Plant-based food brands and retail buyers once again found each other at the Plant Based World Expo in New York City earlier this month, and this year their meetings were often set up ahead of time with help from the show’s new partner SPINS.
The new Hosted Buyer Program used SPINS data and insights to match food companies with retail and foodservice buyers based on specific criteria. This matchmaking method was designed to be efficient and increase the likelihood that the food makers would land on more grocery shelves and restaurant menus.
Partnering with SPINS, which had a high-profile presence at the show, was beneficial to exhibitors this year, said Ben Davis, the event’s content chair and strategic adviser. While overall attendance was slightly down from last year, the number of qualified buyers was up 10%, and the Hosted Buyer Program highlighted the show’s focus and its goal to continue evolving as a “niche, concierge-style event,” Davis said.
The five-year-old show has also always been a place for food makers and ingredient companies to find each other, but this year organizers limited the number of booths for ingredient companies to ensure there was enough room for brands promoting finished products.
That included a mix of major players, including, Oatly, Impossible Foods and Conagra, the global multi-brand conglomerate and parent of always-vegan brand Gardein, as well as emerging companies like Before the Butcher, and startups like Rochester, N.Y.-based vegan parmesan brand Panacheeza.
In some ways, the evolution of the show reflects the shifting trends in the plant-based food industry.
Sales of plant-based meat alternatives have leveled off, but that’s largely because of consolidation in the market after several years before and during the pandemic that saw a surge in new-to-market brands, Impossible Foods’ Category Manager Joseph Saines said during a keynote panel.
Fresh Thyme Market’s Jonathan Lawrence agreed, adding that “the cream will always rise to the top.” As a retailer, Fresh Thyme’s shelf space is limited and the consolidation brought growth for top brands while leaving room for innovation and the emergence of new brands and products.
“It’s not always linear,” said SPINS’ Jay Margolis, who led the keynote on the state of the industry. “To grow, sometimes you have to contract.”
That contraction makes time and space for innovating to improve products and catch up with consumers’ changing tastes and evolving needs.
A collective global approach
In addition to the annual event in New York City each September, Plant Based World hosts a larger international show in the UK in November, and this year’s event is expected to draw exhibitors and attendees from around Europe.
“It’s a slightly different market [from the US],” Davis said, adding that attitudes toward shifting to more plant-based eating styles can be less negative in Europe. The US has been a hub for investments in plant-based food ventures over the past decade, but there are signs that has been shifting.
According to the Good Food Institute, global investments in plant-based startups dipped 28% last year to $907.7 billion, as investments in companies in North American fell sharply even as investors boosted their stakes in European players.
“For the first time, European investments comprised more than half of all invested capital in the plant-based industry for the year,” according to the GFI report.
There’s also evidence that the industry in the UK and Europe is becoming more collaborative in an effort to raise the tide and lift all boats. In a session at the New York City show, Plant Futures founder Indy Kaur outlined the approach her group has taken.
Demand for plant-based alternatives is a bit stuck in the chasm between early adopters who purposely seek out vegan foods and the “early majority” of consumers who would choose more plant-based options if their needs are met.
In the UK, Plant Futures is taking a collaborative approach, inviting all players in the industry including food makers, marketers, grocers and suppliers to work together to grow the industry as a whole and make it easier and more desirable for consumers to choose plant-based foods.
Kaur founded the consultancy in 2021 after a career that included stints in research and development at Nestle and Mondelez, and plant-based strategy at UK grocer Tesco. Plant Futures has brought together plant-based food players in workshops to strategize ways to collectively grow the industry, in addition to working with individual clients.
“There’s something special about the plant-based sector,” she said. “There’s a higher purpose. They’re here to drive positive change [around] health and sustainability.”
Omnivores who are open to exploring plant-based dining “will drive the next wave of plant-based growth,” Kaur said during a presentation, adding that it’s just as likely to prove true in the US as the UK.
Paths to discovery
In addition to having a big effect on industry trends, the pandemic also played a role in influencing consumers’ choices, according to research from FMI – The Food Industry Association. Prepandemic, the group surveyed consumers annually and change was typically slow. Post-COVID, FMI is talking to grocery shoppers quarterly and recording big shifts, said Steve Markenson, vice president of research and insights.
