Plant-based alternatives - a growing market

Source: Fi North America and SupplySide West 2019, Food ingredients Theater 1

While the snack sector continues to drive high protein claims, the trend has spread across just about

every category; from dairy to beverages. Another interesting trend is the emergence of blended protein

products, which can provide the taste and experience of an animal protein product with a healthier

nutrition profile. While only 6% of the US adult population claims to be vegetarian, regardless of their dietary

preference, Dornblaser stressed the importance of remaining aware of the fact that, for consumers, “taste

always comes first.” 1

With the demand for meat alternatives on the rise, especially among US Millennials, 1 there is no denying

that the industry can expect a heavier focus on plant-based substitutes in the coming years.

According to research done by Future Marketing Insights - a provider of market intelligence and consulting

services – the plant-based meat alternative market is currently valued at $12.1 billion; with estimates of it

reaching almost $28 billion by 2025 (predicting a CAGR growth of 15% over a 6-year period) 4 and even

$140 billion by 2029, according to analysts at Barclays. 5

Alternative meat's slice of the global meat industry

1% $14 billion

today

10% $140 billion

2029

Source: Barclays Research 5

Moreover, considering how popular snacking has become, it is no surprise that the global value of the

plant-based snack market has been valued at $34.7 billion dollars in 2019 alone, and is expected to grow

at a CAGR of 8.7% by 2028, resulting in a staggering value of $73.6 billion. 6

Looking at the US market specifically, The Good Food Institute reports several interesting industry

developments occurring over the last two years. US retail food grocery sales have increased by 4% in total;

while direct animal replacement plant-based product sales have grown by 18% between 2018 – 2019. 7

U.S. Plant-Based Meat Market

Source: The Good Food Institute 7

Similarly, with plant-based milk accounting for nearly half of the total plant-based food market, it has led

to an increased acceptance by consumers of other plant-based dairy products, such as plant-based

creamer (34.3%), yoghurt (31.3%), cheese (18.3%), ice cream (+5.7%); all having seen significant increases in

sales across 2018 and 2019. 7

Total U.S. Plant-Based Food Dollar Sales and Dollar Sales Growth by Category 2019

Source: Source: The Good Food Institute 7

Other Plant-Based Dairy Category Dollar Sales and Dollar Sales Growth 2019

Source: The Good Food Institute 7

The vegan market has also greatly contributed to the growth seen in the demand for more plant-based

alternatives, with the vegan cheese market expected to see a 7.6% CAGR by 2024, reaching a value

of nearly $4 billion. Likewise, within the next decade, vegan yoghurt sales are said to exceed a value of

$12 billion and the vegan ice cream sector is predicted to reach a value of $2.45 billion. 8