Food Ingredients First takes a deep dive into the world of meat and dairy alternatives as many food manufacturers race to get their products to market, hoping to “ride the wave” of plant-based innovation. 

We speak to experts from Kerry, CP Kelco, Cargill, Beneo and Sensient Flavors & Extracts. 

“The first generation of alternative protein products was mostly soy-based and appealed to vegetarians looking for meatless and dairy-free options. The second generation of alternative protein expanded into almond, oat, pea and coconut bases, attracting curious consumers interested in eating less meat and dairy,” explains Anne Sinha, director of strategic segments at CP Kelco. 

“In the third generation, product developers are more concerned with delivering on taste, texture, price and nutrition. We have also seen great diversification, with meat alternatives that look, cook and taste like seafood, chicken and beef to egg alternatives and dairy alternatives that can replac milk, cream, yogurt and soft and hard cheeses.”

Development continues with new plant-based proteins, precision fermentation and hybrid blends.Meanwhile, Ian Carroll, strategy director for Kerry Europe, predicts a “huge amount of renovation of products to meet consumer expectations.” 

Improving the consumer experience is essential. While plant-based has become mainstream and household names established, consumer needs are diversifying ahead of what products deliver.

“Repeat purchase is a key challenge in the evolution of the plant-based alternative market. Data shows a significant gap between what consumers expect and what is currently available on the market,” he states. 

“We have more work to do to meet consumer category expectations fully. By delivering superior ingredients and finished products that exceed consumer expectations of plant-based meat alternatives, we can convert trial consumers into loyal shoppers and attract new customers to the category. This will unlock the most lucrative avenue for revenue generation in this fast-growing market and sustainable growth,” remarks Carroll.

What are consumers calling for?
Consumers generally want the same thing they expect from all F&B products: the right balance of taste, texture, nutrition and price. 

“In addition, they may want reliable alternatives to products in short supply, such as eggs,” notes Sinha at CP Kelco. “Juiciness is a big request in meat alternatives. Consumers want the juicy bite associated with eating meat and the smooth creaminess of dairy.”

Niels E. Hower, a member of the executive board of directors at Beneo, says that globally, “almost six in ten people are now paying attention to their meat consumption and almost half of the respondents are (very) interested in plant-based nutrition.”

“However, the journey toward delivering plant-based success stories involves producers being able to deliver to scale and balance customer demand for quick solutions.”

Fish alternatives drive innovation 
Regarding opportunities for plant-based market growth, Hower believes that a noticeable area is in fish alternatives. 

“Fish production is not a problem of efficiency but sufficiency, as a large share of all stock is getting to its limits or has been overfished. Even though herring, mackerel and North Pacific pollock are still abundant, the issue of fish availability will be around for a while. Solutions need to be creative, and that is wher plant-based solutions can help.”

Compared to the meat alternative market, plant-based fish alternatives are a relatively untapped opportunity and this category is being explored by Meatless, a company specializing in plant-based texturizing solutions.   

“For example, substituting the North Pacific pollock and cod is important in the long-term (for fish sticks etc.), given its high consumption. Meatless rice flakes are a high quality, white and flaky fiber that are good for white fish substitutes,” comments Hower. 

Also, for tuna substitutes, Meatless’ R&D has now made it possible to achieve 16% to 18% protein content using a combination of pea, quinoa, fava bean and rice ingredients. This allows for the structure and texture to imitate real tuna with the result similar to smaller-sized pieces used in a salad and is now in production for a range of customers, he details. 

Speed to market 
To deliver full concept development for producers that respond to these needs takes time. However, as the market develops quickly, speed is of the essence, remarks Hower. 

To shorten timelines for delivering new products to customers, Meatless prioritizes streamlining the production process, including sourcing contractors to produce and pack the products for customers. A rise in flexitarian diets, along with increasing consumer focus on health, wellness and the environment, is driving growth within the plant-based category.

