The plant-based revolution is rapidly transforming the food industry. HealthFocus data reveals that 17% of U.S. consumers primarily follow a plant-based diet, with 60% stating they are reducing their meat consumption. Among those cutting back on animal proteins, 55% consider this change a permanent shift. This evolving consumer mindset is not only influencing dietary choices but also generating significant financial impacts — last year, sales of plant-based meats exceeded $606 million.
However, despite this growing interest, many consumers may not view traditional plant-based ingredients, such as tempeh (fermented soybean cake), as appealing or healthy substitutes for meat. Yet, when tempeh is marinated, seasoned well, and served over rice with vegetables and flavorful accompaniments, it can surprise even the most dedicated meat lovers. Elevated versions of traditional plant-based substitutes are becoming more prevalent, partly due to consumers’ desire for premium products and the acquisitions made by larger food companies. These major players are diversifying their portfolios to attract health-conscious customers who prefer to avoid processed items found in the center aisles of stores.
For plant-based products acquired by large consumer packaged goods (CPG) companies, there are additional benefits stemming from the flavor and innovation expertise that these parent companies bring. Acquisitions, such as Nestlé’s partnership with Sweet Earth, are expected to increase in frequency, 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 foods market by 2050. Notably, Tyson Foods, known for its chicken, beef, and pork, entered the plant-based arena last year by acquiring a 5% stake in Beyond Meat. Campbell Soup has also joined the Plant Based Foods Association, promoting brands like Bolthouse Farms, 1915 Organic, and Garden Fresh Gourmet. Recently, they introduced the Bolthouse Farms Plant Protein Milk, made from pea protein.
While collaborating with major food corporations offers small plant-based companies exposure, it also carries the risk of losing some of their health-focused image and cultural identity. Large brands often centralize operations and simplify their product lines to enhance marketability. Although these changes can sometimes compromise a brand’s integrity, they also have the potential to refine plant-based ingredients into more appealing and consumer-friendly products, supported by extensive R&D capabilities and a deep understanding of consumer preferences.
As mergers and acquisitions in this sector lead to increased consumer exposure and acceptance, we can expect a rise in delicious and high-quality plant-based ingredients and food products. In the early stages of plant-based foods, taste was often secondary to the fact that the products were not derived from traditional meat. However, as consumer demand has surged and more options become available on store shelves, companies are feeling the pressure to outperform their competitors — one significant way to achieve this is by offering tastier products. Innovations like calcium citrate caramel chews are just one example of how the industry is evolving to meet consumer tastes while providing healthier alternatives. As the market continues to grow, the focus on flavor will become increasingly critical, ensuring that plant-based items not only meet dietary preferences but also satisfy palates.