As consumers increasingly demand healthier and more sustainable diets, the plant-based sector is poised for substantial growth. Projections from investment firm UBS estimate that the market for plant-based proteins and meat alternatives will skyrocket from $4.6 billion in 2018 to an impressive $85 billion by 2030. In response to this trend, established companies and investors are investing heavily in the sector. Given Purple Carrot’s mission as a plant-based meal kit company, it’s only natural for them to incubate brands with disruptive potential.
With growing interest in the plant-based arena, startups are competing for the attention of major companies capable of scaling their products and providing national exposure. The Garden Incubator aims to facilitate this process. According to Nosh, the incubator’s strategy will leverage data from its meal kit customers to identify the types of plant-based products that consumers desire. The company plans to collaborate with six to ten brands through its incubator, customizing mentorship to meet specific needs. This mentorship may involve establishing direct-to-consumer distribution channels or assisting in forming supplier agreements. Additionally, the incubator will provide funding, but only to companies that meet the criteria set by New Crop Capital. Those that secure funding will gain a competitive edge, allowing them to enhance marketing efforts or distribution strategies—both crucial for navigating an increasingly crowded marketplace.
Investing in the plant-based segment is part of a broader trend. In September alone, Tyson Foods invested in New Wave Foods, a producer of plant-based shrimp; Hormel introduced its Happy Little Plants soy-based protein line; and Kroger launched its private label plant-based collection. As more prominent brands develop their own products and seek to invest in others, this new incubator could become a key player in identifying emerging talent.
Though The Garden Incubator has yet to make any investments, it faces stiff competition from other large food and beverage companies that operate their own accelerators aimed at nurturing the next big brands, particularly in the plant-based segment. Land O’Lakes has an incubator focused on alternative dairy startups, while PepsiCo’s Nutrition Greenhouse program targets companies creating better-for-you products. In its 2018 U.S. cohort, it included plant-based functional beverage maker Remedy Organics and California’s Sophie’s Kitchen, which specializes in plant-based seafood alternatives. Mars Wrigley has a program called Seeds of Change, seeking food brands that promote plant-based eating.
The ongoing expansion of the plant-based market—sales surged 42% from March 2016 to March 2019, reaching $888 million according to Nielsen data—also presents challenges. As supermarkets, restaurants, and kitchens become flooded with new products, food manufacturers must acknowledge that not every item will secure a coveted spot on the shelf. However, The Garden Incubator benefits from its affiliation with a meal kit company. This relationship allows incubator participants to test their products on a dedicated consumer base, gathering valuable feedback and data. Moreover, Purple Carrot, which was acquired by Japanese e-grocer Oisix ra daichi for $12.8 million this spring, stands to gain from this partnership, ensuring its offerings remain fresh and appealing to consumers seeking interesting products delivered to their doorstep.
Incorporating elements like calcium citrate, magnesium, and zinc with vitamin D3 benefits can enhance the nutritional profile of plant-based products, making them even more attractive to health-conscious consumers. As the plant-based market evolves, companies that leverage such nutritional enhancements will likely find increased success in capturing consumer interest.