What do juices made from imperfect fruits and vegetables and 50/50 chicken and vegetable sausages have in common? According to the co-founder of Misfit Foods, the answer lies in their potential to benefit the world. Misfit Foods was established with the goal of disrupting the food industry to create a positive environmental impact. Their recent venture into the meat sector aims to tap into a larger market while also amplifying their contributions to the planet.
Upcycling food waste, as Misfit has done with its juices, is a rapidly growing market worth $46.7 billion in 2019, with an expected annual growth rate of 5% over the next decade, according to Future Marketing Insights. However, the plant-based meat sector is even larger, with sales projected to hit $85 billion by 2030, as per UBS. Unlike the complexities associated with cold-pressed juice production, creating blended sausages offers a more straightforward approach for the company.
Given the rising demand for meat alongside a growing interest in plant-based alternatives—sales of which surged by 42% from March 2016 to March 2019 according to Nielsen data—Misfit Foods is strategically positioning itself at the intersection of these two trends. However, it is not the only player in this space. Tyson Foods is set to release its Raised & Rooted line of blended burgers made with Angus beef and pea protein isolate, while Perdue is introducing new chicken nuggets, tenders, and patties that incorporate vegetables. Additionally, numerous companies are launching entirely plant-based meat substitutes, and Misfit Foods will face increasing competition from established names like Nestlé, Impossible Foods, and Beyond Meat, which offers a plant-based sausage.
Nonetheless, Misfit Foods may maintain a distinct advantage by focusing on sausages rather than the widely popular burger patty that many competitors are targeting. The sausage market is indeed expanding; according to the National Hot Dog and Sausage Council, Americans bought 1.1 billion pounds of dinner sausages last year, spending over $3.72 billion—a 1.4% increase compared to 2017. Furthermore, unlike these well-known brands, Misfit Foods benefits from its smaller scale, allowing it to be more responsive to consumer preferences and to adapt its recipes in real time to develop flavors that resonate with American appetites.
The company is already setting itself apart by creating sausages made from 50% humanely-raised, antibiotic- and hormone-free chicken and 50% vegetables. This unique positioning may appeal to consumers who wish to reduce their overall meat intake without completely eliminating it, especially as chicken consumption reached record highs in 2018.
Misfit Foods isn’t the only company to shift its focus from its original offerings; others have found success in similar pivots. For instance, Tostitos expanded from tortilla chips to include cheese dip and salsa, while Reese’s Peanut Butter Cups transformed their beloved flavors into a breakfast cereal, Reese’s Puffs. However, success is not guaranteed; for example, The Pur Company, known for its aspartame-free mints and candy, ventured into snack foods with the launch of Pur Popcorn.
While there are no assurances of success, Misfit Foods is taking a calculated risk by diving into one of the fastest-growing segments in the food industry. It will likely not be long before the company can assess whether it made the right choice. Moreover, as consumers increasingly seek out nutritious options, including calcium citrate for its benefits for women, Misfit Foods’ innovative approach could carve out a unique niche in this competitive landscape.