Alternative Protein Market

Market Definition

The market focuses on the development and commercialization of protein sources that serve as sustainable and ethical alternatives to traditional animal-based proteins.

These alternatives include plant-based proteins (such as, soy, pea, and wheat), cultured or lab-grown meat, and proteins derived from fermentation technologies or insects. The report identifies the principal factors contributing to market expansion, along with an analysis of the competitive landscape influencing its growth trajectory.

Alternative Protein Market Overview

The global alternative protein market size was valued at USD 19.65 billion in 2024 and is projected to grow from USD 21.09 billion in 2025 to USD 37.14 billion by 2032, exhibiting a CAGR of 8.42% during the forecast period.

This growth is attributed to the rising adoption of alternative protein sources across key end-use sectors such as food and beverage, dietary supplements, and animal feed. Increasing consumer demand for sustainable, plant-based, and health-oriented food options is leading to the increased uptake of products such as plant-based meats, dairy alternatives, and protein-enriched snacks.

Major companies operating in the alternative protein industry are ADM, International Flavors & Fragrances Inc., Cargill, Incorporated, Kerry Group plc, Impossible Foods Inc., Glanbia plc, LightLifeFoods, Tate & Lyle, Ingredion, Bunge, SunOpta, Emsland Group, Burcon, Roquette Frères, and Innovafeed.

The growing emphasis on environmental sustainability, reduction of greenhouse gas emissions, and ethical concerns regarding animal welfare is fueling market expansion. Additionally, ongoing innovations in protein extraction technologies, improvements in taste and texture of alternative protein products, and increasing investments from food tech companies and venture capital firms are accelerating market development.

• In December 2024, Griffith Foods launched its first Alternative Proteins Portfolio, reinforcing its commitment to sustainability and food innovation. The portfolio includes seasonings, sauces, binders, coatings, and mixes designed to meet rising demand for plant-based products with improved taste and texture.

Key Highlights

1. The alternative protein industry size was valued at USD 19.65 billion in 2024.
2. The market is projected to grow at a CAGR of 8.42% from 2025 to 2032.
3. North America held a market share of 36.33% in 2024, with a valuation of USD 7.14 billion.
4. The plant-based proteins segment garnered USD 9.52 billion in revenue in 2024.
5. The food & beverages segment is expected to reach USD 14.80 billion by 2032.
6. Asia Pacific is anticipated to grow at a CAGR of 10.07% over the forecast period.

Market Driver

Shifting Dietary Preferences for Health Optimization

The progress of the alternative protein market is propelled by shifting dietary preferences among consumers focused on health optimization. Rising awareness of the connection between nutrition and chronic diseases such as heart disease, obesity, and diabetes has increased demand for food options that promote long-term health and preventative health.

More consumers are increasingly replacing red and processed meats with alternative proteins, valuing benefits such as lower saturated fat, higher fiber, and improved nutritional profiles.

• In March 2025, Nature’s Fynd received the 2025 NEXTY Award for its Dairy-Free Strawberry Fy Yogurt, recognized for innovation, nutrition, and sustainability. The fungi-based yogurt provides 8g protein, 6g fiber, probiotics, calcium, and vitamin D per serving, and is free from lactose, soy, nuts, and artificial additives.

This shift is further supported by the increasing demand for clean-label, minimally processed, and nutrient-dense products that align with wellness-driven lifestyles and personalized nutrition goals. The focus on proactive health management is compelling food manufacturers to invest in innovative protein alternatives that meet both functional and dietary expectations, thereby accelerating market growth.

Market Challenge

Consumer Acceptance and Perception

Consumer acceptance and perception pose significant challenges to the growth of the alternative protein market, particularly for novel formats such as plant-based meat, insect protein, and cultivated meat. Concerns about taste, texture, and naturalness, along with asscoiations of these products with being overly processed or artificial, persist among users.

Misconceptions regarding nutritional adequacy, food safety, and unfamiliar ingredients contribute to hesitation. This skepticism can hinder adoption, limit repeat purchases, and slow the transition from niche consumption to mainstream demand.

To address these concerns, companies are improving sensory quality through advanced formulation and food science. They are also implementing clear, transparent labeling, and science-backed education campaigns to inform consumers about the benefits and safety of alternative proteins. Additionally, food brands are leveraging trusted endorsements, offering familiar product formats, and promoting product trials to foster trust and normalize consumption.

• In February 2024, Roquette Frères, a global leader in plant-based ingredients, expanded its NUTRALYS pea protein range with four new multifunctional ingredients designed to improve taste, texture, and flexibility in plant-based and high-protein products. These additions include a high-gel-strength isolate, a soft-texture hydrolysate, and two textured proteins offering refined textures and high protein content.

