# Current Status and Economic Prospects of Alternative Protein Sources for the Food Industry
## 3 Economic Potential and Market Perspectives of Alternative Protein
### Plant-Based Protein  
Different from other segments in the AP ecosystem, PB proteins are well known in the marketplace. Due to its historical presence, the sector lies on well-established regulatory grounds, and it is generally well accepted by consumers. In fact, the market demand for soy and wheat protein precedes the recent renewed interest for plant-based proteins. Together with rice, peas and chickpeas, they are now mainstream plant-based protein sources offered in the global marketplace ([PERSON], 2022) [34]. Figure 2: Global alternative protein market by (**A**) region and (**B**) protein source. Adapted from MMR (2023) [100]. The market growth depends on the producers' ability to develop tasty, competitive, and versatile products. Functional foods and sports nutrition are major segments of the PB protein market share, and protein-rich powders, bars and ready-to-drink beverages are popular products in the United States (Figure 3). Moreover, the use of chickpeas, brown rice, fava bean and mung bean protein is growing significantly as egg substitutes. Lentil, wheat and flaxseed proteins are gaining popularity in products directed to athletic performance. Plant-based versions of much-loved animal-based products are now available in grocery stores. Food manufacturers, both small and large food companies worldwide, are investing in plant-based milk, eggs and meat substitutes. They are increasingly competitive among animal-derived products in terms of taste, price, and accessibility. AT Kearney predicts that by 2040, 60% of the consumed meat will come from alternative-sourced meat substitutes, 25% of which will be plant-based (AT Kearney, 2019) [102]. The plant-based milk segment is the most popular category among PB substitutes. The market associated with this segment is around USD 2.5 bn, and plant-based milk substitutes alone correspond to 35% of the total market size of PB foods. Refrigerated non-dairy milk makes up most sales in this segment, led by almond, oat, and soy milk. Oat milk, for example, has experienced massive growth in recent years, going from a small market segment in 2018 to becoming the second most demanded plant-based dairy product in 2020 (GFI, 2021) [104]. Although being a well-established market, some novel alternative milk products are now found on supermarket shelves such as banana milk and products produced with plant blends. The growth of plant-based milk substitutes, which is currently purchased by 39% of American households has stimulated the growth of other plant-based dairy substitutes, such as ice cream, yogurt, butter, cheese, and eggs. Soy protein, one of the first leading ingredients heavily used for alternative products, has decreased at a compound annual growth rate (CAGR) of 6% from 2004 to 2019. Conversely, interest in pea protein grew at a CAGR of 30% during the same period (McKinsey, 2020) [10]. This trend is partly due to health concerns related to soy protein, such as allergenicity and estrogenic concerns. The total market value associated with these alternative products amounted to USD 1.9 bn, in 2020, and represents a combined sales growth of 28%, compared to 2019, and 55%, compared to 2018. In 2020, PB meat substitutes reached a market value of USD 1.4 bn, representing an increase above USD 430 million in sales compared to the previous year and a sales growth of 45%, between 2019 and 2020. The best-selling format of PB meat substitutes are burgers, sausages, nuggets, tenders, and chops. PB refrigerated meat substitutes have been more available to the public in animal-based meat sections in supermarkets, rather than in aisles  
Figure 3: (**A**) US Plant-based protein supplement market, (**B**) Global plant-based protein supplement market share. Adapted from Grand View Research (2023) [103]. dedicated to vegan, organic, or special dietary needs. This alone reflects significant changes in both product innovation and marketing strategies. Some interesting trends have been observed.