How to win in the plant-based food and drink market

May 22, 2020
Volume: 
23
Issue: 
4

Time was when following a plant-based diet meant eating a lot of salads. Fortunately for the 38% of Americans now trying to add more plant-based foods to their routines1, today’s options aren’t nearly so limiting.

Roughly 800 new plant-based products hit shelves from 2017 to 2019, per Mintel’s Global New Products Database (GNPD), reflecting not just the category’s popularity, but its mainstream status, too. Yet that status is tipping an already-crowded market toward overflowing, even as rising consumer expectations make it harder for any SKU to stand out.

So while consumers may be “clearly intrigued by the tidal wave of new plant-based products,” says Melissa Machen, senior technical services specialist, plant protein, Cargill (Minneapolis), “brands have just one chance to impress. Manufacturers will need to up their formulation games or risk watching the category dissolve into a passing fad.”

 

Far from Fringe

Plant-based eating may be the dietary phenomenon of our era—and beyond. As Hamutal Cohen Yitzhak, CEO, director, Else Nutrition Holdings Inc. (Tel Aviv), puts it, “With more plant-based products and brands emerging, it’s evident that plant-based isn’t fringe; it’s the future.”

The movement’s ascendance has struck Cargill’s Machen for some time, particularly in the widespread availability of plant-based options not just in supermarkets, but also on menus and at institutions. “Innovative brands have launched a tsunami of products into this space, giving consumers a plethora of choices and ways to try alternative proteins,” she says.

And from Jenny Palan’s perspective, “Collaborations with food-biz majors and colonization of the traditional dairy and meat cases are definitely signs that plant-based has moved beyond being just a fringe category to being established.”

 

Flexing Their Muscle

Another sign of its status, says Palan, a strategic market research manager at Kerry North America (Beloit, WI): “Plant-based has evolved beyond appealing solely to vegans and vegetarians.”

According to the 2019 International Food Information Council Foundation Food and Health Survey, one third of consumers eat plant-based protein daily, with three quarters viewing it as healthy. Yet 2018 polling from Gallup found only 5% of Americans identifying as vegetarian, and fewer still—3%— as vegan.

So the wheel of the plant-based bus rests largely in the hands omnivores and flexitarians—the latter of whom comprised 44% of U.S. consumers in supplier ADM’s (Chicago) 2020 OutsideVoice Protein Perception & Awareness Study. And their top motive for plant-based purchasing: “healthy living/healthy aging.”

Healthy perceptions are just the start. “Consumers are more aware of the potential negative effects to the planet of consuming animal products,” says Chris Kerr, CEO and cofounder, Good Catch (New York City), “including damage to the ozone layer from farming beef, and overfishing of our oceans for seafood.”

The result, he believes, is “an increased desire and even need for products that ease these unnecessary harms to the environment and our health. This has allowed the plant-based sector to grow exponentially.”

 

New Meat; New Milk

Much of that growth comes from plant-based meat and dairy, which has “really changed consumer perceptions and increased acceptance of plant-based alternatives,” says Jatin Sharma, global market manager, Roquette (La Madeleine, France). “Today’s products have a similar taste, look, and texture to what consumers expect, which has helped break down stereotypes that consumers might have had after being disappointed with alternatives from the past.”

Christine Addington, senior dairy technical service specialist, Cargill (Minneapolis), agrees. “It’s amazing how the plant-based dairy space has grown and evolved with products that are actually tasty and have good texture.”

She recalls as a graduate student helping a major food manufacturer create a plant-based yogurt. “At the time there were few technical solutions available to create an acceptable product,” she says. “Fast-forward 10 years and we have ingredients that allow us to craft products very similar to dairy yogurt.”

Similar, perhaps even more revolutionary, progress has attended the evolution of plant-based meats. Burgers, patties, sausages, and crumbles were “category pioneers,” Cargill’s Machen says, and for good reason: “Burgers are a forgiving format, as they’re usually served on a bun with condiments and toppings that add flavor, texture, and juiciness.”

Now, “We’re seeing products that closely mimic traditional meat in color, texture, and bite,” she declares. “It’s clear that some brands are striving to create products that are indiscernible from meat, and they’re making significant progress toward that goal.”

 

Thank a Food Scientist

Their strategy: “It starts with better ingredients,” Machen says.

