The alternative protein market is seeing a wide range of experimentation with new production techniques and ingredients. From fibrous textures that mimic animal muscle to processing innovations that improve taste, sustainability, and animal welfare, the industry is dynamic and exciting. However, the recent inflation has led to a slowdown in the meat alternatives sector, as consumers tighten their belts and change their shopping habits. Despite this, the global alternative protein market is expected to see healthy growth in the future. The UK specifically is projected to witness a moderate growth rate.
Consolidation is a natural part of growth in any industry, not just the alternative protein sector. The current financial strain has led many sectors to experience a turbulent consumer environment. However, companies like Quorn Foods are focusing on remaining relevant to consumers by investing in their brand and ensuring their products align with the changing needs of shoppers. The alternative protein market will likely experience further consolidation, resulting in a smaller number of more qualified companies dominating the market.
One of the major shifts in the plant-based sector is the expansion of the market beyond innovators to the mass market. However, many products have failed to adapt to the larger consumer base’s preferences, resulting in dissatisfactory experiences and low repeat purchase rates. Brands that excel in taste, texture, nutrition, and price will have a competitive advantage in the market. The recent change in interest rates has also impacted funding availability for startups, leading to further closures and mergers in the market.
Despite the current slowdown in the meat alternatives sector, industry experts do not believe it signifies the end of the market. Instead, they expect the category to recharge, rebuild, and return to growth. Brands like Quorn and MycoTechnology are doubling down on their strategies to focus on proving how their products solve the most pressing challenges in the market. Value for money and innovation will continue to be key drivers in the growth of the alternative protein market.
In terms of specific proteins, experts believe that there won’t be one dominant protein that leads the market. Instead, different proteins will be preferred in different submarkets. Mycoproteins may dominate the mass-priced channels, while premium ingredients like mycelial fermented pea and rice protein will be preferred by consumers who value taste and nutrition. Health is expected to be a dominant theme in the future of the alternative protein market, as brands focus on delivering products with clear health benefits over animal meat to drive adoption among new consumer segments. Improvements in the nutritional profile of products and associated branding and messaging will be crucial to growing the consumer base and opening up more shelf space at retail.