The Potential and Future Options for Plant-Based Foods

In the past decade, there has been a remarkable surge in the variety of plant-based ingredients available. Although the term "plant-based foods" first emerged in the 1980s, it only gained significant traction about ten years ago. Today, interest in plant-based diets continues to grow globally, driven by concerns over climate change, food security, animal welfare, individual health, and the influence of new lifestyles championed by fashion icons.

According to research from Statista and Bloomberg, the global market for plant-based foods is projected to expand from $300 million in 2020 to $1.6 billion by 2030. In fact, the number of packaged products marketed as plant-based increased by an impressive 302% between 2018 and 2022, and this trend shows no signs of slowing. Plant-based foods have now become a staple in everyday meals and a prominent lifestyle choice. This article explores the market landscape, challenges, and future opportunities for plant-based foods.

What are plant-based foods?

Plant-based foods encompass any food derived from plants, primarily including fruits, vegetables, grains, legumes, nuts, oils, seeds, spices, and plant extracts. Recently, fungi and algae have also come into the spotlight, leading to the development of new food products from these sources. A significant innovation in the plant-based food sector is the ability to closely replicate the texture and taste of traditional animal products such as meat and fish. Processed foods made from plant-based ingredients serve as substitutes for meat, fish, eggs, milk, butter, and cheese, allowing consumers to enjoy these alternatives as if they were the real thing.

This evolution has broadened the appeal of the plant-based food market, which was once primarily aimed at individuals who selected their foods based on personal beliefs or dietary restrictions, such as vegans, vegetarians, and flexitarians. Increasingly, consumers are choosing plant-based options, particularly those that are high in protein, low in calories, and, most importantly, closely mimic the texture and flavor of animal products.

In Germany, over 70% of individuals aged 16 to 24 report regularly choosing plant-based foods, while in the U.S., 60% of households purchased plant-based foods in 2022, with 60% of those making repeat purchases. In China, more than 10% of consumers indulge in plant-based beverages daily. In Japan, frozen foods featuring soybean meat and pasta sauces made with almond powder have become widely available in regular supermarkets.

Market Challenges

Despite the growth of the plant-based food market, it is not without its challenges. While the overall market continues to expand, the consumption of plant-based meat alternatives—currently holding the second-largest market share after plant-based milk—declined due to inflation in 2021. Although plant-based meat alternatives are expected to drive future market growth due to their scalability, they are currently, on average, 67% more expensive than their animal-based counterparts, making them less accessible to economically disadvantaged consumers.

A survey of 1,000 individuals in the UK revealed that 66% consider taste the most significant factor influencing their decision to purchase plant-based foods, closely followed by 62% who cite price as a key consideration. Taste and price are critical determinants of whether consumers incorporate these products into their daily diets.

Beyond Meat, Inc. case study

Beyond Meat, a U.S. company specializing in plant-based meat products, exemplifies a business grappling with these two significant hurdles. Since 2022, the company has encountered various challenges, with its stock price plummeting to just 3% of its peak from July 2019. Issues related to hygiene in the production process have been identified as contributing factors to its struggles; notably, a trial sale at McDonald's in 2021 was rejected due to difficulties in balancing taste and price, marking a pivotal moment for the company.

Future Prospects and Challenges

With projected global population growth, an expanding affluent class, and the repercussions of climate change, rising costs for fertilizers, agricultural materials, and utilities are inevitable. As a result, prices for animal-based meat are expected to increase in the medium to long term. On the other hand, there remains considerable potential to reduce the costs associated with plant-based meat alternatives.

Storage conditions and shelf life

Currently, 63% of plant-based meat substitutes require freezing, 34% must be refrigerated, and only 3% can be stored at room temperature. Extending shelf life is essential for minimizing distribution costs and reducing waste. The baking industry is already utilizing buffered vinegar, fermentation acids, and natural solvate sources to enhance shelf life. It is hoped that these advancements from other sectors will serve as valuable references for future developments in plant-based foods.

