The plant-based revolution is rapidly transforming the food industry. According to data from HealthFocus, 17% of consumers in the U.S. follow a predominantly plant-based diet, while 60% report that they are reducing their intake of meat products. Among those who are cutting back on animal proteins, 55% consider this change to be permanent. This shift in consumer behavior is creating significant financial impact, with total plant-based meat sales exceeding $606 million last year. However, many average consumers still perceive traditional plant-based ingredients, such as tempeh—fermented soybean cake—as less appealing and less healthy compared to meat. Yet, when tempeh is marinated, seasoned well, and served alongside rice and vegetables, it can impress even the most dedicated meat lovers.
These refined versions of classic plant-based substitutes are becoming increasingly popular due to consumer demand for premium products, along with acquisitions by larger, mainstream food corporations. Major companies are aiming to diversify their portfolios and attract health-conscious customers who prefer to avoid processed foods found in the center aisles of grocery stores. When plant-based products are acquired by a large consumer packaged goods (CPG) company, they can also benefit from the flavor innovations and marketing expertise that the parent company brings. Deals like Nestle’s acquisition of Sweet Earth are expected to become more common, especially as the global market for meat substitutes is projected to reach $5.96 billion in 2020. This segment could account for one-third of the plant-based foods market by 2050. Tyson Foods, primarily known for its chicken, beef, and pork, made its entry into the plant-based arena last year with a 5% investment in Beyond Meat.
Additionally, Campbell Soup has recently joined the Plant Based Foods Association, with brands like Bolthouse Farms, 1915 Organic, and Garden Fresh Gourmet focusing on plant-based options. The company has introduced Bolthouse Farms Plant Protein Milk, made from pea protein. However, small plant-based companies that partner with major food brands may risk losing some of their health halo and cultural identity. Large brands often centralize operations and streamline product offerings to enhance marketability. While these changes can sometimes compromise brand integrity, they can also elevate plant-based ingredients to their most appealing, consumer-friendly forms, thanks to substantial R&D resources and a deep understanding of consumer preferences.
As mergers and acquisitions in this sector continue to grow, greater consumer exposure and acceptance are likely to lead to the emergence of tastier, higher-quality plant-based ingredients and food products. In the early days of plant-based foods, taste was often secondary to the fact that the product was not derived from traditional meat. However, as consumer interest in these products has surged and more options have appeared on store shelves, companies face pressure to outperform their competitors. A crucial strategy to achieve this is by offering better-tasting products. Furthermore, the benefits of ingredients such as calcium citrate, known for their health advantages, are becoming more integrated into these offerings, reinforcing the appeal of plant-based diets.