Alternative Protein Market Size – By Source, By Application, Growth Forecast, 2025–2034

Alternative Protein Market Size

The global alternative protein market was valued at USD 90.5 billion in 2024, with expectations to reach USD 238.7 billion by 2034, growing at a CAGR of 9.8%.
 

Alternative protein is derived from novel sources such as plants, insects and lab-cultured cells. It is gaining recognition as more sustainable and nutritious compared to animal sourced proteins. Several factors contributing toward the rise of the market, including increasing the demand of protein-rich poultry diets, growing beef exports, industrialized livestock farming, increasing consumer fascination towards protein rich goods, governmental encouragement for algae farming, adoption of edible insects and rising awareness of vegan diets.
 

In beef production, the importance of a protein-rich diet has further led to the creation of highly palatable, easily digestible, and low anti-nutritional feeds. This approach optimizes nutrient utilization in poultry meat and muscle production. The rise of improved feed quality made from plant-based proteins is expected to encourage the use of alternative protein sources in animal nutrition.
 

The surge of exports from Australia has serious consequences for the alternative protein market. According to ABARES, Australia’s Agricultural sector is projected to reach USD 88.4 billion in 2024-25 which would make it the second highest production value recorded in Australia. This is USD 6 billion increase from last year caused by increased prices of livestock and augmented production.
 

This increase in trade could, in part, be attributed to the free trade agreements which opened new markets resulting in increased exports of beef with the countries having these agreements. As the exportation of meats increases, issues relating to the preservation of the environment along with resource consumption become stronger which leads industries as well as consumers to look for suitable alternative proteins which are nutritionally comparable but have a lower negative impact on the environment.
 

Consumers are showing increased interest in proteins due to the need to meet the desire for healthier products containing a high concentration of proteins. Protein derived from plant, insect or cultured cell materials provide the desired attention to environmentally responsible and conscientious food, while serving people concerned about nutrition. This shift is further supported by national policy aimed at the promotion of health and sustainability of food systems.
 

National policies also plays an important role in improving the production of protein based on algae. As an example, the Good Food Institute stated that public investments into alternative proteins in the Asia - Pacific region increased by 207% from 2021 to 2022, reaching a total of USD 94 million. This kind of aid helps to facilitate R&D in the cultivation of algae, further enhancing the prospects of algae-based proteins as sustainable substitutes for animal proteins.
 

The movement towards vegan diets has stirred up interest and demand in plant-based proteins. There is an increasing awareness among the people about the health benefits of plant-based diets. This change is happening with significant boom in sales of plant-based foods. The government is also helping by conducting research and offering grants to encourage the growth of plant-based proteins which in turn helps the market for alternative proteins. 
 

Regardless of the promising evolution in the growth of the alternative protein market, various factors within the industry impose limitations its adoption and expansion. One of these factors is the ambiguity of regulation in the food industry, especially regarding proteins derived from insects. Most nations have not yet issued clear regulations on the procedures for the production, marketing, and labelling of edible insects, which puts manufacturers in a dilemma and retards his entry to the alternative protein market.
 

Another important challenge is food allergies. Alternative sources of proteins, either in the form of vegetables, insects, or cells grown in a lab, may be harmful to some people. For instance, insect protein is derived from shellfish and therefore carries allergenic characteristics which limit its usage among consumers. Like this, many legumes and plant based proteins such as soybeans and peas are notorious allergens that restrict their acceptance in different regions.
 

Moreover, lab-grown proteins face challenges in high production costs and scalability. The development and commercialization of cultured meat is still much more expensive compared to conventional farming, which makes it difficult for the average consumer to access. In the absence of technological improvements and reduced costs, realizing widespread use of lab grown protein will always be a challenge. Overcoming these obstacles is vital in enabling the protein alternative market to grow sustainably.
 

