Globally, people\u2019s thinking and behavior are changing, encouraging a shift from animal-based to non-meat food products. The devastating wildfire in the Amazon rainforest has propelled the conversation on diet from the fringes into the mainstream. Whether from the perspective of environmental impacts, cruelty to animals, health benefits, or helping end world hunger, plant-based or flexitarian diets have become a genuine and accessible solution. With celebrities like Brad Pitt and Beyoncé publicizing their benefits, it seems everyone is talking about plant-based diets. In China, the government\u2019s newly released dietary guidelines call on the nation\u2019s 1.3 billion people to reduce their meat consumption by 50%. Globally, there are many reasons why people are embracing a healthy, humane, vegetarian diet.<\/p>\n
Companies are slowly beginning to provide products to service this rapidly growing trend. Plant-based burger maker Beyond Food has introduced the public to products that will help them seamlessly reduce their traditional meat consumption. Meanwhile, bastions of meat worship like McDonalds, Burger King and KFC have all added plant-based alternatives to their menus. With more consumers trying out and converting to a meat-free diet, Big Food has sat up and taken notice. Why wouldn\u2019t they? Not only is the market expected to experience double-digit growth, but vegetarian products also generate higher margins, are easier to handle, and foster significant brand loyalty. The global market for vegetarian food was valued at $12.69 billion in 2018 and is estimated to reach around $24.3 billion by 2026, growing at a compound annual growth rate (CAGR) in excess of 9.1% over the forecast period<\/p>\n
Big Food companies currently dominate the segment. A lack of choice has enabled these companies to acquire or build brands that consumers are prepared to accept in spite of the dominance of meat-based brands in the wider portfolio. We think it will not be long before consumers no longer accept food producers who offer veggie burgers alongside chicken fingers: such an approach defeats many of the core motivations that drive people to choose to reduce their meat consumption. Our view is that food companies will in the future choose between plant- or meat-based portfolios.<\/p>\n