Rabobank is predicting that plant-based proteins imitating meats will take a bigger slice of the market over the next five years.
That’s clearly a belief that is shared by Maple Leaf Foods and Cargill, both of which have invested this year in companies that make these products.
Rabobank’s initial projection is for the alternative protein products market to grow at a compound annual growth rate of about eight percent in the European Union, to a total sales volume of between 200,000 and 250,000 tonnes per year.
Among EU members, the largest markets for alternative proteins are the United Kingdom, Germany, the Netherlands and Sweden, with fast growth expected in France and Spain.
For the North American market, Rabobank projects the compound annual growth rate will be about six percent, with a volume of between 165,000 and 200,000 tonnes.
The U.S. and Canadian growth will be most pronounced in major metropolitan areas, said Rabobank animal protein analysts Justin Sherrard and Beyhan de Jong in the report.
Growth within the market areas will vary greatly, depending on consumer awareness and concern over such factors as humane handling and perceived environmental sustainability.
Also, the availability, quality and cost of the alternatives will affect demand.
“In general, we believe the growth in the next five years across the EU is going to be more consistent than growth across the U.S. and Canada,” the report said.
Meanwhile, “we believe the growth of low-cost and private-label alternative protein products will catch up with the stronger growth rates currently being enjoyed by branded high-price point products,” the authors wrote.
