Forecasts for the Best Alternative Protein Market in 2024
Summary:
- Legal developments, culinary innovation, and demographic changes will all be noticeable in the alternative protein market in 2024. Cultivated meat gains global regulatory approval, companies focus on taste and nutrition, and Gen Z emerges as a significant consumer base.
- Governments worldwide are increasingly supporting the alternative protein sector through funding, marketing initiatives, and dietary guidelines. This governmental backing is seen as a pivotal force propelling the industry towards more sustainable and widespread adoption.
- The lines between the plant-based and traditional meat industries blur as meat producers enter the alternative protein market. Simultaneously, the industry diversifies protein sources beyond traditional options, introducing novel ingredients and creating a broader range of choices for consumers.
Twenty-four begins following a year that was largely stagnant for the US market for alternative proteins. The majority of plant-based protein products have seen declining sales and disappearing funding, while farmed meat has gained regulatory victories. Although we don’t yet have all the data for 2023, sales in 2021 and 2022 barely moved, and it doesn’t appear that last year broke through this plateau.
But this doesn’t mean the whole industry is in trouble; alternative protein sales are booming in Europe, and cultivated meat has made its menu debut in the United States—albeit in just two restaurants—as of late.
Here are the top trends to watch as the plant-based protein industry works to become even more entrenched in the diets of the general public.
1. Legal Gains for Cultivated Meat—and Possible Losses
Only the United States and Singapore have authorized the commercial sale of farmed meat as of 2023. In 2024, more nations are anticipated to join; the UK, Switzerland, Australia, and New Zealand are first on the list.
This year, Aleph Farms, an Israeli company that produces cultivated meat, applied for and was granted regulatory approval in Switzerland and the UK. By the end of 2024, the process should be complete. In 2024, commercially farmed meat is unlikely to exist in any other European nation due to extensive regulatory requirements within the EU. Vow, a company that produces cultured meat, made it through the first round of Australian regulations this month and may be available to consumers in 2024.
It’s not all good news, though, as a new Italian law prohibiting the production of cultivated meat within its borders predicts increased challenges to the cultivated meat sector in 2024. There are bills in other nations and states, such as Florida, Texas, and Romania. Italy’s decision to forbid the production and sale of farmed meat has been met with opposition from scientific associations. Although it is unclear how likely it is that these prohibitions will spread, consumers in the US and the EU will still be able to consume farmed meat; they will just be unable to produce it.
2. Healthier and Tastier Selections
The meat industry hasn’t taken the rise of plant-based meat lying down in recent years. Instead, it’s launched a marketing campaign that occasionally verges on disinformation, accusing plant-based products of being phony, unhealthy, overly processed, or harmful in other ways. (For additional information, view our explainer on plant-based meat’s health claims.)
Many businesses believe that improving the taste and health of their products will address this backlash. Compare Impossible’s beef lite with its juicier Indulgent Burger (which comes with a Heart-Check Program certification from the American Heart Association). Or THIS, a plant-based company hoping to appeal to a wide range of consumers by branching out into processed and whole food options. To improve health, a lot of manufacturers are incorporating micronutrients into their goods. Others combine cultivated meat fat cells with plant-based patties to give them an umami taste.
Companies are attempting to attract customers who have different food values by expanding in two different directions. The meat industry is concerned about this position. “There is a concern if [alternative protein companies] can guarantee [consumers] the best-tasting chicken they’ve ever had,” food marketing expert Kevin Ryan stated at the 2023 Chicken Marketing Summit.
3. Motivating Gen Z
Younger people are generally more interested in plant-based substitutes than older people, according to consumer research. Two-thirds of Gen Z and Millennials worldwide are predicted to consume more plant-based food in the future, with those between the ages of 18 and 34 in the United States being the most likely to buy plant-based meats. The oldest member of Gen Z, who will turn 27 this year, is starting to reach the purchasing power that companies offering alternative proteins are courting. According to Ignaszewski, “habits built by younger generations will set the stage for the future of food.”
Gen Z respondents indicated they want a variety of plant-based meat alternatives. Companies will require much more than just burgers and filets if they are to successfully market them. The first item on the menu might be a munchie. This year, there might be a shift in the availability of plant-based imitation snacks like jerky, pork rinds, and string cheeses.
