Plant based Foods Industry Giants Focusing on Inorganic Growth and Regional Expansion to Boost Sales
Existing food and beverage companies are focusing on protecting and enhancing their positions in the market, both through internally driven product development and innovation and inorganic growth through the acquisition of the new disruptor brands and products locally or regionally.
For instance, in 2017, Danone S.A. acquired Alpro, a Belgium-based plant-based dairy manufacturer, in order to broaden its presence in the plant-based market. Further, in May 2019, Danone announced plans to expand its worldwide plant-based sales. In addition, the company will start selling plant-based yogurts under ‘Activia’, in countries such as Spain, France and the U.K. within the next 12 months.
Direct-to-Consumer Model is the New Trend in Global Plant based Foods Market
Direct-to-consumer has become the focal strategic point for many of the key players operational in the segment. Heightened competition, increased bargaining power of suppliers has led manufacturers to directly engage with client through various means. Digitization has played a very crucial role in overall development of direct-to-consumer model. The trend has helped the companies to understand the consumer perceptions as well as ensuring higher client retention. Various new entrants are already leveraging the model, though in a limited scenario. Online channel is the biggest means of reaching consumers for these companies.
In 2017, Daily Harvest raised US$ 43 million in Series B funding. The company offers build-your-box service that deliver orders to consumer doorstep. Similar initiatives were seen across other new entrants.
New-to-Market Food Products Will Continue to be Major Trend in the Industry
Key players in the plant based food market focus on launching new products in order to broaden their product offerings and cater to a wide gamut of consumers in the coming years. For instance, in June 2019, Tyson Foods, Inc. launched meat replacement products under its new ‘Raised & Rooted’ brand. In April 2019, Aloha launched plant-based protein drinks available in 3 flavors namely Chocolate Sea Salt, Coconut and Vanilla.