Navigating the Evolving Plant-Based Food Landscape: Insights from the Plant Based World Expo

The plant-based food industry is in a state of flux, with shifting trends, new players, and a growing focus on collaboration. The recent Plant Based World Expo in New York City provided a glimpse into the industry's current landscape, highlighting the challenges and opportunities facing brands, retailers, and consumers alike.

Unlocking the Next Wave of Plant-Based Growth

Matchmaking for Success

The Plant Based World Expo has evolved to better serve the needs of both plant-based food brands and retail buyers. This year, the event's new partnership with SPINS data and insights proved beneficial, as it enabled a Hosted Buyer Program that efficiently matched exhibitors with qualified buyers based on specific criteria. This approach aimed to increase the likelihood of plant-based products landing on more grocery shelves and restaurant menus.The event's content chair and strategic adviser, Ben Davis, noted that while overall attendance was slightly down from the previous year, the number of qualified buyers increased by 10%. This shift reflects the show's focus on becoming a "niche, concierge-style event" that caters to the specific needs of the plant-based industry.

Balancing Innovation and Consolidation

The evolution of the Plant Based World Expo also mirrors the shifting trends within the plant-based food industry. While sales of plant-based meat alternatives have leveled off, industry experts attribute this to a period of consolidation following a surge in new-to-market brands during the pandemic.Impossible Foods' Category Manager, Joseph Saines, explained that the market is now seeing the "cream rise to the top," as leading brands experience growth while leaving room for continued innovation and the emergence of new players. Fresh Thyme Market's Jonathan Lawrence echoed this sentiment, noting that the limited shelf space requires retailers to focus on the top-performing brands while still allowing for the introduction of new and unique products.

A Global Perspective

The Plant Based World Expo has a global reach, with events held in both New York City and the UK. According to Ben Davis, the European market presents a slightly different landscape, where attitudes towards plant-based eating may be less negative compared to the US. This shift is reflected in the recent data from the Good Food Institute, which shows that for the first time, European investments in plant-based startups comprised more than half of all invested capital in the industry.The collaborative approach taken by the UK-based organization, Plant Futures, highlights the industry's efforts to collectively grow the plant-based sector. By bringing together food makers, marketers, grocers, and suppliers, Plant Futures aims to make it easier and more desirable for consumers to choose plant-based options, bridging the gap between early adopters and the "early majority."

Paths to Discovery

The pandemic has had a significant impact on consumer behavior and the ways in which people discover and engage with plant-based products. According to research from FMI – The Food Industry Association, consumers are now finding plant-based alternatives not only in the food and beverage category but also in areas such as health and beauty, baby goods, and household cleaners.Brick-and-mortar retailers remain crucial for product discovery, with 90% of consumers surveyed by FMI still shopping in physical stores. In-store experiences, such as sampling and recipe ideas, continue to play a vital role in driving consumer interest and repeat purchases. However, the research also shows that younger shoppers are more inclined to discover and purchase plant-based products through third-party apps and websites, while older consumers tend to favor the websites of their familiar supermarkets.

Educating the Next Generation

Campus dining halls are emerging as a fertile ground for plant-based food discovery and experimentation. Aramark, a leading foodservice provider, has partnered with Drexel University's Food Lab to explore ways to incorporate more plant-based options into campus dining. The focus has been on promoting environmental sustainability and providing convenient, affordable, and tasty plant-based choices that can gradually shift student eating habits towards a more plant-forward diet.The on-campus tests have highlighted the importance of customizing setups and tailoring menus to local preferences, as well as making plant-based options more easily accessible and appealing to students. By leveraging these educational settings, the plant-based industry can cultivate a new generation of consumers who are more open to and enthusiastic about incorporating plant-based foods into their diets.

Ongoing Challenges

Despite the industry's progress, several challenges remain. Reaching price parity with animal-based products is still a significant hurdle for plant-based brands, as inflation has driven up the prices of traditional meat, dairy, and eggs, sometimes bringing them closer to plant-based alternatives. Consumers' perceptions of plant-based options as being more expensive can still influence purchasing decisions.Additionally, plant-based alternatives may disappoint consumers who are seeking exact replicas of their favorite non-vegan foods. Brands are finding more success when they focus on creating unique and delicious plant-based options, rather than trying to perfectly mimic traditional products.As consumer demand for health-conscious products continues to grow, plant-based brands are also responding by simplifying their ingredient lists and focusing on familiar, easy-to-understand components without sacrificing taste. This shift aligns with the evolving preferences of health-conscious consumers.The plant-based food industry is navigating a dynamic landscape, marked by both challenges and opportunities. By embracing collaboration, innovation, and a deep understanding of consumer needs, plant-based brands and retailers can continue to drive the growth and adoption of plant-based alternatives, ultimately shaping a more sustainable and health-conscious future for food.