Demand for vegan and
plant-based foods is
becoming global, with
product innovations and
distribution driving market growth.
Although most innovations are
occurring in Europe and the US,
Ecovia Intelligence says future
growth in the Asian and Latin
American markets is ripe for
the picking…and New Zealand
can prosper from new product
innovation.
Asian demand for proteins is
growing at an accelerated rate.
Asia Research & Engagement
projects meat and seafood
consumption to rise by 78%
between 2018 and 2050. But the
increase is bringing health and
environmental risks, with growing
numbers of Asian consumers
turning to plant-based proteins.
Innovation is a key driver of
market growth. Most product
innovations have initially been
from the US – such as the Beyond
Burger, Impossible Burger and
JUST Scramble. Europe is now
seeing a large number of new
product launches, with the
Vegetarian Butcher launching the
first vegan smoked sausage in
2018. Hydrosol Sundogs has been
launched as a vegan sausage
compound that is allergen-free (no
soya and wheat), and Hellman’s
has launching its egg-free vegan
mayonnaise.
New product launches in Europe
and the US are designed for
Western diets. So when Hong
Kong-based company Right Treat
launched the first plant-based
alternative to pork earlier last
year, it saw a gap in the market
for products like omnipork in
Asian specialties such as steamed
dumplings, and sweet and sour
dishes.
Distribution is another major
driver, with almost all major
retailers in Europe and North
America actively marketing plantbased
meats and dairy products
under their private labels. In the
US, Kroger is expanding its vegan
range for its Simply Truth brand.
Aldi recently announced that it
will be adding vegan options to
its Earth Grown brand in its 1800
American stores.
Future opportunities are expected
to be in the foodservice channel.
A growing number of restaurants,
cafés and similar outlets are
adding vegan options to their
menus - Pizza Express debuted
the world’s first vegan Just Egg
pizzas in Asia earlier this year,
and New Zealand’s Domino’s
has just introduced vegan
cheesy garlic bread following
the success of its vegan pizzas.
Moving Mountains is introducing
its meatless ‘bleeding’ burgers in
UK pubs and, in the Netherlands
McDonald’s has launched Valess
variant burgers that replace
chicken with non-meat substitute.
In the US, plant-based foods
are already established in
foodservice establishments,
such as the Impossible Foods
‘bleeding’ burger that is present
in more than 3000 outlets. The
number of new diners focusing
on vegan foods is mushrooming.
For instance, VeggieGrill opened
its 31st outlet in California at the
end of 2018, offering a range
of plant-based foods such as
burgers, sandwiches and salads.
Since opening its first store in
2015, Green Common now has
six vegan stores in Hong Kong.
In Singapore, Greendot has 10
casual diners that specialise in
vegetarian foods. A similar trend
is occurring in São Paulo, Rio, and
other Latin American cities.
Consumers are showing greater
interest in plant-based foods. A
recent study by Cargill shows
that half of American shoppers
are buying milk and non-dairy
products. According to the
Vegan Society, more than half of
British adults show vegan buying
behaviour, but most purchases are
not by vegans and vegetarians,
but by meat and dairy reducers,
flexitarians and those suffering
from food allergies. The millennials
are becoming more influential,
driven by health, ethical and
environmental motives.
The environmental benefits
of plant-based foods are well
documented. Livestock products
generate about 15% of all
greenhouse gases and take
up two-thirds of agricultural
land. There are 1.5 billion cows
on the planet, generating 5.5
billion tonnes of carbon dioxide.
Research by the University of
Michigan’s Center for Sustainable
Systems shows that a plantbased
burger generates 90%
less greenhouse gases, 99% less
impact on water scarcity, and 93%
less impact on land than a quarter
pound of American beef.
Citing such environmental
credentials, some argue the future
of the sustainable food industry
is with plant-based foods. Ecovia
Intelligence says the sustainability
choice between meat, dairy
products and plant-based foods is
a false dichotomy.
Animal-based products have
many sustainability merits.
Livestock brings many benefits
to farms; for instance, ploughing
fields and improving soil fertility.
Livestock farming also sustains
many rural communities, creating
employment and maintaining
agricultural economies. In this
respect, meat and dairy products
can have greater impacts than
plant-based products.
With plant-based foods continuing
to grow at double-digit levels,
vegan products clearly have a
future in the sustainable food
industry. However, so do meat and
dairy products, especially those
made according to organic and
sustainable farming methods.
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