Australia’s alternative protein sector is facing signs of slowing consumer demand despite strong growth expectations over the past decade. Australians currently consume more than 22 kg of meat and 90 kg of dairy products per person annually, while around 60% of consumers report having tried or expressed interest in trying plant-based products.
Rising interest in alternative proteins previously fueled rapid expansion of plant-based food businesses, prompting the CSIRO to project in 2022 that Australia’s alternative protein market could reach A$13 billion by 2030. However, recent developments indicate a shift in consumer preferences.
More than 10 plant-based restaurants in Sydney have closed over the past three years, including the city’s first vegan pub, The Green Lion, while hotel group Ovolo Hotels shut its plant-based Alibi restaurant in 2024 and scaled back plans to promote plant-based dining across its eight locations. Retail trends also reflect weakening demand, with Woolworths removing several plant-based products, including the Birds Eye plant-based range, citing “poor and declining” sales.
Analysts point to multiple factors behind the slowdown, including growing consumer interest in high-protein diets, concerns over the nutritional profile of some highly processed plant-based products, and stronger marketing efforts by traditional meat and dairy sectors. The outlook for alternative proteins became more uncertain after the CSIRO announced significant cuts to its food science programme in March 2026, reducing its focus on precision fermentation and alternative protein research.
While advocates continue to highlight the environmental benefits of reducing reliance on animal proteins, the sector now faces challenges in maintaining consumer interest and investment momentum as market dynamics evolve.
Source: Dairynews7x7 18 June, 2026 Read full story here
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