Page 34 - Food & Drink Magazine April 2021

7PLANT-BASED SECTOR
things to keep in mind when
entering the plant-based market
Massive growth and little sign of slowing, it seems like a no-brainer to get on board the plant-based express. Future Market Insights co-founder and managing director Sudip Saha lays out seven things to remember when you do.
IT’S no exaggeration to say that the plant-based market has seen massive growth with little sign of slowing down. In fact, it’s predicted to surpass $480 billion by 2024, with a projected CAGR of almost 14 per cent. Entering the industry is becoming a no- brainer for many businesses who seek to assure consumers they are mitigating environmental impact and animal cruelty.
However, the road to success isn’t as easy as simply taking animal products out of the picture. Plant-based offerings are working hard to shake off old preconceptions that vegetarian and vegan food is bland, inaccessible, and expensive. Added to that, businesses struggle with building up loyal communities, tailoring the right
messaging, balancing nutrients, and sustaining their business models with transparent supply chains. The plant-based market represents a huge opportunity, so what should you know to navigate it successfully?
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The plant-based meat market had already been growing before the pandemic; sales of plant-based meat grew by 38 per cent from 2017 to 2019. The current wave of health awareness drove even more people to explore alternative diet options. According to The Good Food Institute, plant-based meat sales during one week of March 2020 were 454 per cent higher than in the previous year.
Another reason for this growth is that conventional
meat producers were hit hard by imposed lockdowns.
With many consumers
stocking up in
the early weeks of the pandemic, plant-based alternatives were in the spotlight.
While plant-based burgers and chicken were consumers’ go-to, companies shouldn’t shy away from innovation. Beyond taste, texture is an important aspect of plant-based foods, so exploring products such as plant-based fish can present great opportunities. For example, the plant-based tuna market is expected to exhibit a CAGR of around 18 per cent between 2020 and 2030.
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Bland tofu, soy milk, and peanut butter... These were some of the signature plant- based offerings of the past. However, food innovations have leaped ahead with vegetarian and vegan foodies now enjoying new options entering the market – from pistachio milk and pumpkin seed oil to vegan shrimp made of seaweed. Legumes, such as lentils, chickpeas, and groundnuts also keep growing in popularity, presenting sustainable and inexpensive ingredients rich in proteins and micro-nutrients.
The debate on nutrients is also relevant. Various studies found that vegans can be more prone to depression or headaches, which can be related to different vitamin deficiencies.
Vegan supplements with carefully optimised ingredient profiles aimed at specific nutritional needs (such as vegan iron, vegan B12, protein supplements, or vitamin D), are growing in popularity.
PACKAGING MATTERS
The single-use plastics conversation is still very much alive, and pandemic-induced no-touch policies with plastic overuse have even intensified it. The environmental aspect plays a fundamental role in plant-based diet preference. Brands that turn to sustainable packaging, which is expected to become an over $400 billion industry this year, are likely to win both the taste buds and the hearts of their consumers.
34 | Food&Drink business | April 2021 | www.foodanddrinkbusiness.com.au
MEAT ALTERNATIVES
WITH A TWIST
LEFT: Planeteers plant-based cream cheese taps into the burgeoning plant-based cheese sector.
KNOW THE TRENDING
INGREDIENTS
Whether it’s paper-based packaging, cornstarch compostable bowls, coconut- husk containers, or sugar-cane tubes, adopting an innovative approach to product design and packaging can also help you score big with increasingly environmentally-minded venture capitalists.
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products are branded matters more than you’d think, and many companies have had to learn this the hard way. When tailoring your messaging, it’s better to focus on the positive characteristics rather than elaborating on what is missing or what a product isn’t like. Using the term “veggie” or “plant-based” is proven to work better than “fake meat” or “meat-free”.
Interestingly, even the word “vegan” tends to raise negative sentiment, triggering associations with boring, gross, and expensive. Instead, brands should rely on symbols such as a green leaf.
Rather than highlighting the healthy aspect, consumers want
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CHOOSE YOUR WORDS
The way plant-based