The plant-based movement is rapidly transforming the food industry. Recent data from HealthFocus reveals that 17% of U.S. consumers predominantly follow a plant-based diet, while 60% are actively reducing their intake of meat products. Among those cutting back on animal proteins, 55% indicate that this change is permanent. This shift in consumer attitudes is making significant financial impacts, with total plant-based meat sales exceeding $606 million last year. However, despite the growing interest, many consumers may not view traditional plant-based ingredients like tempeh—fermented soybean cake—as a healthy and tasty meat alternative. Yet, when tempeh is marinated, seasoned, and served alongside rice and vegetables, it can impress even the most dedicated meat lovers.
These refined versions of classic plant-based substitutes are becoming increasingly common, driven by consumer demand for premium products and acquisitions by larger, mainstream food companies. Major corporations are seeking to diversify their offerings and attract health-conscious customers who prefer to avoid processed items. Plant-based products acquired by large consumer packaged goods (CPG) companies stand to benefit from the flavor innovation and consumer insights that these parent companies possess. According to Forbes, acquisitions like Nestle’s partnership with Sweet Earth are expected to rise as the global meat substitutes market is projected to reach $5.96 billion by 2020, potentially comprising one-third of the plant-based foods market by 2050. Tyson Foods, known for its chicken, beef, and pork, made its entry into this sector last year by acquiring a 5% stake in the plant-based company Beyond Meat. Additionally, Campbell Soup has recently joined the Plant Based Foods Association, promoting brands like Bolthouse Farms, 1915 Organic, and Garden Fresh Gourmet. The company has also introduced a line of plant-based refrigerated milks, Bolthouse Farms Plant Protein Milk, which is made using pea protein.
While partnering with a significant food company offers small plant-based brands opportunities, there is a risk of losing some of their health halo and cultural identity. Large brands often streamline operations and product assortments to enhance marketability, which can sometimes compromise brand integrity. However, these changes can also elevate plant-based ingredients, allowing them to be presented in their most appealing and consumer-friendly forms, thanks to substantial research and development pipelines and an understanding of consumer preferences.
As mergers and acquisitions in this sector continue, we can expect greater consumer exposure and acceptance, leading to tastier and higher-quality plant-based products. In the early days of plant-based foods, taste was often secondary to the fact that these products were not derived from traditional meat. But as consumer demand has surged and more products have entered the market, companies face pressure to outperform competitors, with superior taste being a key differentiator. Furthermore, incorporating nutritional supplements such as calcium citrate, vitamin D3, and folic acid tablets into these products could enhance their appeal by addressing health-conscious consumers’ needs. The inclusion of these supplements, along with a focus on flavor, is likely to drive the next wave of innovation in the plant-based food landscape.