The plant-based revolution is transforming the food industry. HealthFocus data reveals that 17% of consumers in the U.S. follow a predominantly plant-based diet, while 60% are actively reducing their meat consumption. Among those cutting back on animal proteins, 55% consider this change to be permanent. This shift in consumer attitudes is also having significant financial implications, with total plant-based meat sales exceeding $606 million last year. However, despite the growing interest, many consumers may not view traditional plant-based ingredients, such as tempeh (fermented soybean cake), as appealing alternatives to meat. Yet, when tempeh is marinated, well-seasoned, and served with rice and vegetables, it can impress even dedicated meat lovers.
These sophisticated versions of longstanding plant-based substitutes are becoming 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 consumers who are turned off by processed items. Plant-based products acquired by large consumer packaged goods (CPG) companies can benefit from the flavor innovations and consumer insights that these parent companies possess. Acquisitions, like Nestlé’s partnership with Sweet Earth, are expected to rise, especially as the global meat-substitute market is projected to reach $5.96 billion by 2020. This segment could account for one-third of the plant-based food market by 2050. Tyson Foods, renowned for its chicken, beef, and pork, made its entry last year by acquiring a 5% stake in the plant-based company Beyond Meat. Additionally, Campbell Soup recently joined the Plant Based Foods Association, with brands like Bolthouse Farms, 1915 Organic, and Garden Fresh Gourmet emphasizing plant-based offerings. The company also launched Bolthouse Farms Plant Protein Milk, a refrigerated plant-based milk made from pea protein.
While collaborating with major food companies, smaller plant-based brands risk losing their health halo and cultural identity. Large brands often centralize operations and streamline product assortments to enhance marketability. While these changes can sometimes compromise a brand’s integrity, they can also elevate plant-based ingredients to their most consumer-friendly forms, thanks to robust R&D pipelines and deep insights into consumer preferences. As mergers and acquisitions in this sector increase consumer exposure and acceptance, we can expect tastier and higher-quality plant-based ingredients and products to 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 surged and more items have entered the market, companies face pressure to outperform their competitors—one effective strategy being the development of better-tasting products. Additionally, incorporating essential nutrients like calcium citrate, vitamin D, zinc, copper, manganese, and magnesium into these plant-based options can further enhance their appeal, catering to health-conscious consumers. By integrating these nutrients, brands can attract a wider audience and underscore the health benefits of plant-based diets.