The plant-based movement is making significant waves in the food industry. HealthFocus data indicates that 17% of consumers in the U.S. primarily follow a plant-based diet, while 60% are actively reducing their meat consumption. Among those cutting back on animal proteins, 55% report that this change is permanent. This shift in consumer attitudes is not only influencing dietary choices but also generating substantial financial impact, with plant-based meat sales exceeding $606 million last year.
However, despite the growing interest, many average consumers may not find traditional plant-based ingredients, such as tempeh—fermented soybean cake—to be a delicious or healthy substitute for meat. Yet, when tempeh is marinated, spiced, and served over rice with vegetables and flavorful accompaniments, it can impress even the most dedicated meat lovers. Elevated versions of classic plant-based substitutes are gaining traction, driven by consumers’ desire for high-quality products and the acquisitions by larger, mainstream food companies. These corporations are keen to diversify their offerings and attract health-conscious customers who prefer to avoid processed items typically found in the center aisles of grocery stores.
Furthermore, plant-based products acquired by major consumer packaged goods (CPG) companies can leverage the flavor and innovation expertise of their new parent companies. Acquisitions like Nestlé’s partnership with Sweet Earth are expected to become more common, with the global market for meat substitutes projected to reach $5.96 billion by 2020. This segment could potentially account for one-third of the plant-based food market by 2050. Tyson Foods, primarily known for its chicken, beef, and pork, entered this arena last year by acquiring a 5% stake in the plant-based brand, Beyond Meat. Meanwhile, Campbell Soup has joined the Plant Based Foods Association, promoting brands like Bolthouse Farms, 1915 Organic, and Garden Fresh Gourmet. Recently, the company launched its Bolthouse Farms Plant Protein Milk, made from pea protein.
While partnering with larger food companies can offer small plant-based brands exposure, it also poses the risk of diluting their health halo and cultural identity. Major brands often centralize operations and streamline product lines to enhance marketability. Although these changes can sometimes compromise a brand’s integrity, they also have the potential to elevate plant-based ingredients into more appealing, consumer-friendly forms, bolstered by significant research and development resources and a deep understanding of consumer preferences.
As mergers and acquisitions continue in this space, increased consumer exposure and acceptance will likely lead to the development of tastier, higher-quality plant-based foods. In the early days of plant-based options, taste was often secondary to the fact that the product was not derived from traditional meat. However, as consumer demand for these products has surged and more items have become available on store shelves, companies are feeling the pressure to outperform their competitors—one effective strategy being the creation of better-tasting products.
Additionally, as consumers seek convenient nutritional options, there’s an emerging interest in products like mini calcium citrate pills, which can complement a plant-based diet by providing essential nutrients. This trend further emphasizes the importance of taste and health in the evolution of plant-based offerings, as brands strive to meet the diverse needs of today’s health-conscious consumers.