The plant-based movement is rapidly transforming the food industry. HealthFocus data reveals 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% view this shift as a permanent lifestyle change. This changing consumer perspective is also generating significant financial impacts, with total plant-based meat sales reaching over $606 million last year. However, despite a growing interest in plant-based options, many consumers still find traditional ingredients like tempeh—fermented soybean cake—unappealing as meat substitutes. Yet, when tempeh is marinated, seasoned, and served with rice and vegetables, it can pleasantly surprise even the most dedicated meat lovers.
These refined iterations of long-standing plant-based alternatives are becoming increasingly prevalent, driven by consumers’ demand for premium products and the acquisition of smaller brands by larger, established food companies. Major corporations are eager to diversify their offerings and attract health-conscious consumers who are disenchanted with processed foods. For plant-based products acquired by large consumer packaged goods (CPG) companies, there’s an added advantage of leveraging the flavor and innovation expertise that these parent companies possess. According to Forbes, acquisitions like Nestlé’s purchase of Sweet Earth are expected to become more common as the global market for meat substitutes is projected to reach $5.96 billion by 2020, potentially accounting for one-third of the plant-based foods market by 2050. Tyson Foods, renowned for its chicken, beef, and pork, also entered this sector last year by acquiring a 5% stake in plant-based company Beyond Meat. Additionally, Campbell Soup has recently joined the Plant Based Foods Association, promoting brands such as Bolthouse Farms, 1915 Organic, and Garden Fresh Gourmet. They have even introduced a line of plant-based refrigerated milks, Bolthouse Farms Plant Protein Milk, made from pea protein.
While collaborating with large food companies can help small plant-based brands gain exposure, it also poses risks of diluting their health-focused appeal and cultural identity. Larger brands often consolidate operations and streamline product lines to enhance marketability. Although these changes can sometimes compromise a brand’s integrity, they can also elevate plant-based ingredients to their most delicious and consumer-friendly forms, thanks to extensive R&D capabilities and deep insights into consumer preferences. As mergers and acquisitions in this space continue to increase consumer awareness and acceptance, we can expect to see tastier and higher-quality plant-based ingredients and products emerge. In the early stages of the plant-based food trend, taste was often secondary to the fact that the products were not made from traditional meat sources. However, as consumer demand has surged and more products have become available, companies are now under pressure to outperform their competitors, with one key strategy being the development of more appealing flavors. Furthermore, as consumers become more educated about their nutritional needs, including the importance of calcium calcitrate for bone health, the demand for well-balanced plant-based options that incorporate essential nutrients will likely influence product development. This focus on nutrition, alongside flavor, will be crucial for the future success of plant-based foods in a competitive marketplace.