Consumer Intel

After expanding aggressively into the retail category nationwide in the United States, Impossible Foods is now eyeing a new market to drive growth and increase its market share. In May 2021, the plant-based company announced that its plant-based Impossible Burger secured the Child Nutrition (CN) Labels from the United States Department of Agriculture (USDA). Therefore, making Impossible Foods plant protein burgers eligible for distribution under federal child nutrition programs such as National School Lunch Program, and School Breakfast Program. ConsumerIntel360 expects this entry into the K-12 foodservice channel market is likely to drive revenues for the plant-based protein company.

Sizeable market opportunity for Impossible Foods from the K-12 foodservice channel

The National School Lunch Program is the second-largest food and nutrition program in the United States. Every year, billions of lunches and breakfast are distributed in various schools nationwide, for free or at a reduced cost.

Since, Impossible Foods now carries CN Labels, it will become much easier for schools to easily procure plant-based burgers and sausages from the company. Moreover, according to the National Center for Education Statistics (NCES), with more than 100,000 public schools in the United States, this entry into the K-12 foodservice channel represents a sizeable market opportunity for Impossible Foods.

Impossible Foods is gearing up to launch its products with the reopening of schools

Soon after receiving the CN Labels, Impossible Foods announced the pilot program for their plant-based food products for K-12 foodservice channels. Starting from May 2021, Impossible Foods entered different schools based in California, Washington, and Oklahoma to offer their products.

Some of their initial plant-based offerings will include Impossible Frito Pie, Impossible Street Tacos, and Spaghetti with Impossible Meat Sauce. With schools across the country starting to reopen from the pandemic, Impossible Foods is expected to roll out its plant-based product line nationwide in the coming year.

ConsumerIntel360 expects the competition to intensify in the K-12 foodservice market over the next few years. Consequently, opening up new investment and partnership opportunities for several global plant-based brands.

Nestle, as a part of its plant based food and beverage strategy, is focusing on high-growth areas and expanding its business to cater to evolving market conditions while committing to healthy and nutritious foods. To this end, in February 2021, Nestle announced plans to launch vegan Kitkat, KitKat V, later this year. Also, Nestle Japan is introducing Nescafe lattes with plant-based ingredients, to satisfy the growing interest of customers in plant based beverages.

Nestle offers plant based food under Garden Gourmet brand in Europe and Sweet Earth brand in the US, and across its portfolio. The company has been innovating and expanding its portfolio to meet evolving consumer needs. In September 2020, Garden Gourmet launched a meatier and juicy version of its plant-based burger, which was previously launched in April 2019.Moreover, Garden Gourmet expanded it offering to include Sensational Burger and Sensational Vuna, a plant-based alternative to tuna. Also, its plant-based tuna alternative is currently offered at supermarkets in Switzerland. Consequently, Garden Gourmet offers 80% clean label products and plans to extend the label to its remaining product portfolio.

Also, since 2017, Nestle has been innovating Sweet Earth, its plant based food brand in the US. It launched innovative plant-based pizzas with extra vegetables and fiber. Also in July 2020, it unveiled Sweet Earth Sausages, the Green Chile Chedd'r and Chik'n Apple.

Moreover, Nescafe Gold offers non-dairy creamy lattes with oat, almond, or coconut, and blended with Arabica coffee beans. Also, in the US in February 2021, Coffee-Mate Natural Bliss brand introduced plant-based creamers with oat and almond milk, inulin, pea protein and MCT Oil. Owing to continuous innovation, portfolio and distribution expansion, vegetarian and plant-based food products recorded double-digit growth in the first nine months of 2020.

Further, Nestle Malaysia launched a plant based meal solutions manufacturing (PBMS) facility in Shah Alam plant, one of its first in South East Asia. The company has spent US$37 million (RM150 million) out the total US$69.1 million (RM 280 million) CAPEX planned for 2021.

The PBMS facility will manufacture products not just for Malaysians but also for exports to countries such as China. As per the company, the plant based market will become mainstream eventually in Asia and Nestle is well prepared to capture share in this growing market.

The company is running trials on products and plans to begin offering them in February 2021. To begin with the company intends to supply burgers to restaurants and then move into the retail market in April or May 2021. The products will be marketed under Harvest Gourmet brand which already has a presence in APAC especially in Australia.

The demand for plant-based food is growing in the Middle East, especially in the United Arab Emirates (UAE). The increasing consumer demand for alternative meat is primarily motivated by health reasons, while the ethical and environmental impact of growing traditional meat products also remains a crucial factor. Over the last few years, these factors have made inroads in the plant-based diet among consumers in the UAE.

The plant protein market in United Arab Emirates has recorded a strong growth with a CAGR of 31.7% during 2018-2020. According to ConsumerIntel360’s Q4 2020 Global Plant Protein Survey, Plant protein industry is expected to continue to grow in United Arab Emirates over the forecast period. It is expected to record a CAGR of 21.4% during 2021-2027. The plant protein consumption in the country will increase from US$ 67.3 million in 2020 to reach US$ 276.0 million by 2027.

While the plant-based industry is still in the nascent stage of its development, the consumption of alternative meat products is increasing in UAE. Rising numbers of people suffering from diabetes, obesity, and cardiovascular diseases are driving the demand for healthier products. In addition to this, factors such as migration, urbanization, and increasing income in the country are also supporting the growth of the plant-based industry.

Higher disposable income among the expanding middle-class population in the country is disrupting food consumption trends while driving the demand for plant-based products. Moreover, more aware consumers in the UAE are starting to evaluate the ethical credentials of the brands - including their sustainability policies - before purchasing the products.

Key Drivers

Growing flexitarians and vegans driving the market for plant based meat alternatives

In recent years, increasing number of people in the UAE are turning to flexitarian, vegan, or vegetarian diet due to health or ethical reasons. This trend further accelerated due to the pandemic. To cater to this trend, food companies as well as restaurants have been launching plant based products. For instance, in November 2020, Subway introduced meat-alternative sandwiches at select outlets at Dubai.

Availability of plant-based dining in food and beverages outlets driving the demand

The availability of quality plant-based products in food and beverage outlets have improved in the last few years. The ease of availability alone encourages more consumers to give meatless products a try. With the market finally recognizing the growing demand for meatless alternative products, it has become easier for consumers to include plant-based products in their diet regularly. This is supporting the growth of the market in the UAE.

Bareburger, a fast food restaurant chain, serves meatless burgers from Beyond Meat. These burgers were available to its customers at three outlets in Dubai and one in Abu Dhabi. Since its launch, the meatless burger has been their bestseller. According to Bareburger, the outlets are selling more Beyond Burger than beef in the UAE. Due to this growing demand, the restaurant chain launched a completely new vegan menu in the country alongside the traditional animal-based products. Moreover, the sales of their vegan burgers accounted for 50% of all burgers sold at Dubai outlets during the pandemic.

