consumer adoption. The research suggests this will occur in phases, with timelines influenced by the protein source and target product:
Plant-based alternatives like burgers, dairy, and egg substitutes derived from soy, pea, and other proteins are anticipated to reach parity by 2023.
Alternative proteins derived from microorganisms like fungi, yeasts, and single-celled algae are projected to achieve parity by 2025.
Animal-cell-based alternatives are expected to attain parity by 2032.
Björn Witte, Managing Partner and CEO of BHC, underscores the significant opportunities within the rapidly evolving alternative protein sector for early investors to shape the future of food. Success hinges on refining technological expertise and anticipating potential disruptions.
A February report by MarketsandMarkets echoes these projections. The report, Plant-based Protein Market by Source (Soy, Wheat, and Pea), Type (Isolates, Concentrates, and Textured), Form, Application (Food(Dairy Alternatives, Meat Alternatives, and Performance Nutrition) and Feed), and Region - Global Forecast to 2026, anticipates the global plant-based protein market to expand from US$10.3 billion in 2020 to US$15.6 billion by 2026, at a compound annual growth rate (CAGR) of 7.2%.
MarketsandMarkets identifies the increasing consumer demand for health-conscious organic food and beverages as the primary growth driver. Additional insights from MarketsandMarkets include:
Plant-based foods have entered the mainstream, propelled by major manufacturers like Beyond Meat (US), Impossible Foods (US), Danone (France), and Tyson Foods (US).
The pea-based protein segment is projected to experience the highest CAGR due to its nutritional value and seamless integration into final products.
The Asia Pacific region is poised for the highest CAGR in the plant-based protein market, driven by a young demographic and a growing interest in plant-based products. This has led to plant-based protein companies expanding their presence in the region.
Countries like China and India, with their strong agricultural foundations, have become key entry points for the industry. Their established infrastructure is well-suited for plant-based protein processing.
Melanie Nambiar, a Southeast Asia Trends Analyst at Mintel, highlighted the March launch of TiNDLE, a plant-based chicken brand by Next Gen, in Singapore.
Source: Tindle website. Tindle is billed as “ridiculously good chicken made from plants”.
She noted the growing popularity of plant-based diets and meat alternatives in the region, largely attributed to the potential health benefits associated with meat-free diets. Consumers’ increasing focus on health and nutrition is encouraging them to substitute animal-based products with plant-based options, creating new opportunities for food manufacturers to explore plant-based alternatives.
Singapore also made headlines in December 2020 by becoming the first nation to approve the sale of meat produced directly from animal cells for human consumption. Eat Just announced regulatory approval for its cultured chicken to be sold in Singapore as an ingredient in chicken bites. This paves the way for a limited commercial launch of Eat Just’s GOOD Meat brand in Singapore, with specifics to be revealed later.
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