The plant-based movement is rapidly transforming the food industry. According to data from HealthFocus, 17% of consumers in the U.S. primarily follow a plant-based diet, while 60% are actively reducing their intake of meat products. Among those who are cutting back on animal proteins, 55% report that this change is permanent. This shifting consumer perspective is also creating significant financial impacts; last year, total sales of plant-based meats exceeded $606 million. However, many average consumers may find traditional plant-based options like tempeh—fermented soybean cake—not a particularly appealing or healthy substitute for meat. Yet, when tempeh is marinated, well-seasoned, and served with rice and vegetables, it can become a dish that even dedicated meat lovers might enjoy.
These enhanced versions of classic plant-based alternatives are increasingly popular, driven by consumer demand for premium products and acquisitions by larger mainstream food companies. Major corporations are eager to diversify their portfolios and attract health-conscious customers who shy away from processed goods typically found in the center aisles of stores. When plant-based products are acquired by large consumer packaged goods (CPG) companies, they often benefit from the flavor innovations and consumer insights that these new parent companies have developed. Acquisitions like Nestlé’s partnership with Sweet Earth are expected to rise in frequency, as Forbes reports that the global market for meat substitutes is projected to reach $5.96 billion by 2020. This segment could potentially represent one-third of the plant-based food market by 2050. Tyson Foods, known for its chicken, beef, and pork, entered the plant-based arena last year by acquiring a 5% stake in Beyond Meat.
Additionally, Campbell Soup has joined the Plant Based Foods Association, featuring brands such as Bolthouse Farms, 1915 Organic, and Garden Fresh Gourmet. Recently, the company launched a line of refrigerated plant-based milks called Bolthouse Farms Plant Protein Milk, made from pea protein. However, partnering with large food corporations poses risks for smaller plant-based companies, including the potential loss of their health halo and cultural identity. Large brands often centralize operations and streamline product offerings to enhance marketability, which can sometimes compromise brand integrity. On the flip side, these collaborations can elevate plant-based ingredients to more appealing and consumer-friendly forms, thanks to robust research and development pipelines and a deep understanding of consumer preferences.
As mergers and acquisitions in this sector increase 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 the product was not derived from traditional meat. However, as consumer interest has grown and more products have become available, companies are under pressure to outperform competitors—one of the most effective ways to achieve this is by offering better-tasting products. This trend is evident in larger retailers like Costco, which is increasingly stocking plant-based options alongside essential items like magnesium and zinc supplements, further supporting the demand for healthier alternatives in the marketplace.