The market is driven by factors such as increasing health awareness, increasing instances of meat adulteration, and the rising number of vegetarians and flexitarians worldwide. The increase in demand for these products from emerging markets such as the Asia Pacific and Latin American regions drives the meat substitutes market.
The meat substitutes market is projected to grow at a CAGR of 6.6 percent during the growth period from 2016 to 2022; it is projected to reach US$5.96 billion by 2022.
The high prices of meat substitutes, which is almost equal to the animal meat prices, is one of the major restraining factors for the market. Inadequate consumer awareness of tofu and tofu ingredients across the developing countries of Asia Pacific—including South and Southeast Asian countries—and genetically modified organism GMO meat substitute products are the major challenges for the global meat substitutes market.
The quorn segment is projected to grow at the highest CAGR in the global meat substitutes market, based on type, owing to its functionality. The ingredient contains all the essential amino acids that humans need without containing any cholesterol.
Quorn is a meat substitute that is popular with vegetarians. Its high protein content and dietary fibre, and low saturated fat content are also factors driving the increase in demand for quorn foods. The ingredient is made by processing and texturising mycoprotein, which is derived from the Fusarium venenatum fungus and is grown by fermentation.
The Asia Pacific meat substitutes market is projected to be the fastest growing among all regions. The increase in consumer demand for vegetable food with high nutrient content is driving the growth of this market.
China dominated the Asia Pacific market due to the increase in health awareness and growth in consumer demand for tofu and tofu ingredients, as well as textured vegetable protein. Furthermore, the increase in urban income has led to the growth in demand for domestic meat substitutes. Currently, Australia and New Zealand account for a significant market share in the Asia Pacific meat substitutes market owing to the significant demand for quorn, tofu and tofu ingredients.