The plant-based food segment in India continues to assert its presence, venturing into new categories like fish and seafood, cheese, confectionery, sauces, dressings, and even baby food. As India continues to evolve on its culinary journey, the global trends in plant-based diets and alternative proteins are influencing changes in the nation’s food culture.
In the vibrant landscape of India’s evolving dietary habits and global food trade, 2022 marked a significant turning point. The nation, with its diverse and rapidly growing population, imported a staggering US$353.9 million worth of plant-based and animal protein ingredients, encompassing a substantial 58.6 thousand tonnes.
As India’s culinary preferences intersect with the world’s offerings, top protein suppliers to India, including China (21.7%), the United States (20%), and Poland (11.4%), took center stage in shaping the nation’s culinary journey in 2022. Canada also played a role, albeit on a smaller scale, contributing US$1.3 million worth of imports amounting to 87.6 metric tonnes.
This dynamic market unfolded in a context where plant-based proteins garnered increasing favor, accounting for 1.9 thousand tonnes of volume sales. Simultaneously, animal-derived proteins held their ground with a substantial 45.7 thousand tonnes. Soy protein concentrate, with a remarkable 49.4% market share, was the star of the plant-based protein show, followed closely by soy protein isolate (36.1%) and gluten (11.4%).
This shift in culinary habits is being fueled by a growing awareness of the nutritional value of food, with 38% of consumers in a survey (sample size = 3,000) recognizing the potential of a plant-based diet in reducing the risk of diseases. Positive nutritional claims for high protein content took the spotlight in the plant-based drink market, exemplifying a wider trend pointing to plant-based eating, a growing phenomenon buoyed by health-conscious motivations, including climate change, sustainability, and animal welfare.
While the demand for these plant-based proteins permeated staple packaged food categories, a high local preference for fresh over shelf-stable or frozen foods persisted in India. Consequently, the transition to meat substitutes and plant-based products remained gradual, with limited options available on grocery shelves.
In India, there is a high local consumer preference to purchase fresh foods over shelf stable or frozen foods. Thus, demand for meat substitutes or plant-based products remains negligible and is only slowly growing in the amount of options available on grocery shelves within India.
Nevertheless, consumers in India are increasingly conscious of the nutritional value of what they eat, and a sizeable section of the population believes that eating a plant-based diet can help to reduce the risk of diseases. Positive nutritional claims for added/high protein are appearing more among plant-based drink launches – where high protein content is the most important feature that consumers seek for in health dietary attributes within plant-based drinks.
How the market for plant-based protein is playing out
Import trends: In 2022, India witnessed a remarkable surge in the import of protein ingredients from across the globe. India imported a total of US$353.9 million worth of these ingredients, which amounted to an impressive 58.6 thousand tonnes. Key players in this supply chain included China (21.7%), the United States (20%), and Poland (11.4%). Canada also played a role in the global protein trade, contributing a total of US$1.3 million worth of imports, equivalent to 87.6 metric tonnes over the year.
Volume sales breakdown: In terms of volume sales, India’s protein market exhibited a two-fold distinction. Non-animal derived proteins, amounting to 1.9 thousand tonnes, coexisted with animal derived proteins, which collectively amassed a substantial 45.7 thousand tonnes.
The star of the plant-based protein show was soy protein concentrate, securing the highest market share at 49.4%, followed by soy protein isolate (36.1%), gluten (11.4%), vegetable proteins (3.1%), and pea protein (0.03%)
These plant-based ingredients were predominantly integrated into staple packaged food categories, ranging from baked goods like flatbread and cakes to frozen processed poultry and red meat, instant noodle cups, ready meals, salad dressings, dairy products and alternatives such as baby formula, powdered milk, and soy milk. Not to mention, these ingredients found their place in the snack market, encompassing products like potato chips, energy bars, and even dog food.
In 2021, products in India with a rich source of protein ingredients, irrespective of whether they were animal or plant-based, registered total sales amounting to US$14.7 million. In this domain, proteins in fortified/functional (FF) milk formula took the lead, with sales reaching US$10.3 million. Protein/ energy bars followed closely, contributing US$4.4 million to this growing market.
Animal protein market projections
In 2022, the market size of animal derived protein ingredients in India amounted to an impressive 45.7 thousand tonnes. This volume represented a historical sales compound annual growth rate (CAGR) of 9.0% from 2017 to 2022, with a forecasted CAGR of 9.6% from 2022 to 2027.
