enli gh tened fo od s the power of plants...beyond consumers who follow a specific diet, plant-based...

4
P lant-based eating is a movement creating quite the buzz, and the most exciting part is that experts say it’s much more than a trend. This force toward plant-based eat- ing is driven by various cultural forc- es impacting how consumers think about the world and how companies conduct business, according to NEXT Data & Insights, the research arm of New Hope Network. “Social, en- vironmental, animal welfare, and health concerns are incentivizing natural brands to meet consumer demand for alternative ways of reducing [meat] consumption with plants,” according to Amanda Hartt, lead market analyst, NEXT Data & Insights. What’s more is that the marketplace has yet to fully realize what is possible with plant based. As the taste and nutrition profiles of plant-based products improve, so too does the consumer’s love affair with this category. “Our goal is to help people to eat more plant-based foods and our focus is to make plant-based products as acces- sible and effortless as possible for consumers to incorporate in their diets—from the way we de- velop products to be flavor-forward first to how they are represented on shelf among traditional products,” says Ryan Riddle, senior product de- velopment specialist, vegetarian meal solutions, Nestlé and Sweet Earth R&D. Understanding the plant-based category Beyond consumers who follow a specific diet, plant-based foods are also attracting those who value health and sustainability. Research is supporting the notion that plant based is more environmentally friendly and healthier for you than animal-derived meat. CHANGING PALATES AND EVOLVING HEALTH NEEDS The myths around plant based are being de- bunked as consumers recognize that a plant- based diet is satisfying, flavorful, nutrient dense, and diverse. “Plant based was often associated with sacrifice. That has been swapped out with culinary excitement and great taste,” says Kate Geagan, RD, author of Go Green Get Lean. Consumers are also realizing and experiencing for themselves that you can get plenty of protein from plants. “There has been increasing aware- ness that plants are a great source of protein,” says Caroline Bushnell, associate director of corporate engagement at the Good Food Institute. “When you look at purchase intent of consumers and ask what attributes of a plant-based product motivates them to make a purchase, highlighting protein makes the intent shoot up.” >> The power of plants From innovative “meat” to regenerative farming, plant-based foods are giving consumers what they want. Here’s what every retailer should know. Roughly 1/3 of the population is flexitarian, pushing for more plant-based options. 2020 SPINS data reports that grocery sales of plant- based foods that directly replace animal products have grown 29% in the past two years. 39% of consumers are actively trying to eat more plants, reports Nielsen. Nearly half of consumers have integrated plant-based meat into their diet or would consider doing so long- term, according to a Nestlé USA survey. 3 in 10 consumers who have not yet tried plant-based meat said they would do so if they had the opportunity, according to the Nestlé survey. PLANT BASED AT A GLANCE ® ENLIGHTENED FOODS Sweet Earth Chik’n Fajita Bowl

Upload: others

Post on 04-Oct-2020

0 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: ENLI GH TENED FO OD S The power of plants...Beyond consumers who follow a specific diet, plant-based foods are also attracting those who value health and sustainability. Research is

Plant-based eating is a movement creating quite the buzz, and the most exciting part is that experts say it’s much more than a trend. This force toward plant-based eat-ing is driven by various cultural forc-es impacting how consumers think

about the world and how companies conduct business, according to NEXT Data & Insights, the research arm of New Hope Network. “Social, en-vironmental, animal welfare, and health concerns are incentivizing natural brands to meet consumer demand for alternative ways of reducing [meat] consumption with plants,” according to Amanda Hartt, lead market analyst, NEXT Data & Insights.

What’s more is that the marketplace has yet

to fully realize what is possible with plant based. As the taste and nutrition profiles of plant-based products improve, so too does the consumer’s love affair with this category. “Our goal is to help people to eat more plant-based foods and our focus is to make plant-based products as acces-sible and effortless as possible for consumers to incorporate in their diets—from the way we de-velop products to be flavor-forward first to how they are represented on shelf among traditional products,” says Ryan Riddle, senior product de-velopment specialist, vegetarian meal solutions, Nestlé and Sweet Earth R&D.

Understanding the plant-based category Beyond consumers who follow a specific diet, plant-based foods are also attracting those who value health and sustainability. Research is supporting the notion that plant based is more environmentally friendly and healthier for you than animal-derived meat.

CHANGING PALATES AND EVOLVING

HEALTH NEEDS

The myths around plant based are being de-bunked as consumers recognize that a plant-based diet is satisfying, flavorful, nutrient dense, and diverse. “Plant based was often associated with sacrifice. That has been swapped out with culinary excitement and great taste,” says Kate Geagan, RD, author of Go Green Get Lean.

