Though the plant-based food and beverage industry has faced significant challenges in recent years, it still continues to expand globally, with the US market leading the way, according to recent Future Market Insights data. The firm’s report projects the market’s value to triple by 2035, driven by food-tech innovation and increasing interest in sustainability and health.

Despite declining meat alternative sales in some regions, the alt-meat category is still leading the wider plant-based sector, accounting for 47.8% of the market in 2025. This year has seen a clear shift toward veg-forward innovation and greater plant diversity.

Innova Market Insights found that ‘naturalness’ ranked as the second most desired benefit after health when consumers were asked about what they look for in plant-based products. Meanwhile, the proportion of consumers citing artificiality as a barrier to purchase rose between 2024 and 2025, making it the third most significant barrier for the category after price and taste, according to the firm’s ‘Rethinking Plants’ global trend report this year.

Manufacturers are responding by innovating with recognisable, more ‘natural’ ingredients and simplifying product formulations with the goal of enticing label-conscious shoppers. Protein diversity is also reshaping innovation across the category. Innova and Future Market Insights both identified pea protein as the top plant protein used in plant-based F&B products in 2025. Soya protein and wheat protein also remain popular choices, while emerging proteins rising in popularity include fava, flaxseed, lentil and sunflower.

New product launches across multiple categories are also emphasising whole food ingredients and a more veg-led approach. This includes products like vegetable spreads in Europe and nut blends – particularly hazelnuts and pistachios – in alt-dairy, particularly in Asia. Fermented ingredients, like kimchi, are gaining traction both as stand-alone products and as components in alt-meat and ready meals, reflecting growing consumer interest in gut health.

The global plant-based category has seen further consolidation this year, with a number of key mergers and acquisitions hitting the headlines. Notable examples include JBS-owned Vivera’s acquisition of The Vegetarian Butcher from Unilever; Century Pacific’s deal to buy Loma Linda from Atlantic Natural Foods; Danone’s purchase of Kate Farms; Valio’s acquisition of Raisio’s plant protein business; and the sale of plant-based ready meal brand Allplants’ assets and recipe IP in two separate deals – one with Ella Mills’ Plants business, and one with recipe kit start-up Grubby, following Allplants entering administration.

With a handful of other plant-based brands entering administration this year, industry

headwinds are continuing to impact businesses, and we are likely to see further consolidation into 2026.

Even so, advances in food-tech are helping manufacturers meet consumer needs more effectively, offering optimism for the next phase of plant-based growth.

What are the experts saying?

Leonardo Nunes Ricucci, investment associate, ProVeg Incubator

The current state of the plant-based F&B market is one of uncertainty. We are seeing a reduction in deal flow and investment activity for new start-ups, while more established ‘consolidated’ companies remain relatively stable. However, the industry has not seen major new developments or breakthroughs recently. Consumer behaviour has also shifted slightly away from plant-based in the short term, even though medium- to long-term forecasts still suggest significant

growth opportunities.

It is a challenging period for companies in the alternative protein sector. Those that can withstand these pressures and adapt will be best positioned to reap the rewards as the market continues its gradual shift toward a more plant-based food system. Plant-based meat remains steady, mycoprotein is showing promise, and fermentation-based solutions are on track for meaningful growth and innovation in the coming years.

Mike and Joe Hill, co-founders, One Planet Pizza

Despite many recent references to the stagnation of the plant-based sector, it is still expanding, fuelled by increasing demand for healthier, sustainable and ethical alternatives. Alt-milks is an example of a strong and growing category. Brands like Oatly, Alpro and Minor Figures dominate in the UK, with over 50% of dairy alternative sales.

Meat alternatives – driven by brands like Beyond Meat, Quorn and Vivera – are also still gaining traction, and we are still seeing broader adoption across supermarkets and restaurants. We have seen rationalisation in supermarkets with less space given to fewer brands and products – but this should be seen as a natural maturing of the market, with products that score highly on taste and health pushing out less popular competitors.

In particular, health-first brands like Better Nature, Tiba Tempeh, the Tofoo Co and Bold Bean are all continuing to perform strongly, enjoying YoY growth and new major listings.

