The rise of plant based protein and the investment avenues it opens up


Plant-based proteins refer to proteins derived from plant sources, such as legumes, grains, nuts, seeds, and vegetables. These proteins serve as alternatives to animal-based proteins and are gaining popularity among individuals seeking vegetarian, vegan, or flexitarian diets, as well as those concerned about the environmental impact of animal agriculture.\
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The global food industry is witnessing a significant shift in consumer preferences, with a notable increase in plant-based protein consumption. This shift is driven by various factors, including health consciousness, environmental concerns, ethical considerations, and advancements in plant-based technology. In comparison to other alternative sources of protein, plant-based protein has gained significant traction and is poised for further growth. This overview will examine the rise of plant-based protein consumption, compare it with other alternative protein sources, discuss its market share, and explore the investment opportunities it opens up.

When compared to other alternative sources of protein, such as insects, cultured meat, and mycoprotein, plant-based protein stands out for several reasons. Firstly, plant-based proteins offer a wide range of essential amino acids, vitamins, minerals, and fibre, making them a nutritionally balanced choice. Insects and cultured meat, while protein-rich, may lack certain essential nutrients. Secondly, plant-based protein production has a lower environmental impact, requiring less land, water, and resources compared to traditional livestock farming or insect rearing. Cultured meat, though promising in terms of reducing environmental impact, is still in its early stages of development and faces scalability challenges. Thirdly, plant-based protein has gained widespread consumer acceptance, with a variety of plant-based meat substitutes, dairy alternatives, and plant-based protein powders available in the market. Insects and cultured meat may face cultural barriers and require increased consumer education and acceptance.

The market share of plant-based protein has been expanding rapidly, reflecting the growing demand among consumers. According to a report by Grand View Research, the global plant-based protein market size was valued at USD 10.3 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 8.1% from 2021 to 2028.

The surge in plant-based protein consumption has opened up a wide range of investment opportunities in the food and beverage industry. These opportunities span across various segments, including plant-based meat substitutes, dairy alternatives, plant-based protein ingredients, food technology and innovation and supply chain and distribution.

## **The rise in consumption of plant based proteins**

People are switching to alternative plant-based proteins for several reasons, driven by health, environmental, and ethical concerns.

- **Environmental impact:** Concerns about the environmental impact of animal agriculture have driven people to explore plant-based alternatives. Animal farming requires significant resources, including land, water, and feed. It is also a major contributor to greenhouse gas emissions and deforestation. Choosing plant-based proteins can help reduce the carbon footprint, conserve water, and mitigate environmental degradation.
- **Health consciousness:** Many individuals are becoming more health-conscious and are actively seeking healthier food options. Plant-based proteins often contain lower levels of saturated fat and cholesterol compared to animal-based proteins. They are also generally rich in fibre, vitamins, minerals, and antioxidants, which contribute to overall well-being. Plant-based proteins have been associated with reduced risks of chronic diseases, such as heart disease, diabetes, and certain cancers.
- **Animal welfare and ethical considerations:** Many individuals are increasingly concerned about the ethical treatment of animals. The conditions and practices associated with industrial animal farming have raised awareness and led people to opt for plant-based proteins as a more compassionate choice. Plant-based proteins provide a way to enjoy protein-rich foods without directly supporting the use of animals for food production.
- **Allergies and dietary restrictions:** Plant-based proteins offer alternatives for individuals with food allergies, intolerances, or dietary restrictions. Common allergens like dairy, eggs, and certain meats can be replaced with plant-based options that are free from allergenic components. Plant-based proteins provide a diverse range of options for people with specific dietary needs, including gluten-free, lactose-free, or vegan diets.
- **Taste and culinary innovation:** Plant-based proteins have undergone significant advancements in taste and texture, making them more appealing to consumers. Food manufacturers and chefs are continually developing innovative plant-based products that closely resemble the taste, texture, and cooking properties of animal-based proteins. This has expanded the culinary possibilities for plant-based protein-based dishes and increased their acceptance among a wider audience.
- **Growing availability and accessibility:** Plant-based proteins are now more readily available in grocery stores, restaurants, and food delivery platforms. The increased availability and accessibility of plant-based options have made it easier for individuals to incorporate these proteins into their diets. Additionally, the rise of plant-based protein powders and supplements has provided convenient alternatives for those seeking quick and easy protein sources.

