There are more than 40 alternative sweeteners trying to replace sugar by offering sweetness and fewer calories yet sugar still commands 75% of the global sweetener market, Rabobank food and agribusiness executive director Nicholas Fereday says.
That hasn’t stopped sugar alternative makers from trying, he said.
“The point here is that the quest for the perfect meat substitute will not end with the Impossible Burger or Beyond Burger because, as both companies have openly shared, their products are very much a work in progress.”
In the United States non-dairy milk market alternatives claim 13% of the market by value and 5% in volume.
Alternative meat protein companies will adopt a similar strategy to non-dairy milks by promoting attributes of sustainability, animal welfare, health and wellness to secure similar market share.
That strategy requires incremental improvements in the taste compared to previous substitutes.
“These are certainly not the tofu burgers of yesteryear and they are getting better one reformulation and improved flavour system at a time.”
Earlier this year Impossible Burger switched from using wheat and soy protein to give a meatier taste and texture.
While the company’s transparency is welcome, constantly tinkering with formulations and refinements might turn off some consumers.
Substitutes rarely outdo the real products because of consumer reluctance, poor functionality, negative perceptions, inferior status and food safety concerns.
Alternative protein makers are being challenged on the lack of plants in their products and the complexity of using more than 20 ingredients, some of which people cannot pronounce, making them ultra-processed products.
Alternative meat and dairy protein makers are pricing their products at a high-margin premium, believing consumers will pay for environmental and animal welfare attributes.
But they have avoided debate about the merits of genetically modified organisms versus natural products.
It is unclear whether that strategy will prevail because taste and price will remain the main drivers for consumers, Fereday says.
“After all, one cannot taste sustainability.”
Nutri-score, a European nutritional retail labelling scheme, recently awarded Beyond Meat a C grade. The healthiest grade is A and E the unhealthiest.
The rating was based on the calorie and salt content of Beyond Meat and could be a sign international expansion might not be straightforward, he said.
It is now more important than ever for natural meat and dairy producers to keep close to consumers, especially as critics question the naturalness of alternatives.
“With this in mind, it is always worth remembering to stay as close and connected to the consumer as possible in case the narrative changes and drifts too far away for you to influence.”
And alternative protein producers should also be wary that today’s solution and good idea can quickly become a problem and bad idea.
