HOW TO NAVIGATE THE PLANT-BASED F&B MARKET

The global vegan food market is expected to grow by 11.4% annually (CAGR) from 2024 to 2028, driven by a significant shift in consumer preferences towards health, sustainability, and ethical choices.  

Millennials and Gen Z are at the forefront of this shift, with many adopting flexitarian lifestyles—primarily plant-based diets with occasional meat or animal products.  

These preferences are not just about diet but reflect a broader commitment to health, variety, and environmental responsibility. 

We explore how these significant changes signal both a warning and opportunity for F&B businesses to consider ways to align with these emerging trends. 

KEY DRIVERS OF THE PLANT-FORWARD F&B MARKET 

Health consciousness is a primary driver in the demand for plant-based and vegan food options, according to Euromonitor.  

Many consumers perceive plant-based diets to improve overall well-being, reduce the risk of chronic diseases, and manage weight. This shift is particularly evident in younger demographics, who are more likely to adopt flexitarian diets, incorporating plant-based alternatives alongside traditional animal products. 

Environmental concerns are also significant. As awareness of climate change and environmental sustainability grows, consumers seek ways to reduce their carbon footprint.  

Plant-based food production usually uses fewer resources and produces less greenhouse gas, making it a more environmentally friendly choice. 

Issues related to animal welfare, factory farming practices, and the ethical treatment of animals have also led many consumers to re-evaluate their dietary habits.  

This ethical awareness is particularly strong in regions with higher levels of education and disposable income, where consumers are more likely to align their food choices with their values.  

CHALLENGES AND CONSIDERATIONS FOR F&B BUSINESSES 

Becoming more “plant-forward" presents several challenges for restaurants and F&B brands, despite the growing consumer interest.  

One major hurdle is the perception of vegan food as lower quality or less satisfying compared to traditional options. This perception can deter potential customers, especially those who are new to plant-based diets. 

Overcoming this bias requires a concerted effort to elevate the culinary appeal of vegan dishes, ensuring they are both visually appealing and flavourful as well as building an enticing brand world that consumers want to be associated with while also educating consumers about the benefits and versatility of plant-based foods. 

The cost of sourcing vegan ingredients is another significant consideration. High-quality plant-based alternatives, especially those that mimic the taste and texture of meat or dairy, can be expensive. Some of this cost often needs to be passed on to consumers in some form, potentially making vegan options less accessible to a broader audience.  

Sourcing these ingredients can also be challenging, particularly for smaller restaurants that may not have the buying power of larger chains.

As Euromonitor's data suggests, managing these costs while maintaining profitability is a delicate balance that requires strategic planning and supplier relationships. 

Lastly, the reliance on what’s available in the market for alternative ingredients and products poses a challenge. The availability of high-quality plant-based products can vary greatly depending on the region, which can limit the consistency and diversity of vegan menu offerings.  

Restaurants must be agile in adapting to these limitations, potentially sourcing locally or developing in-house alternatives to maintain a diverse and appealing menu. According to Euromonitor, brands that can navigate these supply chain challenges effectively are better positioned to capitalize on the growing plant-based market while maintaining customer satisfaction.  

ADVICE FOR RESTAURANTS AND F&B BRANDS 

“To successfully cater to the growing plant-based sector while addressing the challenges of mixed perceptions, costs, and supply chain issues, restaurants and F&B brands should focus on elevating the quality and appeal of their vegan offerings”, says TGP’s Plant-Based Executive Chef Zak Carey.  

Ensuring that plant-based dishes are as flavourful and satisfying as traditional options is key to changing consumer perceptions. Investing in culinary innovation, whether through partnerships with plant-based product manufacturers or by hiring skilled chefs with experience in vegan cuisine, can help create dishes that not only meet but exceed customer expectations.  

Additionally, educating consumers about the health and environmental benefits of plant-based eating can further shift perceptions and drive demand. 

