I N D U S T RY TA L K
Lucrative opportunities for plantbased food manufacturers
Astute business owners and entrepreneurs are always on the lookout for the next big thing. According to new research, one candidate for this title is vegan cheese.
P
roVeg International, a food awareness organisation based in Berlin, Germany
Pasta with vegan creamy chia cheddar sauce
recently conducted a large-scale
consumer survey across nine European countries to identify priorities for product improvement and development in the plantbased food market1. The research identifies several gaps in the market that South African food manufacturers should be taking advantage of. For predictions on the general growth of plant-based products, manufacturers can look to the market for plant-based meat alternatives, which is predicted to double within the next five years. According to figures provided by Markets and Markets, this market was valued at $12.1 billion in 2019 and is predicted to grow at an annual rate of 15%, reaching almost $28 billion by 2025.2 Market insiders will tell you that this is a very conservative estimate, pointing to the fact that Beyond Meat currently has a market capitalisation of $9 billion alone. The global meat market, by comparison, is only predicted to grow by 3% per year3. When looking for specific gaps in the market, the research sheds some light. In Europe, plant-based cheese is the product that was highlighted as the biggest opportunity for plant-based food producers. According to Verena Wiederkehr, head of food industry and retail at ProVeg International, who oversaw the research, “The data supports the view that good quality, affordable, plant-based cheeses have a good chance of penetrating, capturing and retaining a large part of this fastgrowing and lucrative sector.” The opportunity for South African manufacturers is two-fold. Firstly, gaps have been identified in the European market, and there’s good reason to think these export opportunities exist elsewhere. Additionally, there is an opportunity to be the first mover in some of these categories locally; for example, all of the plant-based cheeses that are available in our large retailers are currently imported. Infinite Foods, the local importer and distributor of world-leading plant-based based products like Beyond Meat’s burger, mince and sausages, Miyoko’s plant-based butter, Nature & Moi plant-based cheese, and recently Oatly oat milk, agrees with the ProVeg findings. “Research like this is very interesting to us - it confirms a lot of what we have been seeing and we are working hard to create partnerships
with local producers to bring more home-
African branch of ProVeg, is optimistic about
grown products to the market in the categories
the involvement of local firms in this growing
mentioned in the ProVeg report”, Infinite COO
segment, “The only major local manufacturer
Neil Taylor says.
that is taking advantage of this market is The
The work ProVeg is doing has already had
Fry Family Food Co., who is exporting some of
some impact in South Africa. In 2019, South
the world's best meat alternatives - like their
African meat company Feinschmecker Deli
Chicken-Style Burgers and Nuggets - from
Meats consulted with ProVeg before they
their base in Durban. Local production costs
became the first local meat producer to
are significantly lower than those in Europe
market a plant-based meat replacement
and America, where most of these products
product when they launched Gudness - a range
are being made, and there is no reason that
of plant-based deli slices. “After talking to the
more South African firms can’t enter - and
team at ProVeg, I had a better understanding
even lead - this relatively new and rapidly
of the benefits of moving towards more plant-
growing market.” •
based offerings,” recalls Alistair Hayward, managing director of Feinschmecker. He is quick to add, “Plant-based products are not just there for vegans or vegetarians - most of the growth in this category has been driven by people who still eat some meat, but are trying to cut back - or just trying new options that are more sustainable.” Along with plant-based cheese, other opportunities in the plant-based segment that were highlighted by the report include plant-based egg and plant-based convenience meals. Donovan Will, director of the South
1 “European Consumer Survey on Plant-Based Foods”. ProVeg International . 2020. https://proveg.com/wpcontent/uploads/2020/06/PV_Consumer_Survey_ Report_2020_030620.pdf 2 “Plant-based Meat Market by Source (Soy, Wheat, Pea, Quinoa, Oats, Beans, Nuts), Product (Burger Patties, Sausages, Strips & Nuggets, Meatballs), Type (Pork, Beef, Chicken, Fish), Process, and Region - Global Forecast to 2025”. MarketsandMarkets. 2019. https:// www.marketsandmarkets.com/Market-Reports/ plant-based-meat-market-44922705.html 3“How Will Cultured Meat and Meat Alternatives Disrupt the Agricultural and Food Industry”. A.T. Kearney. 2019. https://www.kearney.com/documents
June 2020 | Food Review
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