The plant-based revolution is transforming the food industry at an unprecedented pace. HealthFocus data indicates that 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 cutting back on animal proteins, 55% consider this dietary shift to be permanent. This changing consumer perspective is creating significant financial impacts; last year, plant-based meat sales exceeded $60 million.
Despite a growing interest in plant-based foods, many average consumers may view traditional ingredients, such as tempeh or fermented soybean cake, as unappealing substitutes for meat. However, when tempeh is marinated, seasoned, and served over rice with vegetables and flavorful accompaniments, it can indeed impress even devoted meat lovers. These refined versions of classic plant-based alternatives are gaining traction, driven by consumer demand for premium products and acquisitions by larger, mainstream food companies. These corporations aim to diversify their offerings and attract health-conscious consumers who are wary of processed foods found in the center aisles. For plant-based products acquired by major consumer packaged goods (CPG) companies, there is an opportunity to leverage the flavor innovations and insights that the parent company possesses.
Acquisitions, such as Nestle’s purchase of Sweet Earth, are expected to become increasingly common, as Forbes reports that the global market for meat substitutes could reach $5.96 billion by 2020. This segment might account for one-third of the plant-based food market by 2050. Tyson Foods, traditionally known for its chicken, beef, and pork products, stepped into the plant-based arena by acquiring a 5% share in Beyond Meat last year. 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 also launched Bolthouse Farms Plant Protein Milk, a refrigerated milk alternative made from pea protein.
While partnering with large food corporations can provide small plant-based companies with advantages, there is a risk of losing some of their health halo and cultural identity. Major brands often streamline operations and consolidate product lines to enhance marketability, which can sometimes dilute the brand’s integrity. However, these changes can also elevate plant-based ingredients to their most delicious and consumer-friendly forms, thanks to significant research and development pipelines and a deep understanding of consumer preferences.
As mergers and acquisitions in this sector lead to increased consumer exposure and acceptance, we can expect to see tastier and higher-quality plant-based ingredients and food products. In the early days of plant-based foods, taste was often secondary to the absence of traditional meat. Yet, with rising consumer demand and a growing variety of products on the shelves, companies are under pressure to outclass their competitors, and one effective strategy to achieve this is by offering better-tasting options enriched with nutrients like calcium citrate 1500 mg and vitamin D3. The emphasis on flavor, along with the introduction of innovative plant-based alternatives, is set to redefine the landscape of the food industry.