The novel protein market is at an inflection point and is expected to soar at a CAGR of 12.6% during 2022-27
Driven by corporate entry, a surge in product innovation, and favorable government policies, China’s new protein meat substitute market has reached an inflection point. Additionally, health and lifestyle factors are encouraging more millennial and Gen Z consumers to explore new proteins. As a result, GlobalData, a leading data and analytics company, predicts that the sales value of new protein meat alternatives in China will surge at a compound annual growth rate (CAGR) of 12.6% through 2022-27.
GlobalData estimates that soy-based products and plant-based proteins will lead the growth of China’s new protein meat alternatives market during the forecast period, while the grain-based segment will experience a slowdown.
Bobby Verghese, consumer analyst at GlobalData, commented:
“The economic boom of the 80s boosted the consumption of meat and seafood, which became a symbol of good health and rising economic status. As a result, China became the largest market for animal meat in the world, accounting for nearly half of the world’s pork consumption by 2022 and more than 30% of mutton consumption. Mainstream Chinese cuisine has become meat-based, and older generations view a plant-based diet as an orthodox religious practice. Although tofu-based vegetarian products have been popular in China for centuries dishes, but they think plant-based diets are just a fad in Western diets.”
Kiki Wu, China Consumer Business Development Manager at GlobalData, noted:
“Plant-based diets are gaining more acceptance among Gen Y and Gen Z consumers, driven by social media, celebrity influence, and health concerns exacerbated by COVID-19. Correspondingly, GlobalData’s 2022 Consumer Survey shows that 4% of Chinese respondents identified themselves as vegan or vegetarian, 13 percent were flexitarians, and another 17 percent said they were on a low-meat diet. In a country of 1.4 billion people, this shows that new protein The overall addressable market for meat substitutes is large. Unsurprisingly, both domestic and multinational new protein companies are heading straight for the Chinese market.”
Wu concludes: “Government policy support is the catalyst that can ignite the growth of the new protein meat substitute industry. For example, in 2015, the Ministry of Health announced plans to reduce the population’s meat consumption by 50% by 2030 to China 2030 plan to curb obesity. New proteins could play a key role in helping people transition to a low-meat diet in line with these national health goals.
“Reducing the scale of livestock farming is also critical to China’s goal of carbon neutrality by 2060. In addition, plant-based milk, eggs and meat are listed in Beijing’s 14th Five-Year Plan for the future of a better food system in 2022 Annual plans for food. However, in the longer term, government efforts to promote new protein areas beyond plant-based, such as cell-based meat, insect protein and precision fermentation, will intensify competition for plant-based meat alternatives.”