Meatless Meats - The Next Big Thing

In Macbeth, Shakespeare wrote - "Yet do I fear thy nature; it is too full o' the milk of human kindness to catch the nearest way". It was about 6,000 years ago that human beings started consuming milk. Historically and culturally, milk has been regarded as a complete food. It contains proteins, fats, carbohydrates, all known vitamins, various minerals and all the food ingredients considered essential for sustaining life and maintaining health.  

It is unthinkable that human civilisation can exist without milk. Today, on a daily basis, about 750 million human beings consume milk. However, human evolution and 21st century lifestyles have led to a large part of the global population becoming ‘lactose intolerant’. This is leading to a major disruption in the dairy segment. Some estimates suggest that over the next 5 years, the dairy alternatives market is likely to grow from about $20 billion currently to $40 billion! 

One starts wondering – how can this be? A $40 billion market for dairy alternatives? And if this is happening to dairy, which other segments are getting or going to get massively disrupted?

There are two big factors driving the alternative food industry. First, there is a global call for wellness. The pandemic has accelerated consumer interest in a more holistic approach to health. Approximately 25% of global consumers suffer from digestive health issues and 30% consumers are already personalising food to better address their health conditions. 

Secondly, there are significant concerns around environmental sustainability. In a global survey conducted by Benori, about 50% of the respondents said that they would like to do something about our environment. These consumers also had a demand for environmentally-friendly food. Reducing methane emissions in livestock is helping fulfil the demand for eco-friendly protein. New age farming practices, such as conservative agriculture, are being used to enrich the soil and improve the water cycle. 

An example of alternative foods is plant-based meats. Multiple studies over the last few years have proven, beyond any doubt, the ill effects on health of eating animal meat. Increased chances of cancer, heart disease and diabetes, difficulty in maintaining a healthy body weight, risk of food-borne illnesses and resistance to antibiotics are only some of the ill effects. Another reason why plant based meats are becoming popular are environmental concerns. Estimates show that plant-based meat use, on average, about 65% lesser land, emit 60% lesser greenhouse gas and consume 85% lesser water. 

The plant-based meat market is estimated to grow from a current $4 billion to reach $10 billion by 2026. Peas, soy, wheat and quinoa are the main sources and burger patties, strips and nuggets, sausages, meatballs and slices the main products. Innovative meat products also continue to be developed, with new technologies like 3D printing and protein fermentation playing a role in driving innovation.  

Human beings will continue to evolve and with that, their food also. A few fundamental questions need to be urgently addressed by the food industry. For example:

• Will the food industry be able to adapt to this changing environment and continue to provide healthy and nutritious food to all of us?
• Would future food regulations keep pace with society's requirements?
• Will companies be able to innovate and influence customers through digital marketing to increase sales?
• What will be the future key success factors?
• And finally, would customers continue to be kings and queens?

Time will tell.

Just like the food industry, almost every industry is trying to figure out such strategic questions. At Benori Knowledge, our vision is to help our clients answer such questions. We equip our clients with actionable insights and help them take informed business decisions. Our integrated and global approach using secondary research, primary research/expert consultations and data modelling supports business leaders like you to strategise and execute. Over the past 3 years, we have:

• Carried out 250,000 hours of secondary/primary research and data analysis
• Served 200+ clients (e.g. consulting, tech, FS, consumer, PE firms)
• Worked in 75 countries/20 languages
• Generated 25% cost savings

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Stay safe.....??.