U.S. Plant-based Meat Market - Industry Outlook and Forecast 2019-2024

INDUSTRY INSIGHTS

The U.S. plant-based meat market size to grow at USD 3 billion by 2024, growing at a CAGR of 24% during 2018-2024. The increasing focus on meat-free eating without missing out on the eating experience and nutrition of meat a possibility is fueling the demand in the U.S. plant-based meat market. Leading vendors such as Beyond Meat and Impossible Foods are creating products that can masquerade as the real thing and attract the maximum number of consumers in the US market. The growing concerns about better health, economic considerations, and environmental destruction that is caused by growing and feeding traditional meat are fueling the adoption of vegetarian substitutes. Trends such as vegetable-forward menus in restaurants to “Meatless Mondays” have pushed for the entry of plant-based foods into the mainstream realm in the market. Consumer preferences are rapidly changing on the basis of taste, price, convenience, and accessibility. Heart health, weight loss and management, stamina, and concentration, memory, and clarity were among the top desired benefits from food for the consumers. The top players are focusing on foods, positioning, and packaging to advertise their products and gain maximum market shares.  

The growing popularity of dietary trends such as intermittent fasting, paleo, and the gluten-free diet is attributing to the adoption of vegetarian alternatives. The manufacturers are including statements on the packaging that reflect health benefits such as “reduces the risk of cardiovascular disease” or “made fresh with whole ingredients” to create a link with a health goal and influence purchase decisions of the consumers. The established giants such as Nestle and Cargill are initiating plant-based product launches, an attestation to the fact that it has truly arrived in the US market. Lucky Supermarkets for instance partnered with the Plant-Based Foods Association and ran a campaign in late 2018 which was themed around 'Fall in Love with Plant-Based.' The retailers are educating the consumers about these products through breakroom TV content and educational books among other things, and aid in finding the right product in the U.S plant-based meat market. The high demand is coming from micro-chain and independent restaurant vendors who are getting their plant-based proteins from broadline foodservice distributors at a growth rate of 21%. The increasing adoption of these alternatives in the foodservice industry such as catering services and restaurant is contributing to the growth.

The exponential growth of food trucks, delivery, and takeaway and the increasing number of consumers experimenting with new kinds of foods is driving the growth. Educational institutes have a lot of potentials as parents increasingly go vegetarian or vegan and so do their kids, thereby creating a demand in the vegan meat market.

MARKET TRENDS AND DRIVERS

The growing traction towards the wellness trend is fueling the market demand for all things plant, thereby creating lucrative investment opportunities in the U.S. plant-based meat market. Green beauty is going from a niche to a majority; plant-based meat brands are becoming more health-focused, consumers are developing a likeness for intermittent fasting, they are taking more time out to meditate, get some sun, and focus on happiness. The consumers are beginning to realize that they have to start with their plate to make a long-term change and live a fuller, healthy life from both a physical and a mental perspective. The increasing focus in health and wellness will boost the demand for vegetarian and vegan alternatives. The holistic approach to food and widespread education about nutrient quality and dejunking will positively impact the growth over the next few years. The rise in allergies and food intolerances is leading to an inherent belief that eliminating toxins that come in the form of chemicals from meat processes such as chlorine baths and consuming natural foods such as whole grains. Various organizations that are working towards building healthier, stronger and more sustainable communities will fuel the U.S. plant-based meat market growth.

U.S. PLANT-BASED MEAT MARKET SEGMENTATION

This research report includes a detailed segmentation by

• Products
• Storage
• Channel

INSIGHTS BY PRODUCT

The beef segment dominated approximately half of the total U.S. plant-based meat market share in 2018, growing at a CAGR of around 25% during the forecast period. The growing use of vegan meatballs in sauces served as a snack on a toothpick, or is being sliced to sandwich in between bread to bring a variety of option for the vegan population is fueling the growth of this segment. The leading vendors such as Impossible foods are leveraging this change in consumer perception and eating habits to develop alternatives to gain a larger U.S. plant-based meat market share. The meatless and other beef ball products are surpassing burgers and every other plant-based product in the marketplace.

The increasing focus on planet-friendly and clean eating initiatives to support consumer concerns, plant-based chicken is anticipated to grow during the forecast period. The growing influence of Asian cuisines, such as the Vietnamese and Korean are encouraging vendors to offer different flavored plant-based pork. Startups are increasingly considering the proposition attractive, investing in R&D, technologies, and design of plant-based faux seafood in the market.

INSIGHTS BY STORAGE

Refrigerated storage is the fastest growing segment, at a CAGR of over 39% during the forecast period. The changing perception of younger consumers that chilled foods are more premium and fresher than frozen food is fueling the growth of this segment. The growing demand for flavorsome heat-and-eat products is encouraging the vendors to launch refrigerated meat substitutes. Plant-based meat companies such as Beyond Meat have witnessed massive success in staging their products in the refrigerated meat department or next to conventional products. They have consequently put in motion a whole new approach to merchandising that is increasingly being mimicked by grocery stores and protein companies. The introduction of more vegetarian substitutes in the refrigerated section in retail stores will drive the demand in the U.S. plant-based meat market.

With consumers just not having the time to cook anymore, slow-cooking is being put on the back burner, and ready-made frozen meals such as pizzas with plant-based substitutes included are coming to the fore in the US vegan meat market. Busy working families are seeking shelf-stable food in various packaging such as pouches, cans, and other products in both dry and wet forms resulting in increased revenues in the market.

INSIGHTS BY CHANNEL

Conventional channel occupied the majority of the shares in 2018, growing at a CAGR of more than 22% during the forecast period. The increasing number of convenience stores selling new organic or natural products, incuding plant-based cheese & meat is gaining immense popularity and boosting sales in this segment. The rapidly escalating demand for better-for-you products is encouraging retailers to stock these products in the U.S. plant-based meat market. These retailers are also helping these young rising stars to align their products with changing demands of consumers and shape their innovation pipeline in the market. Plant-based snacks have a real chance at victory as this channel has a strong focus on shopper efficiency and convenience and also in part because consumers are increasingly snacking mindfully. Such dynamic trends will drive the revenues in this segment.

The impressive growth of the farm-to-table movement and the presence of significant natural retailers such as Whole Foods is fueling the growth of the natural channel. The consumers are embracing sustainability benefits and craveability of plant-focused eating more than ever; specialty gourmet stores are becoming more veggie-heavy, looking for inclusive ways of adding more of this foods in the market.

KEY VENDOR ANALYSIS

The leading vendors are drawing the attention of consumers and creating appeal for plant-based meat substitutes. Many players are leveraging various possibilities and definitions of vegan substitutes and are expected to gravitate towards creating a pull in the US market. The top manufacturers are trying to layer flavor over flavor, color over color, texture over texture to attract the maximum number of consumers. Strategic partnerships are vital for expansions in the U.S. plant-based meat market.

The U.S. plant-based meat industry analysis report includes in-depth coverage with revenue and forecast insights for the following segments:

By Product

• Beef
• Chicken
• Pork
• Seafood
• Other

By Storage

• Frozen
• Refrigerated
• Shelf-stable

By Channel

• Conventional
• Natural
• Specialty Gourmet