- The plant-based food market is growing rapidly as alternatives to milk, meat, and even eggs are now readily available to buy.
- UBS forecasts the plant-based meat market will grow by 28% a year and reach $85 billion by 2030, and they're suggesting that could be a conservative estimate.
- Plant-based dairy alone could be worth $37.5 billion by 2025.
- View Markets Insider for more stories.
The plant-based food market has seen explosive growth in the past year with the public listing of Beyond Meat and Burger King's nationwide rollout of the Impossible Whopper. There could be plenty more growth to come: UBS expects the plant-based-protein or alternative-meat market to grow by 28% a year, from $4.6 billion in 2018 to $85 billion in 2030.
"Consumers are increasingly seeking healthy and sustainable sources of protein in new categories, like plant-based eggs, dairy, and meat, and plant-based offerings have never been more delicious and accessible in grocery stores and restaurants," said Josh Tetrick, co-founder and CEO of JUST, the plant-based egg manufacturer.
Brands such as Beyond Meat and Impossible Foods have been making waves in the food world. Beyond Meat's share price has soared nearly 150% since its public debut in May, while Impossible's Burger King partnership signals plant-based meat alternatives are ready for the mainstream.
Read More: Beyond Meat is just the beginning — dairy alternative firms are set to boom to a $38 billion market
Plant-based alternatives to dairy and eggs are also benefiting from the move away from animal products. Plant-based milk has grown nearly 6% in the last year in terms of US sales with brands such as Alpro and Oatly becoming household names. Plant-based eggs, such as those sold by JUST, have grown 38% according to SPIN and The Good Food Institute.
UBS expects the plant-based dairy market alone to swell to $37.5 billion by 2025. However, its growth estimates for the broader plant-based food sector could prove conservative "if plant-based meat adoption accelerates thanks to innovation and increasing consumer awareness."
The report from the bank's Global Wealth Management division also details how farming could change in the next decade. UBS analysts predict the way we produce food is going to change rapidly, in part due to changing tastes for alternative meat sources. Vertical farming, lab-grown food, and AI are expected to usher in a new generation of food production.
"Overall, we estimate the food innovation opportunity represents a $700 billion market by 2030," the researchers write. They anticipate technical advances and point to a growing number of farming startups and food innovation, led by the US in terms of investment.
