The plant-based sector has reached an inflection point – interest has plateaued somewhat; however, innovation in the category is rife.
In a recent Food Institute webinar about the retail and foodservice outlook in 2025, Menu Matters VP Mike Kostyo and Circana EVP Sally Lyons Wyatt discussed the precarious future of plant-based, including headwinds and the segment’s key growth areas.
“Plant-based is not trending like it was a few years ago in CPG,” Lyons Wyatt warned. “There are, however, pockets of growth.”
For makers and chefs offering plant-based assortments, she recommended making sure the target audience is well-understood, and benchmarks are set according to the current demand. Most of the segment is supported by people on plant-based diets or those who are seeking out these options deliberately; no longer is the general population trying them at the same rate as before.
The next wave of plant-based relies on innovation.
Kostyo painted a picture of an industry that garnered excitement with the first wave of meat analogs, however, once consumer curiosity prompted the trial, they found these options did not hit the mark to the same degree as their meat counterparts. At the same time, the clean label movement prompted many to think critically about the ingredients that go into mimicking meats with plant-based items.
“When we were surveying consumers, we found they tried [plant-based] because they were curious, but they found that … the taste wasn’t there” despite high price tags, Kostyo said.
However, brands are now coming out with innovative products that respond to these issues while leveraging unique flavors and experiences. One such innovation is Milkadamia’s Flat Pack, an organic oat milk offering that lowers the entry price for a premium milk alternative by reducing its packaging and shipping costs by drying the oat product into sheets that can be added to water.
“The hard part is two-pronged: one, convincing the operators to put them on the menu again, and two, to convince consumers to try them again,” he added.
One key area experiencing dramatic growth is in children and student selections: SPINS CEO Jay Margolis said at the recent Plant Based World Expo that students in schools and universities are asking for more plant-based options.
SPINS found that the segment grew 415% between 2021 and 2024.
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