Meat Substitute Market to Grow to $6.99 Billion by End of 2027

SEATTLE — According to Coherent Market Insights, the global meat substitute market is estimated to account for $6.99 billion in terms of value by the end of 2027, experiencing a compound annual growth rate of 7.6%.

Common substitutes are plant-based meat alternatives such as tofu, veggie burgers, faux beef and soy burgers. Though the term "meat substitute" has come to encompass practically any product which can be substituted for an animal-derived product, Coherent Market Insights said, it is particularly targeted at vegetarian meat substitutes. Even though the vast majority of meat substitute products do not include poultry or fish meat, there are some which may include eggs, seaweed and cheese. Seaweed and tofu are both derived from plant sources, but how they are created differs greatly.

Market Drivers:

The increase of preferences such as veganism among consumers is expected to propel the growth of the global meat substitute market, Coherent Market Insights said.

Keeping in mind animal and environmental welfare, many individuals are inclining towards changing their lifestyle preferences, such as avoiding eating meat and dairy products. They are choosing veganism, which is an all-plant diet, over the consumption of meat. For instance, according to the U.S. National Institute of Health, there are around 9.7 million individuals who have voluntarily chosen to be vegan.

Meat substitute is an alternative solution to sustainability, food safety and food security, and is expected to augment the growth of the global meat substitute market.

With the increasing rate of the global population, food safety has risen as a major concern. For instance, according to the United Nations' Department of Economic and Social Affairs Population Dynamics, in 2019 the global population was approximately 7.7 billion which increased to 7.8 billion in 2020. This steady rise in population is creating more requirements for foods in the global market. While meat is a good source of protein, however, the population rise is resulting in a shortage of supply of meat, which is expected to increase the already rising demand of the global meat substitute market.

Market Opportunities:

An increasing amount of chronic diseases, such as cardiovascular issues, cancer and diabetes is expected to create opportunities in the global meat substitute market. While Coherent Market Insights said meat has a lot of nutritional value, it also said the consumption of some types of meat such as red meat can lead to a lot of health issues, such as heart-related issues. For instance, according to the Centers for Disease Control and Prevention, around 18.2 million adults who are 20 years or older have been diagnosed with cardiovascular diseases, and around two in 10 deaths from these diseases happen in adults who are less than 65 years old. Apart from cardiovascular issues, other health issues such as obesity and Type 2 diabetes can also alleviate from consuming too much red meat.

Various fast food chains are also respecting the preferences of their customers and are launching new vegan options in their menu, which is expected to create good opportunities for the global meat substitute market. For instance, in November 2020 McDonald's, a global fast food chain, entered the vegan industry with its plant-based sandwich called McPlant. The chain is also planning on launching a plant-based burger in 2021, Coherent Market Insights said.

Market Trends:

The main trend that has taken the global meat substitute market to another height is plant-based foods launched by food chains, which are mostly known for their meat products. For instance, in December 2020, Burger King launched one of the first-ever plant-based burgers in Mexico.

Another trend in the global meat substitute market is to add these products to a normal diet of individuals to accelerate the health and wellbeing.

Competitive Landscape:

According to Coherent Market Insights, key players operating in the global meat substitute market include Cargill, The Emsland Group, Puris, MGP Ingredient, Suedzucker, CHS, Crespel & Deiters, Sotexpro S.A, Ingredion, Kerry, Roquette Frères, DuPont and Archer Daniels Midland Company.

In February 2019, the Institute of Chemical Technology in India, and a global non-profit organization, The Good Food, collaboratively promoted a plant- and cell-based meat sector through commercialization and research.

In May 2019, Beyond Meat, partnered with Zandbergen World's Finest Meat to produce new and innovative plant-based meats in a new facility that has been constructed in Zoeterwoude, Netherlands.