A STUDY by Ernst & Young in collaboration with Protein Industries Canada, reveals a glowing outlook for the global plant-based meat market, challenging skepticism and countering narratives propagated by the animal meat industry.
The study, aimed at providing an updated global perspective on the demand for plant-based agri-food products until 2035, demonstrates a significant growth trajectory for the plant-based protein market.
The report highlights the transition in consumer preferences towards healthier dietary choices, steering an uptick in plant-based product consumption. Rising concerns regarding environmental sustainability and animal welfare have also played a crucial role in encouraging consumers to opt for plant-based alternatives.
This shift is further amplified by increasing discretionary spending and a significant rise in lactose intolerance, particularly in emerging markets like the Asia-Pacific region.
The report states that, 'despite challenges posed by global economic uncertainties and persisting labor market shortages, the plant-based protein industry remains resilient, underpinned by sustained consumer demand, innovative product improvements, and the burgeoning growth in emerging markets'.
The market forecast outlined in the report says 'expect substantial growth, with the plant-based meat segment projected to surge from US$16.5 billion in 2021 to a striking US$139.4 billion by 2035, boasting a compound annual growth rate (CAGR) of 16.5%. Similarly, plant-based dairy is anticipated to witness a CAGR of 9.5%, reaching US$51.3 billion by 2035, while plant-based baking fortification is projected to reach US$15.3 billion'.
The study also throws light on industry priorities to overcome barriers to growth, emphasising the importance of achieving product parity in terms of price, taste, texture, and nutrition.
Regulatory challenges and variations in consumer adoption across different segments are identified, with recommendations to augment product offerings, enhance supply chain resilience, expand the addressable market, and improve business model sustainability.
For Canada, a key player in the plant-based protein industry, the report outlines both challenges and opportunities, emphasising the need to capitalise on its mature agricultural sector, sustainable agricultural practices, an established understanding about how to extract the most from beans, peas and pulses, and supportive government policies to bolster its competitive positioning in the global market.
Without doubt, as the plant-based meat market continues its upward trajectory and gathers more consumer momentum, stakeholders in traditional meat-producing regions like New Zealand, Australia, Canada, the US, and South American meat producers would be prudent to take note of these developments and adapt their strategies to align with the evolving consumer landscape and shifting dietary preferences.
This confirmation from one of the most reputable consulting firms in the world must be music to the ears of the plant-based meat and products sector. Good news too for the consumer seeking change.
For more information on the report CLICK HERE