Alternative Protein Market Size - By Source (Plant-Based, Insect-Based, Microbial-Based), Application (Food Beverages, Animal Feed) & Forecast, 2024-2032

Alternative Protein Market Size

Alternative Protein Market size was worth USD 79.7 billon in 2023 and is projected to experience 11% CAGR from 2024 to 2032, driven by increasing consumer awareness about health, sustainability, and ethical concerns. The demand for protein sources that are environmentally sustainable and cruelty-free has surged, encouraging food manufacturers to explore and innovate within the alternative protein sector.
 

The rising innovations and partnerships between leading companies support growth. For instance, in February 2024, Unilever’s Breyers brand collaborated with Perfect Day animal-free dairy protein supplier, for its latest product innovation. The result was Breyers Lactose-Free Chocolate, crafted using Perfect Day’s whey protein, produced through precision fermentation.
 

Additionally, the rising global population and the corresponding demand for protein-rich diets have led to an increased focus on developing efficient and scalable protein sources. As consumers shift towards plant-based and other alternative protein products for health and environmental reasons, the market is poised to expand considerably, offering diverse and nutritious options that cater to evolving dietary preferences.
 

The alternative protein market will witness substantial growth driven by the rising consumer preference for plant-based diets and the increased awareness of the environmental impact of traditional animal farming. With concerns about greenhouse gas emissions, land use, and water consumption associated with livestock production, consumers are increasingly turning to alternative proteins as a more sustainable option.
 

The rising production and approvals of livestock feed support the market. For instance, in February 2024, Calysta, a biotechnology company based in California, received approval from China’s Ministry of Agriculture and Rural Affairs (MARA) to use its FeedKind protein in fish and shrimp feeds. Following an extensive evaluation process, Calysta is now authorized to incorporate its single-cell protein into aquaculture feeds in China.
 

However, the market faces challenges such as consumer skepticism regarding taste, texture, and nutritional equivalence compared to conventional animal proteins. Overcoming these hurdles through advancements in food technology and consumer education will be crucial for the sustained growth of the market.
 

Alternative Protein Market Trends

The market will see robust growth through 2032, fueled by innovations in food technology that enhance the taste, texture, and nutritional content of alternative protein products. As companies invest in research and development to create more appealing and versatile protein options, consumer acceptance is likely to increase.
 

Additionally, the rise of flexitarian diets, where consumers reduce meat consumption without fully eliminating it, is driving demand for alternative proteins that can seamlessly replace animal products in everyday meals. The proliferation of alternative protein products in mainstream retail channels and food service outlets is further contributing to the market expansion, making these products more accessible to a broader consumer base.
 

For instance, in August 2024, the newly established food and water cluster, AGWA (AgriFood Growth & Water Abundance), from Abu Dhabi announced that Swiss alternative protein innovators NUOS will begin operations. NUOS plans to set up an innovation center and food manufacturing facilities dedicated to alternative protein production. 
 

Alternative Protein Market Analysis

The microbial-based segment will reach USD 41.75 billion by 2032. These proteins, derived from sources such as algae, fungi, and bacteria, offer a sustainable and scalable alternative to traditional animal and plant-based proteins. Microbial proteins are gaining popularity due to their high nutritional value, rapid production cycles, and low environmental impact. The ability to produce protein in controlled environments with minimal resources positions microbial-based proteins as a key contributor to addressing global food security challenges.
 

As the technology behind microbial protein production continues to advance, the segment is poised for substantial growth, driven by its potential to meet the rising global demand for sustainable protein sources.
 

The alternative protein market from food applications will surpass USD 186.5 billion by 2032, driven by the increasing incorporation of alternative proteins in various food products. From plant-based meat alternatives to dairy-free milk, alternative proteins are becoming a staple in the diets of health-conscious and environmentally-aware consumers.
 

The growing demand for ready-to-eat meals, snacks, and beverages that are rich in protein and free from animal products is propelling the adoption of alternative proteins in the food and beverage industry. Market players are also focusing on improving the taste, texture, and nutritional profile of alternative protein-based products to cater to a wider consumer base, thereby contributing to the segment growth. As consumers continue to seek convenient and nutritious food options, the food and beverages segment is expected to drive the adoption of alternative proteins on a global scale.
 

North America alternative protein market value surpassed USD 13.3 billion in 2023 and is estimated to witness 17.5% CAGR through 2032. The region's strong demand for plant-based foods, coupled with an increasing focus on sustainability and health, has fueled the adoption of alternative proteins.
 

The presence of key market players, ongoing product innovation, and a supportive regulatory environment have further strengthened the market outlook in North America. Additionally, the growing trend of flexitarian diets and the availability of a wide range of alternative protein products in retail and food service channels have bolstered consumer acceptance. As North America continues to lead the way in the development and commercialization of alternative proteins, the region is expected to maintain its dominant position in the global market.
 

Alternative Protein Market Share

The alternative protein industry is experiencing significant demand, driven by concerted efforts from companies to meet the growing consumer shift towards sustainable and plant-based diets. Leading firms are investing in research and development to create innovative protein alternatives that mimic the taste and texture of traditional animal products. Companies like Beyond Meat, Impossible Foods, and Nestlé have expanded their product lines, emphasizing health benefits, environmental sustainability, and ethical considerations. Collaborations with food service providers and retailers have also increased the accessibility of these products, further fueling market growth as consumers seek healthier and eco-friendly protein sources.
 

Alternative Protein Market Companies

Global alternative protein industry is competitive, and key players include

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

Alternative Protein Industry News

• In December 2023, food tech startup Nature’s Fynd from Chicago announced its plan to launch its fungi-based yogurts, a first in the world. This new product line, the company's third, was set to debut at Whole Foods stores nationwide.
   

The alternative protein market report includes in-depth coverage of the industry with estimates & forecasts in terms of volume (Kilo Tons) and revenue in USD (Million) from 2021 to 2032 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
• 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 has been provided for the following regions and countries:

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