Prot oteins eins Texturi turizers zers Market et Insights ts - - PowerPoint PPT Presentation

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Market Opportunities for Selected Ingredients in Meatless Foods

North America, Europe 2017-2022 Market et Insights ts Report rt Publica cati tion

• n: Septem

tember ber 2018 2018

Texturi turizers zers Prot

• teins

eins Flavors vors/Seas /Seasonings

• nings

09/18-1

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Meatless Foods – Value Chain

Texturized Protein Ingredients STAGE 1 Meatless Foods 2 STAGE Ready To Eat Meals 3 STAGE

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Texturized Protein Ingredients STAGE 1

To analyse the supply and demand scenario for texturized protein ingredients used in meatless foods and meat extension

Value Chain – Stage 1 Analysis

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Meatless Foods 2 STAGE

To estimate the current demand for meatless foods in volume and value terms in North America and Europe To establish the supply scenario of the meatless foods and the respective ingredients in North America and Europe To understand the legislation and positioning (customer and consumer) around meatless foods and ingredients thereof in the two regions To understand the drivers and restraints of meatless foods use in the two regions To understand the “why” and “why not” in the choice of ingredients for creating the meatless foods To assess the key trends and therefore provide demand forecasts for meatless foods and the ingredients thereof in the two regions

01 02 03 06 05 04

Value Chain – Stage 2 Analysis

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Ready To Eat Meals 3 STAGE

• What are the challenges and opportunities for meatless foods

in the ready to eat (RTE) meals sector?

• Which meat analogue will be used in RTE meals?
• What are the problems faced by the RTE companies?

KEY QUESTIONS ADDRESSED

Value Chain – Stage 3 Analysis

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Geographic Scope

Supply ly and Demand

• North America (USA/Canada/Mexico)
• Europe (UK, Germany, The Netherlands, France, Spain, Switzerland, Other EU28)

North Am America Eur Europe

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Timeline, Publication, Subscription

Current – 2017 TIMELINE PUBLICATION September 2018 Demand Forecasts – 2022 SUBSCRIPTION Full Report Europe only North America EUR 28950 EUR 17250 EUR 17250

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Table of Contents

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Table of Contents

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Table of Contents

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Table of Contents

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Why these products are in existence?

• Phase I UK-driven following BSE (mad cow disease)
• Phase II Germany-driven sustainability, health, mad cow disease, animal health

concerns

• Vegan or vegetarian which is small although it is growing, the second part is

flexitarian which large majority who use to substitute meat for few days

CONSU NSUMER MER TREND ENDS

Meatless Foods – Consumer Trends

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Meatless Foods Industry – General Insights

01 05 02 03 04

• Meatless foods market has grew at a CAGR of 10% during 2016-2017
• Global meat substitutes market is expected to grow at a healthy rate through to 2022
• European market for meat replacers has occupied a position at a lucrative intersection

between health and ethical consumerism

• Issues related to health, traceability and animal welfare have more sway over purchasing

decisions today than ever, therefore, meatless foods are no longer exclusively for vegan or

• vegetarian. A so-called flexitarian approach to diet is gaining popularity
• Retailers estimate that the meat free market will reach a global sales of $5.26 billion by 2020
• According to research estimates, 39% of people across European countries especially,

Western Europe, are responsible for most of the growth in the meatless foods space since they are choosing to replace certain fraction of meal with plant based options to complement their traditional animal protein portfolios

06

• The global demand for meat is forecast to rise significantly towards 2050, hence the shift from

traditional meat production to the cultured meat will solve meat related future problems

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Industry Trends -1

• Eco-friendly - improves sustainability of meat production as the process produces no methane or

nitrous gases

• 100% meat - Cultured meat is 100% natural meat, made from the cells of animal, but grown on a
• bioreactor. The final product is reported to have similar taste, texture & composition to traditional
• meat. This is the major advantage over plant origin meat replacers
• Safe & healthy - the meat is grown with natural, unmodified cells and ingredients such as sugars,

proteins, minerals and vitamins. It is said that cultured meat are safer than the farmed beef as the closed production process eradicated the risk of human diseases contracted from livestock. Since, there is no genetic modification, it is non-GMO food

• According to industry analysis, Germany’s share of innovation in global substitutes declined in the

year ending June 2017 as innovation intensified in Italy and Sweden. In Italy, the uptick in NPD activity is a result of massive increases in consumers who claim to be working to reduce their meat

