As the global community becomes increasingly conscious of environmental sustainability, the impact of food production on our planet has come under scrutiny. In the face of these realities, a transformation in the protein supply chain is not just advisable; it’s imperative. Compelling evidence, such as the recent research from Profundo, suggests substantial environmental benefits: Major retailers could significantly reduce greenhouse gas emissions and conserve resources by shifting half of their protein sales to plant-based alternatives by 2030. These environmental advantages, however, are just the tip of the iceberg when it comes to the potential benefits of plant proteins for businesses.
This article explores 10 reasons why businesses should consider switching to plant proteins, highlighting the benefits that span from economic advantages to market positioning and beyond.
Increasing Concerns of Environmental Impact
The environmental footprint of food production is an increasing concern among both consumers and regulators. Plant proteins offer substantial advantages in this area. They require significantly less land, water, and energy compared to animal-based proteins. For instance, producing a kilogram of beef protein can use up to 20 times more land and emit 20 times more greenhouse gases than producing the same amount of plant protein.
Recent insights from Madre Brava highlight the considerable environmental benefits of adopting plant proteins. A study by Profundo reveals that if six major food retailers—Ahold Delhaize, Carrefour, CP All, Lidl, Tesco, and Sodexo—were to shift 50% of their protein sales to plant-based alternatives by 2030, they could reduce greenhouse gas emissions by 31.6 million tonnes annually. This reduction is equivalent to removing over 25 million cars from European roads. Additionally, this transition could liberate land equivalent to the size of Hungary and conserve 670 million cubic meters of water each year.
Businesses that change to plant proteins can significantly lower their ecological impact. This decrease in resource use and emissions enables companies to meet sustainability targets, adhere to increasingly stringent environmental regulations, and attract a growing segment of eco-conscious consumers. Furthermore, as climate change continues to impact global agriculture, plant proteins provide a more resilient and sustainable supply chain alternative for businesses.
Rapid Growth of Plant-based Protein Market
The global plant-based protein market is experiencing rapid growth, reflecting a broader shift in consumer preferences and industry trends. According to plant-based protein market research by Grand View Research, the global plant protein supplements market size was USD 2.65 billion in 2023 and is expected to grow at a CAGR of 8.4% from 2024 to 2030, reaching USD 4.62 billion by 2030. This expansion is fueled by rising consumer awareness of the nutritional benefits of plant-based protein products, concerns over food safety, ethical considerations, food allergies, and the adoption of veganism. The COVID-19 pandemic also boosted demand for plant-based foods, with sales increasing significantly during the early stages of the pandemic.
Regional Insights:
- North America: Dominated the plant-based protein supplements sector in 2023, particularly in the U.S. and Canada, fueled by high demand for sports nutrition products. This growth is bolstered by key industry players and readily available raw materials. Government support is also evident, exemplified by Canada’s substantial investment in Merit Functional Foods to enhance plant-based protein production and meet rising demand.
- Europe: Held over 21.0% market share in 2021 and is expected to grow at a CAGR of 8.1% from 2024 to 2030. The growing vegan population and emphasis on preventive health care are key drivers.
- Asia Pacific: Projected to grow at a CAGR of 9.6%, with increasing consumption in countries like Indonesia, India, and China due to rising health consciousness and purchasing power.
- Australia: The plant-based protein supplements market in Australia is expected to grow at a CAGR of 9.5% during the forecast period. The rising trend of veganism and increasing demand for plant-based products are significant factors supporting this growth.
Businesses that switch to plant proteins early can position themselves to capitalize on this plant-based protein market growth. Early adopters can establish brand recognition, gain market share, and build expertise in plant protein products before the market becomes saturated. This first-mover advantage can be vital in securing a strong position in this rapidly evolving market.
Many Health Benefits of Plant Proteins
The health implications of dietary choices are increasingly influencing consumer behavior. Plant proteins often contain less saturated fat and cholesterol than animal proteins, while providing essential nutrients, fiber, and phytochemicals. Many plant-based protein powders are also complete proteins, containing all essential amino acids. This nutritional profile aligns well with current health recommendations and consumer preferences for foods that support overall wellness.
Atura, a company dedicated to high-quality plant-based proteins, exemplifies this plant-based protein trend with its chickpea protein, Red Lentil Protein, and Fava Bean Protein. Especially chickpea protein manufactured by Deltagen UK, renowned for its excellent nutritional profile, featuring 45% protein content, low saturated fat, and is a rich source of dietary fiber, potassium, and magnesium. The product’s neutral taste and creamy texture make it ideal for a wide range of applications. This versatility allows food manufacturers to create innovative, health-focused products that cater to diverse consumer needs.
Businesses can leverage these health benefits to tap into the growing market of health-conscious consumers. By offering products rich in plant proteins, companies can position themselves as providers of healthier alternatives. This alignment with health trends can drive customer loyalty and open up new market segments, particularly among millennials and Gen Z consumers who are more likely to prioritize health in their purchasing decisions. Moreover, the incorporation of high-quality plant proteins like Atura’s chickpea protein can help businesses differentiate their products in a competitive market, appealing to consumers looking for nutritious, sustainable, and ethically sourced food options.
