During last week’s Plant Based World Expo in New York City, SPINS CEO Jay Margolis hosted a thought-provoking keynote discussion featuring Jonathan Lawrence, VP of Center Store at Fresh Thyme Market, and Joseph Saine, Director of Sales for Impossible Foods. The session focused on the immense growth opportunities within the plant-based category, particularly as plant-based products improve in taste and quality and consumer preferences evolve towards healthier, clean-label options. 

As Margolis and the panelists highlighted key insights, one quote from Lawrence perfectly encapsulated the excitement surrounding plant-based foods: “Tofu has never been sexier.”

Immense Opportunity for Growth

A major takeaway from the keynote was the undeniable opportunity for plant-based foods to continue expanding their reach. Jay Margolis emphasized that while the past year saw some challenges, the industry is bouncing back. “Sales are actually quite steady for the natural channel,” Margolis said, noting that the conventional channel saw some early trials but fewer repeat customers. “We are steadily climbing out of the sales challenges of 2023 and are beginning to see growth across all channels again.”

Margolis also shared that 60% of U.S. households are buying plant-based products, but there is still enormous room for growth. “Tofu only has 8% household penetration, and plant-based meat alternatives are at 15%. This shows that there are multiples of growth available to these products within the market of customers who are already engaged with the plant-based category,” he added. Saine echoed these sentiments, making the case that “households that are already purchasing plant-based milk or other products are more likely to purchase a plant-based meat product”. This presents a lower-hanging-fruit opportunity for plant-based brands to grow within the existing universe of consumers already purchasing some form of plant-based product.

Saine expanded on the opportunity, highlighting foodservice as another growth indicator. “There is a huge runway for growth, especially when we include foodservice, which is not represented in these retail-focused numbers,” Saine explained. “Many consumers have tried an Impossible burger at Burger King or Applebee’s, and it is on us to engage with them and encourage them to also try that product in a retail setting.”

Taste and Ingredients Drive Adoption

While the plant-based sector has seen increased consumer interest, both Margolis and Saine agreed that the key to success lies in delivering on taste and ingredient quality. Margolis noted, “When we look at purchasing behavior, we continue to see that taste and ingredients matter most to consumers.” He highlighted successful products like Mush, an overnight oat product that just happens to be vegan, Abbot’s Butcher, a plant-based meat made of just pea protein and spices, and Three Wishes, a 5-ingredient cereal with 8 grams of protein. These examples all deliver on simplicity, flavor, and clean-label benefits. “These products win consumers who are looking for better alternatives,” he added.

Margolis highlighted the importance of brands like Impossible Foods in bringing new customers into the category: “Companies like Impossible that deliver on taste and invest in marketing to new consumers do a great job of inviting new people to try plant-based foods, which then spills over into other categories.”

Saine added that Impossible’s marketing strategy has shifted toward focusing on nutrient density, which has resonated with consumers. “Our hotdog, for instance, has twice the protein of the leading national hotdog brand, and it’s performing phenomenally well.”

Simple Ingredients and Consumer Trust

Consumers are gravitating towards plant-based products with simple, transparent ingredients, and Jonathan Lawrence of Fresh Thyme Market is seeing that firsthand. He explained that tofu and other clean-label plant proteins are gaining popularity. “Tofu is sexier than it has ever been,” Lawrence said. “It’s all about what you can do with it, and how you can educate your customers on preparing it.”

Lawrence also noted the increasing appeal of lentils, which he sees as a massive growth area due to their simplicity and versatility. “Lentils are a great product, consumed throughout the world, but less so in the U.S. This provides a large opportunity for innovation with lentils as an ingredient,” he added.

As plant-based companies work to meet these demands, Lawrence reminded attendees that merchandising matters. He emphasized integrating plant-based products alongside their non-plant-based counterparts rather than separating them. “It allows plant-based options to be more accessible, creating fewer hurdles for consumers to adopt them,” he said.

More to Come!

This keynote panel kicked off 2 full days of education at Plant Based World Expo, which provided attendees with a wealth of insight into the industry’s future. 

Stay tuned for more recaps from Plant Based World Expo 2024, and explore the deeper dives into trending categories, standout products, and the educational sessions that will help shape the future of the industry.