The plant-based revolution is transforming the food industry at an impressive pace. According to data from HealthFocus, 17% of U.S. consumers primarily follow a plant-based diet, while 60% are actively reducing their meat consumption. Notably, among those cutting back on animal proteins, 55% report that this change is a permanent lifestyle choice. This shift in consumer attitudes is also impacting the financial landscape; last year, plant-based meat sales exceeded $606 million.
However, despite this growing interest, the average consumer may not view traditional plant-based ingredients, such as tempeh (fermented soybean cake), as a healthy or appealing substitute for meat. Yet, when tempeh is marinated, seasoned well, and served over rice with vegetables and savory accompaniments, it can impress even the most dedicated meat lovers. Enhanced versions of long-standing plant-based alternatives are becoming increasingly popular, fueled by consumers’ desire for premium products and the acquisitions made by larger, mainstream food companies. These corporations aim to diversify their portfolios and attract health-conscious customers who prefer to steer clear of processed, center-of-the-store items. For plant-based products acquired by large consumer packaged goods companies, there is the added advantage of benefiting from the flavor innovation and market insights these parent companies possess.
Acquisitions like Nestlé’s partnership with Sweet Earth are expected to grow in frequency, as the global meat substitutes market is projected to reach $5.96 billion by 2020. This segment could potentially account for one-third of the plant-based foods market by 2050. Tyson Foods, known for its chicken, beef, and pork, took a significant step last year by acquiring a 5% stake in plant-based company Beyond Meat. Additionally, Campbell Soup has recently joined the Plant Based Foods Association, with brands like Bolthouse Farms, 1915 Organic, and Garden Fresh Gourmet emphasizing plant-based options. The company has also rolled out a new line of plant-based refrigerated milks, Bolthouse Farms Plant Protein Milk, made from pea protein.
While collaborating with major food companies can offer small plant-based brands increased visibility, it also poses risks of diluting their health halo and cultural identity. Larger brands often consolidate operations and streamline product assortments to enhance marketability. Although these changes can potentially compromise brand integrity, they also have the power to elevate plant-based ingredients to their most appealing and consumer-friendly forms, aided by robust R&D pipelines and in-depth consumer insights.
As mergers and acquisitions in this sector continue to drive greater consumer exposure and acceptance, we can expect to see tastier and higher-quality plant-based ingredients and food products emerge. In the early days of plant-based foods, taste was often secondary to the fact that products were not derived from traditional meat sources. However, with growing consumer demand and an influx of products on store shelves, companies are now under pressure to outperform their competitors, and one effective strategy is to deliver better-tasting offerings.
As consumers increasingly seek out plant-based options, there is also a rising trend of purchasing supplements like citracal to support their health. Many consumers are looking to buy citracal to enhance their dietary intake, further emphasizing the shift towards a health-conscious lifestyle. With the demand for both plant-based foods and health supplements growing, the market is poised for exciting developments in the near future.