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 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.
