PUBLISHER: SkyQuest | PRODUCT CODE: 1614950
PUBLISHER: SkyQuest | PRODUCT CODE: 1614950
Global Alternative Protein Market size was valued at USD 14.2 billion in 2022 and is poised to grow from USD 15.59 billion in 2023 to USD 32.94 billion by 2031, growing at a CAGR of 9.80% during the forecast period (2024-2031).
As of October 2023, the protein market is witnessing significant shifts driven by an increasing awareness of dietary needs and health trends. The FAO recommends a protein intake of approximately 0.75 grams per kilogram of body weight, prompting a rising demand for diverse protein sources. While dairy protein currently dominates the market, alternative proteins-such as plant-based, insect-based, and microbial proteins-are gaining traction, fueled by the vegan movement and health-conscious consumers. Key vegan proteins include soybean, pea, rice, and algae-based options like spirulina. With the demand for animal feed at an unprecedented level, traditional dairy sources are becoming increasingly costly, propelling investments into non-traditional protein alternatives to meet the growing requirements across various industries.
Top-down and bottom-up approaches were used to estimate and validate the size of the Global Alternative Protein market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.
Global Alternative Protein Market Segmental Analysis
Global Alternative Protein Market is segmented by Source, Nature, Form, Production Process, and Region. Based on Source, the market is segmented into Plant Protein, Insect Protein, and Microbial Protein. Based on Nature, the market is segmented into Conventional, and Organic. Based on Form, the market is segmented into Dry, and Liquid. Based on Production Process of Traders, the market is segmented into Plant Protein Production Process, Insect Protein Production Process, and Microbial Protein Production Process. Based on Production Process, the market is segmented into Food & Beverages, Animal Feed, and Pet Food. Based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Driver of the Global Alternative Protein Market
The Global Alternative Protein market is driven by the increasing demand for plant-based products, which are seen as ethical and sustainable substitutes for animal-derived offerings. Established meat and dairy companies face scrutiny from civil society organizations and emerging food startups, prompting a shift in consumer behavior. Millennials, in particular, are adopting flexitarian and meat-free lifestyles, influencing purchasing habits and creating new opportunities along the food value chain for manufacturers and retailers alike. Companies are strategically investing in diverse alternatives to mitigate the decline in demand for traditional animal products. Furthermore, alternative protein innovators have attracted significant funding from influential investors and groups in recent years.
Restraints in the Global Alternative Protein Market
The global alternative protein market faces several significant challenges that hinder its growth potential. Dominant players in the dairy sector hold substantial market share, creating stiff competition for alternative protein producers, which slows their expansion efforts. Additionally, there are allergy concerns associated with various alternative protein sources, including plant-based and insect proteins, which are anticipated to impact market growth. The lack of regulatory clarity regarding edible insects further complicates this landscape and restricts the scaling of insect-based protein production. Moreover, the higher costs associated with alternative proteins, along with the robust demand for traditional animal-based products, present additional obstacles to market advancement.
Market Trends of the Global Alternative Protein Market
The Global Alternative Protein market is experiencing a significant shift as heightened public health and environmental challenges in 2022 and 2023 have underscored the risks inherent in traditional food production methods. This crisis has catalyzed consumer awareness and preference for sustainable, plant-based, and lab-grown protein sources, driving innovation and investment within the sector. The growing focus on health-conscious diets, coupled with concerns over climate change and resource scarcity, is propelling alternative protein companies to the forefront of the food industry. As a result, the market is expected to witness robust growth, attracting both consumers and investors seeking viable, eco-friendly protein alternatives.