Texturized Vegetable Protein Market to reach global value of $1.4 billion in 2028

23 July 2018 Authored by Consulting.us

Soy, pea, and wheat-based texturized protein products are expected to see strong growth as consumer preferences and attitudes change, says a new report. Global market value for texturized vegetable protein (TVP) – including chunks, slices, flakes, and granules – is expected to reach $1.4 billion in 2028, with most of the market being held by soy TVP.

Americans are increasingly turning to plant-based food substitutes, whether it’s almond milk, tofu, or vegan cheese. And these substitutes aren’t just for health-food nuts and vegans, as the products are now taking up expanding sections of traditional supermarkets. Concerns about health and wellness, environmental sustainability, and animal welfare have leeched into mainstream sensibilities, consequently driving growth in the plant-based food substitute segment. According to LEK Consulting, the market grew over 8% to $5 billion in 2016.

One part of the segment, texturized vegetable protein (TVP), can expect to see strong growth in the future. TVP is an inexpensive protein product usually made from soy – and shaped into chunks, flakes, and granules. It can also be derived from wheat and peas, among other vegetables. TVP is commonly used as a meat analogue or meat extender – replacing all or part of traditional meat dishes like lasagna, chili, burgers, tacos etc. Textured soy protein is particularly popular as a meat extender in US prison and school cafeterias – reducing total fat and the cost of meals.Texturized Vegetable Protein Market to grow at CAGR of 4.9% over next decadeA new report from market intelligence and consulting firm Future Market Insights (FMI) expects the texturized vegetable protein market to grow at a compound annual growth rate of 4.9% between 2018 and 2028 – reaching a global market value of $1.4 billion by 2028. FMI links shifting consumer preferences to market growth, as more people switch to flexible vegetarianism (flexitarianism) and drastically reduce meat intake while increasing plant-based protein intake. This shift is expected to take TVP out of cost-cutting institutional kitchens and increasingly into the homes of health, animal welfare, and sustainability-conscious consumers.

According to the report, soy-based TVP is expected to maintain a dominant share of the market, with a revenue share of 85.9% by 2028. However, texturized pea protein is projected to have a higher growth rate because of its allergen-free and non-GMO profile. Indeed, FMI identifies organic and non-GMO offerings as a key differentiation strategy in the market to satisfy demand for additive, chemical, and GMO-free foods.

TVP mostly ends up in the food processing industry, where it is further segmented into ready meals, meat extenders, functional bars, and other products. According to FMI, TVP’s application as a meat extender accounts for over 42% of revenue in the food processing industry segment. With greater ability to blend in with meat in frozen lasagnas and burritos and other food, the granules form of TVP is expected to remain the dominant shape – beating out chunks, slices, and flakes.

Meanwhile, the household segment for TVP was valued at $217 million in 2017, and is expected to grow at 5.6% CAGR to 2028 – as people increasingly buy textured vegetable protein for use in their own home cooking.

In terms of regional breakdowns, North America is the largest market for TVP – with a value of $303 million in 2017. FMI projects 4.6% CAGR in North America’s texturized vegetable protein market to 2028. According to the report, the Asia Pacific region (which includes Japan) is expected to see its TVP market grow at an even stronger rate of 6.3% - owing to increasing production capacity for soy-based products in the region.

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