Alternative Protein Market Trends

• Technology innovation in protein manufacturing: Cellular agriculture and precision fermentation are revolutionizing the manufacture of proteins. The technologies provide a capability to produce non-animal-derived product alternatives like meat, dairy, and seafood. For example, cellular agriculture has been industrialized to address the increased demand for animal alternative foods that are substitute of traditional products.
   
• Regulatory evolution facilitating market entry: Countries all over the world are changing their regulatory policies for different and novel protein sources. The European Commission has initiated regulatory evaluation of cultured meat and other new proteins to facilitate their healthy market launch. This aims to create a specified regulatory approval process for novel protein strategies or technology.
   
• Consumer shift towards sustainable diets: The increasing focus on health and ecological improvement is changing consumers towards the consumption of alternative and plant-based proteins indicated by the European Commission, alternative proteins are expected to constitute 33% of global protein consumption by 2054, with algae and insects accounting for 18% and 11% respectively
   
• Industry innovations in product development: The food industry is actively working to produce better-textured, flavourful, and nutritional food analogues. Programs like “LikeMeat” aim to create plant-based foods that replicate the taste of meat, which will aid in increased consumption of alternative proteins.
   

Alternative Protein Market Analysis

The alternative protein market by source is segmented into plant-based, insect-based, microbial-based and others. Plant-based accounted for 73.3% of the market share in 2024.
 

• Plant-based proteins dominates as they are easily available, there are established supply chains, and people prefer them. Increased consumption of vegan and flexitarian diet boosted the demand. Manufacturers are launching new products to market based on vegan ingredients as a response to the increasing demand. For instance, the United States Department of Agriculture (USDA) estimates that production of soybeans, a primary source of plant-based protein, will be 4.1 billion bushels in 2023. Proteins sourced from peas, wheat, and rice are gaining popularity and providing new opportunities to produce a variety of plant-based meat, dairy products, and protein substitutes.
   
• Microbial-based proteins, which are obtained through fermentation and precision biology, are gaining more investment. These proteins provide a very efficient production process irrespective of agricultural conditions.
   
• Single-cell proteins and algae-based proteins are other sources that are coming forward as sustainable solutions. Algae-based proteins benefits from rapid growth cycles and high yields of protein, with regulatory authorities considering their use on a large scale in food and feed sectors.
   

Based on application, the market is segmented into food and beverage and animal feed. Food and beverage made up 94.6% of the market in 2024.
 

• The food and beverage industry is the largest contributor to the alternative protein market due to the increased demand for ethical and sustainable sources of food. The plant-based and flexitarian diets are leveraging food manufacturers to diversify their portfolios with other protein products, including dairy-free drinks and meat alternatives.
   
• Alternative proteins are also finding their place in specialty diet segments like sports nutrition, geriatric nutrition, and medical foods. Plant-based, high-protein products are being launched to address athletes' requirements, fitness enthusiasts, and consumers with food allergies or dietary restrictions, further expanding market applications.
   

U.S. alternative protein market accounted USD 12 billion in 2024.
 

• The U.S. has positioned itself as the leading country in North America regarding alternative protein markets due to significant government support, new advancements in technology, and a developed food industry. The USDA and FDA's regulations on plant and cell cultured as well as fermentation proteins encourages innovations and market entry. Besides, this country has some of the largest alternative protein companies and investment in research and development facilities which substantiates the country’s dominance in this sector.
   
• A growing trend in health and sustainability among consumers is driving the use of alternative sources of protein in the U.S. Personal health, environmental sustainability, and animal welfare are some of the reasons consumers are opting for plant-based and cultured protein products. The growing popularity of the products in retail grocery stores and restaurants boosts the market. Moreover, purchasing attention of consumers is helped by social networks and advertising supporting vegan nutrition.
   

Alternative Protein Market Share

The alternative protein industry is defined by growing consumer demand for sustainable and functional proteins, and hence the innovations continue. Firms are investing in building up their manufacturing capacity and securing long-term supply contracts with food producers to build their market positions.
 

