As a new year gets underway, Food Ingredients First speaks with stakeholders in the plant-based space, targeting growth opportunities in 2025 while drilling down on the crucial challenges still to be overcome. Despite significant growth in many global markets, plant-based innovation has some way to convince more meat-and dairy-eating consumers that animal-free F&B is the future. 

Following several “turbulent years,” the plant-based industry is renewing its commitment to cleaning up the label of alternative offerings, ensuring they are nutritious and sustainable while delivering on taste and texture.

High profile campaigns like Veganuary, now in its 11th year, puts plant-based in the spotlight with predicted record numbers joining the pledge to ditch meat for the month, this year.

We speak to Toni Vernelli, international head of communications and policy at Veganuary, about expectations for the 2025 campaign.

“We are hoping to see more people than ever try a plant-based diet for January and beyond. As climate change continues to dominate headlines and people are becoming increasingly conscious about wher our food comes from, we expect more and more people to take part in Veganuary to reduce their meat and dairy consumption,” she says.

“We also hope to see more brands, retailers and restaurants using this opportunity to improve, expand and promote their plant-based offerings to a bigger audience.” 

No pressure to be the “perfect vegan”

Vernelli details challenges while explaining Veganuary’s approach to helping consumers worldwide use this month to move toward plant-based diets.

“We need plant-based options to taste the same if not better than the animal alternative so that even the most dedicated of meat-eaters will enjoy them. In terms of availability, we want plant-based products to be accessible and available, not hiding in the corner. All demographics need to be able to find the products, especially meat-reducers.” 

“We need to entice new shoppers with promotions and lower the prices overall. We don’t want a tax on climate-friendly choices; prices need to be on par with the animal-based versions. The nutritional content of meat and dairy alternatives can create hesitation among health-conscious consumers, so there needs to be nutritional parity with their animal counterparts.” 

Veganuary uses a non-judgmental approach to encourage people to move toward a plant-based diet. By encouraging people to give it a try rather than focusing on perfection, it lowers the barrier to entry and therefore, people are more open-minded about taking that first step. 

“We focus on meeting people wher they’re at, showing how they can eat plant-based at the same time as educating them about wher our food comes from, without the pressure of being the ‘perfect vegan.’ By using positive language and showing people that eating plant-based doesn’t mean restriction or sacrifice, we are setting them up to create more sustainable and lasting changes.” 

Price parity

Recent research from the Good Food Institute (GFI) Europe shows that retail sales of plant-based foods across six European countries were worth €5.4 billion (US$5.5 billion) in 2023, up by 5.5% compared with 2022. During this period, many plant-based product categories have become well-established in Europe.

Helen Breewood, research and resource manager at GFI, tells Food Ingredients First: “Following a turbulent few years, the plant-based space now has a solid foundation for future success, but it’s vital to remember that these options still make up a small fraction of the overall meat and dairy market.”

“More people will choose these products as part of their diets if they meet taste expectations and are able to compete on price, so companies and start-ups must invest in the innovation and infrastructure needed to develop tastier, more affordable products.”

GFI is seeing a growing trend of European researchers and companies focusing on delivering next-generation products, often including clean label ingredients, to deliver on key nutritional metrics, as well as flavor and texture, Amy Williams, nutrition lead at GFI, tells us. 

“With the nutritional opportunities offered by plant-based meat and dairy increasingly being recognized by healthcare professionals, a report by the UK Health Alliance has called for more funding for research to develop these foods to help make diets healthier and more sustainable.”

“The plant-based sector also needs to communicate that – far from always being a bad thing – when processing is done well, it can enhance the nutritional profile of plant-based foods, such as by fortifying products with key micronutrients like B12, iron and omega-3, missing from many European diets.”

In terms of innovation this year, Vernelli expects to see progress in categories like plant-based cheese, seafood and eggs, which are still a barrier to people switching to a fully vegan diet. 

“Improving plant-based dishes in restaurants – eating out is another barrier reported by Veganuary participants, especially when it comes to desserts,” she says. 

Powering plant-based growth

Breewood points to GFI analysis, which highlighted the success of plant-based cream, considered an emerging category. It increased in value by 24% and is now, on average, cheaper than branded conventional cream in Germany and the UK. 

“Meanwhile, we’re seeing exciting moves from retailers such as Lidl Germany, which has introduced price parity for its plant-based own-brand products. This suggests that lower prices, as well as improved quality, can help to power plant-based growth, so manufacturers need to invest in the infrastructure needed to deliver more affordable products.”

“Other emerging categories, particularly plant-based cheese, have also seen impressive growth and there are opportunities for innovative companies to enter this space, while plant-based milk and drinks continue to grow despite being already well-established markets.”

Finally, she also highlights opportunities for manufacturers to develop a broader range of functional plant-based ingredients that are high in protein and fiber but without the saturated fat and higher climate cost of their animal-based equivalents.