• consumption. Around 50% of Italian consumers say they are lowering their red meat intake, while

24% say they are increasing the amount of vegetarian processed foods in their diet

TRENDS

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Industry Trends – 2

• As estimated 70% of purchasers of the plant-based Beyond Burger are flexitarians- meat eaters that

are cutting down on meat- as opposed to hard core vegetarians

• In terms of selection of ingredients by manufacturers, requirements such as organic, vegan and non-

GMO certification are important criteria for selecting supplier of all ingredients

• Taking into account the rising interest in and demand for vegan and vegetarian foods and the

correspondingly increasing relevance of this market segment, the European Commission has also mentioned that it will begin the process of establishing a legal definition of vegetarian and vegan food in 2019, an announcement that has been welcomed by food manufacturers

• According to industry insights, vegan claims have soared to account for 15% of all retail food and

drink launches in Germany in 2017, whereas vegetarian claims were found on 8% of launches

TRENDS

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Meatless Adoption Scenario – North America

xx kt xx kt Competition from clean meat and vegetarian foods Health and sustainability drive growth in the adoption of meatless foods Obesity Levels Flexitarianism xx kt Consumer resistance Legislative issues xx kt Animal protection Environmental concerns & Sustainability Texture and Flavor perceptions xx mio tons xx mio tons

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Meatless Adoption Scenario – Europe

Growing environmental concerns, sustainability xx kt xx kt Decline in meat consumption; Popularity of vegetarianism Sustainable growth is expected by Flexitarianism NPD providing protein shift and better choices Positive impact of meat tax or hike in meat tax xx kt Replacement threat from vegetarian foods Negative impact of labelling Meatless foods xx kt xx mio tons xx mio tons

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Challenges & Opportunities

Nutritional Organoleptic (bite, juiciness, etc.)

Technical

Examining the challenges and opportunities for these ingredients in meatless foods

Understanding Key Drivers

For all selected ingredients and end-products

Flavor (Aroma, Taste)

How is the target flavor being delivered in the end product How do they match the specific meat that they are replacing

Matching Nutrition Addition of Nutrition

Adding further nutrition – vitamins, etc. Matching the nutrition

• f meat

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Meatless Foods Market – North America & Europe

Region Meat (2017) Meatless Foods (2017) Meat (2022) Meatless Foods (2022) Meat CAGR (%) Meatless Foods CAGR (%)

• N. America

Europe

Meat and Meatless Foods Consumption Trend, 2017 – 2022, kt

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

The European Meatless Foods Market

Product Type 2017 2022 CAGR% Formed Emulsified Ready Meals Others TOTAL Meatless Foods Market Volume, Europe Meatless Foods Market, Europe Company Revenue (USD mio) Brands Products

Marlow foods xx Quorn, Cauldron Ready meals, burger, etc., ABP Group xx Eatwell Meat analogues Rugenwalder Muhle xx Rugenwalder, Muhlen Meat analogue Amy’s Kitchen UK xx Amy’s Burger, burrito Orkla Foods Sverige xx Anamma Burger, sausage Nestle xx Herta, Garden Gourmet, Halsans Kok Patty, burger, nuggets Market Volume/ value xxkt/ EUR xx mio CAGR% x% Product types Ready meals Ready meals/meal kits/pizza etc Formed Burger patties, slices, strips, fillets, coated products, etc. Emulsified Sausages and variants Others Seafood, tofu, seitan and other minimally processed natural matrices Trends

• Acquisition of vegetarian/vegan food processors by large

food brands

• Developing and launching vegetarian/meatless foods by

large processed meat manufacturer to gain positive business

• Processed meat market and consumption is declining (by

CAGR x%)

• Processors forced to develop food brands focused on

plants, vegetarian/vegan/organic Drivers

• Semi-vegetarianism
• Millennial consumers interested in animal welfare and

environmental concerns

• Health concerns and lifestyle diseases

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Demand for Meatless Foods, Finished Products – N. America (kt)

By Shel elf f posi sition ion

2017 kt 2022 kt CAGR% 2017-22 Ambient Chilled Frozen Total

By Prod

• duc

uct t type

2017 kt 2022 kt CAGR% 2017-22 Ready meals Formed products Emulsified products Others Total

By dis istr tribut ution

• n chann

nnel el

2017 kt 2022 kt CAGR% 2017-22 Retail Food Service Total

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Demand for Meatless Foods, Finished products – N. America

