By André Tomazelli Sabará, Sales, ESG, & Marketing Director, Concepta Ingredients / Grupo Sabará
According to Future Market Insights, the plant-based ingredient market is expected to accelerate at a compound annual growth rate (CAGR) of 8.6% over the next decade, growing from approximately $9.3 billion in 2024 to $21.2 billion in 2034. The engine behind this expected growth encompasses consumer interests, macro trends, and ramped-up innovation. Let’s delve a little deeper into these factors.
Demand for health benefits and functional ingredients
Many consumers choose plant-based proteins due to dietary restrictions, allergies, or a desire for healthier options, leading to increased demand for low-calorie and unsweetened products. This trend is shifting consumer preferences away from traditional meat sources, with plant-based proteins gaining traction in various sectors, including sports nutrition and infant nutrition.
Enhanced awareness of the functional benefits of plant-based proteins, combined with effective marketing strategies targeting health-conscious consumers, has further fueled demand. Brands emphasizing health benefits and innovating in flavor and nutrition are seeing notable success.
According to global market research agency Mintel, health-conscious consumers increasingly value ingredients that contribute to balanced nutrition; 45% of consumers cite this as their reason for buying plant-based proteins. Beyond protein, consumer interests also include sources of fiber, essential fatty acids, and antioxidants, which can be found in ingredients such as soy, oats, and flax.
While challenges such as high production costs and raw materials shortages continue to impact the market, the overall outlook for plant-based proteins remains positive, with consumer trends and industry innovation providing a solid foundation for future growth.
Sustainability and environmental considerations
The environmental impact of food production has become a strong motivator for choosing plant-based ingredients. More individuals are actively seeking food options that nourish their bodies and align with their values regarding the planet and ethical practices. Sustainability is pivotal in this shift, as plant-based proteins are recognized for their lower environmental impact than traditional animal sources. In addition, there is a growing demand for allergen-friendly products and diverse, flavorful offerings that cater to a wide range of dietary needs. This landscape reflects a significant transformation in how people approach food, driving innovation and change in the food industry.
Transparency and ingredient sourcing
Consumers, particularly Millennials and Gen Z, crave transparency from the companies they do business with, particularly the food industry. The days of simply listing ingredients have evolved into wanting to know where and how they were sourced and if foods are minimally processed, non-GMO, and free from artificial additives. Companies can address these consumer interests by prioritizing ethical sourcing of high-quality ingredients and providing a window into the food journey of their foods either through their website or social channels. Challenger brands, in particular, have cracked the code on delivering a clear message that resonates with these audiences.
Sustainable and ethical sourcing
Environmentally and ethically sustainable products continue to draw consumer interest and drive brand affinity. While there is still work to be done, considerable progress across the food production system is advancing sustainable sourcing, fair trade, regenerative agriculture, and waste reduction.
Opportunities for broader appeal
While veganism continues to gain traction, in the United States, it still represents only about 1% of the population, according to Gallup. That same poll found only 4% consider themselves vegetarians. However, the audience for plant-based foods will get substantially larger if you consider flexitarians. Research from Numerator has found that 72 million households in the United States are flexitarian, and 98% of consumers who buy plant-based protein alternatives also buy animal meat.
Brands have a great opportunity to appeal to all groups by thinking more broadly about their consumers and understanding the commonalities that they share — an interest in global flavors, new foods, and products that can help them along their health and nutrition journey.
Research from Mintel reports that taste is a primary hurdle to wider adoption of plant-based foods, with 42% of consumers reducing their engagement due to flavor concerns. Flavor and texture remain top priorities for plant-based consumers, who often compare plant ingredients to animal-based ones. To attract a broader audience, brands are focusing on innovations in mouthfeel, taste, and application flexibility. For instance, more innovative textures, blended options, and pre-seasoned ingredients are addressing some of the main concerns of plant-based foods.
The future of plant-based ingredients is bright, with a wide range of possibilities for brands to address rising demands for health, sustainability, and transparency. By focusing on functional nutrition, sustainability, and innovation, brands can satisfy consumer needs and foster long-term loyalty in an increasingly competitive market. The continued development of flavorful, functional, and ethically sourced plant-based ingredients offers food producers a mutually beneficial pathway to contribute to a healthier, more sustainable food system.