Companies such as Archer Daniels Midland Company (ADM) and Cargill Incorporation maintain a large percent of share in the alternative protein market due to the immense competition provided in the market. Sojaprotein, an industry leader in soy protein, is and has been a part of ADM’s strategic plans which led to them having the largest market shares. Cargill has enhanced its market presence by purchasing a top pea protein manufacturer, PURIS, which allows them to expand beyond soy protein as the global demand for sustainable food solutions grows.
 

Sustained competitive advantage of these firms stems from focusing on significant R&D spending, expanding their supply chains, and making other important purchases to satisfy the demand for sustainable, high quality and functional protein products. Market share is likely to increase as the demand for alternative protein sources grows, which will be satiated through product development, collaboration, and expansion into new application areas.
 

Alternative Protein Market Companies

Some of the eminent market participants operating in the alternative protein industry include:

• AB Mauri
• AMCO Proteins
• Angel Yeast
• Archer Daniel Midland Company
• Axiom Foods
• Calysta Inc.
• Cargill Incorporation
• Darling Ingredients
• Hamlet Protein
• Ingredion
• Innovafeed
• Lallemand Inc
• Royal DSM NV
• Ynsect
   

Royal DSM NV is making strides in the expansion of its alternative protein portfolio with the introduction of canola and algae proteins for food and feed. In the recent developments, the company has launched new texturizing solutions for plant-based meats to improve taste while using biotechnology to enhance fermentation efficiency as well as sustainability.
 

New entrants like Innovafeed are specialized in protein derived from insects, in particular black soldier flies for animal feed. They have collaborations with Cargill, and recently opened a new, large-scale production facility. Those were some of the steps taken to meet the increasing demand of these companies. This firm is active in pet food and livestock nutrition, searching for new bioactive ingredients.
 

Alternative Protein Industry News

• In February 2025, Rockwell Automation partnered with E Tech to assist the producers of alternative protein scale their operations. With sophisticated automation, Rockwell helped producers of commercial goods who were previously only small-scale testers ensure quality, sustainability, and cost efficiency.
   
• In January 2025, Cargill invested in 3D printing technology and mycoprotein fermentation, welcoming further innovation in alternative proteins. These developments rounded out the issues of taste and texture, further strengthening Cargill's leadership within the context of the rapidly growing market of alternative proteins, as stated by R&D manager Megan Swartz.
   
• In December 2024, Griffith took another step in setting the foundation of alternative protein marketing by launching its first alternative proteins portfolio.
   
• In December 2023, Chicago based food tech start up Nature’s Fynd revealed its plans to introduce the world's first fungi-based yogurt. This new range of products was the companies third set and was scheduled for a nationwide launch in Whole Foods stores.
   
• In July 2021, ADM acquired Sojaprotein the biggest plant-based protein producer in southern Europe increased production capacity, which enhanced global capability to supply plant-based protein products.
   

The alternative protein market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Billion and volume in terms of Kilo Tons from 2021–2034 for the following segments:

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Market, By Source

• Plant-based 
  • Soy protein isolates
  • Soy protein concentrates
  • Fermented soy protein
  • Duckweed protein
  • Others
• Insect-based
  • Microbial-based 
  • Bacteria
  • Yeast
  • Algae
  • Fungi
  • Others

Market, By Application

• Food & beverage 
  • Meat analogs
  • Bakery
  • Dairy alternatives
  • Cereals & snacks
  • Beverages
  • Others
• Animal feed 
  • Poultry
  • Broiler
  • Layer
  • Turkey 
• Swine
  • Starter
  • Grower
  • Sow 
• Cattle
  • Dairy
  • Calf 
• Aquaculture 
  • Salmon
  • Trout
  • Shrimps
  • Carp
• Pet food
  • Equine
  • Others

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America 
  • Brazil
  • Mexico
  • Argentina 
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE