After expanding aggressively into the retail category nationwide in the United States, Impossible Foods is now eyeing a new market to drive growth and increase its market share. In May 2021, the plant-based company announced that its plant-based Impossible Burger secured the Child Nutrition (CN) Labels from the United States Department of Agriculture (USDA). Therefore, making Impossible Foods plant protein burgers eligible for distribution under federal child nutrition programs such as National School Lunch Program, and School Breakfast Program. ConsumerIntel360 expects this entry into the K-12 foodservice channel market is likely to drive revenues for the plant-based protein company.

Sizeable market opportunity for Impossible Foods from the K-12 foodservice channel

The National School Lunch Program is the second-largest food and nutrition program in the United States. Every year, billions of lunches and breakfast are distributed in various schools nationwide, for free or at a reduced cost.

Since, Impossible Foods now carries CN Labels, it will become much easier for schools to easily procure plant-based burgers and sausages from the company. Moreover, according to the National Center for Education Statistics (NCES), with more than 100,000 public schools in the United States, this entry into the K-12 foodservice channel represents a sizeable market opportunity for Impossible Foods.

Impossible Foods is gearing up to launch its products with the reopening of schools

Soon after receiving the CN Labels, Impossible Foods announced the pilot program for their plant-based food products for K-12 foodservice channels. Starting from May 2021, Impossible Foods entered different schools based in California, Washington, and Oklahoma to offer their products.

Some of their initial plant-based offerings will include Impossible Frito Pie, Impossible Street Tacos, and Spaghetti with Impossible Meat Sauce. With schools across the country starting to reopen from the pandemic, Impossible Foods is expected to roll out its plant-based product line nationwide in the coming year.

ConsumerIntel360 expects the competition to intensify in the K-12 foodservice market over the next few years. Consequently, opening up new investment and partnership opportunities for several global plant-based brands.

Nestle, as a part of its plant based food and beverage strategy, is focusing on high-growth areas and expanding its business to cater to evolving market conditions while committing to healthy and nutritious foods. To this end, in February 2021, Nestle announced plans to launch vegan Kitkat, KitKat V, later this year. Also, Nestle Japan is introducing Nescafe lattes with plant-based ingredients, to satisfy the growing interest of customers in plant based beverages.

Nestle offers plant based food under Garden Gourmet brand in Europe and Sweet Earth brand in the US, and across its portfolio. The company has been innovating and expanding its portfolio to meet evolving consumer needs. In September 2020, Garden Gourmet launched a meatier and juicy version of its plant-based burger, which was previously launched in April 2019.Moreover, Garden Gourmet expanded it offering to include Sensational Burger and Sensational Vuna, a plant-based alternative to tuna. Also, its plant-based tuna alternative is currently offered at supermarkets in Switzerland. Consequently, Garden Gourmet offers 80% clean label products and plans to extend the label to its remaining product portfolio.

Also, since 2017, Nestle has been innovating Sweet Earth, its plant based food brand in the US. It launched innovative plant-based pizzas with extra vegetables and fiber. Also in July 2020, it unveiled Sweet Earth Sausages, the Green Chile Chedd'r and Chik'n Apple.

Moreover, Nescafe Gold offers non-dairy creamy lattes with oat, almond, or coconut, and blended with Arabica coffee beans. Also, in the US in February 2021, Coffee-Mate Natural Bliss brand introduced plant-based creamers with oat and almond milk, inulin, pea protein and MCT Oil. Owing to continuous innovation, portfolio and distribution expansion, vegetarian and plant-based food products recorded double-digit growth in the first nine months of 2020.

Further, Nestle Malaysia launched a plant based meal solutions manufacturing (PBMS) facility in Shah Alam plant, one of its first in South East Asia. The company has spent US$37 million (RM150 million) out the total US$69.1 million (RM 280 million) CAPEX planned for 2021.

The PBMS facility will manufacture products not just for Malaysians but also for exports to countries such as China. As per the company, the plant based market will become mainstream eventually in Asia and Nestle is well prepared to capture share in this growing market.

The company is running trials on products and plans to begin offering them in February 2021. To begin with the company intends to supply burgers to restaurants and then move into the retail market in April or May 2021. The products will be marketed under Harvest Gourmet brand which already has a presence in APAC especially in Australia.

