Market Trends of Australia Plant Protein Industry
Increasing Demand for Plant-based Food & Beverages
- The demand for vegan food & beverages is being helped by several important causes, including consumer health concerns and environmental ethics. Long-term shifts toward a vegan diet could be influenced by growing consumer knowledge of the harmful health impacts connected with eating meat. One of the main causes driving the growth of plant-based diets across the region is the advantages of cholesterol-free protein with a meat-like texture.
- According to a survey published by the Vegan Society in the year 2022, among vegans, vegetarians, and flexitarians across Australia and New Zealand, approximately 1/5th of respondents said that they purchased vegan food and drinks in restaurants often.
- Around 20% of the respondents said that they bought vegan food and beverages often from restaurants, whereas 19.4 % of the respondents said that they bought vegan food & beverages from restaurants sometimes and wished they could do so more often. Hence, the rising demand for vegan food & beverages across various distribution channels could increase the demand for plant-based food ingredients, including plant proteins.
- Due to growing consumer awareness of wholesome and environmentally friendly diets, which in turn drives up demand for plant-based food and beverages in the market studied. The number of vegans has been gradually increasing over the past few years across the region. This suggests that the transition to a plant-based diet is a long-term trend.
- The majority of people are concentrating on avoiding or minimizing their consumption of animal proteins. Despite the high protein content of animal sources, obesity, cardiovascular disease, and diabetes are only a few of the chronic conditions that can result from an excessive intake of animal-based foods.
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Supplements as The Fastest Growing Segment Among End Users
- Among other plant proteins, soy protein is being used more in supplements, as it is a major source of dietary proteins, containing all nine essential amino acids and dietary fibers, which play a vital role in controlling blood cholesterol and enhancing glucose tolerance levels. Many nutritional supplement companies are exploiting these health-benefiting properties of soy ingredients. Further, its functions, such as high digestibility and faster absorption rate, drive its market growth. As soy lowers cholesterol, its protein demand among those seeking to maintain cholesterol levels escalated.
- The market witnessed a rise in the trend of veganism, with consumers actively seeking plant-based protein sources, especially dietary supplements. Moreover, there are different plant-based protein supplements available, and each type has its unique benefits. Various types of plant proteins are gaining traction due to the rising demand for clean-label and safe products as well as rising awareness about the benefits of the consumption of plant proteins. The region has been witnessing a rise in the production of raw materials used in making plant proteins like soybeans, peas, etc. According to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), the production volume of field peas in South Wales, Australia, increased from 18.04 kilotons in 2020 to 48.24 kilotons in the year 2021. Hence, the increased availability of resources could help plant protein manufacturers across the region to procure the raw materials locally, gain economies of scale, and an opportunity to grow in the market.
- The growing demand enabled manufacturers operating in the market studied to invest in developing innovative products targeting specific consumer groups to achieve a competitive advantage, driving the market growth. According to the Australian Sports Commission, in the year 2022, approximately 8 million people across Australia participated in fitness/gym, and around 3.9 million individuals participated in athletics and track and field activities. Individuals participating in sports activities tend to consume more proteins for maintaining muscle mass and promoting muscle growth during strength training. The increasing incidences of lactose intolerance have led to many individuals preferring plant protein products. Hence, these factors are expected to drive the demand for plant proteins in Australia during the forecast period.
