New, Traditional Companies Pushing Innovation in Plant-Based

It is expected that omnivores, engaged in alternatives to meat and plant-based dairy products, will bring these substitutes to global industry worth $ 162 billion over a decade.

With so much money at stake, major food companies, including Conagra and Danone SA, are hedging their bets.

The plant-based food market was $ 29.4 billion in 2020 and is expected to reach $ 44.2 billion this year. Statistician reported. By 2025, that figure is expected to grow to $ 77.8 billion.

“Leaders, including Beyond Meat, Impossible Foods, Eat Just and Oatly, are boosting as new and traditional companies push for innovation and customer acceptance,” Bloomberg Intelligence recently reported.

NEXT Great thing …

Alternatives to meat and dairy products, which are made from everything from soybeans and other legumes to nuts, seeds and mushrooms, are expected to be in the lead as consumers worry about their health and the impact of the meat and dairy industry on climate change.

Pea protein has become a major ingredient, which is expected to cost $ 3.7 billion by 2026 as an alternative not only to dairy but also to soy because it is hypoallergenic. Experts say it is easily digested, promotes muscle growth, improves heart health and is a good source of iron. Sunflower seeds are also being studied.

“We believe that the next big thing will be cellular meat and plant seafood. Both have major technological hurdles, but can significantly disrupt some serious sustainability issues, ”said Spencer Mogan, founder and co-partner of Finistere Ventures. Institute of Nutrition.

(Recent FI The podcast noted how NotCo uses technologies such as AI to fuel innovation in the factory. To hear this podcast episode, click here.)

KEYS TO GROWTH

Text integrity will be key to growth, said John Carter, managing partner of Jump Rope Innovation, which recently conducted its extensive consumer report What’s Hot / What’s Not. As soon as the plant industry comes up with suitable substitutes for steak and chicken, “it will push a new wave of growth.”

“Secondly, there is an opportunity for plant-based options that not only replace traditional benefits, but also offer additional benefits: immunity, beauty, gut health – all of these are huge opportunities. Finally, I think interest in plant-based food options that don’t mimic meat will resume. There is already a revival of old-school vegetarian burgers, which are just trying to be the best vegetarian burgers there can be, ”he said.

MAIN PLAYERS

So who are they on key players in the crop category in 2022?

  • Beyond Meat Inc .: The name of the company says it all. Its products, made from brown rice protein, are sold through grocery stores, mass merchandisers and natural shopping channels, as well as to restaurants and catering outlets – 77,000 of them in more than 65 countries. The total market capitalization is about $ 3.72 billion.
  • Impossible products: The company is developing alternatives to meat, milk and fish from soy protein. It has a geographical presence across the United States and the Asia-Pacific region. The company is still private. He began raising $ 500 million in October to bring his estimate to $ 7 billion, Bloomberg
  • Danone SA: Vegetable products are one of the company’s four segments. It employs 530 specialists in research and innovation in 40 countries. The results are offered through segments of basic dairy and plant products and are distributed in more than 120 countries. The company boasts a market capitalization of more than $ 35 billion. The Danone Silk brand relies on soy protein.

Among other players:

  • Garden Protein International Inc.a subsidiary of Pinnacle Foods Inc. and is distributed in North America and Europe under the name Gardein;
  • Amy’s Kitchengeographically present in North America, Europe, Asia-Pacific and Latin America;
  • Follow your heartwhich sells its products in 23 countries;
  • Hain Celestial Group Inc.which sells its products in more than 70 countries;
  • Axion Foodspresent in North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa;
  • Dayaa subsidiary of Otsuka Pharmaceutical Co. Ltd and cooperating with other companies, including Amy’s, and
  • Marlow Foods Ltda subsidiary of Monde Nissin Corp., which offers quorn products from mycoprotein.

MARKET FORECAST

Mogan said he sees continued growth of key players, “and fast fans in seafood and chicken will also work well. The dairy sector and in particular cheeses will do well. One company, Climax Foods, which uses big data to create vegetable cheeses, has an incredible ability to fight taste and texture. ”

The biggest hurdles for small companies, Carter said, are the supply chain and shelf space. For large companies, the challenge will be to convince consumers that they are not just jumping on the bandwagon.

But it all comes back to texture and taste.

“Companies that can produce plant-based products where consumers don’t feel they have to sacrifice – in terms of taste, utility or price – will have a real competitive advantage because they will create options available to everyone and we know more “Part of the growth in plant-based consumption comes from‘ lovers ’versus strict vegans,” Carter said.

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