Key Trends

Plant-based meatless burgers gaining traction in the UAE

Plant-based meatless burgers have been gaining traction in the UAE as consumers choose a healthy lifestyle. To cater to this need, companies have been launching plant based meatless burgers. In February 2021, Global Food Industries (GFI), a value-added food manufacturing company, introduced Al Areesh plant-based burgers patties made from pea protein. The patty is soy-free, antibiotics-free, gluten-free and does not comprise whey or egg-based protein powders. The company plans to offer Al Areesh plant-based burgers across retail outlets from May 2021.

AI Islami Foods rolled out a plant based burger in January 2021. The burger is made of sunflower seeds, fava beans, and peas and was launched as a response to increasing demand for vegan options. The company plans to further extend its portfolio across supermarkets and hypermarkets in the UAE. It also plans to collaborate with restaurants, hotels, and cafes, to further expand its reach across Middle East.

Key players

Key players in the market include The Meatless Farm Co., Impossible Foods, Tofurky, Healthy Farm, Plant Power, and Bareburger. Several international plant-based brands such as Beyond Meat and VBites have launched their product offerings in the UAE. As the plant-based economy continues to grow in the country, many international companies are anticipated to bring their product offerings. The presence of one of the largest foods and beverage trade exhibition is also supporting the market growth.

VBites, the UK based vegan food brand, debuted in the UAE with the launch of plant based products including nine frozen products such as V Bites Mega Burger, at Spinnneys outlets across the country and Waitrose Dubai, as well as vegan mince, chicken and fish products, January 2021.

Further, retailers are also focusing on strengthening their plant based meat portfolio by either launching their own brands or partnering with food companies to distribute such products. Spinneys supermarket for instance, introduced Power of Plants initiative as part of its corporate sustainability programme, January 2021. The programme intends to encourage customers to make healthy choices such as plant-based products including meat-free and dairy-free alternatives.

Demand for plant-based diets was already increasing even prior to COVID-19, but the pandemic has further shifted consumer preference towards healthy and environmental friendly products. This trend is likely to remain post COVID, and companies will focus on offering innovative plant-based products that promote healthy living. For example, Spinneys is believed to expand its range of plant based food offerings as well as locally produced products including its SpinneysFOOD plant-based products that includes recipes using Beyond Meat burger and sausages. The supermarket offers plant based products including VMega Burger, Meat-Free Chicken Nuggets. Apart from this, it also offers other plant-based products from brands such as Linda McCartney, Meatless Farm, Omnimeat Violife, Quorn and Beyond Meat.

The advancement in technology in imitating the texture of traditional meat and enhancing the taste profile of meatless alternatives is resulting in growing consumer demand. Foodservice channels and restaurants have been the dominant source of revenue for the plant protein industry in the UAE. For instamce, Beyond Meat offers meatless burger in partnership with Bareburger for consumers. The meatless burger is available at all outlets of Bareburger in the country. Similarly, Impossible Foods partnered with Black Tap foodservice channels to offer Impossible Burger in the country. The meatless burger is available at all of the Black Tap outlets across the UAE. However, in the wake up of the global coronavirus outbreak, e-commerce is expected to emerge as a new leader in the sales of meatless products.

The US plant-based protein market has recorded strong growth in recent years. The growth is primarily backed by the rising flexitarian trend, adoption of vegetable diet, and vegan meals due to the increasing health consciousness and evolving veganism among a large US population.

According to ConsumerIntel360's Q2 2020 survey, plant-based foods market is growing at over 15% (annualized basis) in the US. The market growth is offering an attractive business and investment opportunity for food manufacturers ranging from leading CPG companies to meat producers. Moreover, future growth prospect of the market is attracting startups to participate in the market. It is expected that innovative products using new ingredients will drive the future growth of the market.

The ongoing coronavirus pandemic (COVID-19), is becoming a rising concern for global socio-economic stability.

The conventional meat processing companies are facing several challenges to run their business. In April 2020, meat processing companies such as Tyson, National Beef Packing, and JBS USA had to close their many plants due to some of their employees got sick by the virus. Notably, the closure affected Tyson to lose 25% of its total meat production. The availability of meat and meat products has been affected.

Additionally, consumers are avoiding animal products due to fear of getting infected. Hence, the shortage of conventional meat and consumers’ sudden affection to the plant-based meat is helping the plant-based meat sector to record rising demand.

In the plant-based protein market, innovation is truly necessary to sustain in the business. Consumers’ inclination towards plant-protein is rising due to the more health benefits and same taste these alternative proteins are offering. Therefore, companies are keen to find ingredients which can be alternative to conventional protein sources and match consumers’ preference.

The demand for hemp seeds is rising as a complete source of protein and contains essential amino acids. Due to high growth potential over medium to long term, start-ups are entering the plant protein market by creating a niche in hemp-based protein products. Pea protein is gaining market share in the US plant-protein industry. This is primarily due to high protein content and several health benefits it offers. Additionally, the use of pea protein is increasing in dairy, bakery, and other food and beverage processing markets as an alternative to other plant-based protein such as soy. Companies are therefore focusing on new product development using pea protein.

The strong growth of the US plant-based protein market is creating opportunities for already established large food processing companies and new entrants. Large food processing companies such as Tyson and Nestlé are moving faster to establish their presence in the plant-based protein market, due to increasing demand. Similarly, start-ups are raising funds to stay afloat in the US plant-based protein market. The market is also getting support from growing sales of plant-based foods in restaurants and foodservice channels. It is expected that the rising demand will also encourage retailers to introduce more private label brands in the market.

The plant-based protein market is rather consolidated in the US with the presence of large companies such as Cargill, Archer Daniels Midland, Tyson, DuPont, Danone, Conagra, Ingredion Incorporated, Axiom Foods, The Scoular Company, Boca Foods (Kraft Heinz), Beyond Meat, and Field Roast Grain Meat Co.(Maple Leaf Foods).

Moreover, the plant protein market is at a relatively nascent stage in its development, therefore several start-ups and relatively small businesses are entering the market.The US plant-based protein producers are primarily competing with conventional animal-protein companies such as WH Group, Hormel, and others. These large companies have already built strong brand recognition and a large consumer base in the US animal-protein market. Leveraging lower operational costs due to the large volume production, conventional animal protein companies can reduce their product prices than plant-based protein products.

Additionally, plant protein producers are also facing stiff competition from conventional companies for expanding retail shelf space, restaurant, and foodservice consumers.In the US, plant-based protein producers are likely to be more focused on their product innovation and promotional activities to expand their market share and compete with traditional animal protein companies in the coming years. Competition within the segment will rise as the participation by the large food processing companies is increasing in the plant-protein segment. These companies are investing in research and development to create a niche market by bringing new and innovative products.

Additionally, private label products are also gaining popularity. For instance, in January 2020, the Kroger Co. launched Simple Truth Emerge, a new pea protein-based fresh meat product in the US. Anticipating strong demand for plant-based protein products, the company plans to add another 50 products under the Simple Truth brand.

According to ConsumerIntel36’s Global Plant Protein Q3 2020 survey, the rising demand for plant-based products is also encouraging mid-tier retailers to provide shelf-space for plant-based protein products. It is expected that mid-tier retailers are likely to focus more on private label brands.

