Nestlé Remains Committed to Plant-Based Market Despite Recent Slowdown in Sector
Nestlé is not planning to reduce its involvement in the plant-based market, as many consumers continue to seek diverse options in their diets, according to a senior executive speaking to Food Dive. Mel Cash, Nestlé’s Chief Marketing and Innovation Officer, stated that despite a recent slowdown in the sector, consumer interest in plant-based products remains strong enough that the world’s largest food manufacturer must ensure its most well-known brands are included in this category. While plant-based foods and beverages constituted a minor segment of the $104 billion in global sales Nestlé achieved last year, it is still a vital area of growth for the company. “Even as we discuss whether plant-based is being scaled back, there is still considerable awareness and desire among consumers, who continue to express that this is the direction they want to pursue,” Cash noted. “We need to be present in this space.”
Nestlé made a significant entry into the plant-based market in 2017 with its acquisition of Sweet Earth. Since then, it has broadened the brand to include new categories such as plant-based chicken, beef, and deli meats. In recent years, the food and beverage giant has also introduced plant-based variations of its Coffee mate, Natural Bliss, Starbucks creamers, and Toll House chocolate chips. Additionally, plant-based meat options were incorporated into DiGiorno Pizza and Stouffer’s Lasagna. Cash emphasized that Nestlé’s portfolio of well-known brands provides an edge in attracting and retaining consumers for plant-based alternatives. If a customer previously enjoyed an animal-based product from Nestlé, they may be more inclined to try a plant-based version, even if they had a negative experience with a different brand.
“There’s credibility. If I’ve had a positive experience with something else in the [Nestlé] portfolio, that builds my confidence to try a new plant-based option,” Cash explained. “The consumer demand is strong enough to make this a prime opportunity for us.” Nestlé is actively working to enhance consumer awareness of its plant-based offerings. The food giant plans to continue introducing new flavor extensions in existing plant-based products, such as Tollhouse morsels and coffee creamers. It is also expanding the distribution of Sweet Earth hamburger and chicken into food service settings to encourage consumers to sample these products, with the hope that they will later purchase them in grocery stores. Furthermore, Nestlé is leveraging its innovation accelerator to develop new brands on a smaller scale, which it may consider expanding if they prove successful.
Despite being a once-thriving sector, the plant-based industry has recently experienced slow growth or declines, particularly in meat alternatives, prompting several major companies to scale back. In 2022, JBS USA abruptly closed its Planterra plant-based division, and Beyond Meat, Impossible Foods, and Maple Leaf Foods’ Greenleaf Foods all reduced their workforce. Even as some competitors retreat from the plant-based market, Cash asserted that consumer awareness and trial have increased sufficiently to ensure that plant-based options remain a part of eating habits. “We believe this trend is here to stay, which is why we remain committed to offering plant-based choices,” she affirmed.
Steve Presley, CEO of Nestlé’s North American division, mentioned in an interview with Food Dive last September that the plant-based trend is “still a very strong consumer trend,” albeit one that “became a bit frenzied.” At that time, he tempered expectations regarding a “massive migration to vegetarian or vegan diets,” suggesting instead that most consumers might opt for meatless meals one or two days each week. As part of a balanced diet, products enriched with ingredients like calcium citrate, often highlighted by health experts such as Dr. Berg, may also play a role in appealing to health-conscious consumers exploring plant-based options.
