The meat alternatives market is set to experience a CAGR of 12.7% in the period 2020 to 2025, new data from GlobalData has found, to be worth $11.03 billion (€10 billion) by the mid part of the decade.
The category is seeing a range of 'varied and exciting innovations', GlobalData said, leading to an impressive growth rate, however it still well behind the value of the global meat market, which is expected to be worth $1.6 trillion (€1.45 trillion) by 2025, having seen growth of $341.5 billion over a five-year period.
'Off The Chart' Growth Rates
“It’s easy to get swept up in the tremendous, off-the-chart growth rates we have been seeing for meat alternatives, essentially running circles around all other categories," said Amira Freyer-Elgendy, food and drink associate analyst at GlobalData,
"The investments and start-ups that are pushing innovative technologies, such as 3D printing, cell cultured products and precision fermentation are also promising. However, these new concepts are still in their infancy and prototypes are still being perfected.”
While the market has grown significantly in recent years, some of the core players are finding the going tough at present, including California-based Beyond Meat, which recently forecast annual revenue to come in below estimates. Rival Impossible Foods is currently weighing up an IPO, according to reports.
According to GlobalData, meat alternatives still have a long way to go to overtake the traditional meat market, and needs to become an everyday 'staple' for households in order to gain real traction.
"Meat, bakery goods and dairy are often consumed daily and are a built-in part of shoppers’ routines worldwide," Freyer-Elgendy added. "Getting to that level is difficult, especially for a category that is still finding its feet.”
The market is also held back somewhat by its specific consumer base – while it is seeing more adoption as flexitarian diets encourage plant-based consumption, a recent study by GlobalData found that 35% of global consumers do not consume any plant-based meat alternatives.
“Meat alternatives are appealing to shoppers beyond the vegan or vegetarian audience, as curiosity, health and ethics are driving consumers to try it," said Freyer-Elgendy.
"However, a sizeable portion of people still feel wary about meat alternatives. Given the innovation and investment this segment is seeing, I do believe in the next ten years meat alternatives will become a strong option for the everyday shopper and consumers will gain familiarity and trust in time.”