These projections set the stage for a potential increase, with volumes anticipated to reach 72.4 thousand tonnes by 2027. Notably, within the animal-derived protein market, the majority consisted of caseinates, comprising a significant 88.2% (40.3 thousand tonnes).
Whey protein concentrate accounted for 5.6% of the market (2.6 thousand tonnes), followed by gelatin at 5.1% (2.3 thousand tonnes). Smaller market segments included hydrolyzed keratins, whey protein isolates, milk protein concentrates, egg whites, casein, albumin, and milk protein isolates. Of historical note, egg whites exhibited the highest compound growth rate of 11.4%, with casein and caseinates following closely at 10.9% and 9.7%, respectively
Demand for animal proteins by category
In 2022, demand for animal derived protein ingredients was most pronounced within various packaged food categories. Dairy products claimed the lion’s share at 85.6% (39.1 thousand tonnes), with a particular focus on protein found in yogurt and sour milk at 80.1%
within this category. Snacks were the second-highest category in terms of demand for animal-derived protein ingredients, accounting for 6.9% (3.1 thousand tonnes). This demand was particularly noticeable in the realm of sugar confectionery (3.3%), potato chips (1.8%), and chocolate confectionery (1.6%)
Staple foods ranked next in line at 1.8% (809.3 tonnes), primarily in the domain of baked goods, and they were followed by cooking ingredients and meals at 0.4% (164.9 tonnes), with a particular focus on the sauces, dressings, and condiments sub-category. This comprehensive breakdown illustrates the intricate dynamics of India’s protein market and the role it plays in shaping dietary preferences and consumption trends.
In 2021, packaged food companies (brands) for animal/non-animal derived high in protein ingredients products (FF milk formula, FF protein/energy bars) in India included the Bombay Oxygen Corporation Ltd. (Lactodex) at a market share of 70.0% (US$10.3 million), Sproutlife Foods Pvt. Ltd. (Yoga Bar) at 27.7% (US$4.1 million), 365 Build Technologies Pvt. Ltd. (HYP Protein bar) at 1.3% (US$0.2 million), and General Mills Inc. (Nature Valley) at 1.0% (US$0.2 million).
New product launches in India
Mintel research shows that there were 4,246 new protein food (3,372), drink (668), and pet food (206) products launched in India’s grocery retailer outlets (including new variety/range extension, packaging, formulation or relaunched) between the period of January 2018 and May 31st, 2023: which consisted of 14.1% claims suitable for plant-based (599) and 91.2% of high/added protein (3,874) products. (Note: each product can contain more than one of these claims).
Meat substitute launches in Asia with meat and poultry flavors are surging ahead in the retail market. Consumers are interested in reducing their meat intake mostly as a dietary staple, and many want to enjoy the same meat-like taste and texture of meat. Consumers are also keen on having a diverse range of meat flavor-inspired options (including fauna – dark fruit, light tannins wine flavors), along with infused flavors like pairing umami vegetables and seaweed with plant based meat substitutes.
Consumers are seeking health dietary attributes, which are linked to longevity and disease prevention. Meat substitute brands are highlighting high protein, low/ no/reduced cholesterol content, added fibre and other better-for-you or nutritional beneficial claims while reducing artificial ingredients. Consumers in India are also increasingly conscious of the nutritional value of what they eat, whereby 38% (sample size = 3,000) believe that eating a plant-based diet can help to reduce the risk of diseases.
Leading parent companies launching plant-based or high/ added protein food and drink products (1,257) in India between Q2-2022 and Q2-2023 were Happilo International (34), Bright Lifecare (33), Hector Beverages (17), Istore Direct Trading (17), Flogre International (16), and Naturell (15).
New brands appearing for the first time launched in the Indian market within the last 6 months, included Nutraj Snackrite (sports mix), Brave Nutrition Series Your Starter Protein (vanilla flavoured protein powder), The Naturik Co. (oats cheela mix) and Desi Nutri (multi millet health drink mix)
Top categories for plant-based or high/added protein claims in India were snacks (30%), nutritional drinks and other beverages (14.5%), bakery (10%), breakfast cereals (9%), and dairy (7%) between January 2018 and May 2023. New baby food ingredients appearing within the last 12 months included jasmine, lotus root, starches enzyme treated, yellow mustard seed, dill seed, chlorella flour, lemon mint and Kakvi (jaggery or gur, unrefined sweetener). The fastest growing baby food flavors were masala (+500%), berry (+300%), peppercorn, hazelnut, barbecue, and cardamom (+200%) between Q2-2021 and Q2-2023
Between January 2018 and May 2023, top claims for high/added and/or plant-based protein food and beverage (not including pet food) product launches include vegetarian, high/added protein, no additives/preservatives, high/added fibre, free from added/artificial preservatives, low/no/reduced allergen, gluten free, all natural product, functional-energy, low/no/ reduced cholesterol, and plant based.
