Plant-based products have planted their roots in every major supermarket shelf across the United States. Some even have their own designated sections with everything from tofu to Beyond Meat. According to the Plant-Based Foods Association (PBFA), the market for plant-based foods has expanded to $4.5 billion, growing at a rate five times faster than total food sales. Forecasts project that plant-based ingredients will surpass the $13 trillion mark by 2025. What does this mean for food manufacturers in Virginia and the rest of the country?
What You Learn:
- Consumer stats lean plant-based
- What the industry is up to
- The perks of plant-based
- How Virginia gets involved
- How food manufacturers can keep up
Consumers Want Plants
The shift towards plant-based diets extends beyond vegans. Many consumers incorporate these products into their meals for health and environmental reasons. Here’s what we found from different reputable sources like Good Food Institute, Strategic Market Research, and the PBFA:
- In 2023, 60% of US households purchased plant-based food, consistent with 2022 levels.
- 80% of consumers continue to purchase plant-based foods across all categories.
- Nearly half of US households bought plant-based milk in 2023.
- 15% of households purchased plant-based meat and seafood in 2023.
- 15% of households purchased plant-based creamers in 2023.
- Plant-based foods are now available in 30 different categories in grocery stores.
Millennials and Gen Z show significant interest in plant-based products.
Industry Innovation
The plant-based revolution is also making leaps in the foodservice sector. Companies like Impossible Foods and Beyond Meat have partnered with major fast-food chains, including Burger King and KFC, to offer plant-based options. As a result, restaurants are responding by creating dedicated plant-based menus. The NPD Group reports a 20% increase in plant-based protein shipments from distributors to foodservice operators.
Benefits of Plant-Based Foods
Environmental Sustainability
Plant-based food manufacturing dampens the environmental footprint compared to animal-based products. The Plant-Based Foods Association (PBFA) reports that producing plant-based foods generates fewer greenhouse gasses, uses less water, and requires less land. This shift helps mitigate climate change, conserve water resources, and preserve habitats, promoting overall environmental sustainability.
Health Benefits
Plant-based foods are often lower in saturated fats and cholesterol and higher in fiber and essential nutrients. The FMI’s 2022 inaugural Power of Plant-Based Foods and Beverages Report shows that consumers associate these products with health benefits, like lower risk of heart disease, diabetes, and certain cancers. Individuals can improve their overall health and well-being by incorporating more plant-based options. The majority of shoppers associate plant-based foods with terms like “healthy,” “vegan,” “vegetarian,” “organic,” and “natural.”
TIP: Manufacturers, consider adding the terms above into your marketing content and use them as part of your broader marketing strategy.
Investment and Innovation
Investment in plant-based food manufacturing is rising, with capital flowing into the industry. Over the past decade, plant-based food companies have attracted more than $16 billion in investment, with records set in 2017 and 2018.
Virginia’s Plan to Support Plant-Based Food Manufacturing
The University of Virginia’s SUSTAINABLE FOOD ACTION PLAN 2021-2030 aims to strengthen the state’s dedication to sustainable food systems, emphasizing plant-based food production.
The goals are:
- To boost the purchase of local foods at UVA, supporting Virginia’s agriculture and its growing plant-based industry.
- To help Black and Brown farmers by addressing past inequities and integrating them more into the food chain.
- To set baselines for Virginia-grown food and increase local purchases.
- To work directly with farmers to enhance their involvement in school supply chains.
- To drive demand for local foods through campus promotions and educational initiatives.
- To foster a stronger bond between academia and Virginia agriculture.
- To focus on sustainability and fairness to build more inclusive and environmentally friendly food systems.
How Can Food Manufacturers Keep Up?
Stay Informed with Industry Reports
Review industry reports from sources like Innova Market Insights, Mintel, and The Food Institute regularly. These reports provide valuable insights into consumer trends, market growth, and emerging opportunities.
Integrate Specialized Services
Take advantage of food manufacturing consultants who offer advanced manufacturing consulting to optimize production processes. This can help streamline operations and enhance productivity for a successful expansion of plant-based product lines.
Leverage Manufacturing Operations Support
Implement scalable solutions to increase production capacity and meet growing consumer demand. Support from operations experts can facilitate innovation and adaptation, ensuring offerings align with current consumer preferences. Click here for more info on manufacturing operations support from GENEDGE.
Focus on Sustainability and Health Consciousness
Given the shift towards sustainable and health-conscious options, manufacturers should prioritize these aspects in their product development and marketing strategies. Singling out plant-based foods’ environmental and health benefits can differentiate products in a competitive market.
Invest in Innovation
Collaborate with research facilities and labs like the NC Food Innovation Lab to drive product innovation and diversification and, most importantly, resonate with potential customers.
Connect with a local food manufacturing consultant to get these tactics in motion. For Virginia manufacturers, contact GENEDGE.