And those ingredients start with food science. That’s why Mindy Leveille, strategic marketing manager, proteins, Kerry Taste & Nutrition (Naas, Ireland), sees improvements in the category as “a tribute to food scientists and researchers finding ways to integrate new ingredients that make taste and texture come alive.”

Consider that texture defects in plant-based meat often arise when proteins display low solubility and poor gelling and water-holding capacities. Plant proteins have “come a long way in the last decade,” Machen notes, with solubility, mouthfeel, and stability all improving to the point where “we can produce meat analogues that are closer to their animal-protein counterparts.”

Adds Addington, “With a greater understanding of the molecular structure and chemistry of plant proteins, we can work with them in ways that are ideal for their inherent physical makeup. We’ve also made substantial advances in processing technology, which allows us to produce plant proteins with better taste and color, as well as solubility.”

 

Power Proteins

Machen believes pea protein stands out as novel enough to excite, yet not so much “that it feels unfamiliar to consumers.”

Cargill’s Puris pea protein is highly soluble, dispersible, and ideal for plant-based dairy thanks to its mouthfeel, Machen says. For meat analogues, it’s available in textured and powdered forms, both of which contribute meaty chew and viscosity along with “strong nutritional attributes.”

The company minimizes the pea protein’s characteristic “beany” notes by using yellow-pea seed varieties selected for their minimal off flavors and a hexane-free process that further tilts the protein’s profile toward neutral.

Silvia Schnicker, area marketing head, Americas, and global market manager at Roquette, notes that the company’s Nutralys pea protein also has “a pleasant taste” in plant-based applications. Roquette follows a mostly mechanical protocol to mill the peas into flour, disperse the flour in water, and then physically separate the starch, fiber, and proteins, which are gently dried “to preserve quality,” she says.

Roquette is already looking beyond pea and in late-2019 launched its first textured protein made from fava bean. Schnicker describes it as environmentally appealing, sustainable, and having “all the characteristics of being the next big thing in the plant-based protein domain.”

But Jacquelyn Schuh, product marketing director, alternative proteins, ADM, encourages processors to consider established proteins like soy and wheat gluten, which she credits as “among the best texture-enhancing ingredients with wide availability and cost-effectiveness.” Like newer pea and bean proteins, they also create the right bite, crumble, and juiciness in meat alternatives, she says.

 

Success Stories

Such ingredients have yielded success stories in alternative-dairy and -meat spaces.

“Vegan cheese is certainly one of the most challenging applications,” Cargill’s Addington says, “but it’s also an extremely exciting space to watch.” Dairy proteins contribute critical properties that translate as stretch, mouthfeel, texture, aging, and flavor, she notes, and plant ingredients don’t perform as well.

“That said, a number of manufacturers have dived into this space and launched vegan shredded, sliced, and block cheeses that sometimes get really close to duplicating traditional dairy characteristics,” she adds. “With help from hydrocolloids, starches, and fibers, industry’s making improvements every day.”

Advances in alternative meats have also attracted attention, with technologies like high-moisture extrusion allowing processors to “make strides toward recreating the texture, appearance, and bite of striated muscle fibers,” Machen says—qualities that she notes are among the most difficult to recreate.

As for nuggets and patties, textured pea and soy proteins continue to deliver convincing texture, and Machen mentions that some brands are even tackling plant-based seafood.

 

Smooth Sailing

Good Catch is at the vanguard. Inspired by “a lack of plant-based seafood options despite the immense growth of plant-based meat,” Kerr says, the founders created a plant-tuna of their own.

The principal hurdle involved replicating tuna’s characteristic “layering of protein,” Kerr says, which is especially apparent in the cooked fish. “We spent 18 months working on this flaky texture before even diving into taste development.”

Ultimately, the company settled on a formulation comprising a six-legume blend—peas, chickpeas, lentils, soy, fava beans, and navy beans—and algae oil, which Kerr calls “the special plant ingredient that captures seafood’s authentic flavor.” Running that mix through a “leading-edge process” produced the texture and taste the company aimed at.

With that accomplished, “We have products in the pipeline that expand beyond plant-based tuna and dive into the frozen category, including plant-based crab and whitefish,” Kerr notes. And a joint-distribution deal with Bumble Bee Foods “shows that we’re breaking ground in the space. The commitment of long-established industry members shows that the direction for the category is up.”

 

References: 
  1. Mintel. “Trending on US Menus: Plant-Based Protein Report.” (May 2019).