Investors
Market
The relevant market for Solar Foods is total protein demand in product categories produced with non-animal protein. We estimate that the value of this market for our first Solein product was approximately EUR 3.8 billion in 2022. The biggest product category, with a share of 36%, is dairy substitutes, such as dairy-free drinks, yoghurts and cheeses. The second largest group is meat substitutes with a 34% share and the third largest is meal replacements and protein powders with a 23% share.
With a 14% estimated annual growth rate by Boston Consulting Group, the relevant market size for Solar Foods would be EUR 20.8 billion in 2035.
The size of the relevant market for Solar Foods (EUR billion)
Market trends and growth drivers
Change in consumer behaviour
Consumers are increasingly taking climate and environmental factors into account in their purchasing decisions and are striving to reduce the consumption of traditional products. Food companies need to find new sustainable protein sources that can not only replace animal proteins but also genuinely reform their food offering.
Population growth
The world population is expected to grow to 10 billion by 2050. Solar Foods believes that providing a sufficiently nutritious diet for a growing population requires new solutions for food production already today.
Climate change and biodiversity loss
As climate change progresses, the ability to produce food regardless of climatic conditions will become highlighted. A significant part of the world's surface area is already used for agriculture, and the land available for agriculture can no longer be sustainably expanded.
On the contrary, there is pressure to reforest agricultural land to grow global carbon sinks. In addition to energy production, food production is the most significant environmental modifier and the main reason for biodiversity loss.
Geopolitics
The importance of self-sufficiency in food production is emphasized due to geopolitical reasons. The global food supply chain is quite fragile and concentrated: For example, three countries account for over 80% of the world’s soy production, so even a small crisis will have a significant impact on global protein availability or at least the price. Prevailing geopolitical tensions have put food self-sufficiency at the top of many countries' list of priorities. In addition, countries are using legislation to find new solutions to tackle climate change, biodiversity loss and sustainable food production.
