The Meat Substitute Market Is Estimated To Witness High Growth
Meat substitutes are plant-based or synthetic products that mimic the texture, flavor, and appearance of meat products. These alternatives are made from ingredients such as soy, wheat, and pea protein. Meat substitutes offer several health advantages over regular meat as they are lower in fat, calories and cholesterol. They are also a sustainable alternative as they reduce environmental impact of meat production.
The meat substitute market is estimated to be valued at US$ 2.15 Bn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends driving the growth of meat substitute market is increasing awareness about health and environmental issues associated with meat consumption. Regular consumption of red and processed meat has been linked to increased risk of heart disease, diabetes and some cancers. At the same time, livestock breeding also contributes significantly to environmental problems such as greenhouse gas emissions, water pollution and deforestation. The rapidly growing flexitarian and vegetarian demographics are increasingly opting for meat substitutes as an alternative protein source to address both health and sustainability concerns.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the market requires huge capital investment to establish production facilities. However, the increasing demand has opened opportunities for new players.
Bargaining power of buyers: The bargaining power of buyers is low to moderate as the market is dominated by few global suppliers. Buyers have limited options but rising awareness is empowering them.
Bargaining power of suppliers: The bargaining power of suppliers is moderate to high as raw materials are agricultural commodities subject to crop failures and price volatility. Suppliers can influence prices.
Threat of new substitutes: The threat of substitutes is moderate with alternative protein sources like plant-based meat receiving R&D to make them indistinguishable from animal meat.
Competitive rivalry: High as incumbents compete on product innovation, capacity expansion and marketing.
SWOT Analysis
Strengths: Large player with global presence and economies of scale, rich R&D capabilities to innovate plant-based meat substitutes.
Weaknesses: High dependency on crop prices, capital intensive production requires large upfront investment, substitutes may gain traction.
Opportunities: Growing health and sustainability driven demand especially from millennials, scope in developing markets as purchasing power rises.
Threats: Stringent regulations around marketing claims, shifting consumer preferences towards natural/organic foods, supply chain disruptions.
Key Takeaways
The Global Meat Substitute Market Growth is expected to witness high, exhibiting CAGR of 13% over the forecast period, due to increasing health awareness among consumers about risks of red meat consumption. North America dominates currently owing to rapid adoption of plant-based diet followed by Europe. Asia Pacific is expected to be the fastest growing market driven by strengthening middle class and their rising expenditures on premium food products.
Regional analysis - North America dominates currently owing to rapid adoption of plant-based diet followed by Europe. Asia Pacific is expected to be the fastest growing market driven by strengthening middle class and their rising expenditures on premium food products. Latin America and Middle East & Africa also present lucrative opportunities for meat substitute suppliers.
Key players operating in the Meat Substitute Market are ADM (US), Ingredion Incorporated (US), DuPont (US), Kerry Group (Ireland), and Roquette Frères (France). They are focusing on expanding production capacities and launching new product lines catering to diverse regional tastes. Partnerships across the value chain are also witnessed to address supply chain challenges.
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