COVID-19 led to a rise in the demand for alternative proteins because of the way the coronavirus disrupted the food chain worldwide. Because of the long duration of the outbreak, many people searching for healthy food items have started to find alternative sources of protein. Thus, the revenue generated by the plant-based protein market was $11,104.3 million in 2020, and it is predicted to grow at a CAGR of 9.2% and reach $26,721.3 million during the forecast period. This is credited to the increasing inclination toward plant-based food as compared to animal-based food.
Based on source, soybean had the largest share in the plant-based protein market in 2020, because it is a rich source of proteins and close to animal-based food in taste and texture. Apart from that, it is also rich in fiber and, thus, good for the digestive system. Hence, the demand for soybean to produce protein products is increasing, as they are being considered a fit alternative to meat. These proteins are used in a number of food products, such as dairy replacers, emulsion-type sausages, and nutritional bars, as well as being utilized as aquaculture, livestock feed, and pet food products.
North America is likely to hold the largest share in the plant-based protein market during the forecast period owing to the shift of consumers toward plant-based foods. This is propelled by people’s rising focus on health, food safety, immunity, sustainability, and animal welfare. Additionally, with the development of new technologies in the food and beverage sector, the usage of plant-based protein has been rising in the North American market because of the increase in the vegan population.
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The increasing spending and betterment in living standards are also key drivers for the growth of the market. As per the stats of the World Bank, people spent $64.130 trillion on all kinds of stuff in 2019 as opposed to $49.33 trillion in 2010. Accordingly, the rise in the spending and increasing awareness of vegan food have contributed to the changing inclination of people toward plant-based food. Plant-based proteins are generally more expensive than animal-derived variants since the former are extensively processed, which is why the rising disposable income is a key reason behind market growth
Hence, the market for plant-based protein is showing growth because of the surging awareness of people about vegan food and rising standard of living.