Market Trend

Advances in Single-Cell and Air-Based Proteins

Advances in single-cell and air-based protein technologies are influencing the alternative protein market by enabling sustainable, scalable, and efficient production methods. Single-cell proteins, derived from microorganisms such as bacteria, yeast, and fungi utilize minimal land, water, and energy compared to conventional agriculture, making them a resource-efficient protein source.

Innovations such as air-based proteins produced by microbes that convert carbon dioxide and electricity into protein biomass significantly reduce environmental impact, including greenhouse gas emissions and resource consumption. These technologies also offer flexibility in tailoring nutritional profiles to meet specific dietary and functional needs, supporting the development of customized, health-focused protein products.

Moreover, advancements in bioprocessing and fermentation infrastructure are improving yield, scalability, and cost-effectiveness, accelerating commercial viability. As these protein sources gain traction, they are poised to address global food security challenges while meeting consumer demand for environmentally responsible and nutritionally optimized alternatives.

• In February 2024, GEA Group Aktiengesellschaft (GEA Group), a global food processing technology leader, announced the construction of a USD 20 million technology center in Janesville, Wisconsin, USA. Scheduled to open in 2025, the facility aims to advance alternative protein production by supporting the scale-up of plant-based, microbial, and cell-based foods and facilitating startups' transition from research to commercial production.

Alternative Protein Market Report Snapshot

Segmentation	Details
By Type	Plant-based Proteins (Soy Protein, Pea Protein, Wheat Protein, Rice Protein, and Others [Cereals, Legumes, Nuts & Seeds]), Microbe-based Proteins (Algae-based Protein, Fungi-based Protein, Yeast-based Protein, and Others [Bacteria-based Protein, Precision Fermentation Proteins]), and Insect-based Proteins (Crickets, Mealworms, Black Soldier Flies, Others [Locusts, Hemiptera, Diptera, Coleoptera, and Lepidoptera])
By Application	Food & Beverages (Meat Alternatives, Dairy Alternatives, Protein Supplements, and Others [Bakery & Confectionery, Functional Foods]), Animal Feed (Poultry Feed, Swine Feed, and Others [Ruminant Feed, Aquaculture Feed]), Personal Care & Cosmetics, and Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E, Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Type (Plant-based Proteins (Soy Protein, Pea Protein, Wheat Protein, Rice Protein, and Others [Cereals, Legumes, Nuts & Seeds]), Microbe-based Proteins (Algae-based Protein, Fungi-based Protein, Yeast-based Protein, and Others [Bacteria-based Protein, Precision Fermentation Proteins]), and Insect-based Proteins (Crickets, Mealworms, Black Soldier Flies, and Others [Locusts, Hemiptera, Diptera, Coleoptera, and Lepidoptera])): The plant-based proteins segment earned USD 9.52 billion in 2024, mainly due to rising consumer demand for sustainable, health-conscious, and animal-free protein alternatives.
• By Application (Food & Beverages (Meat Alternatives, Dairy Alternatives, Protein Supplements, and Others [Bakery & Confectionery, Functional Foods]), Animal Feed (Poultry Feed, Swine Feed, and Others [Ruminant Feed, Aquaculture Feed]), Personal Care & Cosmetics, and Others): The food & beverages segment held a share of 38.43% in 2024, propelled by the growing popularity of plant-based diets, increasing demand for meat and dairy alternatives, and rising consumer awareness of health and sustainability.

Alternative Protein Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The North America alternative protein market share stood at around 36.33% in 2024, valued at USD 7.14 billion. This dominance is attributed to increasing consumer awareness of health and sustainability, rising demand for plant-based and clean-label products, and strong investments in food technology startups.

Additionally, the expanding retail presence of alternative protein products and growing collaborations between food manufacturers and research institutions are boosting regional market growth.

• In January 2023, No Meat Factory, a Canadian plant-based protein manufacturer, secured USD 42 million in Series B funding led by Tengelmann Growth Partners, with continued support from Emil Capital Partners. The investment will expand production capacity in North America, including a new facility in the Pacific Northwest, and enhance manufacturing capabilities for products such as plant-based deli meats and sausages.

Favorable regulatory frameworks that facilitate the approval and commercialization of novel protein sources, coupled with government funding for sustainable food innovation, bolster regional market expansion. Furthermore, the region’s increasing focus on personalized nutrition and functional food development is stimulating product innovation and expanding consumer adoption.

• In February 2024, Louis Dreyfus Company (LDC) announced plans to establish a pea protein isolate plant in Yorkton, Saskatchewan, Canada, with operations expected to begin by late 2025. This facility will manufacture high-quality, neutral-flavored pea protein designed for dairy alternative and nutritional applications, reinforcing LDC’s commitment to sustainable, value-added plant-based ingredients.

