The increasing awareness on a healthy and plant-based diet, intolerance to animal protein, and rising customer expenditure are the major drivers for the global plant-based protein market. Due to the aforesaid factors, the industry is expected to generate $26,721.3 million revenue in 2030, advancing at a CAGR of 9.2% during 2020–2030.
Plant-based protein has wide popularity between different segments of society. Moreover, most food companies change to promote production and marketing it more than other traditional nutritional foods. For instance, according to the Plant-Based Foods Association (PBFA), US retail sales of plant-based foods increased 11.4% in 2020. As a result of the COVID-19 pandemic, it encouraged most consumers to make shifting from animal-based proteins to plant-based proteins due to various health and environmental concerns. Therefore, a large number of companies, along with the small start-ups sell plant-based protein, which in turn, is driving the growth of the market for plant-based protein.
The plant-based protein market is categorized into dry and liquid, on the basis of form. Of these, the dry category dominated the market during the historical period (2015–2020), and it is expected to maintain its supremacy during the forecast period (2021–2030) because of the easy handling and cooking advantages of dry food products. Additionally, the demand of dry food products is high among those who seek convenient and ready-to-eat meals.
Moreover, the plant-based protein market is categorized into textured, isolated, and concentrated, on the basis of type. Out of these, the textured category is expected to witness the fastest growth during the forecast period, owing to the fact that these plant-based proteins are being high in fiber and protein, and are also beneficial for heart health.
North America was the largest contributor to the global plant-based protein market in 2020. The main reason behind this is the increasing preference for natural ingredients in the functional food and beverage industry, and rising concerns related to obesity. Whereas, the Asia-Pacific (APAC) market is expected to witness the fastest growth during the forecast period, due to the expanding vegetarian population, rising income, and growing focus of people on a substantial protein intake.
Players in the plant-based protein market have been involved in mergers and acquisitions, to remain competitive. For instance, in July 2021, Archer Daniels Midland Company (ADM) announced the acquisition of Sojaprotein, a major European producer of non-genetically modified soybean ingredients. Sojaprotein, located in Serbia, sells non-GM vegetable protein ingredients to a diverse range of European and global clients in the meat substitute, confectionery, protein bar, pharmaceutical, pet food, and animal feed segments. In 2020, the company's sales were expected to exceed $100 million. The acquisition of Sojaprotein improves ADM’s production capacity and network of customers developing healthy plant-based foods and drinks in an environmentally responsible way.
Similarly, in March 2021, Koninklijke DSM N.V announced an agreement to acquire Amyris Inc.'s flavor and fragrance bio-based intermediates business, thus expanding DSM's aroma ingredients portfolio with bio-based ingredients for the flavor and fragrance and cosmetics sectors.
Archer Daniels Midland Company, Cargill Incorporated, Wilmar International Ltd., Roquette Frères, Glanbia PLC, Kerry Group PLC, Koninklijke DSM N.V., BENEO GmbH, Emsland Group, Ingredion Inc., and AGT Food and Ingredients are the major plant-based protein market players.