Top growing plant-based and high in protein claims were palm oil free (+1100%), hormone free (+800%), Kosher (+400%), time/ speed (+288%), and ethical – human (+250%) between Q1-2022 and Q1-2023. Meanwhile, declining claims by −100% were male, carbon neutral, ethical-biodegradable, functional-beauty benefits, and functional-eye health (−83%) during the same period.
Trends to watch out for
Globally, new plant-based, vegan and vegetarian product developments or launches have been growing not only in the food and beverage sector with 66.7% of claims in 2022 and a growth of 3.1% (2015-2021), while such plant-based claims are also becoming popular in the consumer health (50%), and the beauty and personal care segments (74.6%) by a growth of 8.3%.
Plant-based eating and alternative proteins has been steadily rising (accelerated by the Covid-19 pandemic) amongst most countries. Health benefits are the main reason for consuming plant-based diets and are mostly found in the plantbased meat substitutes and dairy milk alternatives food categories.
Flexitarianism is a major driver for growth in the meatless category (23% trying to limit meat intake vs. 15% trying to follow a plant-based diet), while other motivations to a lesser extent over health reasoning includes climate change, sustainability, environmental, and animal rights/welfare concerns. Consumers find that positive nutritional quality claims such as ‘added/high protein’ content is the most important feature when purchasing plant-based drinks.
Plant-based innovation is now reaching all food segments like ingredient replacements in categories such as fish and seafood (Green cuisine’s fishless fingers and Nestlé’s Vrimp), cheese (ie; Fromagerie Bel and Danone), sugar and chocolate confectionery (ie; Nestlé’s vegan Kit Kat), sauces, dressings and condiments, prepared baby food, and ready meals etc.
Although, plant-based alternatives are deemed to be healthier compared to their dairy/meat counterparts, the segment must continue to scientifically prove and to protect its “health halo” (not overestimate the healthfulness of their claims) by keeping labels transparent and easy to understand its ingredients through simple, clean benefit claims
As the segment finds its place in the retail market, claims often used to differentiate its products and pull in more consumers include lab cultivated (pushed by regulatory bodies), animal free (preferred naming nomenclature), and more recently trying to battle the right to advertise as “natural” to compete with consumer concerns possibly found in real meat products such as toxins (mercury) and microplastics, antibiotics, added hormones, along with sustainability (overfishing)
This natural claim is mostly used in plant-based beverages to market those products with natural ingredients and focus on top consumer trend claims such as those that have limited or no added sugar (sweetened instead with natural Stevia, Monkfruit, Allulose), free from preservatives, all natural, no artificial sweeteners, good for heart health, no added salt/fat/ transfat or hydrogenated oils etc.
According to a Euromonitor survey (sample size =6,083), the challenge that the plant-based segment faces is that 30% of global consumers.report that not enjoying the taste is a reason for not consuming plantbased dairy alternatives. In the past, soy beverages more for consumers with lactose intolerance did not taste good, which helped offset the segment’s positive perception.
However, there are new better tasting options like oat plantbased milks, boosting the segment further and improvements to the quality (possibly health) and natural taste are being addressed through precision fermentation for dairy-free and cell-cultivated meat and seafood products.
Precision-fermented proteins are being developed at a record pace but manufacturers must deliver tangible consumer-facing benefits to match those offered by plant based alternatives.
To further advance the plant based, vegan, and vegetarian market, the next strategic steps involve greater involvement of prominent food service corporations to champion these products and catalyze the trend’s expansion into a broader consumer base. Notably, international giants like Yum! Brands, known for establishments such as KFC, Pizza Hut, and Taco Bell, were pioneers in introducing meat alternatives on a large scale.
Meanwhile, Burger King has committed to a substantial 50% reduction in meat consumption within the UK by the year 2030. Simultaneously, full-service restaurants (FSRs) are proactively diversifying their menus with new and enticing plant-based offerings. They aim to position these alternatives as sought-after choices, aligning with health-conscious trends and broader sustainability initiatives.
