Driven by environmental and animal cruelty concerns in young people, the market for plant-based proteins — including fake meat, dairy and egg replacement products — is expected to top US$200 billion over the next 10 years according to a new study by Ernst & Young Canada..The Toronto-based consultancy expects plant-based protein sales to grow at a compounded rate of about 16.5% — almost 10 times — driven by socially conscious consumers and a shift towards healthier foods..“Concerns around environmental sustainability and animal cruelty are top of mind for consumers, increasing willingness to purchase plant-based products,” it says in the executive summary of the report.. Vegan meat marketThe market for meat and dairy substitutes is expected to grow to $200 billion by 2035. .In addition to traditional meat substitutes the market for egg replacements and stabilizers used in baking and dairy are also rising as Canada attracts a higher Asian immigrant population who tend to be lactose intolerant..Although Asia is expected to be the largest market overall, more than 70% of the growth in fake meat is expected to come from North America and Europe..The predicted growth is despite an overall 21% drop in demand for the highly processed food options in the US, according to CoBank, a subsidiary of the US Farm Credit System, which says “negative consumer perceptions of plant-based meats persist” particularly in terms of affordability, flavour, mouthful and versatility as an overall cooking ingredient..Overall volume sales are down, but more importantly overall demand has dropped by more than 80% in certain categories — which means even vegans are being turned off by the product offerings..“Consumers remain interested in the concept of plant-based meats, but concerns about highly processed products and higher prices have put off many prospective regular consumers, particularly as the price of plant-based meats is often several dollars a pound higher than for equivalent animal protein meat and poultry products,” wrote Billy Roberts, CoBank’s senior food and beverage economist..Although Ernst & Young didn’t have those comparable numbers in Canada, it’s reasonable to assume similar trends on this side of the border..And even though consumers often cite health as a reason for buying plant-based meat, Roberts notes that vegan substitutes are often highly processed with a long list of questionable ingredients such as yeast, salt and sugar..“Consumers tend to equate natural with ‘healthy’, yet plant-based concoctions feature an extensive list of ingredients, certainly relative to animal based proteins,” he said..The report notes consumers of plant-based meats tend to be from higher income households in urban areas with strong political views on climate and animal welfare issues. And young — one study found as many as 80% of college and university students default to plant-based options in campus eateries and canteens..If the sector is to thrive, Roberts says manufacturers have to target so-called ‘flexitarian’ eaters who would be more willing to buy meat alternatives based on price and flavour and less on overall health and climate issues — the ones manufacturers are almost exclusively using to market their wares..“Lower price points and quality improvements in the category will resonate with consumers interested in a more flexitarian approach to eating, whether due to climate concerns or an interest in health,” he said. “These consumers will not abandon animal-based meats entirely but augment their diets with plant-based options as occasions warrant.”.That may not be long in coming. According to Ernst & Young the next generation of vegan meat products include ‘whole cuts’ such as steaks and shanks, whole hams, artificial salmon fillets and even canned tuna.
Driven by environmental and animal cruelty concerns in young people, the market for plant-based proteins — including fake meat, dairy and egg replacement products — is expected to top US$200 billion over the next 10 years according to a new study by Ernst & Young Canada..The Toronto-based consultancy expects plant-based protein sales to grow at a compounded rate of about 16.5% — almost 10 times — driven by socially conscious consumers and a shift towards healthier foods..“Concerns around environmental sustainability and animal cruelty are top of mind for consumers, increasing willingness to purchase plant-based products,” it says in the executive summary of the report.. Vegan meat marketThe market for meat and dairy substitutes is expected to grow to $200 billion by 2035. .In addition to traditional meat substitutes the market for egg replacements and stabilizers used in baking and dairy are also rising as Canada attracts a higher Asian immigrant population who tend to be lactose intolerant..Although Asia is expected to be the largest market overall, more than 70% of the growth in fake meat is expected to come from North America and Europe..The predicted growth is despite an overall 21% drop in demand for the highly processed food options in the US, according to CoBank, a subsidiary of the US Farm Credit System, which says “negative consumer perceptions of plant-based meats persist” particularly in terms of affordability, flavour, mouthful and versatility as an overall cooking ingredient..Overall volume sales are down, but more importantly overall demand has dropped by more than 80% in certain categories — which means even vegans are being turned off by the product offerings..“Consumers remain interested in the concept of plant-based meats, but concerns about highly processed products and higher prices have put off many prospective regular consumers, particularly as the price of plant-based meats is often several dollars a pound higher than for equivalent animal protein meat and poultry products,” wrote Billy Roberts, CoBank’s senior food and beverage economist..Although Ernst & Young didn’t have those comparable numbers in Canada, it’s reasonable to assume similar trends on this side of the border..And even though consumers often cite health as a reason for buying plant-based meat, Roberts notes that vegan substitutes are often highly processed with a long list of questionable ingredients such as yeast, salt and sugar..“Consumers tend to equate natural with ‘healthy’, yet plant-based concoctions feature an extensive list of ingredients, certainly relative to animal based proteins,” he said..The report notes consumers of plant-based meats tend to be from higher income households in urban areas with strong political views on climate and animal welfare issues. And young — one study found as many as 80% of college and university students default to plant-based options in campus eateries and canteens..If the sector is to thrive, Roberts says manufacturers have to target so-called ‘flexitarian’ eaters who would be more willing to buy meat alternatives based on price and flavour and less on overall health and climate issues — the ones manufacturers are almost exclusively using to market their wares..“Lower price points and quality improvements in the category will resonate with consumers interested in a more flexitarian approach to eating, whether due to climate concerns or an interest in health,” he said. “These consumers will not abandon animal-based meats entirely but augment their diets with plant-based options as occasions warrant.”.That may not be long in coming. According to Ernst & Young the next generation of vegan meat products include ‘whole cuts’ such as steaks and shanks, whole hams, artificial salmon fillets and even canned tuna.
