From vegconomist.com
A new report by the investor network FAIRR has analysed the approach of 20 global food companies to protein diversification.
Called Feeding Change: Building a Resilient Food System Through Protein Diversification, the analysis finds that many companies are not effectively meeting the demand for plant-based proteins. This is said to be limiting the category’s growth and weakening the resilience of food supply chains, since it leads to over-reliance on animal proteins.
The report compiles results from the second year of an investor engagement with 20 of the world’s largest food retailers and manufacturers. It finds that only 30% of these companies have nutrition expertise at the board level, despite the fact that at least 70% of them identify health and wellness as one of the most material issues facing their businesses. 25% of the companies have no dedicated health strategy at all.
Although 88% of global dietary guidelines encourage greater intake of plant-based foods such as vegetables, legumes, and wholegrains, only three of the eight brand manufacturers studied have launched a plant-based wholefood product in the past year. The report recommends catering to consumer preferences by focusing on plant-based wholefood proteins rather than more processed options; retail giant Carrefour has seen success with this approach, exceeding its target of €500 million in plant-based sales (originally set for 2026) last year.
Misalignment between products and demand
75% of companies have not yet acknowledged the potential sustainability and nutrition benefits of substituting animal ingredients with plant-based options. So far, Nestlé is the only one to quantify the emissions mitigation opportunity.
Just 25% of companies have surveyed their customer base to better understand their preferences; the report claims this is leading to a misalignment between plant-based product launches and market demand. However, 60% have provided evidence of working to improve either access to or the affordability of plant-based proteins. For example, Woolworths has added vegan and vegetarian filters to its online product search, while Tesco has replaced some everyday plant-based items in its Express stores with cheaper options.
Despite the fact that taste and texture remain a significant barrier to the adoption of plant-based proteins, only 40% of companies have dedicated resources to increasing product innovation this year, compared to 45% in 2024.
“Significant market growth opportunity”
Just 40% of companies have assessed the transition risk of failing to respond to changing consumer preferences for plant-based products, along with the potential impact of climate risks on animal agriculture supply chains. The report notes that diversification into plant-based proteins could help to mitigate challenges such as egg shortages caused by avian influenza.
Furthermore, most companies are overlooking the supply chain implications of protein diversification. A notable exception is Danone, which is reskilling workers to produce oat milk instead of dairy yogurt at its facility in Villecomtal-sur-Arros, France.
“Shoppers are looking for affordability, great taste, and healthiness in 2025, yet food companies are investing too little in product innovation to cater to consumer expectations,” said Dana Wilson, Manager of Research & Engagements – Protein Diversification at FAIRR. “By engaging customers towards nutritious and sustainable plant-based proteins, proactive companies can harness a significant market growth opportunity, as well as build a more resilient product portfolio.”
No comments:
Post a Comment