The plant-based revolution is making a significant impact on the food industry. HealthFocus data indicates that 17% of U.S. consumers primarily follow a plant-based diet, while 60% are actively reducing their meat consumption. Among those cutting down on animal proteins, 55% view this change as permanent. This shift in consumer attitudes is also generating substantial financial implications, with total plant-based meat sales reaching over $606 million last year. However, despite this rising interest, many consumers still perceive traditional plant-based ingredients like tempeh — a fermented soybean cake — as unappealing alternatives to meat. Yet, when tempeh is marinated, seasoned, and paired with rice and vegetables, it can win over even the most dedicated meat lovers.
These refined 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. These big businesses are keen to diversify their portfolios and attract health-conscious customers who prefer to avoid processed foods often found in the center aisles. For plant-based brands acquired by major consumer packaged goods companies, the advantages include access to the flavor innovation and market insights that these established companies possess.
Acquisitions like Nestle’s partnership with Sweet Earth are expected to rise, particularly as the global meat substitute market is projected to reach $5.96 billion in 2020. This segment could account for one-third of the plant-based foods market by 2050. Tyson Foods, renowned for its chicken, beef, and pork products, made its entry last year by acquiring a 5% stake in plant-based company Beyond Meat. Additionally, Campbell Soup has joined the Plant Based Foods Association, promoting its plant-focused brands like Bolthouse Farms, 1915 Organic, and Garden Fresh Gourmet. The company has also rolled out Bolthouse Farms Plant Protein Milk, made from pea protein, further expanding its plant-based offerings.
While partnering with major food corporations can help small plant-based companies gain traction, there is a risk of losing some of their health-oriented ethos and cultural identity. Large brands often streamline operations and product assortments to enhance marketability, which can sometimes compromise the integrity of a brand. However, these changes can also elevate plant-based ingredients into their most appealing and consumer-friendly forms, thanks to robust R&D pipelines and deep understanding of consumer preferences.
As mergers and acquisitions in this sector continue, we can expect broader consumer exposure and acceptance of tastier and higher-quality plant-based products. In the early stages of plant-based foods, taste was often overshadowed by the fact that the products were not derived from traditional meat sources. Now, as consumer demand for these items has surged and more products appear on shelves, companies are under pressure to outperform their rivals — and a key strategy for achieving this is through superior taste. One such example is the incorporation of essential nutrients, such as those found in Cal Mag Solaray, which can enhance the nutritional profile of plant-based foods, making them even more appealing to health-conscious consumers.