What Are the Next Big Developments and Opportunities in Plant-Based Food and Drinks?

There is no doubt that plant-based diets are on the rise across the United States, with millennials as the driving force behind this positive trend. There’s been a 600% increase in people identifying as vegans in the U.S in the last three years, and today there are 1.62 million vegans in the U.S. Perhaps more importantly, the 39% of Americans who aren’t vegan now actively chose to incorporate plant-based foods into their diets. A recent study commissioned by the Plant Based Foods Association found that sales of plant-based foods grew by an incredible 20% in the 52 weeks ending June 2018, reaching a total of $3.3 billion. The industry is undoubtedly brimming with business opportunities, as more consumers than ever turn towards a plant-based diet.

Why the Increase in Demand?

A big reason behind the increasing demand in plant-based foods is the vast health benefits that the diet provides. Two important recent endorsements from the scientific community have had a strong impact on demand. The American Heart Association now endorses a plant-based diet, explaining that it prevents and treats heart disease, strokes, obesity, high cholesterol, and type 2 diabetes. Likewise a ringing endorsement from leading medical journal, The Lancet, has also had an impact.  An independent panel of 40 scientists and health experts reviewed years of evidence and concluded the best diet as being “approximately half a plate of vegetables and fruits, the other half should consist primarily of whole grains, plant-protein sources and unsaturated plant-oils”.

Of course another reason for an increase in demand for plant based foods is their cost. Superfoods aside, plants undoubtedly cost less than meat. This, coupled with the positive environmental impact of consumers shifting away from meat, mean demand for plant-based diets continue to increase. It’s easy to understand why the plant-based food market is predicted to reach $4.63 billion in 2019, increasing to $6.43 billion by 2023. 

There are many health benefits to a plant based diet.

The Main Business Opportunities Available

With such a thriving market, it’s important to look ahead to the business and innovation opportunities available in the plant-based food industry. One target market for plant-based innovation is dairy. In the US, nearly half of all shoppers add plant milk to their baskets. The Swedish oat milk brand, Oatly, is a prime example of a thriving non-dairy provider. They recently ramped up their production by 1,250%. Their success internationally is proof consumers have fallen out of love with traditional dairy milk. And there are undoubtedly still opportunities to explore across alt-dairy production.

Another business opportunity centers on the production and development of plant-based meat alternatives. It seems the plant-based burger market is saturated, with Burger King and Unilever recently launching their meat-free ‘Rebel Whopper’, in addition to the much publicized success story of the start-up Beyond Meat. But there is still space for meat-free innovation. A great such example is companies like Velvet Taco, who focus on innovative proteins such as walnuts to serve as a meat replacement. “Walnuts provide such a silky, smooth texture, along with the great health benefits and fat content,” says Grant Morgan, their culinary and beverage director. A similar pioneer is the Mexican restaurant chain Tocaya Organica, which has 13 locations on the West Coast of the U.S. The menu base is vegan, with the option of adding different proteins such as Cilantro Lime Vegan Chicken to a dish. 

In terms of scientific developments in innovating plant proteins to serve as meat, it’s worth noting that Redefine Meat recently raised $6 million in seed funding to further develop its process, which involves utilizing individual cartridges of plant proteins and fats to literally print forms of fresh vegan “beef” for the food industry. “Our goal is not just to develop a new food product, but to introduce a new technology for developing, producing and scaling alt-meat products”, says Redefine Meat founder Eshchar Ben-Shitrit. 

With so many companies getting behind the meat-free movement, it’s an innovative slice of the food and beverage industry which is brimming with business opportunities. Learn how Cashmere Systems ERP platform (enterprise resource planning), can help your food and beverage business streamline their processes. And request a demo today.