According to ConsumerIntel360, Plant protein consumption increased at an annual growth rate (AGR) of 25.0% during 2018-2019. The recent growth of the plant-based protein industry in Russia provides opportunities for major food processing companies and new entrants.

The plant-based protein market is rather fragmented in Russia with the presence of large companies such as ADM, Cargill, Cosucra Groupe Warcoing S.A., DuPont de Nemours, Inc., Kerry Group, NOW® Foods, Ingredion Incorporated, Tate & Lyle, and Beyond Meat.Likewise, startups are raising funds to be stable in the Russian plant-based protein market.  Also, the industry is getting support from growing restaurants and foodservice outlets for the sales of plant-based foods. The growing competition is expected to also allow retailers to put more private labels into the marketplace. Moreover, the plant protein market is at a relatively nascent stage in its development, therefore several start-ups and relatively small businesses are entering the market.Startups such as Greenwise and Moving Mountains are planning to expand their product line this year to reduce Russia’s meat consumption by offering plant-based alternatives to the popular meat products.

Also, the presence of the leading meat producers such as Tyson, Cargill, and JBS makes the Russian plant-based market more competitive. These firms have a large global distribution network which helps them reach a broader customer base. Periodically updating their food products with newer ones and building partnerships with the leading foodservice channels make these companies strong competitors.Rapid business growth is creating opportunities for startups. Fundraising and production, both in small and large amounts, demonstrate the growth trend in the plant-based protein or alternative meat products market in Russia.

Retailers are willing to provide shelf space for plant-based products. Retailers such as Azbuka Vkusa, VkusVill, Globus, and X5 Retail Group are willing to provide separate sections for vegan and vegetarian products—not only in physical stores but also in their online portals. These products are included by small and large retailers in their marketing campaigns because they aim to emphasize the availability of plant-based, animal-friendly, and green products in their stores.

Consumers in Russia are seeking to incorporate plant-based foods into their diets. Plant-based nutrition is gaining importance among more people following vegetarian diets, including those adopting vegan diets. The attractiveness of plant-based proteins is diverse, as with other behaviors. For many customers, the rationale for preferring plant-based proteins focuses on the correlation of health benefits, superior nutritional value, and the desire to reduce meat consumption in modern times.

The growth in the plant-based protein market is primarily driven by changing food preferences. The rise in the ‘flexitarian’ consumers—individuals who consume meat and dairy products, however, are willing to reduce consumption—is primarily creating demand.

The recent growth of the plant-based protein industry in Russia provides opportunities for major food processing companies and new entrants. The plant-based protein market is rather fragmented in Russia with the presence of large companies such as ADM, Cargill, Cosucra Groupe Warcoing S.A., DuPont de Nemours, Inc., Kerry Group, NOW Foods, Ingredion Incorporated, Tate & Lyle, and Beyond Meat. Moreover, the plant protein market is at a relatively nascent stage in its

development; therefore, several start-ups and relatively small businesses are entering the market. Also, the industry is getting support from growing restaurant and foodservice outlets for the sales of plant-based foods. Consequently, ConsumerIntel360 projects that the growing competition is expected to allow retailers to put more private labels into the marketplace.

The Russian plant-based protein producers are primarily competing with conventional animal-protein companies such as Cherkizovo Group, Miratorg, Cremonini SPA, Zarechnoe, AgroPromkomplektaciya, and others. These major companies have also developed high brand awareness and a broad customer base in the animal-protein market in Russia. Because of the high-volume production and lower manufacturing costs, traditional animal protein producers are able to decrease their food prices than plant-based protein products. Additionally, plant protein producers are also facing stiff competition from conventional companies in the plant-based protein market as well as in the plant-based meat market, such as Greenwise, Beyond Meat, and Moving Mountains.

Rapid business growth creates opportunities for startups. Companies such as Greenwise and Moving Mountains are planning to expand their product line this year to reduce Russia’s meat consumption by offering plant-based alternatives to popular meat products.

Additionally, retailers are willing to provide shelf space for plant-based products. Retailers such as Azbuka Vkusa, VkusVill, Globus, and X5 Retail Group are willing to provide separate sections for vegan and vegetarian products—not only in physical stores but also in their online portals. Small and large retailers include these products in their marketing campaigns because they emphasize the availability of plant-based, animal-friendly, and green products in their stores.

The competitive landscape in the alternative protein sector has changed quite dramatically in the UAE parallel to the rise of the plant-based industry in other major economies. It has grown from being a niche alternative to a product for the mainstream in the last few years. Having said that, meat alternatives are presently the star of the plant protein industry with global companies including Beyond Meat, Impossible Foods, Tofurky, Fazenda Futuro, and other startups generating the majority of the consumer interest.

The advancement in technology in imitating the texture of traditional meat and enhancing the taste profile of meatless alternatives is resulting in growing consumer demand. It is even convincing previous cynics who once considered meat alternatives as a fad in the country. That said, food service channels and restaurants have been the dominant source of revenue for the plant protein industry in the UAE. However, in the wake up of the global coronavirus outbreak, e-commerce might emerge as a new leader in the sales of meatless products.

The presence of the world's largest food and beverage trade exhibition in Dubai is also opening doors for more global companies to enter into the growing alternative protein sector in the country. The largest plant-based consumer packaged goods company - Upfield - participated in the 2020 edition of the Gulfood Exhibition to display their range of plant protein food and beverage products. The company is targeting the UAE to gain market share in the country that is showing a growing appetite for meat alternatives.

As global plant-based players continue to enter the market, the competitiveness is expected to grow even further. This will create more partnerships with local foodservice channels and e-commerce platforms in the country.

