Alternative Protein Market Segmentation:

Alternative Protein Market Key Suppliers

• Archer Daniels Midland Company (ADM)
• Cargill, Incorporated
• Roquette Frères
• Ingredion Incorporated
• Kerry Group
• International Flavors & Fragrances, Inc. (IFF)
• Now Foods
• Tate & Lyle PLC
• Axiom Foods Inc.
• Burcon NutraScience Corporation
• BENEO GmbH (A Part of Südzucker Ag)
• Glanbia plc

Alternative Protein Market Trends

Proteins continue to play a vital role in the global food industry. There has been a transition in demand for alternative protein sources due to the world’s acceleration toward innovative and sustainable eating. Today’s consumers of protein require protein alternatives and appealing sensory experiences. Protein has not yet attained megatrend status, however, due to existing obstacles relating to how to obtain favorable volume, texture, and machinability to meet consumer expectations.

Beyond veganism and vegetarianism, the plant-based movement is embracing a more mainstream flexitarian approach. According to Cargill, flexitarian consumers can be difficult to please because they have grown up with conventional meat and dairy and have specific expectations regarding the appearance and taste of any meat-based meal.

In light of these trends, some of the alternative protein market leaders are concentrating on developing innovative products. In March 2023, for instance, Marel, a global provider of advanced food processing solutions, collaborated with Archer Daniels Midland Company (ADM), a global supplier of human and animal nutrition products, to establish a state-of-the-art taste and texture innovation center. The inauguration is anticipated to take place in the second half of 2024. The innovation partnership will enable the establishment of a collaborative space on the Wageningen Campus to develop plant-based and alternative protein products from concept to commercialization in order to meet the region’s and the world’s rising demand.

Despite these positive market developments, uncertain economic conditions and businesses continuing to deal with pandemic-related issues have influenced investor behavior across industries, including alternative proteins. According to a new report compiled by the non-profit Good Food Institute (GFI), alternative protein market players raised $2.9 billion in funding last year, broken down into plant-based ($1.2 billion), fermentation ($842 million), and cultivated ($896 million) categories. Although 2022 funding totals represent an overall decrease compared to the $5.1 billion raised in 2021, investments in alternative proteins in 2022 vastly surpassed the $1.1 billion raised in 2019, which was regarded as a breakthrough year for alternative proteins as it occurred before the pandemic.

However, from 2023 and onwards, it is anticipated that alternative protein organizations will continue to develop new technologies and scale and optimize production to enhance the flavor and affordability of their products; sales will accelerate; and additional investment will be encouraged, especially when macroeconomic and market conditions normalize.

As per the GFI survey of 125 investors to determine their sector outlook, the majority of investors (99 percent) responded optimistically about the long-term potential of the alternative protein category, and 87 percent of respondents intend to invest in this industry in 2023. Nearly half (45%) of respondents also reported that their sector investments did not decrease in 2022. Such factors are bolstering the growth of the alternative protein market.