Major corporations helping drive the plant-based meat revolution, showing creation of consumer demand is key

In the world of radical sustainable innovation, start-ups have traditionally taken the lead, while large corporations have been slow to engage due to their sunk investments, existing capabilities, and established routines related to existing technologies. However, a new Utrecht University study in Environmental Innovation and Societal Transitions suggests that major multinational corporations have played a pivotal role in driving the rapid growth of plant-based meat products, ‘jumping on the bandwagon’ and entering the market rapidly. “This shows the importance of policy in creating consumer demand,” argue the authors.

Major multinational companies like Nestle, Tyson Foods, and Unilever have played a significant role in turning meat substitutes into a well-established sector in the food market. “This indicates that consumer interest - not regulation - has been the reason for their quick market entry,” says lead author Britney Bulah, a researcher at Utrecht University’s Copernicus Institute of Sustainable Development. “If the global shift towards alternative proteins is being driven by changing consumer preferences and lifestyles, policy focused on creating consumer demand is key”.

Examination of 148 companies

The study, co-authored by Mary Tziva, Christina Bidmon, and Marko Hekkert, focused on the United States, the United Kingdom, and the Netherlands, where the transition to plant-based meats is already underway. By examining the activities of 148 established “incumbent” companies, including food producers, meat processors, retailers, and food service firms, the researchers explored how fast these companies entered the market for meat substitutes. They looked at different ways companies entered the market, such as introducing new products, collaborating with new players like Beyond Meat and the Vegetarian Butcher, launching new brands, making mergers and acquisitions, and investing in the sector.

To support the re-orientation of established firms, policymakers should focus on creating consumer demand and establishing markets for sustainable food innovations

The findings indicate that established companies quickly followed start-ups in entering the meat substitute market, with entry periods ranging from six months to nine years. The study also found that different types of companies had varying approaches and timelines for entering the plant-based meat sector. Retailers like Albert Heijn, Jumbo, and Whole Foods were among the first to venture into this niche. These retailers mainly used cooperative promotions with start-ups to introduce plant-based options. Other types of companies, such as meat processors and food service firms, followed suit by making more significant commitments, such as substantial investments and acquisitions. For example, in 2021, the world's largest meat producer, JBS, acquired Vivera, a Dutch plant-based meat substitute company, for over 300 million euros. “This was an unexpected move considering JBS's traditional focus on animal-based products,” says Bulah.

Need for policy support

Based on their findings, the researchers emphasize the importance of policy actions that stimulate the adoption of sustainable practices. “To support the re-orientation of established firms, policymakers should focus on creating consumer demand and establishing markets for sustainable food innovations,” says Bulah. Unlike other sectors like energy or transportation, where policies often involve subsidies or taxes, the researchers argue that consumer-driven markets, such as plant-based meat substitutes, require initiatives that encourage public interest and discussion.

“Our study sheds new light on the active involvement of established companies in sustainable markets, specifically in the rapidly growing sector of meat substitutes, concludes Bulah. “It underscores the need for policymakers to take targeted measures to support the shift towards sustainable food choices by fostering consumer demand and encouraging established companies to embrace sustainability”.