The Asia-Pacific alternative protein industry estimated to register a robust CAGR of 10.07% over the forecast period. This growth is attributed to increasing urbanization, rising health awareness, and shifting consumer preferences toward sustainable and plant-based diets.

The expanding middle-class population with greater disposable income, combined with rising investments in food technology and innovation hubs, supports the development and commercialization of alternative protein products.

Government initiatives promoting food security, environmental sustainability, and clean-label foods are creating a strong demand for alternative proteins. Additionally, growing collaborations between industry players, research institutions, and startups, along with advancements in fermentation and cultivation technologies, are enhancing product quality and variety, thereby aiding regional market growth.

• In April 2024, Researchers from SCELSE (Singapore Centre for Environmental Life Sciences Engineering) at Nanyang Technological University, Singapore (NTU Singapore) and Temasek Polytechnic replaced 50% of fishmeal in Asian seabass diets with microbial protein derived from soybean processing wastewater. This sustainable solution promotes healthy fish growth and advances circular economy practices in aquaculture.

Regulatory Frameworks

• In the U.S., the Food and Drug Administration (FDA) regulates the labeling of plant-based alternatives to animal-derived foods through its Draft Guidance for Industry. It provides recommendations to ensure that labeling accurately reflects the plant origin of these products and prevents consumer confusion with animal-derived foods.
• In the European Union, Regulation (EU) 2015/2283 on Novel Foods governs the authorization and safety assessment of novel foods, including alternative proteins. It requires pre-market authorization through the European Food Safety Authority (EFSA) to ensure consumer safety and clear labeling.
• In Singapore, the Singapore Food Agency (SFA) regulates novel foods under its Novel Food Regulatory Framework, requiring pre-market safety assessments and approval for alternative proteins before market entry.

Competitive Landscape

The alternative protein industry is characterized by a diverse mix of well-established global food corporations and early-stage firms , each focusing on expanding their product portfolios and market presence through technological innovation, product diversification, and strategic collaborations.

Leading companies are heavily investing in research and development to improve taste, texture, nutritional quality, and production scalability, with an emphasis on sustainable and cost-effective manufacturing processes.

• In November 2023, Nordzucker invested USD 108 million to establish a plant-based protein facility in Germany, set to start operations in mid-2026. The plant will produce pea protein concentrates and dry texturates for food and animal feed, promoting sustainability and creating around 60 jobs.

They are also developing a variety of product formats, including plant-based, cultivated, and fermentation-derived proteins, to cater to evolving consumer preferences across regions and demographics. Additionally, firms are forming partnerships with suppliers, retailers, and foodservice providers to enhance distribution networks and accelerate global market penetration.

• In January 2024, International Flavors & Fragrances Inc. (IFF) invested in high-moisture extrusion (HME) technology to improve the texture and juiciness of plant-based meat and seafood alternatives. This initiative is part of IFF’s RE-IMAGINE PROTEIN program aimed at advancing plant-based protein innovation.

List of Key Companies in Alternative Protein Market:

• ADM
• International Flavors & Fragrances Inc.
• Cargill, Incorporated
• Kerry Group plc
• Impossible Foods Inc.
• Glanbia plc
• LightLifeFoods
• Tate & Lyle
• Ingredion
• Bunge
• SunOpta
• Emsland Group
• Burcon
• Roquette Frères
• Innovafeed

Recent Developments (M&A/Partnerships/Product Launch)

• In October 2023, Tyson Foods partnered with Dutch company Protix to build the first large-scale insect protein facility in the U.S. The joint venture will convert food byproducts into insect-based ingredients for pet food, aquaculture, and livestock feed, supporting sustainable and circular food systems.
• In July 2023, Herbalife launched Herbalife V, a new plant-based product line featuring organic, non-GMO (genetically modified organism) protein shakes and supplements. The initiaitive responds to rising demand for vegan nutrition and targets health-conscious consumers, with distribution through Herbalife’s independent distributors in the U.S. and Puerto Rico.
• In June 2023, Griffith Foods partnered with biotech startup Shiru Inc. to commercialize OleoPro, a plant-based fat ingredient that reduces saturated fat by up to 90% while enhancing texture in alternative meats. Developed using Shiru’s AI-powered discovery system, OleoPro retains its shape and browns during cooking.
• In April 2023, Avril, a European agri-food group, acquired Sunbloom Proteins, a producer of allergen-free, non-GMO sunflower protein through a patented process. The acquisition expands Avril’s sustainable protein portfolio and addresses growing demand for alternative proteins.