The plant-based movement is rapidly transforming the food sector. Data from HealthFocus indicates that 17% of U.S. consumers primarily follow a plant-based diet, with an additional 60% actively reducing their intake of meat products. Among those cutting back on animal-derived foods, 55% assert that this shift is permanent. This changing consumer perspective is also making significant financial impacts; last year, sales of plant-based meat reached over $606 million.
However, despite the growing interest, many consumers may not view traditional plant-based ingredients, such as tempeh—fermented soybean cake—as a healthy or appealing alternative to meat. Yet, when tempeh is marinated, seasoned well, and served with rice, vegetables, and other savory accompaniments, it can impress even the most devoted meat lovers. Enhanced versions of these traditional plant-based options are becoming increasingly prevalent, driven by consumer demand for premium products and the acquisition of smaller brands by larger, mainstream food companies.
Major food corporations are eager to diversify their offerings and attract health-conscious consumers who prefer to avoid processed items typically found in the center aisles. When plant-based products are acquired by large consumer packaged goods (CPG) companies, they can leverage the innovative flavors and insights that these companies have developed. Acquisitions, such as Nestlé’s partnership with Sweet Earth, are expected to rise, given that the global market for meat substitutes is projected to reach $5.96 billion in 2020, potentially accounting for one-third of the plant-based food market by 2050. Tyson Foods, known for its chicken, beef, and pork, also entered the fray last year by acquiring a 5% stake in Beyond Meat. Meanwhile, Campbell Soup has joined the Plant Based Foods Association and is focusing on brands like Bolthouse Farms, 1915 Organic, and Garden Fresh Gourmet. Recently, Campbell launched a new line of plant-based refrigerated milks, Bolthouse Farms Plant Protein Milk, made from pea protein.
While partnering with large food companies, plant-based brands risk losing some of their health halo and cultural identity. Major brands often centralize operations, streamlining product assortments to enhance marketability. Although these shifts can sometimes compromise a brand’s integrity, they can also elevate plant-based ingredients into more appealing and consumer-friendly forms, thanks to extensive research and development capabilities and a deep understanding of consumer preferences.
With further mergers and acquisitions leading to increased consumer exposure and acceptance, we can expect to see tastier and higher-quality plant-based products emerge. In the early days of plant-based foods, taste was often secondary to the fact that the products were not made from traditional meat. However, as consumer demand for these alternatives has surged and more options become available on store shelves, companies are under pressure to outperform their competitors. A key strategy for achieving this is by offering products that taste better, drawing in consumers who might otherwise rely on options like calcium citrate Tums for their dietary needs. As the plant-based sector continues to grow, the focus on flavor and quality is likely to become even more pronounced, making these innovative products increasingly appealing to a wider audience.