![The environmental impact and growing opportunity of animal protein](https://hedonova.b-cdn.net/Hedonova%20images/%20All%20Hedonova%20blogs/The%20rise%20of%20plant%20based%20protein%20and%20the%20investment%20avenues%20it%20opens%20up/the-environmental-impact-of-animal-protein-min.webp)

## **A glance at US plant based protein supplements market**

In the United States specifically, plant-based protein consumption is projected to increase by 8.7% CAGR from 2022 to 2030. This indicates a significant market opportunity for plant-based protein products and related investments. This forecast highlights the increasing demand for plant-based protein products among consumers in the country. Factors driving this growth include the rising awareness of the health benefits associated with plant-based diets, concerns about sustainability and environmental impact, and the availability of a wider range of plant-based protein options. The projected CAGR signifies the potential for continued expansion and market penetration of plant-based protein products in the coming years, indicating a shift towards more sustainable and plant-centric dietary choices in the United States.

![Bar chart displaying the market size of plant-based protein supplements in the US by product for the year 2030](https://hedonova.b-cdn.net/Hedonova%20images/%20All%20Hedonova%20blogs/The%20rise%20of%20plant%20based%20protein%20and%20the%20investment%20avenues%20it%20opens%20up/u.s.-plant-based-protein-supplements-market-min.webp)

## **Global plant based protein market share**

The global plant-based protein supplements market is experiencing remarkable growth, with a projected market size of approximately USD 2.5 billion. This overview delves into the current state and future prospects of the market, focusing not only on the overall market growth but also on the specific opportunities within the functional foods and sports nutrition segments.

The global plant-based protein supplements market, with a market size of USD 2.5 billion, is poised for substantial growth in the coming years. The increasing adoption of plant-based diets, driven by factors such as health consciousness, environmental concerns, and ethical considerations, is fueling the demand for plant-based protein supplements as a convenient and sustainable source of protein.\
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**Functional foods segment:** The functional foods segment represents a significant growth opportunity within the plant-based protein supplements market. Functional foods are designed to provide additional health benefits beyond basic nutrition, and plant-based protein supplements have become integral ingredients in this category. As consumers prioritise holistic well-being, the demand for functional foods fortified with plant-based proteins is rising. These products cater to specific dietary needs, such as weight management, gut health, and cardiovascular support, further driving market growth.\
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**Sports nutrition segment:** The sports nutrition segment is another promising area within the global plant-based protein supplements market. Athletes and fitness enthusiasts are increasingly adopting plant-based diets to enhance performance, improve muscle recovery, and support overall health. Plant-based protein supplements offer high-quality protein sources with essential amino acids, making them suitable for meeting the protein requirements of active individuals. As the popularity of plant-based diets in the sports community grows, the demand for plant-based protein supplements in the sports nutrition segment is expected to surge.\
The growth of the global plant-based protein supplements market is fueled by various factors and trends:

- **Increasing health consciousness:** Consumers are becoming more conscious of their health and are actively seeking out products that align with their wellness goals. Plant-based protein supplements are perceived as healthier alternatives to animal-based proteins due to their lower cholesterol content, reduced saturated fat, and potential health benefits, such as improved digestion and reduced risk of chronic diseases.
- **Sustainability and ethical considerations:** Environmental concerns and ethical considerations surrounding animal agriculture have driven consumers towards plant-based protein sources. Plant-based protein supplements have a significantly lower environmental footprint compared to animal-based alternatives, making them a sustainable choice for eco-conscious individuals.
- **Product innovation and expansion:** Market players are continuously investing in research and development to enhance the taste, texture, and nutritional profiles of plant-based protein supplements. This includes the development of new protein sources, such as pea, hemp, rice, and algae, to cater to diverse dietary preferences and allergen considerations. Additionally, the introduction of innovative formats, such as bars, powders, and ready-to-drink beverages, has expanded the market reach and consumer appeal.

![Pie chart presenting the global market share of plant-based protein supplements by application for the year 2021 in percentages](https://hedonova.b-cdn.net/Hedonova%20images/%20All%20Hedonova%20blogs/The%20rise%20of%20plant%20based%20protein%20and%20the%20investment%20avenues%20it%20opens%20up/global-plant-based-protein-supplements-market-min.webp)

## **Market value share by region**

The plant-based protein market exhibits varying value shares across different regions, indicating the prominence and market size of plant-based proteins in each region. Here is an overview of the market value share based on regional outlook:\
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**North America:** North America holds a significant value share in the global plant-based protein market. The region is witnessing a surge in demand for plant-based protein products driven by factors such as increasing health consciousness, environmental concerns, and the presence of a large vegan and vegetarian population. The market value share of North America is estimated to be around 37.1%.\
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**Europe:** Europe is another key market for plant-based proteins, with a considerable value share. The region has a well-established market for plant-based food products, driven by the growing adoption of plant-based diets and ethical considerations, making its share to be ~ 35%.\
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**Asia Pacific:** The Asia Pacific region is experiencing significant growth in the plant-based protein market, reflecting a notable value share. Factors such as a rising population, changing dietary patterns, and increasing awareness of health and sustainability are driving the demand for plant-based protein products in the region.\
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**Others:** The rest of the world comprises regions beyond North America, Europe, and Asia Pacific. While the value share of plant-based proteins in these regions may be relatively smaller, there is a growing interest and adoption of plant-based diets and products worldwide.\
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It's important to note that these market value share estimations are based on available data and market research. The actual value shares may vary over time as the plant-based protein market continues to evolve and expand globally.

