Navigating plant-based foods: Will COVID-19 propel or limit the vegan sector?

18 May 2020 --- The vegan and plant-based food sector is booming and further growth is expected in the F&B industry, according to experts. Environmental concerns, health and wellness, and increased consumer curiosity are the most significant drivers impacting purchasing decisions when it comes to food. Vegan claims specifically have increased leaps and bounds in recent years, with the credentials becoming more than a trend or a statement. FoodIngredientsFirst speaks to key players in the plant-based arena, with several noting a shift in behavioral patterns that have, or will be influenced by COVID-19 and the risk of future “zoonotic” diseases.

According to Innova Market Insights data, taste and sustainability are two major factors that impact consumer purchase decisions. New launches with vegan claims have seen a substantial rise and are becoming mainstream. The market researcher notes a 21 percent annual growth of food and beverage launches tracked with vegan claims (Global, 2015-2019). Moreover, the demand for vegan food is becoming more significant, with more than one in four global consumers saying vegan alternative food launches are most sustainable (Innova Market Insights Survey Global, 2019).

Vegan and plant-based food is booming due to the increase in consumer demand for meat and dairy-free products and trends related to  health, the environment and animal welfare, says GNT.The color(s) of veganism
For Maartje Hendrickx, Market Development Manager, GNT Group, vegan and plant-based food is booming due to the increase in consumer demand for meat and dairy-free products and trends related to  health, the environment and animal welfare. “Color has an important role in ensuring plant-based products succeed,” she maintains. “If a meat analog successfully matches the color of meat, for example, it makes it more appealing on the supermarket shelf but also means consumers are more likely to enjoy it when they take their first bite.” 

Studies show that our expectations largely determine the way we experience flavor prior to tasting and color is thought to be the most significant factor in setting those expectations, explains Hendrickx. She also flags that sustainability is a significant factor for many consumers. “For example, a recent Yale University study found that 71 percent of respondents considered food companies’ impact on the environment to be a factor in whether they purchased or ate plant-based foods.”

That means all ingredients, including colors, are coming under the spotlight, according to Hendrickx. GNT recently launched two new Exberry Brilliant Orange shades in powder and oil-dispersible formats. The colors are made from paprika and carrot, providing a clean-label alternative to artificial colorants as well as additives such as annatto, beta carotene and paprika extract.

Sustainable and plant-based
For Silvia Soragni, Global Savory Product Manager at Lallemand Bio-Ingredients, sustainability is a key theme when looking at the growth of the plant-based market. “The demand in terms of water and land needs is much greater to producing animal protein than growing plant proteins and consumers seem to be more conscious than ever before, regarding the long-term environmental impact of their choices,” she explains. 

Studies have shown that vegan and vegetarian diets promote health, including a lower risk of developing coronary heart disease, high blood pressure, diabetes and increased longevity, adds Soragni. “These concerns are clear in consumers’ minds,” she asserts. “Additionally, one cannot underestimate the impact and re-enforcement coming from significant investments made by private and venture capital firms such as the Bill and Melinda Gates Foundation, which backed companies that are leading in the plant-based industry, such as Beyond Meat and Impossible Foods,” she further notes. 

“The fast development of meat-mimicking options with closer-to-meat characteristics could also attract ‘taste-driven, meat lovers’ consumers to select animal-free meals. Nowadays, there is a wide array of plant-based options, including meatless meats, fish and dairy-free products, like beverages, yogurts and cheese,” Soragni elaborates. 

A fallout with plant-based foods following COVID-19?
Meanwhile, the coronavirus pandemic has been shining a light on food systems and, more notably, the safety of animal ingredients. “After SARS-CoV and MERS-CoV, COVID-19 is another zoonotic coronavirus that has a deep impact on human health, Soragni comments. “During the last years different animal illnesses rapidly spread [avian influenza, swine flu], strongly influencing the availability of meat products, but also this raises questions regarding the safety of intensive farming, typical of highly industrialized areas, where these epidemics were likely to start,” she continues. “Plant-based food could, at this point, gain more traction, being seen as a safer, more sustainable source of protein,” declares Soragni. 

