Getting Granular With Plant-Based Meat Substitutes: Opportunities for Grains, Oilseeds, and Pulses

The focus of plant-based meat substitute producers to date has largely been on developing new products using existing ingredient bases and making use of established supply chains. “As consumer preferences start demanding certain brands over others – and with it certain ingredients over others – plant-based meat substitute producers will turn their attention toward ingredient sourcing, particularly in niche commodity markets, to strike the right balance between quality and price,” according to Vito Martielli – Senior Analyst, Grains & Oilseeds.

“Strategies vary according to the ingredients used and the different grains & oilseeds players, but we see three main business strategies applied: cost leadership, differentiation, and focus,” says Martielli.

A common feature in all of the markets analyzed is that, while growth rates for consumption of plant-based meat substitutes will continue to be strong, total volumes will remain limited in this decade. Recent protein fractioning capacity expansions and greenfields will require strong future demand growth to avoid overcapacity and depressed margins.