China is one of the biggest meat consumers, especially beef, consuming more than a quarter of the world's meat. Owing to government legislation, health-related issues, climate, and animal welfare, as well as costs, vegetarianism has gained traction in China over the past few years. The country has been using vegetarian ingredients even before the concept of plant-based protein or meat alternatives was introduced to add a meat-like savory taste to vegan recipes. These meat-free foods are not only consumed as an alternative to meat-based on animals, but they still form a part of the daily Chinese diet, with plant-based foods being used in a wide variety of traditional dishes due to Buddhist influences. The consumer demand is driving the market interest in the meat alternatives industry providing the start-ups, global food tech companies, and investors with a fertile ground to step in.The young generation is the key guiding factor in the transition towards a plant-based diet. According to ConsumerIntel360, nearly 72% of plant-based consumers are under the age of 33 years. There are multiple factors that lead young people to seek meat-free choices. These include government dietary guidelines, changes in dietary attitudes to shift to healthier diets, adoption of environmental stewardship, sensitivity to animal rights, and, most importantly, the increasing number of meat alternatives available in the market. Leveraging social media and influencers is the key to engage and target such consumer segment and to promote plant-based options as healthy and trendy. Over the last few years, the meat substitute industry in China has seen rapid growth. The key reasons for this transition to mainstream consumer market are COVID-19 impact, government regulations, and the outbreak of African swine fever. The plant-based market is growing fast, especially the plant-based beverages sector in China. Soy milk as an alternative to dairy-based milk is gaining popularity in the country. Due to long-standing soy consumption traditions, growing interest in plant-based nutrition, and the convenience offered by such products, soy drinks will tend to be well-positioned to benefit from prevailing conditions in the Chinese market. In recent years, there has been a growing awareness and acceptance of plant-based milk products amongst the consumers. Apart from soybeans milk, there has been a growing demand for almond milk, peanut milk, coconut milk, and walnut milk. The rising demand for plant-based protein drinks has drawn the attention of large-scale food and beverages manufacturers.The main raw materials used as meat substitutes in China have long been soy protein, wheat gluten, and Konjac. However, in the recent past, protein products are also produced in food-grade standards from other plant-based ingredients such as peas, canola, beans, oats, peanuts, quinoa, and rice. The plant protein market in China has recorded a strong growth with a CAGR of 27.1% during 2018-2020. According to ConsumerIntel360’s Q4 2020 Global Plant Protein Survey, increase in demand, and investments are expected to further drive innovation and inorganic growth in the plant-based protein industry in China. With incumbents attempting to protect/enhance their market share in this burgeoning space, the market is expected to record increase in new products. As the food manufacturers go aggressive on gaining market share in this high growth segment, understanding strategic initiatives, product claims, ingredients, and changing consumer preferences in a structured way will be important to gain market share. The market growth has been supported by the ongoing COVID – 19 pandemic. The demand for plant proteins is expected to increase significantly in the short to medium term. Plant protein industry is expected to continue to grow in China over the forecast period. It is expected to record a CAGR of 19.8% during 2021-2027. The plant protein consumption in the country will increase from US$ 1703.2 million in 2020 to reach US$ 6276.3 million by 2027. This business

intelligence report from ConsumerIntel360 aims to analyze market opportunities and risks in plant protein industry in China. This report offers a detailed view of market opportunity by end user segments, product categories, ingredients, applications, key cities, competing protein segments, price point, and shift in consumption by consumer demographics. In addition, for each product category, this report details demand gap / white space analysis, competitive landscape, brand share, claims analysis, and ingredient analysis. • White Space Analysis: For each product category, this report provides market opportunities across price point and key end-use segments. • Product Innovation: Captures key innovative plant protein product launches in China along with claims, product positioning and targeting. • Competitive Landscape and Brand Share Analysis: Provides a snapshot of overall competitive landscape and brand share by product category. • Product Claims Analysis: Provides a detailed view on top claims and emerging claims, offering insights into changing targeting strategy adopted by leading plant protein manufacturers. • Changing Consumer Preferences: Quantified details on changing consumer preferences along with forecast. • Plant Protein Consumption by Ingredients: Provides a detailed view of opportunities across key plant protein ingredients (Soy, Pea, Beans & Lentils, Hemp, Flaxseed, Pumpkin & Other Seeds, Brown Rice, Quinoa, Spirulina & Seaweed, and Nuts) • Plant Protein Sales by Channel: Sales breakdown by online vs. offline channels. • Plant Protein Sales by Retail Outlet: Sales breakdown by retail outlets grouped by four categories – Diversified Stores, Pharmaceutical & Wellness Stores, Healthcare and Fitness Centers, and Specialist Sports Stores. • Plant Protein Consumption by Functional Product Type: Plant protein consumption breakdown by 3 segments – Ready to Eat, Ready to Drink, Ready to Mix, and Ready to Cook. • Plant Protein Consumption by Product Categories: Detailed market size and forecast by eight product categories – Nutrition Supplements, Protein Bars, Sports Nutrition, Meal Alternative, Dairy Alternatives, Meat Alternatives, Bakery Products, and Infant Formulas. • Plant Protein Consumption by Price Points: Plant protein demand analysis by price points – Premium, Mid-Tier, and Low End. • Plant Protein Consumption by Cities: Plant protein demand analysis by key cities grouped under three segments – Tier 1, Tier 2, and Tier 3. • Plant Protein Consumption by Consumer Demographics: Plant protein demand / consumption analysis by age, gender, and income levels..

Scope

This research report provides in-depth analysis of plant protein industry in China, providing white space / gap analysis, product innovation, product claims analysis, and brand share analysis, competitive landscape, market size across 50+ segments. Below is the taxonomy, providing detailed scope of coverage. China Plant Protein Market Dynamics – Strategy & Innovation • Competitive Landscape Snapshot • White Space / Demand Gap Analysis by Product Category • Brand Share by Product Category • Key Innovative Launches • Insights on Market Dynamics China Plant Protein Market Size by Ingredients • Soy • Pea • Beans & Lentils • Hemp • Flaxseed, Pumpkin & Other • Brown Rice • Quinoa • Spirulina & Seaweed • Nuts • Other China Plant Protein Market Size by Product Categories • Nutrition Supplements • Protein Bars • Sports Nutrition • Meal Alternative • Dairy Alternatives • Meat Alternatives • Bakery Products • Infant Formulas • Other China Plant Protein Market Size by Functional Segments • Ready to Mix • Ready to Eat • Ready to Drink • Ready to Cook China Plant Protein Market Share Analysis by Sales Channels • Online • In-Store China Plant Protein Market Share Analysis by Type of Retail Outlet • Pharmaceutical & Medical Store • Grocery Retailers • Health and Wellness Stores • Specialist Sports Store China Plant Protein Market Size by Retail Sales Pricing • Premium • Mid-Tier • Low End China Plant Protein Market Size by Cities • Tier 1 Cities • Tier 2 Cities • Tier 3 Cities China Plant Protein Consumption by Demographics • Age • Gender • Income Key Plant Protein Brands in China (based on consumer popularity) • Alpro • Amazonia • Arbonne • Australia's Own • Body Science Bsc • Bulk Nutrients • Chris Foods • Coco & Lucas • Coles Nature's Kitchen • Designer Physique • Fable Foods • Fry's • Gardein • Go Macro • Happy Way • Health Lab • Heinz- Plant Proteinz • Heritage Mill • Honest to Goodness • International Protein • Iwon Organics • Keep It Cleaner • Kez's Kitchen • Lenny & Larry's • Linda Mccartney's • Loma Linda • Lyfe Fuel • Macro Mike • Made With Plants • Melinda's

