15 Nov 2023 --- Plant-based and vegan-friendly foods are emerging as nutritious and sustainable substitutes that contribute to a shift in consumer behavior and offer companies profitable opportunities. Amid continued economic pressures and the cost-of-living crisis, demand has nearly doubled in the last two years and is expected to grow strongly in the forthcoming years.

Food Ingredients First takes a look at the vegan food space and hears from experts at Corbion, Sensient and Planteneers. 

“It is well known that consumers worldwide are trying to reduce their meat consumption, mainly because of increased consciousness about the environmental impact of its production,” says Soledad Santarossa, senior global insights manager at Corbion. 

“In many cases, the awareness of the need and desire to collaborate somehow to live in a more sustainable planet does not translate into actual behavior,” she notes. “Although, at the moment,  only 2% of European consumers label themselves as ‘vegan,’ many more look for vegan products to include in their diets.”

According to Dr. Pia Meinlschmidt, team lead product management at Planteneers, consumers choose plant-based foods for a healthier diet, including better digestion and lower sugar intake, while considering factors such as sustainability, animal welfare, ethical aspects and environmental impact. “Strong purchasing arguments are also flavor and convenience,” she adds. 

Meanwhile, Jeremy Marichez, innovation manager at Sensient Savory Europe, suggests that consumers have “clearly understood the trio of (negative) impacts of animal-based products consumption: environmental, animal welfare and health.”

“As a result, we have seen ‘vegan’ as a keyword popping up everywher, in the food industry and beyond.”

Price parity 
Ingredient suppliers and food manufacturers believe that price parity is crucial for the continued success of plant-based alternatives. The list of ingredients must also be as short as possible – without any artificial ingredients, notes Meinlschmidt. “Plant-based alternatives should be on par in terms of both price and convenience.”

For Nandrianina Raboanason, marketing specialist at Sensient Savory Europe, the market “remains competitive,” especially among start-ups that, all at the same time, launched their vegan steak, minced alt-meat, alt-meat ball, chicken filet and sausages. “But, it is difficult to formulate and launch a product that meets all consumer expectations.”

For Marichez, vegan and plant-based innovations have experienced a slowdown in recent months. “We are witnessing a fall in sales and a few companies shutting down. High inflation is one of the causes, but not the only one. The vegan products offered couldn’t always guarantee a perfect match with the sensory experience, including visual aspects (crude, cooking behavior), texture, smell and taste.”

Also, he flags that consumers sometimes need clarification on the better nutritional balance promise when looking at the comparatively very long ingredient list and ultra-processing of such alternatives. 

“This can block consumer’s willingness to repurchase these products, next to the often-reported lack of price parity with conventional animal-based products.”

It’s not all about vegan “mimicry”
Innovations have continued in the meat area. In this case, it is more about focusing on a particular product type to be “veganized” rather than making product ranges too wide. 

Raboanason, at Sensient Savory Europe, says, “We are seeing less expected products such as foie gras, duck magret, eggs and even meat spreads like pâté appearing on the market.”

“Along with cheese alternatives, fish and seafood are also gaining traction for similar psychological drivers, as was the case for the shift to alt-meat.”

“Vegan food is not only about mimicking alternatives,” notes Marichez. “The ‘vegan’ concept gradually gives way to a more ‘plant-based’ concept, which is more inclusive and less restrictive. Indeed, ‘plant-based’ sounds accessible to all and promotes a more thoughtful consumption of meat and animal-based products.”

The demand for vegan claims is thus attractive not only to vegan consumers, Santarossa at Corbion tells us. “We can even now see categories more linked to indulgent consumption, such as confectionery products, claiming more and more they can satisfy what consumers are looking for, offering options with no animal content.”

In EMEA, sugar confectionery launches with a vegan claim grew 32% (CAGR) between 2018 and 2022, jumping from 5% to 15% of total launches within the category during the period, according to data indicated by Innova Market Insights (New Products Database November 2023.) 

“For some sub-categories (like gummies), finding alternatives to replac gelatine is key,” outlines Santarossa. Technical capabilities of R&D and application teams are fundamental to achieving optimal results in terms of texture, flavor and stability that the market requires.”

Alt-seafood innovation 
According to Meinlschmidt at Planteneers, “the market for alternatives to fish and seafood has quadrupled in the last three years.”

“And the trend is still rising,” she maintains. “Plant-based fish is the fastest-growing food category worldwide. However, the supply is still relatively small compared to other food categories.”

In this respect, there is still great potential here — especially as consumers want a more varied range. “A lot of potential lies in the development of high-quality products. Fish and seafood alternatives are generally considered healthier as they have a higher nutritional value than meat alternatives.”

Both Marichez and Raboanason at Sensient Savory Europe agree that overfishing, plastic pollution, biodiversity and ecosystem degradation make consumers question fish and seafood consumption. 

“This is the next available space for creativity and NPD,” they underscore. “Evolution in food formulation, ingredients and manufacturing technologies will support this and make it even easier than at the early age of alt-meat products launch.”

There’s room for innovation on the horizon. “Think vegan scallops, tuna, salmon, lobster and more,” says Raboanason, adding that there are plenty of opportunities to promote flavor expertise. 

“Indeed, briefs for specific vegan flavors are growing, allowing us to complete our portfolio with a wide range of taste profiles (meat, dairy, seafood concepts). It is also challenging, yet fascinating to create particular profiles in the vegan field (grilled, bloody, etc.)”

What’s next?
Planteneers’ Meinlschmidt believes that specific plant-based “hybrid” products that are upgraded with ingredients from precision fermentation or cell cultures will become increasingly important in the F&B industry. 

“However, it will still take some time before these products are ready for the market, but they are an interesting approach to improve the functionality, taste, texture and overall quality regarding the nutritional value of plant-based food products,” she says. 

“In addition, mycoprotein-based products will also gain traction. They are of great interest when it comes to nutritious, minimally processed products with a small footprint.”

Finally, Raboanason adds that: “Plant-based” or “vegan” claims are no longer the unique selling proposition.

“Brands, and even private labels launching on their own, must provide more. Consumers ultimately expect quality and good value for their money when buying food in these cost-of-living crisis times.”

“If the economic balance in consumers’ daily lives remains unchanged, they will continue to adjust their eating and purchasing habits to a more long-term affordable baseline,” she concludes.