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How brands are overcoming challenges in the plant-based sector

Following the turbulent evolution of the plant-based market in recent years, industry players are finding innovative ways to tackle challenges such as taste, price, and nutrition and are in turn unlocking new opportunities for growth.

Speaking at the Fi Europe Conference 2023 in Frankfurt in November, Kalina Doykova, senior research analyst at Euromonitor, uncovered the innovative strategies of brands in boosting sales and remaining relevant in the ever-changing plant-based sector.

Tackling the price parity problem

Achieving price parity with conventional animal-based products has long been a challenge for plant-based food manufacturers. Euromonitor data shows that in 2023, the percentage change in the average unit price of processed meat increased at a higher rate than for meat substitutes in various markets, including Germany, France, and the UK.

The affordability factor of plant-based foods significantly impacts consumer choices, particularly amidst economic pressures and rising food inflation, Doykova said.

“Price is something very important to take into account for consumers, as well as for producers, moving forward as there is still a lot of demand from consumers to turn to alternative proteins and reduce their meat consumption. However, sometimes price is the barrier,” she said.

Tapping into the demand for more affordable plant-based options, retailers like Lidl in Germany and Jumbo in the Netherlands voluntarily reduced prices of plant-based meat substitutes in 2023 to match traditional meat products. This strategy aimed to bridge the price gap, making plant-based alternatives more accessible to consumers, subsequently driving demand.

Taking a different approach, French supermarket chain Carrefour recently entered a joint venture with multiple large food companies including Unilever and ADM in aim of boosting plant-based sales in stores to €500 million by 2026.

“This kind of cooperation between the retailer and the food companies is really to get that information exchange on how to boost sales, but also to push the private label line forward,” Doykova said.

Emphasizing health and functional claims

Addressing health concerns associated with processed foods within the plant-based sector has emerged as another pivotal challenge. Consumer perceptions of ultra-processed foods (UPFs) in recent months have sparked doubts regarding the nutritional quality of plant-based products.

In response, some brands are refocusing on nutritional credentials and are adding functional claims such as high protein and high fibre to products. For instance, Nestle-owned plant-based brand Garden Gourmet recently launched a fish alternative that emphasises the product’s ‘strong nutritional credentials’ on front-of-pack, aiming to reassure consumers about the healthiness of the product.

Additionally, brands like alternative milk producer Koko in the UK have targeted allergen-free options, aiming at lactose-intolerant children, to address health-related consumer doubts and preferences.

“We're seeing quite a lot of companies either relaunching some of their products or launching new products with health claims in order to ensure that there is this communication to the consumer that says: ‘It's safe and it's healthy to eat this,’” Doykova said.

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New technologies to improve taste and texture

Taste is the primary purchase barrier between consumers and plant-based foods, according to Euromonitor.

“There were lots of innovations in 2020 and a lot of consumers were disappointed with them. The problem was that once they tried [a product] and didn’t like it, they didn't return, or at least some of them didn't, to plant-based products,” Doykova said.

Some companies have turned to reformulation, switching ingredients and processing techniques, to tackle this challenge. This year, Garden Gourmet relaunched its Sensational Burger, claiming to have improved the taste and texture, and UK-based plant-based manufacturer ENOUGH used fermentation to create new proteins that they claim better reflect the sensory attributes of conventional animal products.

New technologies will allow manufacturers to improve the taste of plant-based products. British startup Hoxton Farms is scaling cellular agriculture to produce lab-grown fats, which, when on the market, can be used to improve the taste and texture of hybrid plant-based products such as burgers and whole cuts, it says.

With 29% of European consumers willing to try lab-grown products, the majority of whom are from younger generations, consumer acceptance may be a barrier to widescale adoption of these products, Euromonitor data shows.

According to Doykova, respondents who are unsure as to whether they would try lab-grown products “are not educated enough on how [these products] are produced, the processes behind them, and the impact on [their health]. I think here is where communication education comes in. It is extremely important”.