The vegan market continues to experience buoyant growth as global consumers increasingly push the demand for sustainable and healthy products with robust animal welfare credentials. There is ongoing NPD across a multitude of food and beverage categories as well as in the foodservice industry catering to rising numbers of vegans, flexitarians and meat-reducers. This trend shows no sign of abating. In fact, it is likely to gain even more traction in the years ahead as the food industry considers how to come up with increasingly exciting and tempting vegan products that appeal to evolving considerations from consumers.

Vegan NPD is no longer a niche, evidenced by several big brands and foodservice giants tapping into the increasing demand for vegan products with a variety of meat and dairy-free alternatives available. Notably, McDonald’s Germany recently launched a vegan burger for the first time, made with Nestlé’s plant-based Incredible Burger comprising soy and wheat proteins, while Burger King plans to roll out its plant-based Impossible Whopper throughout the US by the end of this year, following the successful trial of the burger.

Meanwhile, the success of companies such as Beyond Meat – which saw its shares sizzle by 160 percent on their Wall Street debut earlier this month – and Impossible Foods are well documented. These pioneers are developing vegetarian and vegan burgers primarily based on pea-protein, as well as other ingredients, while fast-food chains are quickly expanding their menus to reflect this growing need. To say the meat-free space is developing quickly is an understatement. 

“Consumers are increasingly, and quite deliberately, demanding products which contain no animal-sourced ingredients, while still requiring that their texture and flavor meet high standards,” says Dr. Dana Elgeti, Marketing Manager Nutrition at Wacker Biosolutions, the food arm of which focuses primarily on the market segments of beverages, chewing gum, dairy products, food supplements and savory flavors. Last year, the business developed several new recipes for replacing egg in different fine bakery products, such as egg-free brioche, cupcakes, pound cake and layer cake. 

According to data from Innova Market Insights, there has been a 45 percent average annual growth of food and beverage launches with a vegan positioning (CAGR, 2013-2017). These products increased their market penetration in Europe from 1.5 percent in 2013 to seven percent in 2017.

Food technology company KaTech is one of the many in the food industry that is reacting to vegan growth by offering convenient product substitutes based on plant ingredients aiming to achieve the same eating sensation as traditional non-vegan products. However, this can come with a myriad of technical and formulation challenges. Increasingly, manufacturers are driven to offer products that meet the high expectations of consumers in terms of taste and texture, while considering other important aspects, such as high protein content and free-from allergens. 

“We picked up the trend early on we are in the position of having developed a wide range of excellent technologies for vegan products and have applied the latest plant-based raw material evolutions to this sector,” says the company. 

Overcoming vegan cake formulation challengesKaTech uses its stabilizer system to develop a wide range of high-quality vegan products with one of the latest examples being a new bakery concept which overcomes one of the biggest challenges in vegan-baked goods – overcoming the loss of the functionality of egg which usually provides a stable emulsion, structure and texture. 

Finding ingredients for the vegan bakery space can have limited options for development, but KaTech has combined different starches and fiber to build the right structure and added a combination of emulsifiers.

“We have been very successful over the past years developing the markets in dairy and convenience food. We do see a very high potential in the bakery segment, especially in the free-from category which is why we have recruited people that are experts in the area in order to enter that segment,” Stephen O‘Neill, Technical Sales Executive-Bakery, tells FoodIngredientsFirst. “Baked goods are very popular in the market, and gaining market space due to new varieties in the segment, but also new market outlets wher shoppers can buy baked goods on-the-go.” 

“We don’t sell off the shelf full compounds of food ingredients but work hand-in-hand with our customers when it comes to developing products. Every customer is very individual and has different requirements when it comes to diverse parameters around the product,” he notes. 

Egg replacement ingredients are soaring, and it is not just veganism that is boosting demand. According to many suppliers, the rising demand for egg replacement ingredients is related to the mainstreaming of veganism and the even more popular flexitarian trend, however other factors are also at play. 

The availability and price of eggs are subject to seasonal fluctuations which can influence the end products’ profitability, meaning that manufacturers who use eggs on a large scale are seeking economical alternatives. Egg prices can also be impacted by scares in the US and Europe involving Salmonella and the pesticide Fipronil, which caused big fluctuations in supply levels and prices last summer. 

According to Robert Lambert, Marketing & Communications at Ulrick & Short, the reported number of people identifying as vegan has shot up to over 3.5 million and increased demand for egg-free products has followed. “Even consumers that are not actively vegan are becoming more health conscious and are adopting vegetarian and vegan buying habits,” he notes. 

Manufacturers are more likely to develop vegan products from concept, rather than retrospectively replac the egg, says Lambert. “There is a lot of potential in markets, not only in bakery but also snacks and convenience food sectors. Ninety-one percent of vegans feel that the food-to-go sector doesn’t provide them with enough choice, so there is a lot of potential for texture and flavor innovation in the market regarding egg replacement and vegan products,” he explains. 

Seeking alternatives without intensive processing
Frontrunner in organic ingredients, Netherlands-based Tradin Organic sees that the food industry is innovating with different approaches to replicate the flavors and textures of different meat and dairy products, without intensive processing.

Wouter Floot, Commercial Director EMEA at Tradin Organic.“The boom in vegan demand is driven by two major global phenomena: an aging population and climate change. The new generation of consumers knows they will grow older and wish to do so in a fit condition and in a healthy environment. This explains the desire for healthier and more sustainable diets. The growing group of vegan, vegetarian and flexitarian consumers also tend to avoid overly processed food items,” Wouter Floot, Commercial Director EMEA at Tradin Organic, tells FoodIngredientsFirst. 

“We see that our clients are innovating with new ways to replicate the flavor and texture of different meat and dairy products. Our challenge is to stay on top of these innovations and supply novel organic certified ingredients to allow our customers to produce at scale,” he says. 

Tradin Organic has a global network of agronomists who work directly with the company’s organic farmers and it’s because of this network that the company regularly comes across exciting and innovative new commodities that it can quickly develop and scale up into ingredients fit for processing. 

“Examples of this are canned jackfruit and dried coconut strips,” explains Floot. “As we own multiple processing facilities and can tap into an even wider network of external organic processors, we can actually co-develop and tailor new vegan ingredients together with our customers.”

Tradin Organic has expanded its portfolio to include the latest organic and vegan trends and ingredients. For example, due to its texture, organic jackfruit can be used as a meat replacer, without intensive processing. The company’s clients are also using Tradin Organic’s organic cashews (and other nuts) to make vegan milk and butter alternatives, while organic nuts are also being used as a basis for vegan cheese replacers. In addition, Tradin Organic, is also adding a range of innovative plant-based protein powders to its portfolio which provide a high-quality protein supplement for vegan products.

“For 2019, we are launching several new projects to cater to the organic and vegan trend. We are planning to open a new organic avocado oil factory in Ethiopia. Rich in oleic acid, this organic avocado oil provides a welcome nutrient boost. In addition, we are stepping up our sourcing of several organic and vegan ingredients, such as cashew, jackfruit, beans and pulses. This way, we will be able to offer our customers the full portfolio of organic certified plant-based ingredients,” he says. 

What’s next?
The demand for vegan food is driven by the desire to have healthier and more sustainable diets. The underlying motivations of consumers in terms of animal welfare, sustainability and an increasing reduced meat diet, will push up demand for plant-based ingredients and vegan innovative in general. The drivers here also include action to fight against the rapid onset of climate change (which involves dietary changes). These trends are all stronger among the younger age groups and so the demand is expected to intensify in the years ahead.

By Gaynor Selby