The US plant-based protein market has recorded strong growth in recent years. The growth is primarily backed by the rising flexitarian trend, adoption of vegetable diet, and vegan meals due to the increasing health consciousness and evolving veganism among a large US population.

According to ConsumerIntel360's Q2 2020 survey, plant-based foods market is growing at over 15% (annualized basis) in the US. The market growth is offering an attractive business and investment opportunity for food manufacturers ranging from leading CPG companies to meat producers. Moreover, future growth prospect of the market is attracting startups to participate in the market. It is expected that innovative products using new ingredients will drive the future growth of the market.

The ongoing coronavirus pandemic (COVID-19), is becoming a rising concern for global socio-economic stability.

The conventional meat processing companies are facing several challenges to run their business. In April 2020, meat processing companies such as Tyson, National Beef Packing, and JBS USA had to close their many plants due to some of their employees got sick by the virus. Notably, the closure affected Tyson to lose 25% of its total meat production. The availability of meat and meat products has been affected.

Additionally, consumers are avoiding animal products due to fear of getting infected. Hence, the shortage of conventional meat and consumers’ sudden affection to the plant-based meat is helping the plant-based meat sector to record rising demand.

In the plant-based protein market, innovation is truly necessary to sustain in the business. Consumers’ inclination towards plant-protein is rising due to the more health benefits and same taste these alternative proteins are offering. Therefore, companies are keen to find ingredients which can be alternative to conventional protein sources and match consumers’ preference.

The demand for hemp seeds is rising as a complete source of protein and contains essential amino acids. Due to high growth potential over medium to long term, start-ups are entering the plant protein market by creating a niche in hemp-based protein products. Pea protein is gaining market share in the US plant-protein industry. This is primarily due to high protein content and several health benefits it offers. Additionally, the use of pea protein is increasing in dairy, bakery, and other food and beverage processing markets as an alternative to other plant-based protein such as soy. Companies are therefore focusing on new product development using pea protein.

The strong growth of the US plant-based protein market is creating opportunities for already established large food processing companies and new entrants. Large food processing companies such as Tyson and Nestlé are moving faster to establish their presence in the plant-based protein market, due to increasing demand. Similarly, start-ups are raising funds to stay afloat in the US plant-based protein market. The market is also getting support from growing sales of plant-based foods in restaurants and foodservice channels. It is expected that the rising demand will also encourage retailers to introduce more private label brands in the market.

The plant-based protein market is rather consolidated in the US with the presence of large companies such as Cargill, Archer Daniels Midland, Tyson, DuPont, Danone, Conagra, Ingredion Incorporated, Axiom Foods, The Scoular Company, Boca Foods (Kraft Heinz), Beyond Meat, and Field Roast Grain Meat Co.(Maple Leaf Foods).

Moreover, the plant protein market is at a relatively nascent stage in its development, therefore several start-ups and relatively small businesses are entering the market.The US plant-based protein producers are primarily competing with conventional animal-protein companies such as WH Group, Hormel, and others. These large companies have already built strong brand recognition and a large consumer base in the US animal-protein market. Leveraging lower operational costs due to the large volume production, conventional animal protein companies can reduce their product prices than plant-based protein products.

Additionally, plant protein producers are also facing stiff competition from conventional companies for expanding retail shelf space, restaurant, and foodservice consumers.In the US, plant-based protein producers are likely to be more focused on their product innovation and promotional activities to expand their market share and compete with traditional animal protein companies in the coming years. Competition within the segment will rise as the participation by the large food processing companies is increasing in the plant-protein segment. These companies are investing in research and development to create a niche market by bringing new and innovative products.

Additionally, private label products are also gaining popularity. For instance, in January 2020, the Kroger Co. launched Simple Truth Emerge, a new pea protein-based fresh meat product in the US. Anticipating strong demand for plant-based protein products, the company plans to add another 50 products under the Simple Truth brand.

According to ConsumerIntel36’s Global Plant Protein Q3 2020 survey, the rising demand for plant-based products is also encouraging mid-tier retailers to provide shelf-space for plant-based protein products. It is expected that mid-tier retailers are likely to focus more on private label brands.

According to ConsumerIntel360, Plant protein consumption increased at an annual growth rate (AGR) of 25.0% during 2018-2019. The recent growth of the plant-based protein industry in Russia provides opportunities for major food processing companies and new entrants.

