Betting on the booming plant protein food market

Think plant protein is just a passing fad? Think again.

You likely noticed the plant-based counter at your favourite grocery store is growing. There’s good reason: people are buying.

Despite the COVID-19 pandemic and the chaos surrounding containment and vaccination rules, consumers are quietly enjoying products made from plant proteins and milk alternatives.

According to recent data offered by Nielsen, since the start of 2020 sales of vegetable protein products have increased by 31 per cent. At the retail level, the market for plant-based protein substitutes is worth almost $300 million in Canada. That’s an impressive figure considering where the category was a few years ago. By 2025, along with food service, this market could easily exceed $1 billion.

Some may be surprised to learn that Beyond Meat, the “darling” of plantbased proteins, is far from dominating the market in Canada. Indeed, American brand Yves de Hain Celestial Group is most popular in Canada. The Yves brand has existed since 1985 and stands out for its innovative product development. In second place is Sunrise and in third place is Gardein. Beyond Meat is ranked fourth in sales by brand of plant-based proteins.

Twenty brands in Canada have generated sales exceeding $3 million in the past 52 weeks.

Consumers are interested in these products for three important reasons.

First, animal welfare is a concern for all those who support local agriculture and who are concerned about animal exploitation.

There’s also health. Several studies suggest that plant protein products are a better choice from a nutritional perspective, although some of these studies are heavily disputed by the livestock industry.

Finally, the environment. More consumers see the planet on their plate and claim animal production emits too many greenhouse gases. The livestock sector also disputes such claims as it tries to become a greener sector.

These factors appear to be motivating consumers and Nielsen’s sales numbers confirm that consumers are looking beyond meat for sources of proteins.

Of course, some may believe the movement toward plant proteins is disrupting traditional sectors such as cattle and dairy. Even though these sectors provide consumers with high-quality, all-natural products, the threat is certainly real.

It’s no coincidence that Agropur Dairy Co-operative just sold its yogurt division to the major French dairy group Lactalis. But given what’s going on with the pandemic and American politics, the announcement was largely unnoticed.

Many consumers are revisiting their relationship with animal proteins, both at the meat counter and in the dairy products section. But the Agropur dairy farmers’ co-operative was never ready or willing to make the switch to plants. So the dairy sector in Quebec is moving on, with a good portion of its dairy processing capacity going foreign.

Livestock and dairy producers may feel threatened, thinking food business is a zero-sum game. And it may have been like this for years but since consumers are looking for value, everyone has a place and role to play.

Animal and vegetable proteins are complementary. With a more sophisticated consumer looking for novelty, and value, companies must bet on a growing market and not the other way around. This is what Agropur never wanted to do and paid the price.