Plant-based meat alternatives – an opportunity for commercial real estate?
As people are becoming more focused on sustainability and the impact their lifestyle has on the planet, new forms of plant-based meat options are arriving on the market, and they’re gaining popularity as people look for ethical and cruelty-free products similar to those they’re accustomed to eating.
Growth of plant-based meat and dairy alternatives
Plant-based meat market is expected to generate a revenue of USD15.7 billion by 2027, with a CAGR of 14.7% in terms of value between 2022 and 2027 according to a report by MarketandMarkets, 2022. The growth of these markets is driven by an increasing awareness about health benefits of a plant-based diet, as well as growing concerns over animal products and the amounts of energy and land required to produce them.
The plant-based market is also expected to be given a boost, as support grows from governments and organizations that are looking to make us more sustainable. Although incentives vary by country and region, some examples include funding for research and development, tax-breaks and subsidies for farmers growing crops to make plant-based meat and dairy-free products. Some organizations also promote plant-based alternatives through educational campaigns and by making them available in public institutions, which will only escalate the trend.
With the increased demand and predictions that the “meatless meat” market will continue to grow – as demonstrated by the success of companies such as Impossible Foods and Beyond Meat – there will be an increasing demand in the commercial real estate space to find and develop suitable spaces.
Opportunities for the commercial real estate sector
This is a big growth sector in commercial real estate as producers not only need offices to run their operations but also warehouses, processing plants and retail locations.
In this sector, commercial real estate professionals may see an increase in demand for logistics and cold storage solutions as the market continues to expand. At the very least producers need a commercial kitchen space with adequate refrigeration and freezing capabilities, as well as storage space for raw materials and products.
Another growth sector could be retail space specifically designed to sell planet-based products – including restaurants and supermarkets – as plant-based customers are looking for spaces that cater to their needs.
In conclusion, plant-based meat is a growing trend that is having a positive impact on the commercial real estate sector. Developers can invest in properties that are suitable for the production – such as commercial kitchens and labs – and distribution of these products. It is likely to continue as plant-based meat continues to grow due to our changing lifestyle, as well as incentives and educational campaigns.