The plant-based industry has experienced some major ups and downs – more downs than ups if we’re being honest – in 2024. This is largely a result of negative associations to the ultra-processing methods used in the production of many plant-based foods and beverages.
Added to this, the sector is still struggling to reach price parity with animal-based products, making it a less attractive prospect to consumers, as the cost-of-living crisis continues to bite.
“Times are tough for plant-based brands,” says Alice Pilkington of market insight firm, Mintel.
Despite this, the industry is proving it has some serious staying power, with a noticeable growth in sales across all sectors over the past 12 months.
The global vegan food market reached a value of 27.8 billion USD this year, up from 25 billion USD in 2023. What’s more, this strong growth is projected to continue into 2025, according to market insight firm, Statista.
Meanwhile the milk alternatives market is proving even more successful, with a current value of $23.2bn, and a projected value of $37.86bn by 2029.
“Forgoing meat and all forms of animal food products is becoming more popular,” says Nils-Gerrit Wunsch, research expert covering foods trends at Statista.
So, what’s next for the plant-based trend and how can industry stakeholders ensure its continued success?
What do consumers want from plant-based?
The plant-based industry has proved hugely popular in 2024, fighting headwinds, which may have slowed growth but have failed to stop it. However, certain issues must be addressed in order to ensure continued growth and potentially even speed it up.
“There is a need for plant-based alternatives, but radical change is required to secure their future,” says Mintel’s Pilkington.
So what changes are needed? Well, it would seem the answer is, quite a few…
“Cleaning up the category, nutrition, sustainability and taste can reset how consumers view them,” says Pilkington.
The first two on the list are closely linked and bring us back to the issue of ultra-processing in many plant-based products.
“Pushback against ultra-processing has serious implications for meat and dairy alternatives” says Pilkington. “The UPF backlash marks a watershed moment.”
Also read → Register to watch FoodNavigator’s webinar on plant-based proteins.
But it won’t be easy for the sector to move away from.
“Ultra-processing is by far one of the biggest challenges we face as an industry today,” Christopher Kong, co-founder of tempeh brand, Better Nature, told FoodNavigator.
However the industry is tackling this challenge, and one of the main ways it’s doing this, is by moving away from current production methods completely.
“For a long time, the focus has been on brands attempting to replicate meat and fish, but what we’re seeing now in meat-free is a new sub-category of more natural foods like tofu and tempeh, fuelled by shoppers swapping ultra-processed options for natural and nutritious ones,” Elin Roberts, co-founder of Better Nature, told FoodNavigator.
Industry should focus on simplifying ingredients and leaning towards minimally processed products.
Mike McGrath
But much more can be done to change current perceptions of plant-based products.
“Industry should focus on simplifying ingredients and leaning towards minimally processed products. While the ‘clean label’ concept – fewer, more recognisable ingredients – is a realistic goal, achieving it will require innovation in product formulation,” Mike McGrath, co-founder and CEO of supplier-sourcing engine, Kwayga, told FoodNavigator.
However, not all processing methods are bad, and some are essential for food safety. This is where industry needs to work to improve communication with consumers, translating the differences between processing and ultra-processing.
“Transparency in product ingredients and manufacturing processes is key,” says McGrath.
Brands also need to look at shifting the focus to the potential health benefits of a plant-based diet.
“Companies should prioritise educating consumers about the health benefits of plant-based alternatives, emphasising whole-food ingredients and minimising unnecessary additives,” says McGrath. “Collaborating with nutritionists and health professionals to back claims with science-based evidence will further rebuild trust.”
What’s more, there are environmental benefits involved in the adoption of a plant-based diet, particularly with regards to carbon emissions and land usage.
A more unusual development in the plant-based sphere, is the move towards hybrid products. This a major shift, but it’s one that’s proving popular with consumers, as the market value has already reached 10.2 million USD and is expected to grow at a CAGR of 7.2%, according to market insight firm, Fact.MR.
Brands like Quorn in the alt meat category and Smug in the alt dairy category are paving the way for the next generation of plant-based foods and beverages.
“Considerable openness to animal-derived products in meat substitutes offer opportunities for next-gen hybrid products,” says Mintel’s Pilkington.
Finally, as previously mentioned, cost continues to challenge the sector’s ability to grow. But the industry is working to address this issue, and change is starting to be felt by consumers.
“Plant-based categories are growing, and some products are beginning to compete with their animal-based counterparts on price,” says Helen Breewood, research and resource manager at the Good Food Institute Europe.
