Alternative meat, eggs, dairy and seafood market to surge to at least $290bn by 2035, says report

The report documents the rise in alternative protein consumption and how it will move into the mainstream.

The market for alternative meat, eggs, dairy and seafood products is set to reach at least $290bn (£210bn) by 2035 as it moves into the “mainstream”, powered by a surge in consumer appetite for plant and cell-based alternatives, according to a new report.

The report, compiled by US management consultants Boston Consulting Group (BCG) and food technology-focused venture capital fund Blue Horizon Corporation (BCG) reveals that the market for alternative proteins will grow from the current 13m metric tonnes a year to 97m tonnes by 2035, when it will make up 11 per cent of the overall protein market.

Zippier technological innovation and comprehensive regulatory support could increase growth to 22 per cent of the market, the report, entitled Food for Thought: The Protein Transport, says.

The full report can be read by clicking on here.

At this rate, Europe and North America would reach “peak market” by 2025, and the consumption of animal protein would begin to decline.

Benjamin Morach, a BCG managing director and partner, said: “Alternative proteins could soon match animal protein in taste, texture, and price. We expect parity to spur a new wave of growth, catapulting what is a fairly nascent market today into the mainstream, yielding significant environmental benefits, and facilitating even faster growth.”

The surge in adoption of alternative proteins will have a materially positive impact on the environment and support several of the UN’s Sustainable Development Goals including responsible consumption and production, the report says.

The report highlights the importance that alternative proteins must taste and feel as good as the conventional foods they replace and cost the same or be cheaper.

According to the research, this will occur in three stages, with dates differing to some extent depending on the source of alternative proteins and the products they produce and aim to replace.

•          Plant-based alternatives such as burgers, dairy, and egg substitutes made from soy, pea, and other proteins will achieve parity in 2023, if not sooner.

•          Alternative proteins made from microorganisms like fungi, yeasts, and single-celled algae will reach parity by 2025.

•          Alternatives grown directly from animal cells will reach parity by 2032.

The report also highlights the potential gains to be made by investors, notably from an Environmental, Social and Corporate Governance (ESG) perspective, by the move towards alternative protein consumption.

"The alternative protein arena is wide open, and progress is happening fast. There is a real opportunity here for investors to make their moves early and become integral players in the future of food. But to successfully navigate the industry, they must hone their technological knowledge and ensure they’re one step ahead of potential disruptions,” said BHC managing partner and CEO, Björn Witte.