INDUSTRY INSIGHT 10 key moments in 2020 for plant-based sector
The year 2020 was a defining year for the plant-based sector. Despite the disruption and uncertainty wreaked by the pandemic, consumer demand, investor interest and activity around new product development soared to new heights.
enterprising partnerships, ambitious merger and acquisition deals, new production facilities and scores of eye-catching product launches. “It’s no accident that this was the year that
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many giants of the traditional food industry chose to get serious about the plant-based sector,” notes Jasmijn de Boo, vice president at ProVeg International. “Any notion that plant- based might be a flash in the pan, or a fad has been put firmly to rest.” Here is our pick of 10 highlights that tell the
story of this dynamic, innovative sector in 2020. 1. European Parliament rejects ‘veggie
burger ban’ When is a burger not a burger? Does a steak, by definition, have to be meat-based? And can a plant-based sausage legitimately be called ‘sausage’? An amendment proposed by the European Parliament to ban terms like ‘veggie burgers’ and ‘yoghurt alternative’ was put to a vote. Thanks to concerted efforts by bodies such as ProVeg, however, MEPs decided to back the shift to plant-based eating and voted against a proposed ban.
2. McDonald’s announces McPlant range The world’s largest fast-food chain is beginning to embrace all things plant-based. After tests in several markets, McDonald’s revealed in November that it plans to roll out a plant-based burger in 2021. Additional plant-based items, including chicken alternatives, could follow. Other fast-food chains also got serious about the plant-based sector in 2020 including Burger King, KFC and Pizza Hut .
3. Impossible Foods raises $500m in the middle of a pandemic The pandemic was a landmark moment for the plant-based sector. With health, obesity and sustainability in the spotlight, and well- documented coronavirus outbreaks taking place in meat factories, consumer interest in plant- based options accelerated. Unsurprisingly, investor interest also accelerated, allowing Impossible Foods to raise $500m in March – in the midst of the coronavirus crisis – in order to speed up its growth plans and boost distribution.
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hile many other food sectors had to batten down the hatches, the plant- based sector charged ahead with
4. Unilever sets ambitious plant-based target Unilever was just one of several FMCG giants to set ambitious targets for plant-based sales. In September, Tesco revealed plans to increase sales of meat alternatives by 300% by 2025. The retailer also pledged to improve the affordability of plant-based options.
5. Oat-milk boom reaches new heights Oats were the undisputed star of the plant- based sector in 2020. Thanks to its long shelf life and no need for refrigeration, oat milk became a firm favourite with shoppers during the pandemic. In the US, demand for oat milk was so high in the early days of the outbreak that it outpaced demand for hand sanitiser. Retail sales of oat-based products in the UK nearly doubled year-on-year.
6. Confectionery giants wake up to the plant- based shift In August, Lindt unveiled plans to launch an oat- based chocolate range for the German market, while manufacturer Barry Callebaut announced a plant-based chocolate range to meet growing consumer demand for dairy-free confectionery options. Cadbury’s iconic Dairy Milk brand got in on the act too, with reports emerging in February that the company was working on a plant-based version.
7. Cellular-agriculture pioneer Memphis Meats raises $161m In January, Memphis Meats secured $161m in its biggest-ever funding round. The funding will help the company build a production facility, paving the way for a commercial rollout. In June, KFC announced a partnership with a Russian 3D- bioprinting firm to create cultured chicken nuggets; and, in November, Israel’s SuperMeat opened The Chicken, a restaurant in Tel Aviv that serves cultured-chicken products to diners.
8. Beyond Meat builds factory in Shanghai In the wake of the pandemic, demand for plant- based products in China has soared. Beyond Meat was quick to respond, announcing plans to build a new production facility near Shanghai. The investment marks the company’s biggest push into China to date, with production to commence in early 2021.
9. Plant-based sector debunks Super Bowl attack ad It wasn’t all good news for plant-based in 2020. Notably, US lobbying organisation The Center for Consumer Freedom ran an ad during this year’s Super Bowl, attacking the use of ‘ultra- processed’ ingredients such as methylcellulose in some plant-based products. The organisation had previously taken out ads in US newspapers warning consumers to avoid ‘fake meat’. The Super Bowl ad was quickly debunked by companies such as Impossible Foods, but as the plant-based sector continues to grow, opposition, too, will grow louder – and ingredients lists are an easy target.
10. The LiveKindly Co. creates plant-based empire The meteoric rise of new plant-based collective The LiveKindly Co. shows just how quickly the plant-based market moved in 2020. Created by a group of food industry heavyweights and backed by $200m in funding, the new collective has built a high-growth plant-based portfolio at breakneck speed. It acquired digital-media company LiveKindly (which also gave the new group its name), along with German meat- alternative brand LikeMeat and South African brand The Fry Family Food Co, as well as taking a stake in pea-protein manufacturer Puris. The acquisition of Swedish plant-based meat brand Oumph! followed in June.
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