Consumers are also realizing and experiencing for themselves that you can get plenty of protein from plants. “There has been increasing aware-ness that plants are a great source of protein,” says Caroline Bushnell, associate director of corporate engagement at the Good Food Institute. “When you look at purchase intent of consumers and ask what attributes of a plant-based product motivates them to make a purchase, highlighting protein makes the intent shoot up.” >>

The power of plants From innovative “meat” to regenerative farming, plant-based foods are giving consumers what they want. Here’s what every retailer should know.

Roughly 1/3 of the population is flexitarian, pushing for

more plant-based options.

2020 SPINS data reports that grocery sales of plant-based foods that directly replace animal products have grown 29% in the

past two years.

39% of consumers are actively trying to eat more

plants, reports Nielsen.

Nearly half of consumers have integrated plant-based meat into their diet or would

consider doing so long-term, according to a Nestlé

USA survey.

3 in 10 consumers who have not yet tried plant-based

meat said they would do so if they had the opportunity,

according to the Nestlé survey.

PLANT BASED AT A GLANCE

®

E N L IGH T E N E D FO OD S

Sweet Earth Chik’n Fajita Bowl

Page 2: ENLI GH TENED FO OD S The power of plants...Beyond consumers who follow a specific diet, plant-based foods are also attracting those who value health and sustainability. Research is

WHAT’S DRIVING CATEGORY GROWTH?

According to NEXT, the known benefits of con-suming more plants, or the “plant wisdom” macro force, is inspiring consumers to lean more toward plant based. A recent IRI survey reported that 73% of consumers choose plant-based products to support a healthier lifestyle.

The second driver is a macro force that NEXT refers to as “plant-based ethics,” which is inspiring shoppers to more consciously consume products, focusing on those that are better for the planet and animal welfare. “Plant-based ethics is in part about responding to the ugly effects of the livestock in-dustry,” according to Hartt. “This is about opting out of animal based, rather than just opting into plants.”

Finally, consumers are feeling empowered to take on environmental and climate change concerns with their purchases. That desire, paired with companies’ mission-driven business models, is helping consumers spark change—one plant-based decision at a time. For Riddle and Nestlé and Sweet Earth, this has meant prioritizing the efficient use of our common resources, including our water, energy and land.

Rethinking protein Plant-based meat alternatives, specifically, is a booming market, growing faster than the total meat market. Although plant based still has a lower household penetration than conventional meat, you can see where it could go if it follows its current trajectory. There is ongoing innovation in the marketplace and on the horizon for plant-based beef, pork, steak, eggs, and even seafood, according to Bushnell.

While plant-based meat is certainly taking off,

so is simply tapping plants as significant sources of protein. “We are seeing a lot more exploration of different plants and crops as protein sources,” says Bushnell. “There are dozens of plants out there to consider, but the supply chain may not exist or no one has worked with these crops to optimize them for these purposes.” Traditional options like soy are now met with the increasing popularity of pea protein, quinoa, chickpeas, mushrooms, lupine, and hemp.

The plant-based industry’s futureSo what’s next for plant based? The market has already proven that consumers are looking for analogs of their current favorites. Yet, keeping their eye on transparency, consumers are also now looking at what is in plant-based products. There are currently two exciting paths for plant based. One embraces ancient foods and tra-ditions, using nature and its intelligence as a solution. Food looks like it did when it came out of the ground. It uses the benefits of nature’s natural pharmacy. When you eat these foods, you get the compounds—antioxidants, phytochemicals. At a cellular level, it helps to keep the body’s cells healthy, says Geagan.

The second is using more technology and hacking nature. This is still young and requires a bit more scrutiny yet can prove to have some promising sustainability benefits. According to NEXT’s Hartt, “Despite consumer reverence for ancient wisdom, technology is not bad, and consumers look to values-driven purpose within technological advancements to make lasting improvements.”

DEFINING QUALITY PROTEIN

At the federal level, protein quality is still defined by the ‘com-pleteness’ of the protein, which is based on its level of so-called ‘essential’ amino acids (i.e., those that must be consumed as part of the diet because the body cannot produce them). Industry experts have called on the National Institutes of Health (NIH) to work out a modern metric for quality pro-tein, one that is linked to quality health and environmental outcomes and is therefore more inclusive of plants.

Even if an individual plant-based product isn’t a complete protein, it can still provide plenty of amino acids that, when eaten with other proteins over a 48-hour period, is definitely high quality. Modern science has shown that you don’t have to combine proteins to attain a complete protein in one sitting; unfortunately, the regulations have yet to catch up. The irony, says Geagan, is that NIH is suggesting people eat more beans and legumes, and yet beans don’t rank as a quality protein under the current markers.