More Cost-effective Than Animal Proteins
In most cases, plant proteins are more cost-effective to source and process than animal proteins. This cost advantage stems from several factors. Plant proteins typically require fewer resources to produce, have simpler supply chains, and often benefit from economies of scale in agriculture. For businesses, especially those operating on a large scale, the switch to plant proteins can lead to significant cost savings. These savings can be particularly impactful in industries with tight profit margins, such as food manufacturing or restaurant chains. The lower cost of plant proteins allows businesses to maintain competitive pricing while potentially improving profit margins or reinvesting in other areas of the business.
Versatility to Adapt to Multiple Product Categories
One of the most compelling aspects of plant proteins for businesses is their remarkable versatility. Plant proteins can be used to create a wide array of products, from meat alternatives and dairy substitutes to protein-enriched snacks and beverages. This versatility allows businesses to innovate across multiple product categories and cater to diverse consumer preferences. For example, pea protein can be used to create meat-like textures in plant-based burgers, serve as a base for dairy-free milk alternatives, or be incorporated into protein bars and powders. This flexibility enables businesses to diversify their product lines, reduce dependence on a single protein source, and quickly adapt to changing consumer trends.
Plant Proteins Offer Allergen-Friendly Options
Food allergies and intolerances are a growing concern, with an estimated 32 million Americans having food allergies. Many common allergens, such as dairy, eggs, and shellfish, are animal-based proteins. Plant proteins offer a solution to this challenge, as many are naturally free from these common allergens. By switching to plant proteins, businesses can create products that are accessible to a wider range of consumers, including those with dietary restrictions or allergies. This inclusivity can expand a company’s potential customer base and position the brand as considerate and accommodating. Furthermore, allergen-friendly products often command premium prices, potentially increasing profit margins.
Ethical Considerations by Many Consumers
Consumer awareness of animal welfare issues in food production has grown significantly. Many consumers are seeking products that align with their ethical values, including concerns about animal treatment in industrial farming. Plant proteins provide a solution that completely avoids these ethical dilemmas. Businesses that switch to plant proteins can position themselves favorably in the eyes of ethically-conscious consumers. This ethical stance can boost a brand reputation, foster customer loyalty, and differentiate the company from competitors who continue to use animal proteins. Moreover, it can help businesses avoid potential controversies or negative publicity related to animal welfare issues.
Longer Shelf Lives Than Animal-based Proteins
Many plant proteins have longer shelf lives than their animal-based counterparts. This improved shelf stability can have significant benefits for businesses across the supply chain. Products with longer shelf lives reduce the risk of spoilage, decrease waste, and lower the costs associated with refrigeration and rapid distribution. For businesses, this translates to improved inventory management, reduced logistics costs, and greater flexibility in distribution. It can be particularly advantageous for companies operating in regions with less developed cold chain infrastructure or those looking to expand into new geographic markets.
Regulatory Advantages
The regulatory landscape for food products is complex and often stringent, particularly for animal-based proteins. Plant proteins often face fewer regulatory hurdles, especially in terms of food safety and import/export regulations. This can simplify compliance processes and reduce associated costs for businesses. Moreover, as governments worldwide implement policies to promote sustainable and healthy food systems, plant-based proteins are likely to benefit from favorable regulations. Businesses that have already switched to plant proteins will be well-positioned to adapt to these changing regulatory environments, potentially gaining a competitive advantage.
Plant Protein Innovation Opportunities
The plant protein sector is a hotbed of innovation, with ongoing research and development in areas such as protein extraction, texture improvement, and flavor enhancement. This creates numerous opportunities for businesses to develop unique products, secure patents, and gain a technological edge in the market.
Companies that invest in plant protein innovation can differentiate themselves through proprietary technologies or unique product offerings. This innovation-driven approach can lead to premium pricing, brand distinction, and potentially lucrative licensing opportunities. Furthermore, as the plant protein market is still relatively young, there’s ample room for breakthrough innovations that could reshape the plant-based protein industry.
Conclusion
The adoption of plant proteins offers businesses a wealth of benefits that extend far beyond the examples initially mentioned. However, the true potential of this sector is unlocked through strategic partnerships, which enable faster innovation, improved scalability, and smoother market entry. The Future Food-Tech Alternative Proteins Summit highlighted the importance of collaborations between startups, established companies, and ingredient suppliers in driving open innovation and attracting investment. Deltagen, a leading plant-based protein manufacturer, is a key player in this plant-based protein industry and exemplifies the power of such partnerships.
With nearly 30 years of experience, Deltagen Australia offers comprehensive manufacturing services, catering to both small businesses and major multinationals, ensuring high-quality ingredient preparation and packaging. Deltagen operates under global certification programs like GFSI-accredited food standards (BRC) and the Sedex ethical supply chain system, aligning with modern food industry requirements for safety, traceability, and sustainability. By providing top-notch plant-based proteins and supporting businesses in creating sustainable, nutritious products, Deltagen helps companies navigate the complexities of the alternative protein sector. If you are interested in our partnership, please feel free to get in touch with us at any time.
References:
https://www.grandviewresearch.com/industry-analysis/plant-based-protein-supplements-market