New Study Predicts Rise in Veganism and Growth in Plant-Based Meat Market Due to COVID-19
A brand new report from MarketsandMarkets finds that the market for global plant-based meat is projected to grow from USD 3.6 billion in 2020 to USD 4.2 billion by 2021, owing partly to the health benefits perceived by consumers during the pandemic, and the rise of ecommerce distribution therein.
The report, titled “COVID-19 Impact on the Plant-Based Meat Market by Raw Material (Soy, Wheat, Pea), Product (Burger Patties, Sausages, Strips & Nuggets, and Meatballs), Distribution Channel (Retail Outlets, Foodservice, E-commerce), and Region – Global Forecast to 2021,” says that the major factors driving this growth include the rising vegan population driven by the functional benefits of plant-based products, growing animal borne-illnesses such as COVID, and increasing demand for clean label products.
E-commerce distribution is fastest-growing segment in the plant-based meat market
E-commerce is, for obvious reasons, a widely emerging channel since the pandemic. The report states that following the outbreak, E-commerce distribution is projected to continue to witness significant growth. Distributors will shift their sales channels from retail stores. As the outcomes of COVID worsen, distributors will move to E-commerce and online retailing channels for the distribution of plant-based meat products. Long term adoption of plant-based meat products will drive the demand for such products from E-commerce channels post-COVID outbreak.
North America as fastest-growing market for plant-based meat
The North American region is projected to be the fastest-growing market for plant-based meat during the forecast period. The region is witnessing adverse outcomes of COVID, predominantly the US. The region also clearly benefits from the presence of key players such as Impossible Foods and Beyond Meat.
The report claims that a paradigm shift in food culture is due to the current pandemic highlighting the importance of health, nutrition, and clean-eating. Retail chains in the US have also extended shelf and storage space for plant-based meat products to cater to the growing demand.
Source : vegconomist