What will shape the plant-based category moving forward?

Sustainable sourcing

Demand for sustainably branded products is on the rise, increasing 29% in the US between 2013 and 2019, and is even outpacing growth of conventional products 58

However, one survey found that while 88% of US and UK consumers want brands to help them be more environmental and ethical, 43% said companies were actually making it harder for them 59

“If you’re not clearly helping your customers to improve their environmental and social footprint, then you’re in danger of disappointing of them.”60

The World Business Council for Sustainable Development and Futerra, The Good Life Goals for World-Changing Business

This potential disappointment could be even greater for plant-based brands, which often position their products as being inherently more environmentally-friendly than meat and dairy because they are not animal-based However, some of the most popular ingredients for plant-based products are associated with significant environmental problems. Soy is a major driver of deforestation and habitat loss in South America61 while intensive, pesticide-dependant cultivation of almonds in California, where around 80% of the world’s supply is grown62, is linked to the collapse of bee colonies 63

As climate change intensifies, consumers’ environmental concerns will too, and manufacturers could face a backlash if they are not seen to be proactively responding to these concerns A recent European survey found that most consumers (57%) want sustainability information to be compulsory on food labels 64 Voluntarily providing this information could therefore be an effective way for brands to communicate to consumers about their sustainability efforts

Bee Better Certified, for instance, provides consumers the assurance that a product has been made in a way that benefits pollinators such as bees, and ice cream maker Häagen-Dazs recently added the logo to four of its almonds-containing products Brands using soy should be transparent about the commodity’s origins and sourcing policy Growing demand for sustainable, traceable soy has been partly responsible for a rise in domestic production in Europe, which has doubled over the past five years, according to nonprofit Danau Soja.65

Assessing the sustainability of crops used in plant-based foods is notoriously complex as it depends on a myriad of factors including pesticide use, yield per hectare, protection of biodiversity, food miles, and processing Innova predicts that, going forward, manufacturers may increasingly use a variety of plantbased ingredients in one product, positioning this as more sustainable than being dependent on a single, monoculture crop 66

Carbon footprint labelling is another way some plant-based brands have been differentiating themselves Oatly and Quorn have added front-of-pack carbon footprint labels to their products while hard discounter Lidl has pledged to offset the carbon emissions it generates during production and transportation of its Next Level vegan range, and a carbon neutral logo now appears on some of its products 67 Such transparency is appealing to many consumers, according to The Hartman Group, which found that 35% of consumers see reducing carbon footprints as a potential definition of sustainability.68

Cleaner labels: ‘Purity versus processed’

“It’s a new set of rules and it’s not animal versus plant-based, it’s purity versus processed. In this context, transparency becomes a must. We see that consumers want access to everything, from the sourcing policies and product nutritional information to the human rights policies.”69

Peter Wennström, Founder & Senior Consultant, The Healthy Marketing Team

From Impossible Foods’ genetically modified leghaemoglobin to Perfect Day’s microbially fermented casein and whey, scientific advances are helping the plant-based and animal-free sector produce better-tasting and more functional foods However, analysts warn that an over-reliance on technology, harsh processing methods, and ‘factory floor’ rather than ‘kitchen cupboard’ ingredients could provoke a consumer backlash 70

In some areas, the backlash has already begun. In March 2020, the Center for Food Safety (CFS) filed a lawsuit against the US Food and Drug Administration (FDA) for approving Impossible Foods’ soy leghaemoglobin without rigorous safety testing 71

Even plant protein isolates and concentrates are more heavily processed than some consumers might imagine. They also require additives to improve their flavour, colour and texture, meaning many plantbased products are classified as ‘ultra-processed’.72

As the obesity crisis grows, a rejection of ultra-processed packaged foods could spur demand for natural ingredients and unprocessed foods – even if these are animal-based The traditional meat and dairy sectors are keen to position their products as pure, natural and traditional compared to ultra-processed analogues that have long ingredient lists full of chemical-sounding names

US dairy brand Shatto tells consumers its milk is ‘pure and honest’, and consists of just one ingredient – milk The Center for Consumer Freedom, which receives food industry funding, produced an advert that tells the public:

“Real burgers and brats are made from beef, pork, and spices. Fake meats are ultra-processed imitations with dozens of ingredients including methylcellulose, titanium dioxide, tertiary butylhydroquinone, and disodium inosinate.”73

According to Euromonitor, 36% of global consumers look for ‘all natural’ claims on the food they buy 74 Directing R&D efforts to develop gentler production methods or changing procurement policies to source less processed ingredients could be one way to tap into this trend Plant-based brands should also be open and transparent, explaining why they choose certain ingredients and manufacturing methods