The plant-based movement is rapidly transforming the food industry. HealthFocus research indicates that 17% of consumers in the U.S. primarily follow a plant-based diet, while 60% are actively reducing their intake of meat products. Among those cutting back on animal proteins, 55% view this lifestyle change as permanent. This shift in consumer attitudes is also creating significant financial impacts, with total plant-based meat sales exceeding $606 million last year.
Despite this growing interest, many average consumers still perceive traditional plant-based ingredients, such as tempeh—fermented soybean cake—as less appealing or healthy compared to meat. However, when tempeh is marinated, properly spiced, and served over rice with vegetables and savory accompaniments, it can win over even the most devoted meat lovers. The demand for upgraded versions of traditional plant-based substitutes is increasing, fueled by consumers seeking premium options and larger food companies acquiring these brands to diversify their offerings.
Major corporations are eager to attract health-conscious consumers who may shy away from processed, conventional products. By acquiring plant-based brands, these companies can leverage their extensive flavor innovation and consumer insight expertise. For instance, Nestle’s acquisition of Sweet Earth is expected to be a trendsetter, as the global meat substitute market is projected to reach $5.96 billion by 2020, potentially accounting for one-third of the plant-based food market by 2050. Tyson Foods, known for its meat products, made a significant move last year by investing 5% in plant-based producer Beyond Meat. Similarly, Campbell Soup has joined the Plant Based Foods Association, featuring plant-focused brands like Bolthouse Farms, 1915 Organic, and Garden Fresh Gourmet. They recently introduced Bolthouse Farms Plant Protein Milk, made from pea protein, to expand their plant-based offerings.
While partnering with large food corporations can enhance distribution and marketing, smaller plant-based companies risk losing their unique health appeal and cultural identity. Major brands often streamline operations and product lines to enhance marketability, which can sometimes compromise brand integrity. However, these changes can also help elevate plant-based products, making them tastier and more appealing to consumers, thanks to the substantial research and development resources of larger companies.
As mergers and acquisitions continue to shape the industry, more consumers are likely to embrace plant-based foods, leading to the emergence of tastier and higher-quality options. In the early days of plant-based foods, taste took a backseat to the fact that the product was not made from traditional meat. But as consumer demand has surged and more items have entered the market, companies are under pressure to outperform competitors, with improved flavor being a critical factor. This is especially important as consumers increasingly seek products fortified with nutrients, such as calcium citrate malate, vitamin D3, and folic acid tablets, which can enhance the health benefits of plant-based items. As the sector evolves, the integration of these nutrients into plant-based offerings will likely become a key focus for brands aiming to attract health-conscious consumers.