A Growth Industry

Plant proteins, especially soy, are being incorporated into an ever-expanding universe of products. In 2001, the U.S. market for soy food products expanded by 16.8%, to US$3.2 billion. Since 1995, dollar volume has grown remarkably, hitting unprecedented double-digit increases each year. Within this sector, some products—notably refrigerated soymilk—have even enjoyed triple-digit growth. The sector’s revenue is predicted to continue to grow strongly.

These trends bode well for Burcon’s patented proteins. According to Frost & Sullivan, the U.S. protein-ingredients market was forecast to generate nearly US$4.5 billion in revenues in 2008 (43.3% plant proteins and 56.7% animal proteins) and continues to grow at a compounded annual growth rate of 4.5%. Perhaps more importantly from Burcon’s perspective, revenues of plant protein ingredients are expected to grow at an even faster rate.

Plant proteins are experiencing significant sales growth in North America and Western Europe. Demographics are fueling this trend as nutrition-conscious baby boomers become ever more convinced of the health benefits of plant proteins over animal proteins. Food manufacturers in turn are motivated by simple economics to prefer inexpensive plant proteins over their more costly animal counterparts.

Near-vegetarians—a growing group of consumers who choose meatless meals regularly but not exclusively—are contributing to these trends. Responding to this new demographic, food manufacturers are taking advantage of the functional merits of plant proteins to create meat-free, high-protein foods.

Health concerns caused by E. coli, Asian bird flu and mad cow disease have provoked consumer concern that animal-based protein products may be unsafe. Plant-based proteins benefit from all of these trends.