The global meat substitutes market size was valued at USD 1,809.0 million in 2020 and is anticipated to grow at a CAGR of 11.8% during the forecast period. There has been an increasing demand for meat substitutes owing to increasing consumer awareness regarding weight management, nutritional requirements, and fitness.
There have been increasing concerns among consumers regarding meat consumption, and related effects on their health, animals, and environment. Major factors for increased meat substitutes demand across the globe include the need for an additional source of protein in the diet and growing consumption of meal replacement & on-the-go snacks. Protein is essential for the maintenance of overall health, growth of tissues, and cell repair and maintenance.
There are different types of meat substitutes available in the market such as seitan-based, tofu-based, textured vegetable protein, Quorn-based, and tempeh-based. Seitan is the protein contained in wheat. It is a popular meat substitute, whose use was limited to Asian cuisine earlier.
However, growing incidences of obesity, increasing occurrence of diseases associated with meat consumption, and rising health awareness across the globe have increased the consumption of seitan-based meat substitutes across the world.
Seitan is used in several products such as cold cuts, sausages, and cutlets. The growing trend of flexitarian diet and the rising number of consumers opting for vegan and vegetarian diets is encouraging market players to introduce new products with exciting flavors and textures.
Online platforms have become a popular medium for purchasing meat substitutes among consumers. The convenience offered by online platforms coupled with a wide variety of choices available is a key factor behind the success of online portals in the meat substitutes industry. The e-commerce business is expected to grow at a significant rate in the years to come.
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Increased preference of consumers for purchasing these products through online channels has encouraged many new market entrants to launch their e-commerce sites. This distribution channel is well established in developed markets such as North America and Europe due to higher internet penetration, and greater adoption of mobile devices.
The growing population along with increasing food safety concerns and rising inclination towards plant-based protein are expected to drive the industry. The growing obese population, sedentary lifestyle of consumers leading to lifestyle diseases, increasing disposable income, and growing public initiatives drive the growth of this industry.
There has been an increased awareness among consumers regarding health concerns associated with meat consumption, and nutritional needs, which supplements the growth of this industry. New product launches and acquisitions by leading players in the industry coupled with increasing demand from emerging economies have increased the demand for meat substitutes.
The market is primarily segmented on the basis of product, type, source, form, distribution channel, and region.
By Distribution Channel
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On the basis of product, the market is segmented into shelf-stable, refrigerated, and frozen. The demand for frozen meat substitutes products is expected to increase during the forecast period owing to the increasing consumption of fast food across the globe. The changing lifestyle and rising disposable income of consumers have increased the demand for premium, low-calorie meat substitutes products and snacks.
The type segment has been divided into is segmented into seitan-based, tofu-based, textured vegetable protein, Quorn-based, tempeh-based, and others. The demand for tofu is expected to be high during the forecast period owing to the greater demand for plant-based meats. Tofu is free of cholesterol, low in saturated fat, and is a meat alternative widely used as a low-calorie source of protein. Owing to its versatility, tofu is available in wide variations of aromas, smoked versions, and marinated varieties.
On the basis of Source, the market is segmented into wheat-based, soy-based, mycoprotein, pea-based, and others. The soy-based segment is expected to account for the highest market share during the forecast period owing to its high protein content, low cost, and ease of preparation. Dehydrated soy mixed with water is used as meat substitutes in the form of mince, cutlets, or balls. Soy is used for a wide range of food products such as vegetarian meatballs, burgers, and cutlets among others.
On the basis of form, the market is segmented into solid, and liquid. The solid segment is expected to dominate the global meat substitutes market during the forecast period by holding the largest market share in the industry. There has been increased consumption of fast-food comprising meat substitutes chunks and powder across the globe owing to changing lifestyle and rising disposable income of consumers. Increasing food safety concerns and the occurrence of diseases associated with rotten meat and multidrug-resistant pathogens have increased the demand for solid substitutes.
The distribution channel segment has been divided into supermarkets, grocery and departmental stores, specialty retail stores, online sales, and others. Supermarkets comprise large retail stores and hypermarkets. These supermarkets bridge the gap between manufacturers and customers by offering a wide range of product variety at the same place.
These stores are mainly rooted in highly populated cities and urban cities. Consumers are increasingly shopping for substitutes from these stores owing to heavy discounts, availability of a large variety of products under a single roof, and promotional offers to attract consumers.
North America dominated the global meat substitutes market in 2019. This region comprises U.S. and Canada. North America exhibits the highest obese population. Owing to the increased per-capita consumption of fast food over the years, obesity has increased significantly among children as well as the geriatric population.
In recent years, there has been an increased awareness regarding weight loss and the benefits of eating healthy, which has resulted in an increased demand for substitutes. The market has registered a significant increase in the sales of ready-to-eat and organic food products and beverages, driving the market growth.
The leading market players in the meat substitutes industry include Axiom Foods, MGP Ingredients, Cargill, Dupont, Marlow Foods Ltd., Amys Kitchen Inc., Quorn Foods, Crespel & Deiters, Sonic Biochem Extractions Limited, Vbites Food, Ltd., Sotexpro S.A, Archer Daniels Midland Company, Emsland Group, Conagra Brands Inc., Beyond Meat Inc., and Wilmar International Limited. These players are expanding their presence across various geographies and entering new markets in developing regions to expand their customer base and strengthen their presence in the market.