Canada Protein & Protein Alternatives Market Report 2023

Overview

• What you need to know
• This Report looks at the following areas
• Definition

Executive Summary

• Top takeaways
• Meat and dairy remain popular with Canadians
• Canadians are more likely to claim they are eating less meat than more meat
• No one format is a go-to for protein
• Consumer trends
• Most Canadians link to meat and dairy to climate change
• Younger consumers are more open to alternative sources of protein
  • Figure 1: “I would like to see more plant-based alternatives on restaurant menus” (% agree), by age, 2022
• When it comes to why Canadians eat protein, balance is centrally important
  • Figure 2: Most important reasons for eating protein, 2022
• Competitive strategies
• Protein can support tiering strategies
  • Figure 3: Oikos Pro Vanilla Flavored Yogurt-Cultured Ultra-Filtered Milk (US), 2022
• Promote protein, but lead with enjoyment
  • Figure 4: Kellogg’s Special K Protein Cashew Caramel Pretzel Bars (Canada), 2022
• Promoting protein can extend beyond ‘the what’ to be more resonant
  • Figure 5: Lahli Morning Protein Bites (US), 2022
• Market predictions
• Conditions support plant-based alternatives’ future viability, but the pace of growth is in question
• With cell-based foods on the horizon, innovation will accelerate and competition will intensify
• Meat and milk in plant-based foods have lead the way for other protein alternatives
  • Figure 6: Outlook for protein and protein alternatives, 2023-28
• Opportunities
• Half of Canadians are open to products that blend animal- and plant-based protein
• There is a gap between perception and reality when it comes to getting enough protein in one’s diet
  • Figure 7: Halo Top Keto Pops Chocolate Cheesecake Chocolate Flavored Coated Frozen Dessert (US), 2022
• Well-known plant-based protein ingredients are more trusted
  • Figure 8: Preferred plant-based protein ingredients, 2022

Market Factors

• Innovative solutions are needed to sustainably feed the world’s growing population
  • Figure 9: Growth in global meat production vs global population, 1961-2018
• Climate change will dominate the discussion over the next decade and beyond
  • Figure 10: Sources of greenhouse gas emissions in Canada, 2018
• Immigration continues to drive Canada’s population growth…
  • Figure 11: Overall actual/planned permanent resident admissions, 2021-25
• …with Asia and India more specifically as the primary source
  • Figure 12: Permanent residents admitted to Canada, by country (top 10), 2021
• Canada’s aging population is a headwind for plant-based alternatives
  • Figure 13: Percentage of Canada’s population aged 0-14 and 65+, 1988-2068*

Competitive Strategies and Market Opportunities

• There is ample variety of sources when it comes to protein
• Protein can help meet consumers’ demand for value
  • Figure 14: Annasea Shoyu Yellowfin Tuna Poke Mix & Serve Meal Kit (Canada), 2022
  • Figure 15: Wild Fork Prime Rib Beef Roast & Gravy (US), 2023
• • Figure 16: Good Catch Naked in Water Plant-Based Tuna (US), 2022
  • Figure 17: Nasoya Plantspired Superfood Skillet Breakfast Scramble (US), 2022
• Flexible solutions offer consumers the protein they crave
  • Figure 18: Egglife Sweet Cinnamon Egg White Wraps (US), 2022
  • Figure 19: Lahli Morning Protein Bites (US), 2022
• • Figure 20: Quaker Triple Berry High Protein Instant Oatmeal (US), 2022
  • Figure 21: Gatorade Chocolate Chip Protein Bar (US), 2022
• High-in-protein snacks empower consumers
  • Figure 22: Whisps Cheddar Cheese Crisps (US), 2022
  • Figure 23: Dream Pretzels Protein Pressels Salt Thin & Crisp[y Pretzel Chips (Canada), 2022
• • Figure 24: Oikos Pro Vanilla Flavored Yogurt-Cultured Ultra-Filtered Milk (US), 2022
  • Figure 25: Liberté Greek High in Protein Banana Yogurt (Canada), 2022
• Indulgent cues build on the benefits protein offers
  • Figure 26: Kellogg’s Special K Protein Cashew Caramel Pretzel Bars (Canada), 2022
  • Figure 27: Eat Me Guilt Free Cotton Candy Protein Blondie (US), 2022
• • Figure 28: NuGo Nutrition (US), 2022
  • Figure 29: Signature Select The Emperor Wagyu Beef Patties (US), 2022
• • Figure 30: Halo Top Keto Pops Chocolate Cheesecake Chocolate Flavored Coated Frozen Dessert (US), 2022
• Plant-based alternatives can be more specific with the value they offer
  • Figure 31: Beyond Meat Cookout Classic Plant-Based Burger Patties (US), 2022
  • Figure 32: The Meatless Farm Co Meat Free Ground (US), 2019
• Cell-based innovations offer the potential for even more competition in the protein space
  • Figure 33: Cultured Meat: A Vision of the Future, 2018
• Plant-based meat alternatives innovate in an increasingly competitive environment
• Plant-based is moving beyond the burger (and milk)

