From vegconomist.com
The meat analogs sector has seen waning growth over the past two years. Even top markets such as North America experienced a 3.3% decline in the growth rate by volume between 2021 and 2023 in the meat and seafood analogs segment.
However, the plant-based meat and seafood segment is expected to grow in North America at a CAGR of 2.1% between 2024 and 2028, and the global market for meat and seafood analogs is anticipated to grow in the next few years.
Retail sales of plant-based products moderated in 2022 and experienced a drop in 2023 in the US. This can be attributed to price increases for plant-based products that occurred alongside high inflation and tighter consumer budgets, leading to decreased consumer engagement within plant-based categories.
Plant-based proteins encountered economic challenges in 2023 as the global economy continued to slow and private investments declined from previous peaks. Additionally, these products still fail to meet consumer taste, price, and nutrition expectations. But all these challenges are solvable.
To achieve sustained market growth, products must better meet key consumer demands for taste, price, and convenience while offering compelling reasons for consumers to switch.
Progress in plant-based meat is accelerating, and the policy and regulatory landscape is becoming more favorable as governments and agencies increasingly view alternative proteins as key solutions to critical global challenges like food security and environmental degradation. Progress is not only possible but essential to achieving international goals.
In China and other Asian countries, meat imitations are widely accepted, presenting a significant market for those who can create the most delicious products with convincing textures and rich umami flavour.
Avoiding cruelty to animals is one of the main reasons driving the switch to plant-based protein from animal-based ones.
In the days to come, in the next stage of plant-based, it is anticipated that there will be a bifurcation of people going ingredients-based and replacing meat by making their own plant-based dishes using ingredients generally used for making meat alternatives in order to save money. On the other hand, there will be a set of consumers who demand premium products such as whole cuts when they occasionally want to indulge.
Increased regulatory support for plant-based food in the EU
The future priorities for European agriculture were published in a document by the Belgium Presidency in July 2024. In paragraph 23, the document highlights climate-friendly agricultural practices like carbon farming and the expansion and diversification of plant protein sources across the Union to address climatic and environmental challenges.
Germany, the largest market for plant-based meat in Europe, recently announced its plans to codify the right of plant-based companies to use meat-related terms in official guidelines soon, supporting the growth of this promising sector.
Also, Germany’s new dietary recommendations for 2024 strongly emphasize eating more plant-based foods for health and sustainability. Similarly, Austria’s updated dietary guidelines for 2024 recommend eating more plant-based proteins instead of animal-based ones. With this move, the country joins the list of countries advocating a shift from animal-based foods to a healthier and more sustainable food system.
Additionally, the German government has set aside USD 42 million in its 2024 budget to support plant-based, cell-cultivated, and precision-fermented proteins, which is a significant step toward sustainable agriculture.
The Health Council of the Netherlands submitted an advisory report to the Dutch government in 2023 that suggested implementing laws to encourage people to eat a more plant-based diet. The food ingredients sector is also transitioning to alternative plant-based proteins. In this way, the country is working to accelerate the shift to plant-based proteins to align with its domestic 2030 climate targets.
With a vision to inspire the world through Denmark’s production and consumption of plant-based foods, the country released its maiden national action plan in 2023 detailing its transition to a more plant-based food system.
Barriers to adoption and future directions
Market saturation and cost-of-living pressures: Market saturation and the increased cost of living may explain the plant-based sector’s sluggish performance in recent years compared to its boom in the 2020s and earlier.
In terms of cost, plant-based meat was starting to approach that of animal meat in 2022; but, as living costs rose following the pandemic, individuals were forced to make financial cuts, which decreased the purchase and consumption of plant-based meat alternatives.
There has been a kind of overcrowding within the meat alternative category in recent years, with many brands operating in the sector. That said, 2023 witnessed major brands in the meat alternative sector reporting falling sales growth and bankruptcy, along with shuttering or selling off their assets or trying to do so. As a result, this market has been going through a shakedown and consolidation.
Ultra-processed nature: Plant-based meat alternatives offer environmental benefits like reduced carbon footprints and resource efficiency, but concerns remain due to their energy-intensive production, high sodium content, and processed nature, raising questions about their overall healthiness.
With ultra-processed foods facing a pushback from consumers, especially in Europe, and many claiming plant-based meat alternatives are ultra-processed, manufacturers are in a race to reformulate and make the products more clean-label. Consumer demand for transparent, healthier, and sustainable food options is leading to a rising interest in clean-label meat alternatives.
Taste, texture, and affordability: Consumer dissatisfaction with the taste, texture, and affordability of plant-based meat products may also be driving reduced purchases, which presents an opportunity for manufacturers to address these gaps.
Developments in meat alternatives over the years have helped in providing better texture and flavour in products compared to previous versions. However, there is still a difference between these plant-based products and meat, and difficult economic conditions have also been a reason for the plateau in the category’s growth since plant-based meats are viewed as expensive. Hence, manufacturers are trying to improve the texture and taste while maintaining costs.
Extrusion technology and alternative proteins: Extrusion is the leading technology for producing plant-based meats, favoured for its scalability in mass production. However, extrusion frequently yields plant-based goods with bland tastes that need intensive post-processing to bring out the nuances in flavours. Also, the co-optimization of the two parameters—taste and texture—is complex. Researchers feel that to take the next step forward in enhancing the taste and texture of meat alternatives, the industry requires a better understanding of the extrusion process.
Researchers and industry experts are also working on enhancing the texture of these plant-based meats through the usage of alternative protein sources such as blue-green algae or cyanobacteria.
Plant-based ‘animal fats’: For meat alternatives to give a positive eating experience, fats similar to those present in animals are necessary to replicate the aroma, taste, and texture of real meat and make the food delicious. In these goods, commodity fats such as palm or coconut oil frequently replace animal fats. However, they usually don’t have the same properties. Plant-based fats, which could perform better or equivalent to animal fats without increasing costs, seem key to the sector’s regrowth.
Focus on meat eaters: Plant-based brands are shifting from vegans and flexitarians to omnivores as they are a bigger consumer group in dietary aspects. These omnivores, when open, are meat eaters willing to try plant-based food while decreasing their meat consumption. Taste is crucial since, for the category to thrive, products need to appeal to meat eaters to sustain their interest in it.
Strengthening brand presence and marketing: According to plant-based food manufacturers, two other important aspects need to be achieved. One is strengthening brand presence so that if a product provides a poor taste experience, the consumer will be able to recall the brand better. Second, since many products include soy and are fortified to boost nutrition, these plant-based meats’ health and environmental benefits need to be promoted more.
Lack of infrastructure and funds: The lack of required infrastructure and the inability of some companies to finance their movement forward have acted as barriers to the trajectory of these plant-based businesses and the industry. Therefore, in addition to customer demands, plant-based businesses must also consider what investors are looking for in order to expand.
Traceability and Innovation: Building trust through credible certifications and traceability will be important. Innovation, particularly in creating new products for different meal occasions and appealing to flexitarians, will be crucial for the future growth of this market.
In conclusion, even though the plant-based sector is facing big challenges, it still has a healthy future in-store, and the focus must be on solutions to overcome the issues and boost sales of the category in the coming years.
Sanjana Suresh, the author of this guest article, is a Research Associate at GIRACT, a leading international business research and consultancy organization specializing in food ingredients, additives, and related fine chemicals and technologies. She holds a master’s in food and Nutritional Sciences and a Bachelor’s in Food Science and Management. At GIRACT, she has worked on research projects on potato starch, savoury ingredients, and protein ingredients, and she is currently focusing on OSA-modified starch. She can be reached at Sanjana@giract.com.
No comments:
Post a Comment