Plant-based market growth
- The plant-based food market is expected to triple by 2035, according to Future Market Insights
- Growth will be driven by the US and emerging markets
- Health is now a key factor for consumers, who want food to have functional benefits
- While plant-based meat and dairy are well established, they are still innovating
Consumer attitudes towards animal-free food, and plant-based meat especially, have seen better days.
As consumer interest in sustainability declines, animal-based meat and dairy are seeing a resurgence in popularity.
This may not be the sign of inevitable decline for the category, however. A recent report from Future Market Insights suggests that, far from dwindling into obscurity, the plant-based market could triple by 2035.
Market growth could accelerate
The plant-based market could rise from approximately $14bn (€12.3bn) to $44bn (€38.6bn) in 2035, growing at a CAGR of 12%, according to a report by Future Market Insights.
Recent growth of the plant-based market has, according to the report, been about 8%, twice the rate of the meat market.
Plant-based meat will lead the category, dominating nearly half the market.
Also read → Meat and dairy rebound as plant-based stalls
Pea protein will lead the way in terms of ingredients, with almost 40% of market share.
The US will be the fastest growing market, despite downturn often being seen in the geography, although growth is also being driven by emerging markets such as India, Brazil, and Mexico.
Health as a key driver
Health is now seen as one of the most important factors in consumer choice, alongside affordability.
While plant-based products haven’t had the best reputation of late, often associated with ultra-processed foods (UPFs), Future Market Insights suggests that health concerns may actually help the plant-based market to grow.
Indeed, 65% of those surveyed, who were reducing meat consumption, were doing so in service of health, compared to 61% who were doing so with sustainability in mind.
The need to replace meat and the protein it contains, explains Nandini Roy Choudhury, senior research manager at Future Market Insights, has slowly shifted to a more holistic focus on health.
The COVID-19 pandemic was a driver of this renewed focus on health, causing consumers to think more about this topic.
Consumers are becoming more interested in meeting specific needs. Some plant-based brands are rising to this challenge. For example, the report points out that US brand Tofutti markets itself as keto-friendly and kosher.
Overall, while “customers want to move away from the processed food part and lab grown food part of the plant-based ecosystem”, plant-based still remains a category worth watching.
Emerging trends in plant-based
Among the categories seeing significant growth is plant-based seafood, Choudhury explains.
This is because of an increased awareness of the importance of sustainability in the sector.
Beyond this, plant-based meat and dairy are already well established in the market.
Any such product with an aligning health claim, Choudhury suggests, is likely to gain traction.
Despite their well-established nature, they are still in an “innovative phase”, she explains, leading to trends such as hybrid meat (when a product combines plant-based meat with real meat).