“Consumers are finding plant-based products in the food and beverage category and beyond,” Markenson said. In addition to plant-based meat, dairy and egg alternatives, shoppers are increasingly also seeking out animal-free alternatives in categories including health and beauty products, diapers and other baby goods and household cleaners.
Plant-based food and beverage sales in retail outlets totaled $16.8 billion in the 52-week period ending Aug. 10, up from $16 billion in the previous 52-week period, according to FMI data. That doesn’t include retail sales of fresh and frozen fruits and vegetables, which totaled $94 billion. And sales of plant-based milk alternatives continued to grow even as demand for plant-based meats dipped.
People have a variety of reasons for seeking out plant-based foods, including health and nutrition benefits, ethics, the environment, allergies and the desire to try new things, according to FMI’s research. But the main factor that prompts consumers to both try and return to plant-based foods is taste, Markenson stressed several times during his presentation.
Consumers who haven’t yet tried plant-based alternatives and/or don’t plan to buy them cite taste as the top reason for that decision, and disappointment over taste is a key reason consumers don’t return to a product they’ve tried.
Brick-and-mortar retailers are still key to discovery – 90% of consumers surveyed by FMI still shop in stores, even if they’re making purchases online. Grocery stores are where they discover new products, making events like in-store sampling and perks like recipes and meal ideas as important as they’ve ever been, Markenson said.
Taste, price and convenience are also key factors in driving consumers to make repeat purchases and, while shoppers from all demographic groups are making more repeat purchases online, where they’ll buy varies by age. Younger shoppers will head more often to third-party apps and websites, while older consumers tend to favor the websites of their familiar supermarkets.
Foodservice channels can also be spaces of discovery. Burger King’s high-profile launch of the Impossible Whopper five years ago gave consumers a convenient way to try Impossible Foods’ signature product and, if they liked it, they could then find it at the grocery store.
Schooling students in plant-based benefits
Campus dining halls are another fertile ground for discovering and experimenting with plant-based foods. Campus foodservice vendor Aramark has been exploring that field in partnership with Drexel University’s Food Lab.
Environmental sustainability has been a driving force in Aramark’s plant-based efforts, and colleges and universities could be the hub for innovation around eco-friendly plant-based eating, provided options are made convenient, affordable and tasty.
During a panel, representatives from Aramark and Drexel’s Food Lab shared insights from the school’s dining halls, as part of Aramark’s “Be Well, Do Well,” plan that debuted in 2019 and aims to promote “planetary health on the path to net zero,” said Alan Horowitz, Aramark’s vice president of sustainability.
Like much of the current focus in the plant-based arena, the on-campus tests weren’t designed to drive sudden big changes but rather incremental improvements that led to people eating less meat and more plants to lower their carbon footprints.
Aramark has worked with World Resources Institute to design dishes that fit into WRI’s “Cool Food Meals” which are certified to have a more environmentally friendly carbon footprint. The company has worked to strike a balance between cutting its carbon footprint, feeding customers the tasty foods they want and maintaining profitability.
Part of working more plant-based meals into campus dining has included customizing setups and tailoring menus to local tastes, said Ila Fennie, a registered dietitian and Aramark’s vice president of culinary and menu enablement. Some dining halls have the room to create vegan stations, for example, while all spread plant-based and vegan option through the other stations.
Three different tests in Drexel’s dining halls highlighted the need to make plant-based options more convenient. Drexel University master’s degree student Lauren Miller outlined the parameters of the tests and shared results that showed that making the plant-based options easier to choose drove sales.
Ongoing challenges
Reaching price parity with animal-based products is still a big hurdle for plant-based brands. While inflation drove the prices of traditional meat, dairy and eggs higher, sometimes bringing them closer to plant-based alternatives, consumers were also tightening their belts and the perception of plant-based alternatives being higher priced influenced purchasing decisions.
A point that was made at last year’s event and again this year – plant-based alternatives can disappoint consumers looking to exactly replicate their favorite non-vegan foods. Instead of trying to copycat, plant-based alternatives likely do better when they strive to be something different yet just as tasty.
And finally, as consumers focus on health, they’re seeking products with shorter, simpler ingredient lists without sacrificing taste. Many brands have taken that to heart and are finding ways to pare down their recipes to a handful of ingredients, most of which are familiar and easy to understand.
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