According to Beneo, this type of end-to-end service is becoming increasingly critical in the market, as plant-based alternatives can require highly specialized production knowledge and only companies with the right expertise can offer this to support the development of high-quality plant-based products.

“As the plant-based market gains momentum and customers require higher volumes to meet demand, many companies struggle with scalability to achieve mass consumption and price competitiveness in the plant-based category. How fast a company can increase volume will be the make-or-break question,” Hower adds. 

Jeremy Marichez, innovation manager and Nandrianina Raboanason, marketing specialist at Sensient Flavors & Extracts, Europe, both agree that the industry has “undeniably seen a rapid growth of meat and dairy alternatives the past few recent years.”

“Not only in finished goods but also in the catering sector, with restaurants and fast-food chains adding plant-based options to their menus worldwide. It’s not difficult to notice that almost any food and dish now has its plant-based version and this shows how far the vegan and flexitarian diets trend has gone and the considerable interest of consumers in it,” they detail.

But is there a lack of demand?
According to Sensient Flavors & Extracts, the category has started to decline. “Sales are decreasing, shares are falling, staff are reducing, there is some restructuring, some companies are collapsing due to a ‘lack of demand.’”

Inflation has undoubtedly increased the price of almost everything – including real meat and fish – and consumers are cutting down on pricey items. They are moving toward cheaper food options such as vegetables, pulses and beans. Retailers and supermarkets are also expanding their own range, which are more accessible to the public, say Marichez and Raboanason. 

They both argue there is still room for the industry to grow again. 

“There are great opportunities at the moment in cheese and fish alternatives,” they explain. 

“Meat alternatives running from minced beef and chicken nuggets to pork sausages are now quite classic in the industry, and the market has become competitive. There is a flurry of start-ups operating in those. Still, to differentiate from one another, we see more companies specializing in a specific market segment such as fish, seafood, foie gras, cheese, etc.”

New technologies 
According to Sandy De Houwer, global marketing director for Meat & Dairy Alternative Solutions at Cargill, plant-based burgers and ground meat alternative products are just at “the beginning of what the alternative protein category can deliver.”

“The industry is exploring many technologies to improve the eating experience in terms of product taste and texture. Whole-cut technologies that mimic animal muscle tissue and cultivated protein can be used to develop entire meat analogs or components for hybrid blended products.”

For example, an existing and common technology leveraged for whole muscle cuts is extrusion, and although this technology is not new to the category, innovation in this area continues to expand, she flags. 

“New techniques are evolving, and scientific research continues to understand better what is occurring within the extruder. Fermentation biomass, such as mycoprotein, to generate whole-muscle cuts has greatly improved over the past five years. Instead of mycoprotein only being an ingredient, the biomass is being leveraged to create whole muscle cuts.”

Today’s consumers are more deliberate, cautious and mindful of their food and beverage choices.3D printing supports the appearance delivery of whole muscle cuts with continued work related to their texture. Many companies are working toward improving this technology. Cargill is also focusing its R&D efforts on cultivated protein by investing in partners such as Upside Foods, Aleph Farms and Wildtype, bringing this cutting-edge technology to the table. 

Building blocks to the future 
As we look ahead, protein needs to be sourced more sustainably. 

“It is clear to us that effectively working with the building blocks for plant-based products demands a deep understanding of the formulation and manufacturing complexity linked to the interaction between multiple ingredients, rather than just focusing on one specific part of the recipe,” stresses Houwer. 

Cargill sees “lots of potential with novel technologies,” such as plant-based shear cell technology, precision fermentation and cell-based. 

For Marichez and Raboanason at Sensient Flavors & Extracts, while every segment of meat and dairy alternatives are being explored by local start-ups and more prominent international companies, they also see further interest in the animal-free options, which are more “cruelty-free” alternatives or “slaughter-free” alternatives. 

“3D printing meat and cultured meat are interlinked and existing, but still niche. Animal welfare and environmentally friendly production are also arguments often favored in the discussion regarding feeding an ever-growing number of people on Earth.”