From Our Print Edition

After torrid growth in 2020 and early 2021, the category seems to be leveling out. But the poultry segment continues to register solid gains.

After lapping significant gains in 2019 and 2020, the meat/poultry/seafood substitutes category lost some ground during the second half of 2021, leading

Impossible Foods adds meatballs to its rapidly growing line of value-added plant-based proteins.

some companies to question whether recent investments in the segment would pay off. But thanks to gains in the frozen poultry and processed poultry subcategories, total dollar sales edged up 0.9% to $263.46 million during the 12 weeks ended Dec. 26 (versus the same period a year ago), according to Chicago-based market research firm IRI (iriworldwide.com). However, both unit sales and volume were down.

“The category is cycling a big year in 2020 with growth that was driven primarily by more consumers staying at home and cooking,” says Patrick Baskin, U.S. market lead for Century Pacific Food, the Philippines-based maker of unMEAT burgers, nuggets, sausage and ground meat. “There have also been a ton of new entrants in the category, and retailers have been let down by some brands not performing or delivering a good enough product. The category still had a big year in 2021 and will continue to grow as prices become more accessible and product options continue to taste better.”

NEW PRODUCTS TAKE ON ANIMAL-BASED MEATS

Launched on the West Coast last fall, the unMEAT lineup includes burgers, nuggets, sausage and ground meat

Despite the category’s recent setback, newer entrant Impossible Foods, Redwood City, Calif., has seen significant growth, thanks to its focus on taste that compares to animal products, reports company president Dennis Woodside. As a result, he adds, Impossible is taking some share from the meat segment.

“Some of the bigger brands are putting out more SKUs that fill shelf space but don’t meaningfully replicate the sensory and cooking experience of meat,” explains Woodside. “That’s why we are seeing retailers reallocate the space previously reserved for legacy brands to newer brands like ours.”

During the past year, he continues, Impossible Foods launched plant-based sausage, chicken nuggets and, most recently, meatballs, catering to a market much broader than just vegans and vegetarians.

“Our differentiator is that our products are designed to replicate meat at the molecular level based on fundamental science and innovation, so they deliver the taste, texture and cooking characteristics that meat-eaters crave,” says Woodside, citing one of the keys to plant-based success.

The folks at Denver-based Planterra Foods are pursuing a similar strategy with the help of MycoTechnology, a mushroom fermentation solutions company, reports CEO Darcey Macken. Planterra recently rolled out pre-seasoned plant-based True Bite Chicken Cutlets (Garlic & Herb and Sea Salt & Pepper) and Shreds (BBQ and Rotisserie-Style) under its OZO brand.

“We know that the demand for protein is only going to increase, and the world won’t be able to satisfy that demand with just meat-based products alone,” says Macken. “Chicken is the most popular protein in the United States, and it was clear we needed to create a plant-based option [so consumers] have a healthier and more sustainable alternative.”

NEW IN PLANT-BASED CHICKEN & SEAFOOD

The biggest opportunities in the meat substitutes segment include continued innovation and the introduction of cleaner, more sustainable products, according to a recent statement from Greenleaf Foods, the Chicago-based producer of Lightlife and Field Roast. The company also notes that 93% of new plant-based protein consumers are “flexitarians” motivated by a desire for health, improved sustainability and a greater variety of products made with clean

Handy Seafood launches plant-based Crabless Cakes packed with 10 grams of the company’s proprietary pea and wheat protein blend.

and simple ingredients.

To that end, one of the newest products from Greenleaf Foods is Lightlife plant-based unbreaded chicken made using high-moisture extrusion technology that gives it a taste, color and texture similar to white meat chicken. Like the breaded vegan chicken tenders and fillets Lightlife introduced earlier this year, the new unbreaded chicken is also carbon neutral, 100% non-GMO and vegan-certified and contains no artificial or synthetic ingredients.

For consumers who prefer their unbreaded plant-based chicken a little more recipe-ready, Portland, Ore.-based CHKN Not Chicken recently rolled out three varieties of its shredded chicken substitute: Fiesta (with Mexican spices and citrus), Zen (with Asian spices and ginger) and Naked. The ready-to-cook shreds can be used in stir fries, tacos, salads, soups, pasta and more, according to the company.

While the plant-based chicken segment is hot, the category has also seen an influx of seafood substitutes recently. Good Catch, from Heath, Ohio-based Gathered Foods, just introduced plant-based salmon burgers available at grocery stores nationwide through a partnership with United Natural Foods (UNFI). Meanwhile, Sebastopol, Calif.-based Sophie’s Kitchen is launching six different frozen plant-based seafood burgers (Original Salmon, Spicy Salmon, Miso Salmon, Original Whitefish, Mango Jalapeno Whitefish and Mediterranean Whitefish) in both two- and six-packs. And Handy Seafood, Salisbury, Md., just debuted plant-based Crabless Cakes packed with 10 grams of the company’s proprietary pea and wheat protein blend.

GROWTH THROUGH MERCHANDISING

For continued category success, consumers need to be able to find meat substitutes in-store, and retailers need to get new products on shelves quickly.

‘Retailers have been let down by some [new] brands not performing or delivering a good enough product.’

“Being open to experimentation and gauging the consumer response to offering new alternative protein products is an important priority for retailers,” according to Greenleaf Foods. “Consumers can find it hard to navigate where alternative protein products are located within retail locations. Retailers should be open to trial of multiple distribution points and experimenting with new merchandising options.”

Planterra Food rolls out OZO True Bite pre-seasoned plant-based chicken cutlets and shreds

Ian Cruse, senior brand manager for the Gardein lineup from Chicago-based Conagra says retailers can use their displays and assortments to help overcome consumer misconceptions that the category lacks flavor and that plant-based foods are only for vegans and vegetarians.

Manufacturers and their retail partners also need to do a better job positioning plant-based meats and seafood as key recipe and meal components for all consumers rather than just “an alternative,” says Baskin. To accomplish this, he suggests retailers integrate plant-based meats within their existing meat sets and rely on brand partners to inspire consumers with recipes designed specifically for plant-based meats.

Keeping costs down is also critical to continued category growth. “Plant-based burgers should not cost 30% to 40% more than traditional meat burgers,” notes a press release announcing unMEAT’s U.S. debut last fall.