4. Greater Assistance from the Government
In 2023, the connection between sustainable practices and alternative proteins became widely accepted. Denmark, Germany, and South Korea have all released food system transition plans that prioritize and promote plant-based eating through new dietary guidelines, funding, marketing, and other initiatives. Researchers, think tanks, and non-governmental organizations presented more proof that governments must provide funding for alternative protein sources to improve the sustainability of their food systems. Additionally, the UN Environmental Programme published a report advocating for alternative proteins as a means of combating climate change, and for the first time, COP28 served very little animal meat to its climate delegates.
Investing in alternative protein sources is highly recommended at this auspicious time. Government support for alternative protein helps businesses increase supply, which lowers prices more quickly than the free market can. They can also bring groups together. Governments around the world increased their funding for the development and production of alternative proteins by more than double in 2022.
Many more nations will undoubtedly open their purse strings to support a sustainable food system. China, Japan, and India have all pledged increased government support for alternative proteins, and 2024 is sure to bring even more.
5. A Latin American Boom
In 2020, Latin America saw a surge in the number of alternative protein start-ups. Although Latin America is one of the two regions predicted to have the highest dollar growth globally in 2024, this region hasn’t been able to convert those start-ups into market penetration yet.
Native plants high in protein and vitamins, such as maca, algae, tarwi, quinoa, and others, have long been used in Latin America. While some businesses are developing more traditional plant-based burgers and nuggets, others are capitalizing on these already-existing foods by developing flavours specific to the continent. The variety of businesses could cause a disturbance in the Latin market.
In Latin America, particularly Brazil, the global meat industry has left a lasting legacy of pollution and deforestation. A strong alternative protein sector would increase employment in the region and slow down environmental degradation, though perhaps not quickly enough to stop the Amazon from reaching “the point of no return.”
6. The Meat Industry’s Competition for Pie
The lines between the plant-based and animal-based industries are much more hazy than many may believe. Seven years have passed since Tyson made his investment in Beyond Meat, citing the need to feed the world’s “ever-growing and diverse population.” A few years later, Tyson introduced its range of plant-based goods.
To broaden their customer base, more meat producers are expected to carry on this trend in 2024 and launch their products. Insider Mack Graves recently predicted that to stay ahead of consumer trends, the meat industry will mimic and develop plant-based products.
7. A Wider Variety of Protein Sources
The majority of plant-based brands used soy, peas, and possibly gluten as their main sources of protein a few years ago. That won’t be the case in 2024, though, when a lot more inventive plants will undoubtedly become well-known.
Spirulina and chlorella in particular can promote muscle growth, which is why more and more start-ups are springing up all over the world to produce goods derived from these strange green food sources. Mycelium, the root-like component of mushrooms, is particularly well-received when it comes to meat. In addition to the traditional ingredients like soy, oat, cashew, and pea, other recently established businesses are utilizing unusual ingredients like sunflower, jackfruit, hemp, and konjac. We have yet to see how consumers will respond to such a wide range of options, as many of these products might not even be on the market by 2024.
8. Ongoing False Information Regarding Alt Protein
Misinformation about plant-based and farmed meats has existed for as long as supermarkets have carried them, and occasionally even earlier. According to a report, millions of people were exposed to narratives that portrayed plant-based meats as unhealthy, excessively processed, or even conspiratorial in 2023. That might present issues for a developing market. Although peer-reviewed research can disprove these claims, strong counterarguments may persuade consumers.
Having a customer base, according to Ignaszewski, “is important for ensuring these products are accurately represented.” Businesses will have to put in a lot of effort in 2024 to engage with potential customers more transparently; we’ll see how well they can do this.
By luring in new customers, enhancing their flavours and textures, and increasing production to cut costs, alternative protein companies hope to overcome the industry’s recent stagnation in 2024.
In Brief
In 2024, the landscape of the alternative protein market is set to undergo significant shifts, marking a departure from the stagnation witnessed in the previous year. While challenges persist, there are notable trends shaping the industry’s trajectory.
