Several Roadblocks To Pose Threat To The Plant-Based Food Market And Obstruct Its Growth

 

Plant-based foods are the new buzzword in the global food market. The dietary patterns of the consumers are evolving away from animal-based foods in recent years. The increasing intolerance for animal protein among consumers, the growing vegan population, and the increasing number of venture investments in plant-based food firms are driving the rise of the plant-based food market. Furthermore, the growing number of R&D and new product launches by plant and protein alternative manufacturers and expanding economies such as Asia-Pacific, Latin America, and the Middle East & Africa are likely to generate profitable prospects for the top players in plant-based food market.

 

Despite a significant expansion in the plant-based food market, there are several fundamental hurdles limiting this progress. Product formulations, raw material acquisition, increased operating or production expenses, and a lack of sufficient cash are all important barriers. These hurdles are quite important to be crossed by the top players in the plant-based food market to gain a competitive advantage in the global food market.

 

Mimicking the animal protein products and product formulation is a big hurdle to be crossed

The plant-based food products are meant to cater to all categories of people. This includes not only the vegan consumers but also the flexitarian ones. And to be a suitable food option for the flexitarians, the plant-based food market players still need to go a long way ahead.

 

The taste, texture, and appearance of plant-based products are a major challenge for the top players in the plant-based food market. The sensory experience of plant-based food is a hindrance to adoption for many customers, especially if they expect a flavor and feel similar to animal-based products. Plant-based manufacturers have come a long way in figuring out how to make plant-based alternatives taste mostly like (or better than) the real thing, but it is still a difficult undertaking.

 

The plant-based burger must be the same as beef burgers, and the same is true for the other plant-based alternatives to animal foods. And appealing to flexitarians is critical to being a key player in the global food market. This has proven to be a significant impediment to the growth of the top players in the plant-based food market.

 

According to a recent survey, the taste is crucial to more than 4 out of 5 Americans, and 44 percent dislike the flavor of plant-based diets. According to additional research, when consumers around the world cannot discover tasty plant-based alternatives, they turn to animal protein.

 

Despite the numerous obstacles in the plant-based food market, businesses have a tremendous chance to please customers. The major companies in the plant-based food market are adopting various strategies for effective product formulations and meeting future consumer demands.

 

Products are falling short and getting spoilt due to the sourcing and logistics challenges

Plant-based brands are currently concerned about raw material procurement difficulties. Aside from farm production delays, staff shortages, fluctuating demand, and logistical difficulties with processing and delivery, many brand owners are dealing with pandemic-related sourcing challenges. This presents a significant hurdle for growing Plant-based companies because ingredient sourcing is highly tailored and naturally more difficult.

 

One of the most significant challenges impeding the expansion of this sector in India is the lack of cold chain logistics. In general, Indian shops are still warming up to various products that require temperature-regulated facilities. Alternative dairy products, particularly plant-based ice creams, lack low-cost temperature-controlled shipping. This frequently prevents businesses from expanding across states and into smaller retail locations.

 

These logistical and sourcing constraints frequently lead to food safety concerns. Plant-based products are frequently spoiled or destroyed due to a lack of efficient supply chains. Plant-based foods are more susceptible to spoiling than meat and dairy products. This is not lost on consumers, but businesses. More than half of customers are concerned about the safety of plant-based dairy alternatives, and 49% are concerned about meat alternatives. This product deterioration may endanger the companies' continued existence in the plant-based food market.

 

Operational and production costs are becoming burdensome for the companies

Plant-based products have relatively high production and operational expenses. Increasing plant-based product manufacturing to satisfy demand would ultimately cut costs — and high prices are another reason people avoid plant-based foods.

 

These elements have a direct impact on the product's final price. Due to their current scale, plant-based meat enterprises also have the insufficient infrastructure. They do not have the necessary equipment, production capability, facility design, or other advanced technology. The issue is that plant-based meat and seafood substitutes are frequently excessively processed. Extrusion processes, which require expensive equipment and high energy usage, are often used by plant-based industries.

 

Plant-based meat players' facilities resemble boutiques in comparison to the size of manufacturing facilities for animal-based meat products. As a result, until costs are decreased, plant-based products will remain luxury products, preventing businesses from obtaining economies of scale.

 

Huge capital and revenue requirements to threaten the pant-based companies

Becoming a profitable plant-based food company is not easy; there is intense competition, and developing good and nutritious recipes can be costly. Without investment, it would be hard to develop products that compete with the animal product market in terms of flavor, texture, quality, shelf life, or price parity.

 

Due to the plant-based food market's distinctiveness, significant investment is required, notably in product creation, R&D, and product procurement. For example, if a company wants to get materials from outside the country, the logistics and supply chain must be highly efficient to ensure the safety of the products. This will necessitate extensive innovation in supply chain facilities. New technologies, on the other hand, are necessary to replicate animal products and produce plant-based diets. Even this procedure necessitates a significant investment in various advanced equipment required by the players in the plant-based food market.

 

Financing has proven to be a serious impediment, particularly for start-ups in the plant-based food market. To avoid more losses, important stakeholders must first identify the root causes of these issues and then devise appropriate strategies.

 

Conclusion

The plant-based food market is a niche market that has increased in popularity in recent years. This is due to increased awareness of the health benefits of consuming plant-based foods, as well as an increase in demand for healthier food options. However, some obstacles continue to make it difficult for this industry to develop. Plant-based food costs more than traditional food.

 

For some customers, the additional expense is justified by health concerns. However, the cost of products in the plant-based food market is rising quicker, so businesses must determine how much people are prepared to pay for their products. Among the several obstacles, they may confront are those connected to product formulation, ingredient procurement, capital requirements, and production costs.

 

Although the top players in the plant-based food market face severe situations as a result of the above-mentioned challenges, they are now mainly focusing on some of the effective strategies to overcome these challenges. For instance, to overcome the capital requirement issues, not only the plant-based food market companies are taking the help of the venture capital funds but at the same time, a lot of investors are turning towards the top players of the plant-based food market. This is a promising market for the future and so the investors are keen on exploring the various profitable chances in the global plant-based food market.

 

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