The global food industry is witnessing a significant shift towards plant-based alternatives, driven by growing consumer awareness of health, environmental, and ethical concerns. In response, numerous companies across the food sector are setting ambitious targets to increase their plant-based product offerings, reshaping market trends and consumer expectations.
Recent market research indicates that consumers are increasingly willing to pay more for plant-based options, with many citing environmental sustainability and animal welfare as key motivators. This shift in consumer behavior is prompting food companies to reevaluate their product portfolios and make commitments to expand their plant-based ranges.
In the US alone, plant-based foods make up a USD $8.1 billion market. The global market, on the other hand, is expected to reach $77.8 billion by 2025. By 2030, forecasts predict that this figure will have more than doubled.
Why are plant-based options important for sustainability?
The shift towards plant-based offerings is not merely a market trend, but a crucial step towards a more sustainable food system. Plant-based options play a vital role in addressing several pressing environmental challenges.
One of the most significant benefits is the reduction of greenhouse gas emissions. Animal agriculture is a major contributor to global emissions, while plant-based foods generally have a much lower carbon footprint. In comparison to diets in which more than 100g of meat a day is eaten, vegan diets produce 75% less climate-heating emissions, water pollution and land use. Studies further show that they cut wildlife destruction by 66% and water use by 54%.
The environmental benefits extend beyond resource efficiency. By reducing the need for large-scale animal farming, plant-based options can help preserve biodiversity and protect ecosystems often disrupted by industrial animal agriculture. They also contribute to reduced pollution, particularly in terms of nitrogen and phosphorus runoff that can lead to water quality issues.
More than that, plant-based foods are generally lauded as healthier alternatives to traditional animal products. Studies indicate that such diets can act as cost-effective, low-risk interventions that can potentially reduce body mass index, blood pressure, cholesterol levels and more. A further study showed how a healthy plant-based diet can contribute to a healthier cardiometabolic advantage compared with a healthy omnivorous diet.
Of course, plant-based diets are also advantageous in enhancing animal welfare standards in the food industry. This reduces the number of farm animals traditionally raised for slaughter such as chickens, cattle, sheep, goats and pigs. Researchers estimate that around 74% of land livestock — amounting to approximately 23 billion animals — globally are factory-farmed.
What targets are companies setting for plant-based offerings?
Many companies are beginning to set specific targets to provide more plant-based offerings or products. Some, like IKEA, are driven towards achieving a certain percentage of plant-based food offerings by a certain deadline. Others, like Unilever, are motivated by reaching a particular plant-based sales target.
IKEA
IKEA, while primarily known for furniture, has a significant food operation, including in-store restaurants and a branded food market. The company is famous for its Swedish meatballs and has been expanding its food offerings to include more plant-based options, aligning with sustainability goals.
The company has pledged that by 2025:
- 50% of main restaurant meals offered will be plant-based
- 80% of main restaurant meals offered will be non-red meat
- 80% of all packaged food will be plant-based
- 80% of all main restaurant meals offered will meet an internal criteria for healthier food
“IKEA wants to make healthy and sustainable choices the most desirable option, by for example demonstrating that plant-based food can be really delicious,” said chief sustainability officer at Inter IKEA Group, Lena Pripp-Kovac.
Unilever
Unilever has outlined a clear goal to achieve EUR 1.5 billion of sales per annum from plant-based products by 2025. These will derive from products traditionally using animal-derived ingredients, including non-dairy ice cream, plant-based dressings, and plant-based meat alternatives.
The company has since been recognized by FAIRR Initiative as the leader in its 2022 benchmark of companies using protein diversification to ensure growth and strengthen their climate-aligned portfolios.
InterContinental Greater China
InterContinental Hotels Group (IHG) Greater China represents a wider movement among global hospitality chains that are shifting towards plant-based food products. This year, the hotel group has committed to transform 30% of its menu offerings into plant-based options by 2025.
IHG Greater China’s move to incorporate more plant-based dishes into its menus aligns with its core values of responsible sourcing and environmental stewardship.
“Our goal is to make 30% of menu items in our hotels in Greater China plant-based by 2025, which is consistent with our long-term commitment to sustainability and our ‘Asia for Tomorrow’ initiative,” stated Jerome Qiu, Chief Operating Officer of IHG Hotels & Resorts Greater China.
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