Challenges and Opportunities for the Plant-Based Food Industry in 2022
As an IT outsourcing service company, we have witnessed significant growth in the plant-based food market, which is expected to continue through 2022 and beyond. This article explores the challenges and opportunities faced by the plant-based food industry, providing insights into how businesses can thrive in this dynamic market.
Opportunities for Plant-Based Food Market Growth
The plant-based food industry opens a plethora of opportunities for food sectors to grow and innovate. Food startups are launching hospitality properties that serve plant-based foods. For instance, Vurger Co. offers a range of plant-based products, including burgers and shakes, entirely through conventional fast-food restaurants, transforming the perception of plant-based foods in the fast-food market.
According to Kantar Worldpanel, 28% of dinner meals in the UK are now vegetarian. This trend is set to change consumer behavior, influencing how they shop and order food using apps. The rise in plant-based dining can be attributed to more plant-based options being available in hospitality and on food ordering platforms.
A significant opportunity is the establishment of plant-based or vegan supermarkets. These can be either online stores or traditional brick-and-mortar shops, or a combination of both. For example, Greenbay, a plant-based vegan supermarket in London, is now delivering plant-based food products across the UK. This trend is expected to continue, making it easier for consumers to access a wider variety of plant-based options.
Creating a plant-based food market for international cuisines is another business opportunity. This allows consumers to explore different plant-based culinary experiences whether at home or in a restaurant. Additionally, advancements in food technology have introduced custom software and food ordering apps, helping manufacturers innovate and connect with end-users in a more intuitive and user-friendly manner.
The presence of food technology in the form of mobile apps not only supports healthy lifestyles and the adoption of a vegan diet but also drives the growth of the plant-based food market.
The Challenges Faced by the Plant-Based Food Industry
While the plant-based food market has seen remarkable growth, it still faces numerous challenges. The health benefits and nutritional values of plant-based foods are well-known. However, the industry must navigate complex market dynamics, particularly related to the clean label movement.
Consumers today are more informed and selective about what they consume. They seek transparency and a clear understanding of the ingredients in their food products. The challenge for manufacturers is that many natural ingredients used in plant-based foods are printed in long, hard-to-pronounce labels. This can deter some consumers and impact sales.
A recent statistic reveals that the US plant-based food market reached $5 billion in 2019, and the global market is projected to grow rapidly. As the market continues to expand, manufacturers must innovate their recipes in a way that consumers can easily understand and relate to, maintaining brand loyalty and market share.
The focus on clean ingredients and clear labeling is a double-edged sword. While it promotes healthier eating, it also requires manufacturers to carefully consider the sourcing and presentation of their products. This challenge is compounded by the rapid expansion of the plant-based market and the increasing scrutiny from consumers and regulatory bodies.
In conclusion, the plant-based food industry in 2022 presents both exciting opportunities and significant challenges. Whether through innovation in product offerings, market expansion, or leveraging food technology, businesses can position themselves for success in this growing sector. It is essential to balance consumer needs with market demands while maintaining transparency and ethical standards, ensuring a sustainable and thriving plant-based food industry.