The increasing availability of alternatives and substitutes has driven a surge in demand for plant-based foods and beverages in recent years. This trend is primarily attributed to the expanded range of products, advancements in product development and innovation, and a broader selection of substitutes. Plant-derived proteins, such as those from soy and peas, are gaining popularity for various reasons. A 2019 Vox survey in India revealed that many respondents preferred plant-based foods over animal-based products due to their adherence to vegetarian or vegan diets. Similarly, a 2020 European Consumer Survey on Plant-Based Foods indicated that, despite only 1% of consumers identifying as vegan and 3% as vegetarian in Europe, the plant protein market is experiencing significant growth. Known for their high nutritional value and health benefits, plant proteins are increasingly sought after, prompting manufacturers to innovate and develop new products.

Plant proteins offer health advantages, including aiding weight loss, unlike meat-based products. They are recognized for lowering cholesterol levels, which supports heart health, a key factor driving the growing demand for plant proteins. Globally, athletes are also embracing veganism and plant-based protein diets. For instance, tennis stars Venus and Serena Williams adopted a vegan diet in 2011 after Venus was diagnosed with Sjogren’s Syndrome, and they subsequently won Olympic gold in doubles in 2012. Indian cricket captain Virat Kohli has also embraced veganism and owns a vegan restaurant. The plant protein market is witnessing frequent product launches, creating growth opportunities for manufacturers. Companies are forming partnerships with local firms to expand their market presence. For example, in 2018, Farbest Brands partnered with Shandong Jianyuan Foods to produce and distribute pea protein in countries such as Japan, Russia, and Australia.

However, the plant protein market faces challenges, including allergic reactions to certain plant-based proteins like peanuts and soy. According to the Cleveland Clinic, soy is among the “Big Eight” allergens, responsible for a significant portion of food-related allergic reactions. Additionally, stringent government regulations, such as those introduced by India’s FSSAI in 2020 to regulate vegan foods, pose obstacles to market growth. Plant-based proteins are often more expensive than meat-based products, which may limit market expansion. Despite these challenges, substantial investments are being made in the plant protein sector to support innovative product development. For instance, in 2018, Roquette America invested USD 320 million in a new pea protein manufacturing facility in Manitoba, Canada, to meet global demand. The expanding consumer base, fueled by a variety of product options, is expected to drive the plant protein market’s growth in the coming years.

Global Plant Protein Market Segmentation
By Source

• Soy Protein

• Pea Protein

• Wheat Protein

• Corn Protein

• Others

By Type

• Protein Isolate

• Protein Concentrate

• Textured Protein

By Application

• Bakery & Confectionery

• Dairy Alternatives

• Meat Alternatives

• Animal Feed

• Nutrition Supplements

• Others

By Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East & Africa

In 2020, the protein concentrate segment dominated the market due to its cost-effectiveness and ability to provide approximately 70% of the required protein through extraction processes involving heat, acid, or enzymes. The soy protein segment also held a significant share in 2020, driven by its cholesterol-lowering properties, metabolic benefits, and widespread use in food products. Companies like Boca Foods and Worthington Foods rely on soy protein as a primary ingredient in plant-based meat alternatives. The meat alternatives segment led the market in 2020, fueled by growing health concerns, rising obesity rates linked to meat consumption, and increasing consumer preference for vegan diets. A ScienceDaily report noted that meat consumption contributes to 15% of global obesity, prompting demand for alternatives like those offered by India’s GoodDot.

Regionally, North America is projected to maintain the largest market share during the forecast period, supported by significant investments and the presence of key players. For example, Nestlé USA acquired Sweet Earth in 2017 to strengthen its plant-based portfolio. Growing awareness of plant proteins’ benefits in the U.S., Canada, and Mexico, coupled with their use in diverse food and beverage applications, is driving market growth. Health-conscious consumers, motivated by concerns about obesity and cardiovascular diseases, are increasingly adopting plant-based diets, further bolstering the North American market.

Company Profiles and Competitive Landscape
Leading companies in the global plant protein market include DSM, ADM, DuPont, Kerry Group, Cargill, Glanbia, Wilmar International, Emsland Group, Puris, Cosucra Group, Batory Foods, Roquette Freres, and Ingredion. These firms are actively collaborating and innovating to strengthen their market positions.

Market Dynamics
Drivers

• High nutritional value and health benefits

• Growing vegan population

• Continuous product innovation

Restraints

• Allergic reactions to certain plant proteins

• Limited availability of raw materials

COVID-19 Impact
The COVID-19 pandemic significantly disrupted the plant protein market, with lockdowns and social distancing measures affecting food and beverage manufacturing. In the U.S., a major producer of plant proteins, factory shutdowns disrupted global supply chains, causing delays in product delivery. International collaborations, particularly in Europe and Asia, were hindered by travel bans, further impacting the market.

Key Trends

1. Increasing popularity of online platforms promoting vegan lifestyles (Positive)

2. Rising global vegan and vegetarian populations (Positive)

3. Challenges in sourcing raw materials for plant proteins (Negative)

Recent Developments

• In 2020, ADM acquired Yerbalatina Phytoactives in Brazil to enhance its plant-based extract production capabilities.

• In December 2019, DuPont Nutrition & Biosciences introduced a new plant-based solution portfolio to meet demand for sustainable, meat- and dairy-free products.