Mycoprotein is a source of protein-based nutrient which is gaining consumer interest as part of a balanced diet of vegan consumers. Mycoprotein is high in fiber, high in protein, low in saturated fat, and contains no cholesterol, which influences the consumption pattern and demand dynamics of the end products in a positive manner. Mycoprotein products are similar to other meat alternatives like tempeh or seitan in terms of taste and texture. Since mycoprotein products contain a high proportion of different minerals and a high vitamin content, they are expected to see increased demand around the world. According to a study from the UK’s University of Exeter, mycoprotein has a higher percentage of essential amino acids than plant-based options, and it’s been shown to be great for athletes.
Mycoprotein is a plant-based ingredient with a high protein content. As a result of this, it is gaining popularity among vegetarians around the world and is commonly used as a meat substitute. Owing to this factor, the global mycoprotein market is seeing a rise in demand due to the growing number of vegans around the world. As of May 2019, one in every five Americans identified as flexitarian. In January 2021, the survey of 2,000 Americans was commissioned by Sprouts Farmers Market and conducted by One Poll. It revealed that 47 percent of respondents overall describe themselves as flexitarians. Just 6% of baby boomers eat flexitarian diets, compared to 13 percent of Generation Z and 10% of Generation X. Moreover, the flexitarian trend has been encouraged by movements like Veganuary and meatless Mondays in the United Kingdom. In the UK, one in three (34%) deemed themselves flexitarian in 2018, up from 28% in 2017.
In addition to this, there is a rising trend of consumption of mycoprotein products due to their health benefits. They have a high nutritional content which can help lower cholesterol. At the same time, mycoprotein products are thought to aid weight loss by offering a sensation of fullness. The global mycoprotein products market is projected to expand rapidly as a result of all of these factors.
While consumer awareness of meat substitute products such as mycoprotein is growing, the perception of meat substitute products' taste is a significant factor impeding the adoption of mycoprotein products. According to a research study published in the Science Direct Journal, beneficial foods are likely to be bitter or have some off-taste associated with them. These bitterness and off-taste characteristics are more predominant in plant-based foods, which might restrain people from adopting meat substitute products.
Europe is expected to contribute for more than half global revenue in this market
The global market for mycoprotein products is currently dominated by Europe, followed by North America, due to the increased presence of important producers and the increased manufacturing footprint of mycoprotein products in Europe and North America. The increasing demand for meat substitutes products in Germany is a major factor boosting the Germany mycoprotein market. Furthermore, according to a US Department of Agriculture's International Agricultural Service study, veganism is becoming more common in Germany, which has the world's highest number of vegan product launches. According to the 2016 report "Prevalence of Persons Following a Vegetarian Diet in Germany," 6.1 percent of women and 2.5 percent of men were vegetarians or vegans. Amongst 18- to 29-year-olds, 9.2% of women and 5.0% of men were vegetarian/vegan. Furthermore, being a vegetarian/vegan had an effect on vegetarians/vegans’ diet that went beyond animal products. The dietary changes represent Germany's vegetarian/vegan culture's focus on health and wellness. Similarly, the number of vegans in the UK quadrupled between 2014 and 2018 accounting for 600,000 vegans in the UK in 2018 which increased from 276,000 in 2016. In 2019, the Veganuary initiative, which encourages people to eat vegan for the month of January, nearly doubled in popularity, with 250,000 people signing up. In 2018, 168,500 people took part, compared to 59,500 in 2017, 23,000 in 2016, 12,800 in 2015, and 3,300 in 2014. Moreover, according to Nielsen Scantrack data, sales of meat alternatives rose significantly in January 2018 with an annual rate of 14.1% compared to January 2017.
On the other hand, due to the increasing use of mycoprotein products in food and beverage applications such as meat alternatives and meat extenders, Asia Pacific is expected to have the highest demand for mycoprotein products in the coming years. Hence, the Asia Pacific mycoprotein market is expected to grow with a CAGR of XX% during the forecast period.
Competitive Landscape
Due to a large consumer base, a number of small and medium-sized competitors are concentrating on the production of mycoprotein products for business to business (B2B) and business to consumers (B2C), with an emphasis on joint licensing ventures with food companies and multinationals. Some of the key market participants in the global market for mycoprotein products are 3fbio Ltd, Quorn Foods (Marlow Foods Limited), and MycoTechnology, Inc., among the other players in the market for mycoprotein products. Various companies look to increase production capabilities and product verification as part of business strategies to expand consumer base, while also strengthening regional market position. For instance, in February 2020, Mycorena has branded its mycoprotein product ‘Promyc’. The fungi-based ingredient boats a neutral taste and fibrous texture, and according to the company which is a Swedish start-up, the product works as a ‘meat-like replacement in products such as burgers, balls, and nuggets. Moreover, the company has also raised Euro 429,000 and opened a new facility, which is ‘one of the first’ non-Quorn mycoprotein facilitites in Europe.