Food Service Retail Frozen Chilled Ambient Frozen Chilled Ambient Ready meals Formed products Emulsified products Others Total

Meat at altern ternat ative ves s & anal alogue

• gues,

s, fini nished hed produ duct t mark rket et, , 2017, 7, North th Ameri erica a kt

Food Service Retail Frozen Chilled Ambient Frozen Chilled Ambient Ready meals Formed products Emulsified products Others Total

Meat t altern ternati tives s & analogu

• gues,

s, fini nished hed produc uct t mark rket et, , 2022, 2, North th Ameri erica kt

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Company Country Revenue (USD mio) Brands Formed products Emulsified products Others (Vegetable base/Cultured Meat) Seafood Ready Meals Impossible Foods USA 25.0 Impossible X Beyond Meat USA 50.0 Beyond Meat - The Future of Protein X The Better Meat Co. USA

• X

Maple Leaf Foods Canada Good Catch Foods USA New Wave Foods USA Before the Butcher USA The Abbott's ButcherUSA The Herbivorous Butcher USA

Key Players in the North America Meatless Food Space

There are more companies listed in the full report

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Company Country Revenue (USD mio) Brands Formed products Emulsified products Others (Vegetable base/Cultured Meat) Seafood Ready Meals Norbert Marcher AT 360.0 Landhof Die Ohne X X VeggieMeat (Vegini) AT 33.5 Vegini X X Bertyn BE 2.0 Bertyn X La vie est Belle La Boucherie Vegetarienne Nestlé in France Nutrition & Santé SAS Triballat group Api Jamu Avivstillo Berief Govinda Nature

Key Players in the European Meatless Food Space

There are more companies listed in the full report

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Ingredients used in Meatless Foods

• Types
• Plant Proteins
• Egg Proteins
• Other Proteins
• Volume (kt)
• Prices
• Producers
• Types
• Emulsifiers
• Hydrocolloids
• Volume (kt)
• Prices
• Producers
• Types
• Base Flavors (HVP, YE)
• Process Flavors
• Seasonings
• Volume (kt)
• Prices
• Producers

Protein Ingredients Texturizers Flavorings / Seasonings 1 2 3

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Total Demand for Meatless Food Ingredients

2017 kt 2022 kt CAGR% 2017-22

Protein ingredients Texturants Flavorings Deman mand for meatl tles ess food

• d ingre

gredie ient nts, , North th Ameri erica, 2017-20 2022 22 kt

2017 kt 2022 kt CAGR% 2017-22

Protein ingredients Texturants Flavorings Deman mand for meatl tles ess food

• d ingre

gredie ient nts, , Europ

• pe,

e, 2017-2022 2022 kt

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Protein ingredients x% Texturants x% Flavorings x% Protein ingredients x% Texturants x% Flavorings x%

Demand Trend for Meatless Food Ingredients, N. America

2017 2022

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Protein Ingredient Demand in Meatless Foods

2017 kt 2022 kt CAGR% 2017-22 Soy Wheat Pea Fungal Others Prot

• tei

ein n ingred gredient ent demand nd by type, e, North th Ameri erica ca, , 2017-2022 2022 kt 2017 kt 2022 kt CAGR% 2017-22 Soy Wheat Pea Fungal Others Prot

• tei

ein n ingred gredient ent demand nd by type, Europe, , 2017-2022 2022 kt

Soy Wheat Pea Fungal Others Soy Wheat Pea Fungal Others

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Texturants Demand in Meatless Foods

2017 kt 2022 kt CAGR% 2017-22 Lecithin Carrageenan Methylcellulose Starches Text xtur urants ts demand nd by type, e, North th Ameri erica ca, , 2017-2022 2022 kt 2017 kt 2022 kt CAGR% 2017-22 Lecithin Carrageenan Methylcellulose Starches Text xtur urants ts demand nd by type, Europe, , 2017-2022 2022 kt

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Flavorings Demand in Meatless Foods

2017 kt 2022 kt CAGR% 2017-22 Yeast extract HVP Process Flavors Fla lavori rings gs deman mand by type, e, North th Americ erica, 2017-2022 2022 kt 2017 kt 2022 kt CAGR% 2017-22 Yeast extract HVP Process Flavors Fla lavori

• rings

ngs deman mand by type, , Europ

• pe,

e, 2017-2022 2022 kt

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Demand Sectors Company Trends

• Meat Analogues
• RTE
• Vegan Food

Amy’s Kitchen (USA)

