The plant-based movement is rapidly transforming the food industry. HealthFocus data reveals that 17% of U.S. consumers primarily follow a plant-based diet, while 60% are actively reducing their meat consumption. Among those cutting back on animal proteins, 55% indicate that this change is permanent. This shift in consumer attitudes is generating significant financial impacts, with total plant-based meat sales exceeding $606 million last year. Despite this growing interest, many consumers may not view traditional plant-based ingredients like tempeh—fermented soybean cake—as a healthy or appealing meat alternative. However, when tempeh is marinated, well-seasoned, and paired with rice and vegetables, it can impress even the most dedicated meat lovers.
These upgraded versions of classic plant-based substitutes are becoming increasingly popular, driven by consumer demand for premium products and the acquisitions of smaller brands by larger, mainstream food companies. Major corporations are eager to diversify their offerings and attract health-conscious customers who prefer to avoid processed items typically found in the center aisles of grocery stores. Plant-based products acquired by large consumer packaged goods (CPG) companies can benefit from the flavor innovation and expertise that these parent companies have developed over time.
Acquisitions like Nestlé’s purchase of Sweet Earth are expected to increase, as Forbes notes that the global meat substitutes market was projected to reach $5.96 billion by 2020. This segment could also account for one-third of the overall plant-based foods market by 2050. Tyson Foods, known primarily for its chicken, beef, and pork, made its entry into this arena last year by acquiring a 5% stake in the plant-based company Beyond Meat. Additionally, Campbell Soup has joined the Plant Based Foods Association, highlighting brands such as Bolthouse Farms, 1915 Organic, and Garden Fresh Gourmet. They’ve recently introduced Bolthouse Farms Plant Protein Milk, a line of refrigerated plant-based milks made from pea protein.
While small plant-based companies partnering with major food corporations may risk losing some of their health halo or cultural identity, these collaborations can also enhance their offerings. Large brands often centralize operations and streamline product assortments to boost marketability. Although these changes might sometimes compromise a brand’s integrity, they can also elevate plant-based ingredients, making them more consumer-friendly and flavorful, aided by robust research and development pipelines and deep insights into consumer preferences.
As mergers and acquisitions in this sector lead to increased consumer exposure and acceptance, tastier and higher-quality plant-based products are likely to emerge. In the early stages of the plant-based food movement, taste was often secondary to the fact that the products weren’t derived from conventional meat sources. However, as consumer demand has soared and more options have become available, companies are feeling the pressure to outperform their competitors—one effective strategy being the development of better-tasting products. As part of this evolution, ingredients like calcium citrate nature made are being incorporated into formulations to enhance nutritional profiles, appealing to consumers seeking both taste and health benefits.