Reduction of additives

An examination of the packaging for plant-based meat substitutes reveals a high number of additives, each necessary to replicate the taste, texture, and appearance of animal products. However, an increased number of additives typically results in higher prices. For example, gels and emulsifiers (like methylcellulose) are commonly used in plant-based meat products and serve critical functions, yet they can constitute 10-15% of the total cost.

While some companies are working on alternatives to methylcellulose, these options are still relatively expensive. Enzyme-based solutions, particularly those utilizing transglutaminase, are beginning to be explored. Although these solutions require time and heat, they can deliver effects similar to gels and emulsifiers when used in small quantities, indicating potential for cost reduction. Reports suggest that a deeper understanding of the functionality of existing ingredients may allow for harnessing the natural emulsifying, foaming, and gelling properties of plant proteins. Efforts are ongoing to develop alternative meats composed of natural ingredients with minimal additives.

Meat texture

Texture is one of the most crucial aspects of food, particularly when it comes to substitutes. If the texture is not similar, it can deter consumers from choosing plant-based options. Significant research has been invested in extrusion processes for plant-based meat substitutes, as this method greatly influences the texture when creating high-quality meat alternatives from plant concentrates. This process enables the production of a variety of meat substitutes, including chunks, strips, and pieces resembling chicken, beef, lamb, or pork.

There is an urgent need to advance cutting technology for plant concentrates, particularly for sliced products like vegan bacon, as opposed to burgers or sausages. Improvements in this technology will not only decrease the necessity for food additives but also significantly enhance texture and drive down costs.

Reduction of food loss by utilizing by-products

Whenever protein is concentrated, a residual product is always produced. Effectively utilizing these by-products is vital for creating more affordable meat alternatives. For example, reprocessing whey, often discarded in large quantities after cheese production, into brown cheese exemplifies a common practice in the dairy industry. Additionally, rendering inedible animal fats into usable fats, soaps, and other products shows another avenue for value creation. Innovative use of by-products is essential for reducing costs and enabling plant-based products to compete with animal-derived meats as ingredients. Numerous projects aimed at increasing the utilization of plant-based by-products are currently in research phases, with rapid advancements anticipated.

Utilization of Diverse Crops

Finally, it is essential to diversify the raw materials used for plant-based meat alternatives. Currently, plant proteins are predominantly sourced from soybeans, peas, and wheat, which often necessitate long-distance transportation along complex supply chains. While this is still generally more environmentally friendly than animal meat, it is not an ideal situation. Utilizing a range of locally available crops for plant-based protein production offers significant advantages in securing a stable supply of raw materials and reducing costs.

For instance, fava beans are a vital crop in the UK, yet they are largely exported or used as animal feed. These beans are not as easily transformed into plant-based meat alternatives as soybeans or yellow peas and have often been overlooked due to flavor challenges. However, advancements in extrusion and masking technologies may provide solutions to these issues.

Conclusion

In this article titled "The Potential of Plant-Based Foods," we have explored the true nature and rapid market growth of plant-based foods, the challenges they face, and the technological innovations shaping the industry. As noted, many individuals have already integrated plant-based foods into their daily lives, not only as a means to address the global challenge of "ensuring food security for all," but also as a fulfilling lifestyle choice. We hold high hopes for the potential of plant-based foods to become a viable option for an even broader population through future technological advancements.

References

• Emerging Trends in the Plant-Based Industry
• Plant-based Foods Market to Hit $162 Billion in Next Decade, Projects Bloomberg Intelligence
• Plant-based food market value worldwide 2030
• プラントベースフードってなに？代替肉ってなに？
• Plant-based retail market overview
• 2022 Retail Sales Data — Plant Based Foods Association
• Price Parity: 6 Steps to Make Plant-Based Meats Cheaper Than Conventional Meat.
• Vegan Burger Meat, Crumbles, & Sausages
• McDonald’s ends its plant-based test in the U.S. Now what?
• Beyond Meat Review | Why We Don't Think It's Healthy – Illuminate Labs