• Primarily uses soy (tofu), wheat gluten,

garbanzo, quinoa, black beans, red beans

• Prefers organic and non-GMO ingredients
• Target consumers are reached through its
• wn foodservice joint and the retail stores
• Ready meals

Atlantic Natural Foods (USA)

• Soy and wheat protein are the major

source of protein in canned products

• Garbanzo bean is the protein source of the

shelf stable retort

• No flavor issues with garbanzo beans
• Ready meals
• Meat analogues

Before the Butcher (USA)

• Meat Analogues
• Burger, Sausage, Beef

crumbles, Chicken strips Beyond Meat (USA)

End-User Perspective – N. America

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Demand Sectors Company Trends

• Seafood analogues

Good Catch Foods (USA)

• Seafood analogues

Hungry Planet

• Meat Analogues
• Ground beef burger patty

Impossible Foods (USA)

• Meat analogues, RTE
• Processed meat

Kraft Heinz (USA) Boca Burger

• Meat Analogues, RTE

Lightlife Foods (USA) Maple Leaf Foods

• Seafood analogue - shrimp
• RTE - crispy shrimp

New Wave Foods

• RTE
• chicken, sausage, turkey

No Evil Foods

• Seafood analogue
• Raw Tuna

Ocean Hugger Foods (USA)

• RTE - bacon chips

Outstanding Foods

End-User Perspective – N. America

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Demand Sectors Company Trends

• Plant based Foods

RTE – caviar

• Meat analogues
• Jerky

Primal Spirit Foods (USA)

• Seattle Food Tech

RTE - chicken nuggets, chicken strips

• Terramino Foods

Seafood alternative Salmon

• The Abbot's Butcher

RTE Beef, turkey, meatball, ground beef and chicken

• Meat analogues

The Better Meat Co. (USA)

• Meat and seafood analogues

Vege USA Vegetarian Plus, Verisoy

End-User Perspective – N. America

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Legislation and Claims

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

‘Why’ & ‘Why Not’ in Ingredients Choice – Europe

Category Ingredient Why? Why not? Soy proteins Soy Flour Provides texture, economical SPC Off flavors, allergenic nature, GMO source SPI High quality protein, functionality – emulsification, gelling and water/fat/flavor absorption Texturised soy protein Protein content drops in rehydrated forms Wheat proteins Wheat Gluten Vegan, chewy texture Wheat Protein Isolate Texturized Wheat Protein Other plant derived Pea (PPI/PPC/TPP)

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Category Ingredient Why? Why not? Other plant derived Rice Potato Other proteins Fungal Algal Texturants Lecithin Carrageenan Methylcellulose

‘Why’ & ‘Why Not’ in Ingredients Choice – Europe

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

Category Ingredient Why? Why not? Texturants Methylcellulose Starches Flavorings YE HVP Process Flavors

‘Why’ & ‘Why Not’ in Ingredients Choice – Europe

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

ANNEXE

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Research Methodology

SECON ONDARY DARY RESEARC ARCH

Internal Reports Industrial Association Briefings Scientific Publications Newsletters/ Journals Government Publications

PRIMARY ARY RESEARC ARCH

Questionnaire Preparation Interviews by Email Telephonic Interviews Online Surveys Insights from Webinars

GIRACT CT Analys ysis

Data values, Trends Data values, Trends

Market Scenar ario Trends nds Busine iness ss Strategy

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DATA TA VALUES UES FROM OM SECOND ONDARY Y SOUR URCES CES DATA TA VALUE UES S FROM OM PRIM IMARY ARY SOURCE URCES

• Details on product portfolio
• News on research & development,

market trends

• Commodity prices
• Mergers, Acquisitions, Partnerships,

Collaborations and Investment details

• Details for company profiles
• Market shares – companies & products
• Product trends
• Price trends
• Dosage/Penetration values
• Growth prospects of market/products
• Drivers, Restraints, Challenges,

Opportunities

Key Data Points from Sources

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GIRACT - Introduction

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Meatless Foods - Ingredients and Value Addition North America, Europe – Market Insights

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For more information, please contact

• V. Krishnakumar or Gopal Chakarapani

GIRACT 24, Pré-Colomb 1290 Versoix/Geneva Switzerland T el: + 41 22 779 0500 email: info@giract.com, gopal@giract.com web: www.giract.com LinkedIn: Giract Protein Ingredients Forum