In recent years, vegetarianism, and to limited extent veganism, is spreading across the Middle East & Africa. The market has recorded substantial growth backed by the rising demand from Turkey, the UAE, Israel, and South Africa. It is expected that market growth is likely to be supported by the rising flexitarian trend over the forecast period. Plant based protein market in Middle East and Africa has witnessed steady growth in the past few years. The growth has been due to people making healthier food choices as well as increasing awareness and hence changing preferences towards plant-based and dairy products. In South Africa, in particular, the demand for plant-based protein diets is growing, driven by the flexitarian consumers and the growing vegetarian, and vegan community. Also, in the recent years, vegetarianism, and to limited extent veganism, is spreading across Turkey. Dubai is a house to the largest plant-based restaurant in the world. Veganity - a startup geared towards veganism - offers more than 200 dishes from all over the world. Some of their plant-based dishes include vegan fried chicken and meatball pasta. Veganity, which launched its first restaurant in August 2019 in Dubai, plans to extend its locations across the UAE, including one in Abu Dhabi. Increasing awareness regarding plant based food is becoming prominent especially in South Africa, and the UAE. Forums such as ProVeg South Africa, Veganuary, and Meat-Free Mondays are actively working towards increasing awareness about plant-based products and benefits of the vegan diet. They disseminate this information through media outreach, social media campaigns, events and fairs, promotions by local celebrity ambassadors, corporate engagements, and political outreach. South Africa will also host “The Vegan & Plant Powered Show” in May 2021, which aims to bring the people closer to the vegan, plant-based and green living revolution. Similarly, the Gulfood exhibition which is hosted in Dubai is increasing awareness about plant-based diet and sustainability among the consumers in the UAE. During the 2019 edition, more than 100,000 visitors attended the exhibition and several new partnerships and investment deals were also sealed. Also, popularity of dairy alternatives is increasing among the consumers in the UAE. As the consumer interest in plant-based meat continues to rise, an increasing number of people in the country are looking to include dairy alternatives as well in their diet. To cater to this trend, Koita Foods - a dairy company based in Dubai, offers a range of plant-based milk alternatives. Their products are available in over 500 retailers and partners including hotels and hospitals across the country. Adoption of e-commerce in South Africa was lagging in the past on account of low internet penetration, limited online options, and safety concerns. Over the past few years however, with improving access to internet and changing consumer perception, plant protein manufacturers and distributors have been able to increasingly support their customers by strengthening e-commerce capabilities. This report from ConsumerIntel360 is a bundled offering, combining 12 detailed country databooks: Egypt, Israel, Kenya, Morocco, Nigeria, Oman, Qatar, Saudi Arabia, South Africa, Tanzania, Turkey, United Arab Emirates. This business intelligence report aims to analyze market opportunities and risks in plant protein industry in the Middle East. This report offers a detailed view of market opportunity by end user segments, product categories, ingredients, applications, key cities, competing protein segments, price point, and shift in consumption by consumer demographics.

Scope

This bundled offering provides the following detailed plant protein market opportunity at country level. This research report provides in-depth analysis of plant protein industry opportunity, providing market size across 50+ segments. Below is the taxonomy, providing detailed scope of coverage. Plant Protein Market Size by Ingredients • Soy • Pea • Beans & Lentils • Hemp • Flaxseed, Pumpkin & Other • Brown Rice • Quinoa • Spirulina & Seaweed • Nuts • Other Plant Protein Market Size by Product Categories • Nutrition Supplements • Protein Bars • Sports Nutrition • Meal Alternative • Dairy Alternatives • Meat Alternatives • Bakery Products • Infant Formulas • Other Plant Protein Market Size by Functional Segments • Ready to Mix • Ready to Eat • Ready to Drink • Ready to Cook Plant Protein Market Share Analysis by Sales Channels • Online • In-Store Plant Protein Market Share Analysis by Type of Retail Outlet • Pharmaceutical & Medical Store • Grocery Retailers • Health and Wellness Stores • Specialist Sports Store Plant Protein Market Size by Retail Sales Pricing • Premium • Mid-Tier • Low End Plant Protein Market Size by Cities • Tier 1 Cities • Tier 2 Cities • Tier 3 Cities Plant Protein Consumption by Demographics • Age • Gender • Income

The plant protein market has been growing rapidly globally in the past few years partly due to rising flexitarian trend in most of the countries. Flexitarian diet is likely to expand plant-protein manufacturers’ consumer-base which in turn increases profitability. Also, increased accessibility to vegetarian and vegan foods and proactive approach to health and wellbeing is further driving growth of plant protein market. Food safety concerns as well as environmental concerns are other factors due to which interest in plant protein is increasing. Even amid the COVID crisis, consumers are turning to plant-based foods.  Consequently, there has been a rise in investments and partnerships in plant based protein market which indicates the market is likely to stay on a strong growth curve.

EverGrain, a sustainable ingredient company supported by Anheuser-Busch InBev, is launching EverPro and EverVita, plant-based fiber and protein ingredients. EverPro is fully solvable protein isolate used in several plant-based beverages, snacks and protein bars. EverVita is barley proteins and fibers used to in pasta, baked goods, and snacks to further improve nourishment and gut health.

EverGrain uses the saved grains from brewing and then turns them into nutrient-rich ingredients which can be used in various food and beverage applications.

In January 2021, Buhler Group, a Swiss based technology group partnered with the German Institute of Food Technologies, to speed up R&D for sustainable protein production as well as develop new technologies for healthy food products including alternative protein products which have low environment impact.The company intends to use its extrusion technology expertise to develop sustainable meat substitutes.

In February 2021, HERO Protein, a plant-based meat firm, received USD850k pre-seed funding which was led by Cremer, a global commodities and co-manufacturing firm; Lever China Fund, an alternative protein investor in China; and senior executives from leading restaurant brands. The funding will be used to launch plant-based beef and chicken products in China, boost its ongoing R&D, to develop and scale production, and to increase distribution.

In the same month, Green Butcher, a plant-based meat startup in Indonesia, received seed funding of US$2 million from Unovis Asset Management, an alternative protein venture capital firm, and Teja Ventures. The funding will be used to scale production, expand R&D team, and launch into mainstream retailers by Q2 2021. Similarly, IQBAR, creators of Amazon’s Choice for vegan and plant based protein bars, raised US$2.8 million Series A fundraising round led by CircleUp Growth Partners. The funding is expected to further improve their rapidly growing brain and body nutrition business.

Earlier in August 2020, Bunge Ltd invested US$23.6 million (C$30 million) in Merit Functional Foods, which provides pea protein ingredients and unveiled a canola protein ingredient.

Also, in November 2020, Ingredion, entered into an agreement with James Cameron and Suzy Amis Cameron to acquire the remaining percentage of ownership in Verdient Foods, a pulse-based concentrates and flours maker.

The plant-based protein market in India has been recording a strong growth in recent quarters across segments such as dairy alternatives, supplement products, meat substitutes, and processed products. The growth is mainly driven by the rising purchasing power of lower and middle-income families, increasing demand for gluten-free and lactose-free products. It is expected that increasing number of youths going to gyms, fitness clubs, and growing health consciousness especially among GenZ and millennials is likely to drive the market growth in the short to medium term.

With the growing fear of coronavirus infection, people are increasingly avoiding the consumption of animal products across the globe. The trend is also evident in the Indian market. Additionally, the contagion is also galvanizing the demand for herbal foods and beverages as an immunity booster. As a result, shifting consumers’ preference from animal products to plant-based protein during the ongoing pandemic is creating growth prospect for the Indian plant-protein market.

