The adoption of plant-based protein is on the rise in India over the last few years. The market growth is attributed to the increased awareness of global trends, the need for protein transitions for human and planetary health, and the rising middle class. It is expected that more new entrants and startups will evolve in the next few years to serve the rising demand for plant-based protein food products in the Indian market.
The per capita protein availability in India has fallen considerably in the last three decades, from 65 grams in 1985 to less than 50 grams in 2020. According to the Indian Dietetic Association, there is an 84% protein deficiency in vegetarian diets largely due to the lack of awareness among the general population. To improve the nutritional ranking of India, Niti Aayog is working with the government to include protein-rich food items under its public distribution system.
In the last few years, the surge in demand for nutritious food has resulted in the rise in demand for protein-rich food. The ongoing wellness and health trend in the country is also boosting the demand for a protein-rich diet. As a result of which, protein ingredients are being widely used in nutritional supplements, dairy industry, infant formula, baking industry, and functional foods, to satisfy the cravings of changing consumer needs.
Demand for plant-based protein ingredients such as soya, cheese, and pea has recorded substantial growth in the last few years. With several startups in the country coming up with new protein sources, innovation in the plant-based protein ingredients is supporting market growth.
Consumers focus on a healthier lifestyle pushing market growth
The shift in plant-based food products is largely driven due to the changing consumer food preferences and consumer focus on a healthier lifestyle. The health and wellness trend is rising in India which fueled growth in plant protein market. A lot of people are turning vegans due to health concerns. To cater to this need, companies are launching vegan products. For instance, Nutiva introduced vegan ghee (clarified butter) in November 2020, Axia Food (September 2020) and Epigamia (June 2020) both launched vegan yogurts.
Also, due to COVID-19, consumers are looking for products which can boost their immunity and provide health benefits. The COVID situation will further propel demand for plant based protein products. Also, increasing willingness to replace meat with plant based alternatives is presenting significant opportunities for market players.
Increased awareness is driving the demand for plant-based protein
The growing awareness of animal cruelty is a key driver for the plant-based products in India. The surge in social media videos showing cruelty inflicted on animals in meat and dairy industries is one of the reasons, millennials and Gen Z are shifting towards meatless meat products.
Climate change is a growing concern globally. It is one of the factors why consumers are switching to a plant-based diet. People are realizing the effects of climate change. They understand how the process of growing food is damaging air, water, land, and the entire environment. According to a study conducted by the Federation of American Societies for Experimental Biology, production of plant-based meat contributes 10X lower greenhouse emissions as compared to traditional meat-based products. Such evidence is causing a decline in traditional meat and dairy consumption. Thus, resulting in increased demand for plant-based alternatives that taste like meat and dairy-based products. Also, awareness regarding various diseases caused due to lack of protein intake is also driving the market.
Religious practices driving the market
Religious practices in India govern consumer food preferences in the country. Even large fast-food giants such as Pizza Hut and McDonald's were forced by the large chunk of the vegetarian population to introduce a special vegetarian menu in the Indian market. Therefore, plant-based protein and meatless meat will allow restaurants and fast-food chains to offer more vegetarian options to the Indian consumers.
The shifting trend towards the meatless meat market has already inspired a few startups in the country to serve the rising demand. India is a more natural market for such companies due to high percentage of vegetarians in the country. However, to keep the demand growing, these startups must take care of health, hygiene, and local taste. If the trend continues, it will result in a wide range of plant-based protein food products for vegetarians who are largely dependent upon lentils, soya, and cottage cheese for their protein intake.
Plant based dairy gradually gaining traction in India
Though milk has been an essential part of Indian diet, the shift to dairy alternatives is slowly gaining traction in the country as consumers look for healthy alternatives and become aware of animal cruelty. Plant based alternatives have appealed the urban India as veganism continues to increase in some specific sections of the society.
Milk alternatives market is relatively small in India as compared to the dairy industry but the market is expected to grow going forward as consumers are willing to incorporate plant-based milk in their diet given its health proposition. Of the various milk alternatives, Soy milk and almond milk are popular consumer choices. Soy milk is a close substitute to milk in terms of its protein content and almond milk is popular because of its flavor which is slightly sweet and nutty. Also, the use of technology to mimic texture, color, physical property and look of dairy milk, are slowly making plant based dairy popular.
Initially companies were targeting lactose intolerant or vegan consumers but dairy and plant-based milk are likely to co-exist for daily consumption at homes. Some of the key milk alternatives players in India include Raw Pressery, Epigamia, Sofit (Hershey’s), Urban Platter and Goodmylk. Increasing availability and affordability is likely to attract more customers toward plant based dairy products.
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