The plant-based protein market is rather fragmented in Russia with the presence of large companies such as ADM, Cargill, Cosucra Groupe Warcoing S.A., DuPont de Nemours, Inc., Kerry Group, NOW® Foods, Ingredion Incorporated, Tate & Lyle, and Beyond Meat.Likewise, startups are raising funds to be stable in the Russian plant-based protein market.  Also, the industry is getting support from growing restaurants and foodservice outlets for the sales of plant-based foods. The growing competition is expected to also allow retailers to put more private labels into the marketplace. Moreover, the plant protein market is at a relatively nascent stage in its development, therefore several start-ups and relatively small businesses are entering the market.Startups such as Greenwise and Moving Mountains are planning to expand their product line this year to reduce Russia’s meat consumption by offering plant-based alternatives to the popular meat products.

Also, the presence of the leading meat producers such as Tyson, Cargill, and JBS makes the Russian plant-based market more competitive. These firms have a large global distribution network which helps them reach a broader customer base. Periodically updating their food products with newer ones and building partnerships with the leading foodservice channels make these companies strong competitors.Rapid business growth is creating opportunities for startups. Fundraising and production, both in small and large amounts, demonstrate the growth trend in the plant-based protein or alternative meat products market in Russia.

Retailers are willing to provide shelf space for plant-based products. Retailers such as Azbuka Vkusa, VkusVill, Globus, and X5 Retail Group are willing to provide separate sections for vegan and vegetarian products—not only in physical stores but also in their online portals. These products are included by small and large retailers in their marketing campaigns because they aim to emphasize the availability of plant-based, animal-friendly, and green products in their stores.

Consumers in Russia are seeking to incorporate plant-based foods into their diets. Plant-based nutrition is gaining importance among more people following vegetarian diets, including those adopting vegan diets. The attractiveness of plant-based proteins is diverse, as with other behaviors. For many customers, the rationale for preferring plant-based proteins focuses on the correlation of health benefits, superior nutritional value, and the desire to reduce meat consumption in modern times.

The growth in the plant-based protein market is primarily driven by changing food preferences. The rise in the ‘flexitarian’ consumers—individuals who consume meat and dairy products, however, are willing to reduce consumption—is primarily creating demand.

The recent growth of the plant-based protein industry in Russia provides opportunities for major food processing companies and new entrants. The plant-based protein market is rather fragmented in Russia with the presence of large companies such as ADM, Cargill, Cosucra Groupe Warcoing S.A., DuPont de Nemours, Inc., Kerry Group, NOW Foods, Ingredion Incorporated, Tate & Lyle, and Beyond Meat. Moreover, the plant protein market is at a relatively nascent stage in its

development; therefore, several start-ups and relatively small businesses are entering the market. Also, the industry is getting support from growing restaurant and foodservice outlets for the sales of plant-based foods. Consequently, ConsumerIntel360 projects that the growing competition is expected to allow retailers to put more private labels into the marketplace.

The Russian plant-based protein producers are primarily competing with conventional animal-protein companies such as Cherkizovo Group, Miratorg, Cremonini SPA, Zarechnoe, AgroPromkomplektaciya, and others. These major companies have also developed high brand awareness and a broad customer base in the animal-protein market in Russia. Because of the high-volume production and lower manufacturing costs, traditional animal protein producers are able to decrease their food prices than plant-based protein products. Additionally, plant protein producers are also facing stiff competition from conventional companies in the plant-based protein market as well as in the plant-based meat market, such as Greenwise, Beyond Meat, and Moving Mountains.

Rapid business growth creates opportunities for startups. Companies such as Greenwise and Moving Mountains are planning to expand their product line this year to reduce Russia’s meat consumption by offering plant-based alternatives to popular meat products.

Additionally, retailers are willing to provide shelf space for plant-based products. Retailers such as Azbuka Vkusa, VkusVill, Globus, and X5 Retail Group are willing to provide separate sections for vegan and vegetarian products—not only in physical stores but also in their online portals. Small and large retailers include these products in their marketing campaigns because they emphasize the availability of plant-based, animal-friendly, and green products in their stores.

The competitive landscape in the alternative protein sector has changed quite dramatically in the UAE parallel to the rise of the plant-based industry in other major economies. It has grown from being a niche alternative to a product for the mainstream in the last few years. Having said that, meat alternatives are presently the star of the plant protein industry with global companies including Beyond Meat, Impossible Foods, Tofurky, Fazenda Futuro, and other startups generating the majority of the consumer interest.