The growing awareness of animal cruelty is another key driver for the plant-based products in India. The surge in social media videos showing cruelty inflicted on animals in meat and dairy industries is one of the reasons, millennials and Gen Z are shifting towards meatless meat products.

The growing awareness and demand for innovative plant-based protein are creating opportunities for the ever-growing startup ecosystem in India. The plant protein market is still in a nascent stage in its development and therefore several startups are entering into space. To establish their presence in the Indian plant protein market, small businesses are moving faster and raising funds for product innovation and development.

The growing sales of plant-based meat and dairy products in restaurants and foodservice channels are also supporting the market. With the rising demand, more retailers around the country are expected to introduce private label products in the market. Retailers like Reliance Fresh, D-Mart, and Big Bazaar are already providing shelf space to plant-based products from different brands including Chetran Foods.

The plant protein market in India has recorded a strong growth with a CAGR of 36.1% during 2018-2020. According to ConsumerIntel360’s Q4 2020 Global Plant Protein Survey, plant protein in India is gaining traction among health-conscious consumers in recent years.

Large consumer food companies are launching plant-based alternatives to cater to the changing consumers' preferences. New product developments and a rising number of product launches in this segment are changing the overall outlook of the plant protein industry.

The market growth has been also fueled by the ongoing COVID – 19 pandemic. The demand for plant protein products is expected to increase significantly over the short to medium term.

Plant protein industry is expected to continue to grow in India over the forecast period. It is expected to record a CAGR of 29.0% during 2021-2027. The plant protein consumption in the country will increase from US$ 568.3 million in 2020 to reach US$ 3490.0 million by 2027.

Scope

This research report provides in-depth analysis of plant protein industry in India, providing white space / gap analysis, product innovation, product claims analysis, and brand share analysis, competitive landscape, market size across 50+ segments. Below is the taxonomy, providing detailed scope of coverage.

India Plant Protein Market Dynamics – Strategy & Innovation

• Competitive Landscape Snapshot

• White Space / Demand Gap Analysis by Product Category

• Brand Share by Product Category

• Key Innovative Launches

• Insights on Market Dynamics

India Plant Protein Market Size by Ingredients

• Soy

• Pea

• Beans & Lentils

• Hemp

• Flaxseed, Pumpkin & Other

• Brown Rice

• Quinoa

• Spirulina & Seaweed

• Nuts

• Other

India Plant Protein Market Size by Product Categories

• Nutrition Supplements

• Protein Bars

• Sports Nutrition

• Meal Alternative

• Dairy Alternatives

• Meat Alternatives

• Bakery Products

• Infant Formulas

• Other

India Plant Protein Market Size by Functional Segments

• Ready to Mix

• Ready to Eat

• Ready to Drink

• Ready to Cook

India Plant Protein Market Share Analysis by Sales Channels

• Online

• In-Store

India Plant Protein Market Share Analysis by Type of Retail Outlet

• Pharmaceutical & Medical Store

• Grocery Retailers

• Health and Wellness Stores

• Specialist Sports Store

India Plant Protein Market Size by Retail Sales Pricing

• Premium

• Mid-Tier

• Low End

India Plant Protein Market Size by Cities

• Tier 1 Cities

• Tier 2 Cities

• Tier 3 Cities

India Plant Protein Consumption by Demographics

• Age

• Gender

• Income

Key Plant Protein Brands in India (based on consumer popularity)

• Borges

• CAFE HOUSE

• CLIF BAR

• Cowvathi

• Dabur

• Del Monte

• Dr. Berg’s

• EAT Anytime

• Edward & Sons

• Flex Protein

• GoodDot

• Goodmylk

• Granarolo

• HealthOxide

• Kapiva

• Kivu

• Life Roots

• Mili

• Mimmo Organics

• Mojo Bar

• MuscleBlaze

• MyFitFuel

• MyProtein

• Naturade

• Natures Velvet

• Now Foods

• Nusobee

• Olena

• Optimum Nutrition

• OZiva

• Pintola

• Plant Power

• Plix

• Protinex

• RiteBite - Max

• Sain

• Sampoorna Satwik

• Similac

• So Good

• Sofit

• Soyfit

• SoyFresh

• STRIVE

• The Good Food Company

• True Elements

• True Supplements

• Urban Platter

• Vega

• VegOChef

• Wellversed

• Yogabar

According to ConsumerIntel360's recent survey, the plant protein market in the United States recorded significant growth in the last two quarters in 2021. The market's growth can be primarily attributed to the changing food preference, rising health consciousness, and introduction of new plant-based protein ingredients. It is expected that companies are likely to concentrate on new ingredients that can offer the same taste and value in the coming years.

Changing food preference and easy availability will drive the demand The growth in the plant-based protein market is primarily driven by changing food preferences. The rise in the ‘flexitarian’ consumers - individuals who consume meat and dairy products, however, are willing to reduce the consumption quantity of animal products is primarily creating the demand. Similarly, the growing vegan population in the United States is also driving the demand for plant-based protein products.

Consumers’ perceptions towards animal-based proteins are changing due to growing health, environmental, and ethical concerns. Moreover, the rising availability of plant-based protein products is also supporting the trend. Because of the strong demand, almost all the leading retailers in the country are providing shelf space for branded and private label plant-protein products.

Additionally, consumers can also access plant-based protein foods at leading restaurants and foodservice channels.

Plant-protein as a weight management tool capturing market space Obesity has always been a major concern in the United States. To manage the obesity rate in the country, the government took several steps, such as reducing sugar content in packaged food products and promoting health awareness programs. Importantly, consumers are also showing interest in health regimes, and many have initiated physical activities, curbing sugar intake, and included plant-based protein products in their weight management diets.

Plant-based proteins have emerged as a weight management tool in recent years. Soy proteins are well accepted among gym-goers; however, pea and rice proteins are also evolving as alternatives to soy protein. As these products contain high fiber, no cholesterol, and low saturated fat, consumers include plant-based protein products in their weight loss diet plans.

Wide range of flavors and ingredients are creating demand Consumption of plant-based protein products is also increasing due to the availability of alternative ingredients and flavors. Companies are focusing on product development according to the consumers’ demand, and a wider range of available alternative ingredients supports the trend. For instance, in the alternative plant-based dairy market, companies are using different ingredients such as soy, coconut, oats, rice, almond, and hemp to produce plant-based milk. Therefore, consumers allergic to one ingredient can opt for another product made from a different ingredient. Hence, a wide range of ingredients and flavors is expected to attract more consumers in the coming days.

Plant-based meals will drive the growth Plant-based meals are gaining popularity in the United States. This is primarily due to rising health awareness, flexitarian, and vegan populations. Moreover, government support is also driving the market. Notably, the New York government passed a bill in 2019 that assures hospitals in New York City to provide plant-based meals and snacks as an option. The bill is an effort from the government to encourage people to go for plant-based foods for better health.