The Protein & Protein Alternative Consumer – Fast Facts

Dietary Preferences

• Most Canadians eat meat, but as a sector it’s vulnerable
  • Figure 34: Dietary preferences, 2021 and 2022
• • Figure 35: Dietary preferences, by age, 2022
• • Figure 36: Dietary preferences (select), Chinese Canadians and South Asians vs overall, 2022
• • Figure 37: Dietary preferences: carnivores, Prairie Provinces vs overall, 2022

Type of Proteins Eaten

• Consumption of animal-based proteins far outpaces plant-based alternatives
  • Figure 38: Proteins eaten by category, 2022
• • Figure 39: Animal proteins eaten by those who eat specific plant-based proteins, 2022
• • Figure 40: Proteins eaten by category, by diet type, 2022
• Plant-based proteins drop off among older consumers
  • Figure 41: Animal- vs plant-based proteins eaten (NET), by age, 2022
• • Figure 42: Proteins eaten by category, by age, 2022
• • Figure 43: Proteins eaten by category, South Asians vs Chinese Canadians vs overall, 2022
• Plant-based proteins show momentum, while meat and seafood face particular challenges
  • Figure 44: Proteins categories consumers are eating more, the same and less of, 2022

Concerns over Animal-based Protein

• Most Canadians link meat and dairy to climate change
  • Figure 45: Concerns related to animal-based proteins (% agree), 2022
• Canadians are more likely to cut back on meat than dairy when looking to eat/drink healthier
• Attitudes toward meat and health suggest a generational divide
  • Figure 46: Concerns related to animal-based proteins (% agree), by age, 2022
• • Figure 47: Concerns related to animal-based proteins (% agree), South Asians vs Chinese Canadians vs overall population, 2022

Attitudes toward Animal- and Plant-based Proteins

• Plant-based offerings are a supplement to, but not a replacement for, animal-based proteins
  • Figure 48: Attitudes toward animal- and plant-based proteins (% agree), 2022
• • Figure 49: Attitudes toward animal- and plant-based proteins (% agree), by age, 2022
• • Figure 50: Attitudes toward animal- and plant-based proteins (% agree), Prairie Provinces vs overall, 2022

Openness to Innovation

• With many viewing plant-based proteins as a means to supplement their diets, many also see a role for blended products
  • Figure 51: Openness to protein-related innovation (% agree), 2022
• The next frontier: the willingness to explore the notion of lab-grown meat is increasing
• Young adults are more accepting of protein-related innovation
  • Figure 52: Openness to protein-related innovation (% agree), by age, 2022
• • Figure 53: Openness to protein-related innovation (% agree), by education level, 2022
• The Prairies continue to be a ‘tougher nut to crack’ for plant-based protein alternatives
  • Figure 54: Openness to protein-related innovation (% agree), Prairie Provinces vs overall, 2022

Reasons for Consuming Protein

• The most important reason for eating protein is balanced diet
  • Figure 55: Most important reasons for eating protein, 2022
• • Figure 56: Most important reasons for eating protein, by age, 2022
• • Figure 57: Most important reasons for eating protein, South Asians vs Chinese Canadians vs overall, 2022
• A third of Canadians cite difficulty getting enough protein in their diets
  • Figure 58: Attitudes toward getting enough protein in diets (% agree), 2022
• • Figure 59: Attitudes toward getting enough protein in diets (% agree), by age, 2022
• • Figure 60: Attitudes toward getting enough protein in diets (% agree), South Asians vs Chinese Canadians vs overall population, 2022

Appealing Sources of Protein

• Yogurt tops the list as an ‘appealing’ source of protein
  • Figure 61: Appealing sources of protein, 2022
• As Canadians age, the number of protein sources that hold appeal shrink
  • Figure 62: Appealing sources of protein, by age, 2022
• • Figure 63: Appealing sources of protein (select), men vs women, 2022
• The appeal of different protein sources varies by region
  • Figure 64: Appealing sources of protein (select), by region, 2022
• South Asians are more likely to supplement their protein intake with powders and shakes
  • Figure 65: Appealing sources of protein (select), South Asians vs overall, 2022

Preferred Plant-based Protein Sources

• Nuts are the preferred plant-based protein source for Canadians
  • Figure 66: Preferred plant-based protein ingredients, 2022
• Younger consumers are more open to less ‘traditionally known’ proteins
  • Figure 67: Preferred plant-based protein ingredients, by age, 2022
• • Figure 68: Preferred plant-based protein ingredients, British Columbia vs overall, 2022

Appendix – Data Sources and Abbreviations

• Data sources
• Consumer survey data
• Mintel Trend Drivers
• Abbreviations and terms
• Abbreviations