![Pie graph depicting the market value share of plant-based protein across different regions](https://hedonova.b-cdn.net/Hedonova%20images/%20All%20Hedonova%20blogs/The%20rise%20of%20plant%20based%20protein%20and%20the%20investment%20avenues%20it%20opens%20up/by-region-min.webp)

## **Investment opportunities**

The plant-based protein market is experiencing significant growth as consumer preferences shift towards sustainable and healthier food options. Within this market, several investment opportunities are emerging in various segments. Here are key investment areas to consider within the plant-based protein industry:

1. **Plant-based meat substitutes:** Investing in plant-based meat substitutes presents a substantial opportunity. Consumer demand for meat alternatives continues to rise, driven by concerns over animal welfare, environmental sustainability, and health. Investing in the development and production of innovative plant-based meat substitutes can capitalise on this trend and meet the growing demand for products that mimic the taste, texture, and nutritional profile of animal-based meats.
2. **Dairy alternatives:** Investment opportunities exist in the development of plant-based dairy alternatives. Consumer interest in plant-based milk, cheese, yoghurt, and other dairy products is increasing as individuals seek lactose-free, cruelty-free, and sustainable alternatives. Investing in the research, development, and production of high-quality plant-based dairy substitutes can tap into this growing market and provide consumers with nutritious and environmentally friendly options.
3. **Plant-based protein ingredients:** Investing in the production and distribution of plant-based protein ingredients is a promising opportunity. Plant-based protein sources like soy, wheat, peas, and others serve as the building blocks for a wide range of plant-based food products. Investing in the sourcing, processing, and distribution of these ingredients can support the growing demand from food manufacturers looking to incorporate plant-based proteins into their products.
4. **Food technology and innovation:** Investment in food technology and innovation is crucial for advancing the plant-based protein industry. This includes investments in research and development to enhance the taste, texture, and nutritional profile of plant-based products. Additionally, investing in technologies like plant-based meat processing equipment, biotechnology, and sustainable production methods can drive efficiency and scalability within the industry.
5. **Supply chain and distribution:** Investment opportunities exist in building and optimizing the supply chain and distribution networks for plant-based protein products. This includes investing in cold storage facilities, transportation infrastructure, and digital platforms to ensure the efficient and reliable delivery of plant-based products to consumers. Enhancing the supply chain can reduce costs, improve accessibility, and support the market expansion of plant-based protein products.

The plant-based protein market offers a range of investment opportunities across different segments. Investing in plant-based meat substitutes, dairy alternatives, plant-based protein ingredients, food technology and innovation, and supply chain and distribution can capitalize on the growing demand for sustainable and healthier food options. By strategically investing in these areas, investors can contribute to the growth and development of the plant-based protein market while meeting the evolving needs of consumers worldwide.

![Table summarizing alternative protein investment data from 2010 to 2020](https://hedonova.b-cdn.net/Hedonova%20images/%20All%20Hedonova%20blogs/The%20rise%20of%20plant%20based%20protein%20and%20the%20investment%20avenues%20it%20opens%20up/alternative-protein-investment-summary-2010-2020-min.webp)

## **Conclusion**

In conclusion, the plant-based protein market presents a vast scope for growth and offers numerous investment avenues for those looking to capitalise on the shift towards sustainable and healthier food choices. With increasing consumer awareness about the environmental impact of animal agriculture, concerns over animal welfare, and the rising demand for plant-based alternatives, the market is poised for significant expansion.

Overall, the growth prospects for plant-based proteins are promising, driven by evolving consumer preferences, sustainability concerns, and advancements in food technology. By identifying and investing in the right opportunities, investors can not only benefit from the potential financial returns but also contribute to the transformation of the global food industry towards more sustainable and ethical practices.


The rise of plant-based proteins as alternatives to animal-based proteins has been driven by health consciousness, environmental concerns, and ethical considerations. The global market for plant-based protein is rapidly expanding, with significant investment opportunities in plant-based meat substitutes, dairy alternatives, protein ingredients, food technology, and supply chain optimization. This growth is fueled by increasing consumer awareness and demand for sustainable and healthier food choices. The plant-based protein industry offers investors a chance to align with environmentally friendly and ethical practices while tapping into a market with promising growth prospects.

The rise of plant based protein and the investment avenues it opens up

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