Addressing cost and supply chain challenges requires strategic planning and flexibility. Brands should explore diverse sourcing options, including local suppliers, to reduce dependency on expensive or hard-to-find ingredients. Building strong relationships with suppliers can lead to more favourable pricing and access to high-quality alternatives.  

Moreover, developing in-house solutions, such as making plant-based ingredients from scratch, can help control costs while offering unique, branded menu items. By carefully managing these aspects, restaurants can offer competitively priced, high-quality plant-based options that attract a broader customer base. 

Finally, a gradual integration of plant-based options into menus might be more practical, allowing F&B brands to test and refine offerings based on customer feedback.  

This approach not only helps manage the initial investment but also allows brands to adapt to consumer preferences and market conditions over time. By balancing innovation with practicality, restaurants can effectively tap into the plant-based market's potential while mitigating risks associated with perception, cost, and supply chain complexities. 

HOW TO APPROACH BRANDING & MARKETING  

• Leverage Storytelling and Transparency – Share the story behind your plant-based menu items, including sourcing practices and ingredient origins. Transparency about your commitment to quality and sustainability can build trust and differentiate your brand in a competitive market. Engaging storytelling can also create a deeper emotional connection with your audience. 

• Targeted Marketing and Community Engagement – Tailor your marketing efforts to resonate with specific segments, such as flexitarians, vegans, or environmentally conscious diners. Collaborate with influencers, community leaders, and local organizations to promote your plant-based offerings and create buzz. Engaging directly with communities helps build credibility and fosters loyalty among new and existing customers. 

• Highlight Quality and Flavour – Emphasise the taste, quality, and satisfaction of your plant-based offerings in marketing campaigns. Use high-quality visuals and testimonials to challenge and change the perception that vegan food is lower in quality. Showcase the culinary innovation behind your dishes to appeal to both plant-based and mainstream consumers. 

• Communicate with Transparency – With 63% of global consumers more likely to buy from brands that are clear about their practices (Accenture), it's essential for businesses to communicate openly about their ingredients, sourcing, and sustainability, using digital platforms to foster consumer loyalty. 

SUCCESS STORIES 

Below are a few standout examples of we’ve helped our brands and partners navigate the world of plant-forward food.  

COP28

The focus on sustainability at COP28 has showcased how plant-forward forward can be achieved at a massive scale for major international events. From the launch of the world’s first vegan food truck park and the running of popular interactive cooking classes from a unique urban farm established by Expo City Dubai, we know that the right approach to planet-friendly food can be impactful and appealing to global audiences.   

PXB LIFESTYLE 

Through the incorporation of sustainable and plant-based practices the PXB Lifestyle concept, developed in partnership with Loui Blake, has responded to the growing consumer demand for plant-forward food options as well as interest in the health and wellness space. We’ve seen this brand grow and mature into more than just a restaurant concept, but a highly lifestyle-focused offering that has strong engagement with a community of diners who feel connected with the core pillar of the brand.  

FLOOZIE COOKIES 

A much-loved concept built in partnership by chef Kimberly Lin, Floozie Cookies is the perfect example of a vegan F&B brand competing with, and outperforming, competitors in its space.  

Some of the best stuffed cookies out there, the Floozie Cookies brand provides its fans (vegans and non-vegans alike) with a highly engaging and diverse world of vegan treats.  

By offering innovative vegan treats, Floozie Cookies has carved out a space in the market, proving that plant-based desserts can be both indulgent and sustainable. 

The future of the F&B industry is evolving, with plant-based dining playing a significant role. Consumers are increasingly mindful of health and sustainability, creating new opportunities for brands that prioritise transparency and ethical practices. Floozie Cookies and TGP International demonstrate how focusing on sustainability can open doors while remaining approachable to a broader audience. 

As the landscape changes, ethical sourcing and culinary creativity remain key. However, it's important to offer plant-based options in a way that resonates with all consumers, ensuring inclusivity while contributing to a more responsible and sustainable industry.