Market Trends of germany plant protein Industry
Plant protein consumption growth fuels opportunities for key players in the ingredients sector
- The German plant protein market is driven by consumers' increasing conversion toward vegan diets due to their functional efficiency, the cost competitiveness offered by reliable plant protein products such as soy, wheat, and pea, and their increasing application in various processed foods. Soy protein is considered healthy for all age groups and helps maintain proper body functions. Plant-based protein alternatives are widely used in the food and beverage and supplement segments. They can be derived from sources such as soy, wheat, and other vegetables, which are essential parts of the food and beverage segment, thus boosting plant protein consumption in Germany. As more consumers increased their preference for vegan diets, the number of vegans in Germany doubled, reaching 2.6 million people and accounting for 3.2% of the population from 2016 to 2020.
- Favorable government policies to reduce various diseases, such as obesity and diabetes, by controlling meat consumption may result in a growing consumer shift toward wheat protein. Currently, at least 7.2% of the population in Germany has diabetes, most of them type 2 diabetes. The number of people with diabetes is expected to increase significantly over the next two decades.
- The growing demand for clean-label ingredients and stringent labeling regulations by food authorities are compelling food manufacturers to adopt natural ingredients. Thus, ingredient manufacturers operating in the market are focusing on developing innovative ingredients to cater to the growing demand and achieve a competitive advantage in the market. There is a rising demand for vegan food products and an increasing number of lactose-intolerant consumers in Germany. As a result, the overall plant protein consumption increased from 47 g in 2017 to 53 g in 2022.
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Soy, wheat, and pea production contributes majorly as raw material for plant protein ingredients manufacturers
- The graph given depicts the production data for raw materials such as dry peas, wheat, and soya beans. In 2023, the winter wheat area accounted for just under half (48%) of the area under grain production in Germany. Wheat production for 2019-2020 reached 24.2 million ton, up from 20.3 million ton the previous year. Farmers in Germany were growing winter wheat for harvest in 2022 on 2.89 million hectares, 0.6% more than the previous year.
- The area under soybean cultivation in Germany has grown continuously to reach over 32,900 ha in 2020. The biggest part of this area is found in Bavaria and Baden-Wuerttemberg (26,700 ha) with the rest in the other federal states (several hundred ha each). The German government's program to encourage soybean cultivation has been successful, with plantings for the 2020 crop expanding by 13.8% to 32,900 ha, but with no harvest forecast available. The soybean production in the country recorded an increase of 110% in 2020 since 2016.
- Over the past ten years, pea production in Germany has almost tripled. In Germany, farmers currently grow pea crop on just under 2% of the total arable land in the country. The Federal Ministry of Agriculture's targeted protein crop and arable farming strategy aims to increase cultivation to ten % by 2030 and make it more attractive for farmers. The seed company KWS is also moving with the times and wants to further expand its breeding successes with peas as many food manufacturer's are demanding pea protein ingredients in a variety of foods such as "schnitzels", pasta, yogurt, drinks, ice cream and sports bars.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Demand for premium baby foods on the rise
- Consumers shifting away from carbonated beverages may restrain the market
- Consumers' preferences shift to premium condiments and sauces, away from packaged soups
- The demand for functional dairy products is expected to drive the market
- Meat alternatives are emerging as the potential market drivers
- Healthy snacks are expected to drive the market in the future
- Feeds with specific claims are on the rise
- A strong hold of the bakery segment to drive market
- Fortification and innovative packaging trends to influence breakfast cereals market
- High confectionery production benefits German manufacturers
- Aging population to expand the consumer base
- Single-headed households to drive the RTE/RTC market
- Consumers with active lifestyles are expected to drive the market
- Natural cosmetic products are boosting the market studied