The protein demand in Australia has witnessed strong growth in the last decade. Currently, the Australian men consume about 80-110 gram of protein on daily basis, while Australian women consume 70-80 gm of protein per day. According to ConsumerIntel360’s Q4 2020 Global Plant Protein Survey, plant-based protein is expected to account for about 12-15% of the total protein consumption by 2027. Plant-based products market in Australia has recorded significant growth in the last few years because of the changing diet preferences among consumers, the increasing vegan lifestyle, and the search for an alternative to meat products. In the last couple of years, the number of Australians consuming plant-based foods and proteins has increased significantly, along with the consumption per capita. The COVID-19 pandemic is challenging the food supply chain globally. Though the number of cases is not as high as in other countries, COVID-19 is going to impact Australian food industry in long term. Like many countries hit by the pandemic, Australia also has seen long term lockdowns and had restrictions in place for people and their movement. This has impacted the supply chain for many industries, including the food industry. The availability of meat and meat products is also impacted due to this unprecedented situation. The pandemic is expected to present many Australian companies an opportunity to explore plant-based foods and the proteins market. The protein requirement in the country is normally met by a mix of protein sources, which includes meat, eggs & dairy, fisheries or aquaculture, and plant-based proteins. In the wake of rising awareness around boosting immunity due to COVID-19 spread, food preferences are expected to change in the coming years. This is expected to benefit the plant-based protein demand as plant based diet is known to increase immunity. Fundamentally speaking, one of the key factors driving the plant protein market is the changing consumer preference. The growing middle class and the increasing disposable income levels are resulting in changes in consumer preferences. More Australians are keen on selecting better, healthy, and sustainable food products. According to a ConsumerIntel360’s Plant Protein Intelligence, the number of Australians selecting vegetarian food choices increased to nearly 18% in 2020. This is continuously improving and is expected to gain further due to the impact of COVID-19 pandemic. The plant protein market in Australia has recorded a strong growth with a CAGR of 20.8% during 2018-2020. According to ConsumerIntel360’s Q4 2020 Global Plant Protein Survey, plant protein in Australia has gained traction among health-conscious consumers in recent years. Large consumer food companies are launching plant-based alternatives to cater to the changing consumers' preferences. New product developments and a rising number of product launches in this segment are changing the overall outlook of the plant protein industry. The market growth has been also fueled by the ongoing COVID – 19 pandemic. The demand for plant protein products is expected to increase significantly over the short to medium term. Plant protein industry is expected to continue to grow in Australia over the forecast period. It is expected to record a CAGR of 11.8% during 2021-2027. The plant protein consumption in the country will increase from US$ 319.4 million in 2020 to reach US$ 731.7 million by 2027.

The food and beverage market is undergoing a substantial change, globally. Consumer interest in alternative proteins, non-animal-based food products is increasing, whereas the food industry is constantly innovating new ingredients and products to satisfy consumer demand.

Germany has emerged as the leading force in Europe in the vegan-revolution. The country has one of the highest rates of vegetarians and vegans as compared to any other European country. According to ConsumerIntel360’s estimates, over 13% of the population follows a vegetarian diet, and 2.7% follow a vegan diet. The market for plant based products is driven by growing vegan, vegetarian and flexitarian consumers in the country.

According to ConsumerIntel360’s Global Plant Protein Survey Q1 2021, about 46% of the people in Germany are looking to reduce their meat consumption. This reiterates the fact that a rising number of flexitarians and an increasing number of vegetarians are supporting the growth of the plant protein industry in Germany. In addition to this, similar nutrition, taste, and texture of plant-based products are other factors that are supporting market growth.

Key Trends

Demand for dairy based alternatives on the rise

The demand for dairy based alternative is increasing in Germany. However, its popularity has increased even more in the wake of the global pandemic caused by the coronavirus outbreak. For instance, the sales of oat milk have jumped 300% after the coronavirus outbreak, largely because it is a better shelf-stable product. Even before the coronavirus outbreak, plant-based milk was widely popular due to the growing veganism trend in the country.

Dairy companies have entered into this market to cater to rising demand for dairy based alternatives. For instance, Muller, a dairy giant based in Germany, forayed into dairy based alternatives with the launch of Muller Vegan product line, March 2021. This will include oat-based based milk available in chocolate, banana, vanilla, and caramel flavors. It will also offer Muller Vegan Rice, dairy-free rice pudding.

Earlier, In January 2021, Bauer, the privately-owned German dairy processor, rolled out plant-based dairy alternatives. The company had previous introduced vegan yogurt in the past but the company has now introduced GrunKraft, a new umbrella brand for plant based dairy products.

Plant-based chocolates and bars are in high demand

Consumers are looking for products that are better for their health. Reduced sugar intake, gluten-free products are capturing the eyes of consumers of all ages. Therefore, to meet the changing consumer preferences, plant-based companies are innovating new products.  For instance, a plant-based chocolate bar from The Nu Company is quite high in demand. The startup has already sold more than one million chocolate bars.  Another startup in Germany, Alvego, is offering a wide range of Seaweed snacks for consumers in Germany.

Rising popularity of pea protein

Pea is the number one choice for plant-based companies when it comes to ingredients that offer higher proteins and essential nutrients intake. Consumer demand for sustainable and healthier food options is continuously rising and this is pushing food manufacturers towards pea protein. This rising popularity of pea protein can be attributed to the fact that pea protein includes 25% protein content which is much higher than rice (7%) and wheat (13%) proteins.

Moreover, pea protein is also more sustainable than soy protein. Various companies have taken advantage of this trend and launched their products to cater to the rising demand. For instance, Iglo, a frozen food brand, launched its pea-based product line in Germany in 2020. The products include minced meat, burger patties, and spicy meatballs among others. Also, Vly Foods created a more sustainable, plant-based milk alternative which is made from yellow split peas. Similarly, DrinkStar offers pea-based milk product in Germany which contains more protein than traditional milk. The pea protein used is GMO-free and requires relatively low water consumption and land.

Drivers

Health and environmental concerns supporting market growth

Among the other factors that are promoting the growth of the plant protein market - is the rising health and environmental concern in Germany. The anti-livestock narrative among the German population has triggered a movement towards meat-free products.   A whole new food ecosystem is rising in Germany which is largely driven by startups, who are not only responding to the growing consumer demand for plant-based food but are also accelerating the market growth with innovative product offerings.

Changing consumer preferences considering COVID-19

The global coronavirus pandemic has propelled many consumers in Germany to change their eating habits. According to ConsumerIntel360’s estimates, the sales of vegan and vegetarian products increased by over 45% in the first quarter of 2021, as compared to same period last year. This represents a dramatic shift to plant-based alternatives after the coronavirus outbreak.

While the trends observed are similar all over the world, another factor that benefited the plant-based industry is the rise of coronavirus cases in meat processing plants in Germany. The current crisis of the novel coronavirus outbreak represents a window of opportunity for the alternative protein sector in Germany, which is already on the rise.

Key Players

Some of the key players operating in the plant protein market in Germany include Rügenwalder Mühle, Beyond Meat, Nestle, Berief, and Iglo. Apart from this, several innovative startups are emerging in Germany in the alternate protein sector. Some of these include Vly Foods, Alvego, DrinkStar, and The Nu Company.