At the same time, consumers might like to slow down the search for “extreme innovation,” she further flags, referring to the natural touch of simpler food products. “Local, natural origin, sustainable supply will play a key role in plant-based food innovation,” adds Soragni. Anne Marie Butler at Edlong, says COVID-19 has put a strain on the plant-based and vegan food sector.

On the flipside, Anne Marie Butler, EU R&D Applications Manager at Edlong, says COVID-19 has put a strain on the plant-based and vegan food sector. “The number of new product launches has fallen, as the focus is now on ensuring that standard products remain on a shelf,” she comments. “This is especially true in Europe, where many supermarkets have prioritized standard and well-known products in place of new launches.”

“We are seeing consumers return to comfort foods during the pandemic, along with cooking from scratch. For some, the financial burdens that have come with COVID-19 mean that consumers increasingly want value for their money and plant-based foods often price much higher than their standard counterparts,” explains Butler. “I think the full impact of COVID-19 is yet to be felt, but I don’t think it is the end of plant-based. It could be a real driver for creativity and innovation in the space going forward,” she stresses.  

“The pandemic has been somewhat of a double-edged sword for the plant-based sector, as people are craving comfort foods on the one hand, but trying to stay healthy on the other,” Jennifer Nystrom, Sales Account Manager at Edlong asserts. “Grocery store shelves reflect this current trend, with meat and comfort foods often sold out, while some plant-based foods remain,” she adds. 

Henrik Lund, CEO of Naturli, a Danish plant-based food brand, has noted a 10 percent drop in plant-based foods during the pandemic. “It is temporary and only to be expected,” he muses. “During a crisis, many people go back for a while to familiar, traditional foods. However, I am quite convinced that plant-based foods will bounce back more strongly than ever. More and more people are reminding each other that the world is still facing a climate change crisis, where it makes a great difference what each of us consumes ,” he tells FoodIngredientsFirst. 

Many consumers have been aware that plant-based foods have far less climate impact than animal products for a long time. “We are also beginning to see that if there is any benefit from COVID-19 at all, then it is for the climate. Plant-based foods will consequently be in even greater demand,” he affirms. 

What does the future hold?
Today’s consumer is more adventurous than ever and the level of innovation in the plant-based space is so high that consumers are willing and eager to try new things, Butler states. “The key here though, is to ensure the products taste so good that you will see a repurchase. Nutrition and cost are likely the two biggest challenges that the plant-based food industry currently faces. Every plant-based product gets compared to a version of itself that is not plant-based. As consumers, we want to feel that we are getting the best value, taste and nutrition for our money,” she details. 

Butler goes on to explain that the convenience food sector holds a lot of potential for vegan claims. “All the major retailers in Europe have their own plant-based brands, targeting both vegan and flexitarian shoppers,” she notes. 

Companies launching plant-based cheddars, smoked cheeses and ranges of plant-based camembert and brie, which utilize fermentation and culturing to create innovative options for vegan and flexitarian diets alike.“We also see a move towards plant-based cheeses. Shops are popping up to feed a growing consumer need, along with companies launching their own plant-based cheddars, smoked cheeses and even ranges of plant-based camembert and brie, which utilize fermentation and culturing to create innovative options for vegan and flexitarian diets alike,” explains Butler.  “Plant-based cheese is an area in which we see a big leap in development, with manufacturers, focused on offering consumers products that have a taste that is as authentic as possible.”

“To stay ahead of this trend, we have just launched several new cheddar profiles to replicate the taste of a natural mature cheddar cheese for the European Market. We have a strong focus on creating balanced, clean, rich, and authentic profiles, which fits well in the plant-based space - and is reflected in our new offerings.”

Meanwhile, Lund of Naturli’ also expects to see an expansion in plant-based alternatives to the primary essential foods such as butter, milk, eggs, cream and cheese. 

“We will see increasing consumer demands for locally produced raw ingredients, instead of transporting them over great distances. We are seeing this now with soya used on farms, and it will spread to the food industry,” he claims. 

With flavor being more important in plant-based foods, the available ranges are set to increase. “There is a strong consumer demand for flavor and that is highly positive,” notes Lund. “For many years, consumers were used to more neutral flavors in pasteurized products, but now they want food to taste good again – flavor rules – so we are focusing strongly there,” he concludes. 

By Elizabeth Green