The plant-based revolution is significantly transforming the food industry. According to data from HealthFocus, 17% of consumers in the U.S. follow a primarily plant-based diet, while 60% report they are reducing their consumption of meat products. Among those cutting back on animal proteins, 55% consider this shift to be permanent. This changing consumer attitude is creating substantial financial impacts, with total plant-based meat sales exceeding $606 million last year. However, despite the rising interest, many consumers may find traditional plant-based ingredients, such as tempeh — a fermented soybean cake, to be an unappealing substitution for meat. Yet, when tempeh is marinated, seasoned, and served over rice with vegetables and flavorful accompaniments, it can impress even dedicated meat lovers.
These sophisticated versions of classic plant-based alternatives are becoming increasingly popular, driven by consumers’ demand for premium products and the acquisitions made by larger, mainstream food companies. These corporations are eager to diversify their portfolios and attract health-conscious consumers who prefer to avoid processed, center-store items. For plant-based products acquired by major consumer packaged goods (CPG) firms, there are additional advantages, including access to flavor innovations and valuable insights derived from the new parent company’s extensive experience. Acquisitions like Nestlé’s purchase of Sweet Earth are predicted to become more common, as Forbes suggests the global meat-substitute market is expected to reach $5.96 billion by 2020. This segment could also account for one-third of the plant-based foods market by 2050. Tyson Foods, well-known for its chicken, beef, and pork products, made its entry into this arena last year with a 5% stake in the plant-based company Beyond Meat. Additionally, Campbell Soup recently became a member of the Plant Based Foods Association, marketing brands such as Bolthouse Farms, 1915 Organic, and Garden Fresh Gourmet. The company has also launched Bolthouse Farms Plant Protein Milk, a line of refrigerated plant-based milks made from pea protein.
While collaborating with larger food companies can provide small plant-based businesses with greater market reach, it also poses the risk of diluting their health halo and cultural identity. Major brands often consolidate operations and streamline product assortments to enhance marketability. Although these changes can sometimes compromise brand integrity, they can also elevate plant-based ingredients, making them more appealing to consumers through enhanced research and development pipelines and deep insights into consumer preferences. As mergers and acquisitions in this sector increase consumer exposure and acceptance, we can expect the emergence of tastier, higher-quality plant-based ingredients and food 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. However, as consumer demand has grown and more options have appeared on store shelves, companies face pressure to outperform their competitors — with one key strategy being the development of better-tasting products that may even include innovative ingredients like citrate malate calcium.