In 2020, animal meat production decreased in Germany as the rise of plant-based eating continued its upward trajectory. In 2020, the meat production value decreased nearly 3–5% compared to 2019, whereas the plant-based alternatives experienced double-digit growth during the same period in the country. According to ConsumerIntel360, this growth in plant-based alternatives is largely driven by consumer demand for sustainable and healthier alternatives in the country. It is expected that the trend is likely to remain the same and provide higher growth opportunities for plant-based meat producers in the next few quarters.ConsumerIntel360 expects that meat alternatives segment is expected to record a CAGR of 21.0%, increasing from US$179.7 million in 2020 to reach US$684.3 million by 2027 in Germany.
Falling meat production is expected to create growth opportunity for alternative meats in Germany
ConsumerIntel360 attributes the global coronavirus pandemic to be one of the key reasons behind the fall of meat production in Germany. Some of the meat production plants in Germany were forced to close down temporarily to contain the spread of the virus.Additionally, the declining meat consumption among Germans is also discouraging conventional meat processors. Notably, an average German household would consume 6.7 kg of meat a month in 1987. This has reduced to a third, with an average monthly meat consumption standing at 2.3 kg in 2020.Consequently, ConsumerIntel360 expects that a fall in meat production and the rising vegan population in Germany are likely to provide growth opportunities to alternative meat producers.
Vegan diet is gaining popularity
In Germany, more and more people are turning towards a vegan diet. According to Veganz, a Germany-based supermarket, the number of vegans doubled in four years in the country. It further mentioned that, around 3.2% of the population in Germany are Vegans, whereas 4.4% of the population is vegetarian.
According to ConsumerIntel360’s analysis, these numbers are expected to grow further as consumers in Germany are actively reducing their meat intake. The trend is likely to expand the market space for plant-based meat and other alternatives in the short to medium term.
European trend of reduced meat intake is expected to support alternative meat producers
Germany is not the only European country wherein consumers are seen reducing their meat intake gradually over the years. Other European countries including Austria, Belgium, Denmark, France, Portugal, and Switzerland have also reduced their meat intake significantly.
For instance, in Portugal, over 25% of the consumers have reduced meat consumption in 2020, whereas in Austria, there are more even more flexitarians in 2021 as compared to the year before.In Portugal, the number of animals slaughtered reduced by nearly 3% in 2020, as compared to the year before. Moreover, the overall plant-based industry recorded significant growth in the last two years, largely driven by the increasing demand for alternative meat in the region. While the German market saw the biggest shift to alternative protein, other European countries are also following.
ConsumerIntel360 expects the sales of plant-based protein alternatives to increase significantly as compared to traditional meat sales in the next three to four quarters. This represents a great opportunity for plant-based alternative meat business expansion and investment, from the short to long-term perspective.
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