®

E N L IGH T E N E D FO OD S

Page 3: ENLI GH TENED FO OD S The power of plants...Beyond consumers who follow a specific diet, plant-based foods are also attracting those who value health and sustainability. Research is

INVESTING IN SCIENCE

Kantha Shelke, principal at Corvus Blue, a Chicago-based food science and research firm, notes that a lot must go into the future of plant based. “Each and every one of the minimally processed, clean-label, plant-based analogs of animal-based foods requires considerable research into the function-ality of the various ingredients and the various manufacturing processes for duplicating the taste, texture and other characteristic attributes of the new product,” she explains. “Plant-based diets offer a number of benefits with potential to concurrently help tackle the climate crisis, reduce waste, prevent disease, and improve overall health. This requires review of the supply chain to identify or revamp wasteful processes being used today with solutions such as managing water use, refrigerants, energy sources, and extent and type of food waste.”

Research is also ensuring that products meet consumer expecta-tions around flavor and experience, ultimately encouraging consum-

• A thoughtful approach to science and technology

• Review of supply chains for sustainability effectiveness

• Research into the functionality of ingredients and manufacturing processes

• Creativity to get the attention—and acceptance—of the market

• A fundamental understanding of the functionality of each of the ingredients and the manufacturing process, as well as what consumers seek in these products

• Great taste and exceptional consumer experience

• Strong nutritional attributes

• Commercial viability and economy of scale

• Food safety

Developing plant-based products requires the following before garnering consumer acceptance and eventually consumer loyalty:

Sweet Earth Deli Slice Charcuterie

Page 4: ENLI GH TENED FO OD S The power of plants...Beyond consumers who follow a specific diet, plant-based foods are also attracting those who value health and sustainability. Research is

er acceptance and making plant-based eating the “norm not the exception,” says Riddle. “Our goal is to reenvision plant-based foods as craveable and accessible, so consumers are empowered to make positive changes within their diet. Because of that, we are continuously developing and evolving our recipes with consumer insight in mind to be as flavor forward and nutrient dense as possible.” For Nestlé and Sweet Earth, tapping the expertise of restaurants and chefs has played a big role in deliciously inno-vating for the future.

Selling plant based Clearly, plant based is not a fad; it’s a key product category that is helping to drive sales at retail. The compound annual growth rate of plant-based options has been 14 times the growth of the total store, re-ports IRI data. Almost all plant-based segments have been steadily gaining share within their respective categories—think plant-based dairy, meat, yogurts, and supplements. This has encouraged retailers to really invest in in-store positioning.

“We are seeing a shift in the innovative ways merchandisers are strategically placing plant-based products in the store,” says Riddle. “We’re excited to see plant-based products popping up in new sections of the grocery store, evolving the traditional merchan-dising model and making it easier for flexitarians to in-corporate these new options in their shopping routine.”

Retailers continue to explore how to merchandise plant-based products. One important thing to note: Many consumers choosing plant-based meat alterna-tives may also eat meat. That means that in meeting the plant-based consumer, both integration and dis-tinguished sets have seen success. There’s the vegan looking for the best products, but there’s also the flexitarian consumer who knows she wants to eat more plant based but may not know where to look. “Help your cus-tomers find items they didn’t know they were seeking for, or that they didn’t know existed,” says Jonathan Lawrence, senior director of grocery and natural living, Fresh Thyme Farmers Market. Riddle points to Sweet Earth’s expansion into plant-based deli slices, sausages and jerkies debuting later this year, along with its already existing plant-based “Mindful Chik’n” and “Awesome Burger” meat alternatives as examples of the evolving industry.

RULES OF RETAIL

MEET CONSUMERS WHERE THEY ARE. By placing plant-based offerings in the meat coolers, you’re able to present another option to consumers as they’re reaching for that burger meat.

SAMPLING IS KEY. Let consumers know plant based tastes great. And while you’re at it, give them a coupon to incent trial.

CONSIDER BEEFING UP YOUR PLANT-BASED SETS. Help draw attention to the category, help consumers understand what plant based looks like and help bring excitement and energy to these new products.

CALL OUT PLANT BASED ON STORE FLYERS AND IN MARKETING. Make sure consumers know where they can find it.

SUPPORT FRESHNESS CUES. Moving plant-based beverages from the inner aisles to refrigeration is a game changer. Suddenly there is a freshness cue. Putting plant-based meat in the meat case is also a cue that it’s on par nutritionally and protein-wise with animal-derived meat.

HELP TO EDUCATE CONSUMERS. They may need to know how much protein they’re getting, how to prepare a product or get recommendations.

FROZEN FOOD 140.33%

SAUCES, SPICES & SEASONINGS 93.44%

SOUPS & CANNED GOODS 57.29%

CONDIMENTS, OILS & SALAD DRESSINGS 51.50%

SNACKS, COOKIES & CANDY 47.00%

DELI 23.10%

DRINKS 16.82%

MEAT & SEAFOOD 13.63%

According to NEXT, here’s a snapshot of plant-based categories showing the most growth:

®

E N L IGH T E N E D FO OD S