In the last decade, the plant-based industry has seen massive consolidation in Germany, as an increasing number of big and small businesses are offering their own private label plant protein solutions. With several supermarket chains and retailers joining the band-wagon of plant-based products, the startup ecosystem of Germany is also supporting the growth of the plant protein industry. Through their innovation in ingredients and product development, these companies are able to create more interest from consumers towards plant-based products.

Moreover, people in Germany are looking to buy products that are more sustainable and eco-friendly. This change in the attitude of the German consumer has forced even one of the biggest meat giants in the country to launch its plant-based product line. Rügenwalder Mühle was one of the early movers in the meat-free industry.

Beyond Meat is one of the major players in the German plant-protein market. After launching its IPO in Germany, the company launched its fake meat burger at thousands of stores across Germany. Although, the alternative protein sector is still evolving in Germany, competition is likely to intensify further as an increasing number of established food processing companies and startups are betting their future on the success of the plant-based protein industry.

With meat giants such as Rügenwalder Mühle pouring mid to high double-digit millions in investment to expand its production facilities and converting all of their products to vegan, growth of plant-based sector seems prominent in Germany.

In 2020, animal meat production decreased in Germany as the rise of plant-based eating continued its upward trajectory. In 2020, the meat production value decreased nearly 3-5% compared to 2019, whereas the plant-based alternatives experienced double-digit growth during the same period in the country. According to ConsumerIntel360, this growth in plant-based alternatives is largely driven by consumer demand for sustainable and healthier alternatives in the country. It is expected that the trend is likely to remain the same and provide higher growth opportunities for plant-based meat producers in the next few quarters.ConsumerIntel360 expects that meat alternatives segment is expected to record a CAGR of 21.0%, increasing from US$179.7 million in 2020 to reach US$684.3 million by 2027 in Germany.

Falling meat production is expected to create growth opportunity for alternative meats in Germany

ConsumerIntel360 attributes the global coronavirus pandemic to be one of the key reasons behind the fall of meat production in Germany. Some of the meat production plants in Germany were forced to close down temporarily to contain the spread of the virus.Additionally, the declining meat consumption among Germans is also discouraging conventional meat processors. Notably, an average German household would consume 6.7 kg of meat a month in 1987. This has reduced to a third, with an average monthly meat consumption standing at 2.3 kg in 2020.Consequently, ConsumerIntel360 expects that a fall in meat production and the rising vegan population in Germany are likely to provide growth opportunities to alternative meat producers.

Vegan diet is gaining popularity

In Germany, more and more people are turning towards a vegan diet. According to Veganz, a Germany-based supermarket, the number of vegans doubled in four years in the country. It further mentioned that, around 3.2% of the population in Germany are Vegans, whereas 4.4% of the population is vegetarian.

According to ConsumerIntel360’s analysis, these numbers are expected to grow further as consumers in Germany are actively reducing their meat intake. The trend is likely to expand the market space for plant-based meat and other alternatives in the short to medium term.

European trend of reduced meat intake is expected to support alternative meat producers

Germany is not the only European country wherein consumers are seen reducing their meat intake gradually over the years. Other European countries including Austria, Belgium, Denmark, France, Portugal, and Switzerland have also reduced their meat intake significantly.

For instance, in Portugal, over 25% of the consumers have reduced meat consumption in 2020, whereas in Austria, there are more even more flexitarians in 2021 as compared to the year before.In Portugal, the number of animals slaughtered reduced by nearly 3% in 2020, as compared to the year before. Moreover, the overall plant-based industry recorded significant growth in the last two years, largely driven by the increasing demand for alternative meat in the region. While the German market saw the biggest shift to alternative protein, other European countries are also following.

ConsumerIntel360 expects the sales of plant-based protein alternatives to increase significantly as compared to traditional meat sales in the next three to four quarters. This represents a great opportunity for plant-based alternative meat business expansion and investment, from the short to long-term perspective.

In the last few years, multinational food giants and traditional meat companies have struggled to keep up with the growing number of consumers opting for a healthier and plant-based lifestyle. Consequently, these food processing companies are leaning towards adding plant-based products to their product portfolio. According to ConsumerIntel360, growth in the alternative protein sector is expected to results in several mergers and acquisitions between the established food processing companies and new age plant-based startups in the short to medium term.

Even though 2020 marked the biggest to date year for the plant protein industry, the alternative protein segment still lags behind the conventional meat and dairy industry. However, the global retail sales of plant protein alternative meat hit a record high in 2020. The industry recorded figures of US$4.2 billion as compared to US$3.4 billion a year before. Moreover, the industry raised more money in 2020 as compared to the past years.

Traditional meat companies acquiring plant-based brands to expand presence in the fast-growing segment

In April 2021, JBS SA announced the acquisition of Dutch-based Vivera BV, a plant protein brand. The acquisition of Vivera is part of the company’s expansion strategy in one of the fastest-growing segments. In a deal valuing at US$408 million, JBS SA will expand its plant-based product offering in 25 European countries. With three facilities and a research center in Europe, JBS SA will also have its own plant-based production line once the acquisition is completed. Thus, allowing the company to boost its presence in the meatless space in Europe.

Being the third-largest alternative protein producer in Europe, Vivera has a portfolio of 50 plant-based food items and overall revenue of 80 million euros. With the plant-based industry expected to reach US$290 billion by 2035, this acquisition of Vivera will add a lot of strategic value to JBS SA.

The meat producer has a sizeable footprint in the United States where the sales of its plant-based products rose 300% last year. Moreover, it also dominating the plant-based burger market in Brazil with a 57% market share. With the Western Europe plant-based meat market valued at US$1.8 billion, this acquisition of Vivera will now allow the company to expand its footprint in the European market where the industry is growing very rapidly.

Plant-based dairy market is attracting more mergers and acquisitions

Plant-based dairy alternatives are one of the fastest-growing sectors in the plant protein industry. In the United States, four in every 10 adults is regularly consuming plant-based dairy alternatives in their diet. With this trend only expected to increase going forward, traditional dairy companies are looking to expand their footprints in the plant-based segment to meet the changing consumer demands by acquiring plant protein dairy brands.

In May 2021, Saputo, the Canadian dairy giant, announced the acquisition of Scottish firm, Bute Island Foods, the manufacturer of vegan cheese brand Sheese. ConsumerIntel360 expects the dairy market to double at US$4.5 billion by 2025 from its current valuation of US$2.7 billion. With the vegan cheese market set to become the fastest-growing segment, this acquisition will help the Canadian dairy giant accelerate its growth globally.

In a similar deal, Organic Garage announced the acquisition of plant-based cheese brand, Future of Cheese Company Corp. The acquisition announced in February 2021, aims to boost growth for both companies. The Ontario-based company, Future of Cheese Company Corp, is engaged in the development, manufacturing, and marketing of high-quality plant protein products. Therefore, this acquisition by Organic Garage will help the plant-based brand to use the distribution channels of Organic Garage for getting their products out in the market.