South America plant protein market is projected to grow at a CAGR of 7.98 till 2025. The preference of individuals is shifting increasingly towards the plant protein-rich foods and premium protein products, which is being facilitated by the rising awareness of the health benefits they are able to provide, thus pushing the plant protein products to gain traction among the population. This increase in interest towards premium protein products to lead a healthier lifestyle is being facilitated to the desire and ability to spend more, caused by an increase in the disposable income among the individuals belonging to the middle income and lower-income population.
In addition, beef is a type of red meat that is widely consumed in Argentina and is an ingredient that is widely used in the food items. The data about beef consumption in Argentina by the Argentina’s Chamber of Commerce for Beef and its Derivatives was presented in July 2019 and shows that the beef consumption dropped to its lowest value ever in the last 50 years. This is partly attributed to the increasing awareness and change of food preferences towards healthier and more protein-rich foods such as plant protein products and the steps and initiatives being taken by the children, millennials, and activists.
Also, to stay healthy and lead a longer and disease-free life, the younger population in Brazil among other countries in the region are increasingly joining gyms and visiting fitness centers to exercise and stay fit. The daily exercises and fitness activities induce an extra appetite in the body and require a proper diet rich in nutrients and proteins in order to support the rapid growth of muscles, thus causes the younger population to opt for plant-based dietary supplements such as pea protein isolates and pea protein concentrates.
Moreover, there are steps being taken by organizations, government bodies, and farmers throughout the South American region. For instance, the countries such as Brazil and Argentina, there are steps being taken in order to upscale the measures and importance given to animal welfare, particularly due to participation and voices being raised by the younger population. Additionally, the farmers are actively involved in providing cattle high protein diets to facilitate the environmentally friendly project and reduce carbon emissions, as the gases passed by the cattle are rich in methane gas, which is one of the major contributors to climate change. Lastly, the active involvement by the government of Chile in making the consumers aware about the nutritional contents sand presence of saturated fats and sodium content in different foods, they are putting labels on the packaged and processed foods and apart from this they have banned he packaged and processed foods in schools and other educational establishments.
Furthermore, the market players are also contributing to the increasing demand for plant proteins by launching new products in order to improve their market position and positively impact the market growth. For instance, in March, 2019, Grupo Mantiquera, the largest producers of eggs on South America, based in Brazil, announced that they have developed a vegan egg in order to cater to the burgeoning demand for plant-based protein-rich food. The vegan egg called the “N.Ovo” is made using pea starch. This product comes in the form of a powder, which is packaged in a traditional egg carton and can be used for cooking baking applications. The product was launched at the Rio Super Expofood event and was developed in collaboration with the Good Food Institute (GFI), which is a non-profit organization that is into accelerating the development of plant-based food with the objective to reduce meat consumption in Brazil.
Increasing penetration of the internet causing the demand for online channels to soar.
By distribution channel, the market has been segmented on the basis of online and offline. The online distribution channel is projected to hold a significant market share and increase its share over the forecast period. This is attributable to the fact the penetration of internet services is happening at a good pace, which is facilitating the increase of e-commerce and e-0ratil channels, to place online orders for groceries and food items due to the convenience and the lucrative discounts individuals are offered.