There may be no better evidence that plant-based foods is an exploding category than the existence of the Plant Based Foods Association.
With more than 130 members, the association, which is headquartered in San Francisco, is focused on defending the industry’s products against attacks from the traditional items they are replacing. Michael Robinson is working on legislative issues for the association. In the past year, he said there have been an increasing number of state and federal legislative efforts -- mostly from the dairy and meat industries -- to restrict the use of “common and usual” product names on labels such as meat and milk.
In a nutshell (almond, most likely), the dairy industry wants to restrict the use of the word “milk” unless it’s associated with a dairy product. They are OK with “Almond Beverage,” but not “Almond Milk.” Likewise, the meat people aren’t too excited about non-meat alternatives using such descriptors as “meatless” or “porkless.” They don’t want to see a variation of their product names on those labels, arguing that the labels are misleading and confusing to customers.
Robinson’s trade association claims that these descriptors, such as coconut milk for example, have been used for years and their common usage is neither misleading nor confusing. Consumers, he says, know exactly what they are getting when they buy a meatless taco or almond milk. They are getting the alternative they want.
The trade association reveals that in the past year the plant-based foods category has seen a 20 percent increase in dollar sales and represents a $3.3 billion category. Others are touting similar sales growth, but just what the category includes is a bit of a mystery.
The Plant Based Foods Association is concentrating on products that are dairy and meat alternatives, but of course there are many other items on the grocery shelves -- including the produce shelf -- that are plant- or grain-based alternatives and being sold as such.
Melissa’s in Los Angeles sells several soy-based products, often in the produce department, such as Soyrizo, SoyTaco and SoyGround. Robert Schuller, director of public relations at Melissa’s, said the company also sells other items, such as steamed beets and cooked quinoa, in the same produce department section that sells the meatless alternatives. He noted that there are still many retailers selling the meat alternative items in other store departments.
“I’d say about 50 percent of the time we are in the produce department,” Schuller said of the soy-based items, adding that most of Melissa’s items tend to be protein alternatives to meat.
The Tofurkey Co. also has many different tofu-based alternatives. Cindy See, Western Region sales manager for the firm, said often retailers call that section their “Healthy, Asian, Meat Alternative” category. Tofu has been sold in the produce department for decades and is typically where these other items are merchandised.
Good Foods Group is another company that operates in this sector with a lineup of items. For its purposes, the company defines plant-based foods “as products derived from plants, including vegetables, whole grains, nuts, seeds, legumes and fruits. Our plant-based foods are produce forward and exclude preservatives, artificial ingredients and refined ingredients like added sugars and white flour.”
The firm, headquartered in Pleasant Prairie, WI, gravitates toward a plant-forward concept and believes most of its products, including its dips, dressing and juices qualify. It also believes “its avocado-based products fit well within these parameters too, like our guacamole, avocado salsa and avocado mash.”
Producers of products such as cauliflower pizza dough would no doubt embrace this definition as it is not a meat or dairy alternative, but rather an alternative that appeals to other diets, most notably gluten-free.
What qualifies as plant-based, like beauty, appears to be in the eye of the beholder. But in any event, sales are skyrocketing throughout the store, with the produce department getting its fair share of sales.
See of Tofurkey said produce departments are doubling the space allotted to the sector with many going from four-feet of refrigerated sections to eight-feet in width -- and larger. She said her company’s lineup continues to grow with a group of products that offer alternatives to meaty sausages, chicken and ground beef as well as the company’s signature turkey alternative.
“Deli slices are also a top 10 item for us,” she said.
Good Foods calls its new dip line “the gem of our plant-based offerings consisting of a Creamy Cilantro dip, Tzatziki, Avocado Pesto, Queso-style dip, and Buffalo-style dip.”
Like all of these “alternative” products, the concept revolves around appealing to a consumer sector that is very conscious of what they put in their bodies and want good nutritional benefits while enjoying good-tasting food.
“Dairy free, gluten free, and generally low in carbs, this line of plant-based dips is a solution that appeals to a broad audience,” said Mandy Bottomlee, director of marketing for Good Foods. “From those seeking keto-friendly foods with more specific requirements to those just generally seeking better-for-you foods, these dips are a win for everyone.”
She said the plant-based consumer segment is growing at a rapid pace, although it is still a smaller segment of the overall market.
“We believe that consumers are looking to mix up their diets and they are trying to eat better,” Bottomlee said.
The company believes there is a shifting consumer preference to more natural and more healthy plant-based snacks, reinforcing the need for plant-based food innovation and development. This is a trend it does not believe is going to go away.
“According to Future Market Insights, the plant-based snacking sector is expected to grow to more than $73 million by 2028, and we’re proud to be pioneers in this space,” said Danyel O’Connor, executive vice president of sales and marketing for Good Foods Group.
Schuller of Melissa’s said it is not just the hardcore vegan or vegetarian consumer that is driving this trend. He said many people are just trying to take incremental steps by having a “meatless Monday” and cutting back where they can without going cold turkey, so to speak.
See said the Tofurkey Co. is having difficulty keeping up with demand as retailers are following the lead of consumers and adding more and more products to the mix.
Interestingly, she noted the explosion in sales is being led by conventional retailers, as some of the natural food stores have not yet embraced these meat alternative products. And the manufacturers themselves, she said, love the idea of creating a product that might find a home in the produce department, as research indicates it is the department that drives more traffic than any other.
For example, there is Peatos, which is a lentil-based cheese snack very similar to Cheetos.
Is the fresh produce department ready for a Peatos display?