It appears that alternative proteins are gaining popularity day by day, as evidenced by record-breaking sales, numerous product launches, and an increasing number of flagship brand items featuring these alternatives. This report quantifies the commitment from food and grocery companies in this area. While it’s clear that consumers are purchasing more alternative proteins, the specific actions taken by established food and grocery companies in this sector are not always visible, particularly since much of the research and development work, changes in corporate structures, and the focus on alternative proteins to mitigate pollution are internal processes.
This is the second year that FAIRR has produced this report, which highlights progress across the board. FAIRR is an investor network dedicated to illustrating the risks associated with animal-based agriculture and advocating for larger companies to explore more alternatives. The network generates reports on both the animal and alternative protein sectors and noted that it has engaged with 25 companies regarding their involvement in the alternative market.
The focus on the alternative protein sector among major food and grocery companies is on the rise. Companies such as Conagra Brands, Kerry Group, Nestlé, Saputo, and Unilever have established teams specifically for alternative proteins, representing about 40% of the brands studied. Notably, a tenth of Nestlé’s R&D personnel is focused on plant-based products, and last year, Unilever inaugurated a $94 million innovation center for plant-based food, known as The Hive, in the Netherlands.
The report also reveals that grocery companies are making significant strides in this area. Ten grocery chains, including major U.S. players Ahold Delhaize and Kroger, have launched their own private label brands for plant-based products. Retailers like Kroger, Coles, Marks & Spencer, Sainsbury’s, and Tesco have dedicated human resources teams aimed at developing plant-based products. The report indicates that the momentum for plant-based products within some grocers and companies is greater than what is reflected on store shelves.
For those companies with few new products and initiatives in the alternative space, the report suggests they often exhibit a lower level of internal commitment as well. Kraft Heinz and Costco, both ranking at the bottom, showed a decline in scores compared to 2019. Kraft Heinz’s only notable product in this space, the Boca Burger, is a ’90s-style veggie burger that held just a 3.8% share of the plant-based market in 2019, according to Euromonitor statistics cited in the report. The company’s only engagement in this sector mentioned in the report was through its venture arm, Evolv Ventures, which invested in New Culture, an animal-free dairy cheese company, and included plant-based yogurt company Tiny Giants in its second Springboard Incubator class.
However, the advancements made by many companies in the rankings suggest that numerous manufacturers and grocery companies are entering a new phase in their evolution toward alternatives to animal products. Most have progressed beyond merely recognizing the need to diversify their product offerings to include more consumer choices. Companies are now poised to take the next step, which could involve formally integrating alternatives and their related sustainability metrics into their long-term strategies. While this remains a significant milestone, it underscores an even more crucial realization: plant-based options are no longer viewed as a niche market or a passing trend. They are integral to the long-term strategies of major players, who recognize that products like nature made calcium citrate with vitamin D are essential components of a broader plant-based portfolio.