Alternative Protein Market Analysis

Alternative Protein Market Analysis

Global microbial-based alternative protein market is expected to grow over USD 41.75 billion by the end of 2028, attributed to the high adoption of sustainable sources for food and animal nutrition.  Growing health awareness among consumers for a consuming high protein diet along with rising environmental concerns among the population should foster market growth.
 

Microbial-based protein sources, such as bacteria, algae, yeast, and fungi, are widely used in food applications. The microbial-based proteins are nutritive protein sources and can be used in various functional foods & beverages which is expected to stimulate the alternative protein market growth. Microbial-based proteins are widely used in dietary supplements as they are a healthy source of vitamins, carotenes, and carbohydrates which should boost microbial-based protein demand.
 

Increasing consumer awareness about personal health and fitness along with the increasing demand for dietary supplements should escalate microbial-based alternative protein demand. An increase in demand for microbial-based protein in food & beverage products due to health benefits including stimulation of the immune system and digestion is expected to fuel product demand.
 

Global alternative protein market from food applications will surpass over USD 186.5 billion by 2028. Increasing awareness among consumers about the harmful health effects of meat & meat products is driving the demand for meat analogs, which should positively impact the alternative protein market. Plant-based protein sources, such as soy protein, are widely used in burger patties, minces, and sausages as they offer acceptable quality attributes of meat analogs in terms of taste & texture. The global market of animal feed alternative protein is poised to register over 7% CAGR during the forecast period.
 

Texturized vegetable proteins offer elastic, spongy texture, and a wide array of other texture properties that are favorable for utilization in meat analogs products. Also, meat analogs provide advantages of better shelf life and safety as compared to meat products; therefore, alternative proteins are used in various food products. Consumer focus on sustainability, growing health concerns, and the craving for great taste in meat analogs are a few factors driving the demand for meat analogs, which is expected to positively impact the alternative protein market growth.
 

North America alternative protein market value exceeded USD 10 Billion in 2021 and is estimated to witness growth at around 17.5% CAGR through 2028 owing to the growing demand for nutritious ingredients along with increasing consumer attention toward preventive healthcare. Consumers in the American region are concerned about the ingredients used in food products, especially sustainability and health impacts, due to increased focus on sustainability and healthy diets.
 

The increasing demand for protein food products coupled with demand for healthy food ingredients has led manufacturers incorporate proteins from alternative sources. According to the Food & Agriculture Organization of the United Nations (FAO), edible insects contribute to food & security livelihood, improve livelihood, can diversify diets, and have a lower ecological footprint as compared to other protein sources.
 

Growing concerns regarding animal welfare and food safety are expected to fuel alternative protein demand for animal feed applications. The COVID-19 pandemic has accelerated the demand for plant-based proteins and food products which should proliferate alternative protein demand in turn positively impact the overall market growth.
 

Significant investments in R&D for product innovations in food & beverage sector along with a focus on animal nutrition and animal health should contribute towards regional industry growth. Increase in poultry meat consumption for high protein intake and as a less harmful source of animal protein as compared to red meat is driving the demand for poultry feed which is likely to escalate the alternative protein market revenue.