The advancement in technology in imitating the texture of traditional meat and enhancing the taste profile of meatless alternatives is resulting in growing consumer demand. It is even convincing previous cynics who once considered meat alternatives as a fad in the country. That said, food service channels and restaurants have been the dominant source of revenue for the plant protein industry in the UAE. However, in the wake up of the global coronavirus outbreak, e-commerce might emerge as a new leader in the sales of meatless products.

The presence of the world's largest food and beverage trade exhibition in Dubai is also opening doors for more global companies to enter into the growing alternative protein sector in the country. The largest plant-based consumer packaged goods company - Upfield - participated in the 2020 edition of the Gulfood Exhibition to display their range of plant protein food and beverage products. The company is targeting the UAE to gain market share in the country that is showing a growing appetite for meat alternatives.

As global plant-based players continue to enter the market, the competitiveness is expected to grow even further. This will create more partnerships with local foodservice channels and e-commerce platforms in the country.

China is one of the biggest meat consumers, especially beef, consuming more than a quarter of the world's meat. Owing to government legislation, health-related issues, climate, and animal welfare, as well as costs, vegetarianism has gained traction in China over the past few years. The country has been using vegetarian ingredients even before the concept of plant-based protein or meat alternatives was introduced to add a meat-like savory taste to vegan recipes. These meat-free foods are not only consumed as an alternative to meat-based on animals, but they still form a part of the daily Chinese diet, with plant-based foods being used in a wide variety of traditional dishes due to Buddhist influences. The consumer demand is driving the market interest in the meat alternatives industry providing the start-ups, global food tech companies, and investors with a fertile ground to step in.The young generation is the key guiding factor in the transition towards a plant-based diet. According to ConsumerIntel360, nearly 72% of plant-based consumers are under the age of 33 years. There are multiple factors that lead young people to seek meat-free choices. These include government dietary guidelines, changes in dietary attitudes to shift to healthier diets, adoption of environmental stewardship, sensitivity to animal rights, and, most importantly, the increasing number of meat alternatives available in the market. Leveraging social media and influencers is the key to engage and target such consumer segment and to promote plant-based options as healthy and trendy. Over the last few years, the meat substitute industry in China has seen rapid growth. The key reasons for this transition to mainstream consumer market are COVID-19 impact, government regulations, and the outbreak of African swine fever. The plant-based market is growing fast, especially the plant-based beverages sector in China. Soy milk as an alternative to dairy-based milk is gaining popularity in the country. Due to long-standing soy consumption traditions, growing interest in plant-based nutrition, and the convenience offered by such products, soy drinks will tend to be well-positioned to benefit from prevailing conditions in the Chinese market. In recent years, there has been a growing awareness and acceptance of plant-based milk products amongst the consumers. Apart from soybeans milk, there has been a growing demand for almond milk, peanut milk, coconut milk, and walnut milk. The rising demand for plant-based protein drinks has drawn the attention of large-scale food and beverages manufacturers.The main raw materials used as meat substitutes in China have long been soy protein, wheat gluten, and Konjac. However, in the recent past, protein products are also produced in food-grade standards from other plant-based ingredients such as peas, canola, beans, oats, peanuts, quinoa, and rice. The plant protein market in China has recorded a strong growth with a CAGR of 27.1% during 2018-2020. According to ConsumerIntel360’s Q4 2020 Global Plant Protein Survey, increase in demand, and investments are expected to further drive innovation and inorganic growth in the plant-based protein industry in China. With incumbents attempting to protect/enhance their market share in this burgeoning space, the market is expected to record increase in new products. As the food manufacturers go aggressive on gaining market share in this high growth segment, understanding strategic initiatives, product claims, ingredients, and changing consumer preferences in a structured way will be important to gain market share. The market growth has been supported by the ongoing COVID – 19 pandemic. The demand for plant proteins is expected to increase significantly in the short to medium term. Plant protein industry is expected to continue to grow in China over the forecast period. It is expected to record a CAGR of 19.8% during 2021-2027. The plant protein consumption in the country will increase from US$ 1703.2 million in 2020 to reach US$ 6276.3 million by 2027. This business