Legal Landscape: Cultivated Meat Gains Ground
Cultivated meat has secured regulatory approval in the United States and Singapore, with expectations of more nations, including the UK, Switzerland, Australia, and New Zealand, joining the list in 2024. Despite legal victories, challenges emerge with Italy’s prohibition on cultivated meat production, hinting at potential hurdles for the sector.
Healthier and Tastier Offerings
Facing criticism from the traditional meat industry, alternative protein companies are focusing on enhancing taste and nutritional value. Companies like Impossible and THIS are introducing options catering to diverse consumer preferences, incorporating micronutrients, and blending cultivated meat fat cells with plant-based patties to achieve an umami taste.
Gen Z Influence
The younger demographic, particularly Gen Z, is emerging as a significant market for plant-based substitutes. With two-thirds of Gen Z and Millennials worldwide projected to increase plant-based food consumption, companies are diversifying their product offerings beyond burgers and filets to include snacks like jerky, pork rinds, and string cheeses.
Government Support: A Key Catalyst
In 2023, the connection between sustainable practices and alternative proteins gained widespread acceptance. Governments in Denmark, Germany, South Korea, China, Japan, and India are increasing support through funding, marketing, and dietary guidelines, signaling a crucial period for investment in alternative protein sources.
Latin American Boom
Latin America, with a surge in alternative protein start-ups in 2020, is poised for growth in 2024. Leveraging native plants high in protein and vitamins, companies are developing unique flavours tailored to the region. This growth not only addresses environmental concerns but also contributes to employment in the region.
The meat industry’s Evolution
The distinction between plant-based and animal-based industries is blurring. Meat producers are expected to introduce plant-based products to cater to evolving consumer preferences, further blurring the lines between the two sectors.
Diverse Protein Sources
The traditional reliance on soy, peas, and gluten is evolving, with spirulina, chlorella, mycelium, and unconventional ingredients like sunflower, jackfruit, hemp, and konjac gaining prominence. The market is diversifying to offer a wider range of options, although consumer response remains uncertain.
Battling Misinformation
Despite advancements, misinformation about plant-based and farmed meats persists, potentially hindering market growth. Transparency will become paramount for companies in 2024, requiring concerted efforts to engage with consumers and dispel myths.
In conclusion, the alternative protein market in 2024 will be characterized by legal strides, culinary innovation, changing consumer demographics, government support, Latin American expansion, industry convergence, ingredient diversification, and the ongoing battle against misinformation. As companies navigate these trends, the year holds promise for overcoming previous challenges and propelling the industry forward.
FAQs
1. What is cultivated meat, and how does it differ from traditional meat?
Cultivated meat, also known as lab-grown or cell-based meat, is produced by cultivating animal cells in a lab environment rather than raising and slaughtering animals. This innovative approach aims to provide a more sustainable and ethical alternative to traditional meat production.
2. How are alternative protein companies addressing concerns about taste and nutritional value?
Alternative protein companies are investing in research and development to enhance the taste and nutritional profile of their products. Strategies include incorporating micronutrients, blending cultivated meat fat cells with plant-based components, and offering a variety of options to cater to diverse consumer preferences.
3. What role does Gen Z play in the growing popularity of plant-based substitutes?
Gen Z, comprising individuals born between the mid-1990s and early 2010s, is showing a heightened interest in plant-based substitutes. With two-thirds of Gen Z and Millennials worldwide predicted to increase their consumption of plant-based foods, companies are adapting their offerings to align with the preferences of this influential demographic.
4. How are governments supporting the alternative protein industry, and why is it significant?
Governments globally are increasingly recognizing the importance of sustainable practices and alternative proteins. They are providing support through funding, marketing initiatives, and the development of dietary guidelines. This governmental backing is crucial for accelerating the growth of the alternative protein sector and creating a more sustainable food system.
5. What challenges does the alternative protein industry face regarding misinformation, and how are companies addressing this issue?
The alternative protein industry contends with persistent misinformation about the health, processing, and overall legitimacy of its products. Companies are actively working to counter these claims through transparent communication, engaging with consumers, and leveraging peer-reviewed research to dispel myths and build trust in the market.
