- Meat alternatives is expected to be the fastest growing food sector globally, with a 12.7% Compound Annual Growth Rate (CAGR) over 2020-2025
- The sector is only expected to gain $4.96 billion over the five year period, reaching $11.03 billion in 2025
- The meat market is set to gain $341.5 billion to reach $1.6 trillion by 2025
Meat alternatives is the only sector in the global food industry expected to hit double digits in terms of value growth over 2020-2025, with a CAGR of 12.7%. Meat alternatives are seeing such varied and exciting innovations on the market and are growing at an incredible pace, albeit from a small base number. They are the clear stand out performer with double digit growth, notes GlobalData.
However, the leading data and analytics company explains that brands should consider the growth rate in context of value gained, as this growth represents a comparatively small value gain of almost $5 billion – a fraction of the meat industry’s whopping $341.5 billion.
Amira Freyer-Elgendy, Food & Drink Associate Analyst at GlobalData, comments: “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. 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.”
From the data it is clear that meat substitutes will not overtake traditional meat in the next five years. Meat substitutes are one of the smallest categories in terms of sheer value. Top gainers with this measure are basic staple ingredients – such as the meat, dairy and soy foods, and bakery and cereals sectors.
Freyer-Elgendy continues: “To become one of the top value gainers, the product has to be an ‘everyday’ staple food. Meat, bakery goods and dairy are often consumed daily and are a built-in part of shoppers’ routines worldwide. Getting to that level is difficult, especially for a category that is still finding its feet.”
The small base in value could be due to the specific consumer base it has. Although the market is seeing more adoption as flexitarian diets encourage plant-based consumption, GlobalData’s Q2 2021 consumer survey reveals that 35% of global consumers do not consume plant-based meat alternatives.
Freyer-Elgendy adds: “Meat alternatives are appealing to shoppers beyond the vegan or vegetarian audience, as curiosity, health and ethics are driving consumers to try it. 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.”
* Data from GlobalData’s 2021 Q2 global consumer survey
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