intelligence report from ConsumerIntel360 aims to analyze market opportunities and risks in plant protein industry in China. This report offers a detailed view of market opportunity by end user segments, product categories, ingredients, applications, key cities, competing protein segments, price point, and shift in consumption by consumer demographics. In addition, for each product category, this report details demand gap / white space analysis, competitive landscape, brand share, claims analysis, and ingredient analysis. • White Space Analysis: For each product category, this report provides market opportunities across price point and key end-use segments. • Product Innovation: Captures key innovative plant protein product launches in China along with claims, product positioning and targeting. • Competitive Landscape and Brand Share Analysis: Provides a snapshot of overall competitive landscape and brand share by product category. • Product Claims Analysis: Provides a detailed view on top claims and emerging claims, offering insights into changing targeting strategy adopted by leading plant protein manufacturers. • Changing Consumer Preferences: Quantified details on changing consumer preferences along with forecast. • Plant Protein Consumption by Ingredients: Provides a detailed view of opportunities across key plant protein ingredients (Soy, Pea, Beans & Lentils, Hemp, Flaxseed, Pumpkin & Other Seeds, Brown Rice, Quinoa, Spirulina & Seaweed, and Nuts) • Plant Protein Sales by Channel: Sales breakdown by online vs. offline channels. • Plant Protein Sales by Retail Outlet: Sales breakdown by retail outlets grouped by four categories – Diversified Stores, Pharmaceutical & Wellness Stores, Healthcare and Fitness Centers, and Specialist Sports Stores. • Plant Protein Consumption by Functional Product Type: Plant protein consumption breakdown by 3 segments – Ready to Eat, Ready to Drink, Ready to Mix, and Ready to Cook. • Plant Protein Consumption by Product Categories: Detailed market size and forecast by eight product categories – Nutrition Supplements, Protein Bars, Sports Nutrition, Meal Alternative, Dairy Alternatives, Meat Alternatives, Bakery Products, and Infant Formulas. • Plant Protein Consumption by Price Points: Plant protein demand analysis by price points – Premium, Mid-Tier, and Low End. • Plant Protein Consumption by Cities: Plant protein demand analysis by key cities grouped under three segments – Tier 1, Tier 2, and Tier 3. • Plant Protein Consumption by Consumer Demographics: Plant protein demand / consumption analysis by age, gender, and income levels..

Scope

This research report provides in-depth analysis of plant protein industry in China, providing white space / gap analysis, product innovation, product claims analysis, and brand share analysis, competitive landscape, market size across 50+ segments. Below is the taxonomy, providing detailed scope of coverage. China Plant Protein Market Dynamics – Strategy & Innovation • Competitive Landscape Snapshot • White Space / Demand Gap Analysis by Product Category • Brand Share by Product Category • Key Innovative Launches • Insights on Market Dynamics China Plant Protein Market Size by Ingredients • Soy • Pea • Beans & Lentils • Hemp • Flaxseed, Pumpkin & Other • Brown Rice • Quinoa • Spirulina & Seaweed • Nuts • Other China Plant Protein Market Size by Product Categories • Nutrition Supplements • Protein Bars • Sports Nutrition • Meal Alternative • Dairy Alternatives • Meat Alternatives • Bakery Products • Infant Formulas • Other China Plant Protein Market Size by Functional Segments • Ready to Mix • Ready to Eat • Ready to Drink • Ready to Cook China Plant Protein Market Share Analysis by Sales Channels • Online • In-Store China Plant Protein Market Share Analysis by Type of Retail Outlet • Pharmaceutical & Medical Store • Grocery Retailers • Health and Wellness Stores • Specialist Sports Store China Plant Protein Market Size by Retail Sales Pricing • Premium • Mid-Tier • Low End China Plant Protein Market Size by Cities • Tier 1 Cities • Tier 2 Cities • Tier 3 Cities China Plant Protein Consumption by Demographics • Age • Gender • Income Key Plant Protein Brands in China (based on consumer popularity) • Alpro • Amazonia • Arbonne • Australia's Own • Body Science Bsc • Bulk Nutrients • Chris Foods • Coco & Lucas • Coles Nature's Kitchen • Designer Physique • Fable Foods • Fry's • Gardein • Go Macro • Happy Way • Health Lab • Heinz- Plant Proteinz • Heritage Mill • Honest to Goodness • International Protein • Iwon Organics • Keep It Cleaner • Kez's Kitchen • Lenny & Larry's • Linda Mccartney's • Loma Linda • Lyfe Fuel • Macro Mike • Made With Plants • Melinda's