Vegan plant-based foods are big money makers for these businesses: World Vegan Day
Veganism sells.
Plant-based foods made sans animal products are driving the market as more businesses embrace the sustainable food category consumers – including traditional meat-eaters – crave.
Retail sales of plant-based foods have grown 11 percent in the past year, bringing the total market value to $4.5 billion, according to the Plant Based Foods Association. The total U.S. retail food market has grown just 2 percent in dollar sales during the same period, according to the report, suggesting that plant-based foods are a major driver of growth for retailers nationwide.
“Whether it’s marketing a plant-based burger that reproduces the meat-eating experience or a dairy alternative that has the taste and texture of milk, consumers now have substitution without sacrifice,” said Darren Seifer, a food and beverage industry analyst for market research firm NPD Group.
Businesses want a bite of the vegan food market, estimated to reach a whopping $24.3 billion by 2026, as more and more alternatives to dairy, meat and fish sprout up at grocery stores and on restaurant menus.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BYND | BEYOND MEAT INC. | 7.02 | +0.23 | +3.39% |
| QSR | RESTAURANT BRANDS INTERNATIONAL INC. | 74.62 | +1.41 | +1.93% |
| DNKN | n.a. | n.a. | n.a. | n.a. |
| KFC | n.a. | n.a. | n.a. | n.a. |
Beyond Meat and Impossible Foods, the makers of plant-based burgers on sale at grocery stores and fast-food chains like Burger King, White Castle and KFC, target consumers looking to eat less meat and diversify their protein intake. Their products are marketed as environmentally friendly alternatives.
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And they seem to be resonating with a younger audience in particular. Millennials, born between 1981 and 1996, are the top consumers of plant-based meat alternatives due to health goals and concerns about animal treatment and welfare, according to NPD group’s plant-based foods trend report published Monday.
Gen Xers, born 1965 to 1980, are also major consumers of plant-based options instead of meat.
Blue Apron is adding Beyond Meat's plant-based burger to meal kit menus. (Blue Apron)
A slew of fast-casual restaurants and bakeshops have started ramping up their vegan offerings, too. International fast-casual chain By Chloe, which has been called the vegan Shake Shack for menu items such as a tempeh-lentil burger and a portobello mushroom take on meatballs, received a $31 million investment to expand globally last year in London and Dubai.
And New York City-based bite-sized cupcake chain Baked By Melissa rolled out its first-ever batch of vegan cupcakes in September with inventive fixings like beet icing and an acai cake base after customers asked for vegan alternatives.
But jumping on the plant-based, vegan wagon for the sake of breaking into the market space isn't enough. Seifer said taste is still what determines whether vegan products will keep attracting mainstream consumers.
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“Health and convenience go far to drive consumption, but if the flavor profile falls below consumers’ expectations, then the product will likely have a short run,” Seifer said.