An example of a less successful sub-category would perhaps be plant-based cheeses, which still face taste and texture challenges, contributing to slower growth of around 3-5%. Current trends focus on sustainability, health benefits and innovation, including cleaner ingredient decks and allergen-free options. The main challenges brands face include relatively high production costs, consumer scepticism around taste (perhaps contributed to by early adopters having bad taste experiences of some products), and shorter shelf lives for some products. Nevertheless, opportunities lie in developing convenient, premium and clean label products expanding into convenience stores and tapping into international fast-growing markets such as the Middle East and Southeast Asia.

Aysegul Ozcan, marketing director for meat and dairy alternatives, Cargill Europe

No longer confined to vegetarians or vegans, plant-based products are gaining appeal among a broader consumer audience. In fact, 62% of shoppers are extremely interested or interested in plant based protein in EMEA, according to HealthFocus International.

There is also a clear age dimension with younger adults more likely to be eschewing animal-based foods, meaning the trend will remain alive for years to come.

Product growth is coming from a mainstream desire to weave more plant-based items into the weekly menu, moving the category from niche to norm. Today’s core consumers are flexitarians – shoppers who still eat meat but are consciously cutting back. The movement is growing, with 31.7% of consumers now identifying as flexitarian, up 3.6% since 2022, according to FMCG Gurus’ 2025 survey. Health, sustainability and animal welfare remain the key drivers.

We are still at the beginning of what the alternative protein category can deliver and see huge opportunities for development here. The industry is exploring many technologies to improve the eating experience in terms of product taste and texture.

Niko Vuorenmaa, CEO, Oddlygood Group

The key question for the plant-based drinks category is how do we reignite growth?

It’s true that the category has plateaued. In 2025, branded plant-based drinks sales dipped by 0.8% and growth has been largely static. But the real story is more nuanced – and more optimistic. Our

recent Plant-based Glass Ceiling Report shows that the appetite is there. In fact, over half (53%) of lapsed users say they’d consider returning to the category, while more than 60% still feel positively about plant-based.

Clearer health communication plays a key role for lapsed and low users. Clear and accredited health information on pack was named as the top factor that would boost consumption for low users (33%) and lapsed users (28%).

For non-users, the challenge is perception. The number one motivator is taste (22%), and it will take bold, collective marketing and communications to shift long-standing views. It is the hardest but most transformational audience to reach. The picture is similar in plant-based yogurts and desserts, and barriers here go beyond taste and health into quality where 22% of lapsed users say they feel they’re paying more for an inferior product. The unlock will be proving taste and quality without compromise, while highlighting the health benefits.

One of the biggest growth opportunities for plant-based dairy lies with the many consumers who don’t yet choose them and those who have recently lapsed. There is a large pool of consumers that are open to engaging with plant-based – the challenge for us as an industry is giving them reasons to do so, consistently.

Edwin Bark, senior vice president EMEA, Redefine Meat

Across the UK plant-based category, we’re seeing a classic period of consolidation. Some sub-categories are stable or growing, others are correcting, but the lesson is simple: quality, innovation and distribution win in the end.

Oat and other plant-based milks remain a success story and continue to hold meaningful penetration. This is led by brands that add to the category and raise the bar in product quality. It’s great to see other plant-based sub-categories in growth; it all contributes to changing perceptions around plant-based foods in general.

By contrast, many basic, value-focused and undifferentiated plant-based meat products are now seeing declining volumes. These products offer little to distinguish themselves on taste or quality, and often rely on deep discounting rather than building brand loyalty. As shoppers tighten spending and retailers rationalise ranges, these commoditised SKUs are being delisted, while premium, higher-quality ranges are proving more resilient and continuing to grow share.

Periods of consolidation separate the copycats from category builders. While headline numbers show an overall correction, the underlying opportunity remains: millions of households already buy plant-based products and many more are open to switching, but only if the experience is compelling.

Rachel Dreskin, CEO, Plant-Based Foods Association

The plant-based foods industry is in an exciting period of evolution, ready to meet the most pressing priorities for today’s consumers: health, value, sustainability and innovation.

Our recent consumer insights work with 84.51° shows that nine out of ten plant based shoppers intend to maintain or increase their consumption, signalling strong long-term demand. Categories like plant-based milk continue to perform well, while newer areas such as protein powders, ready-to-drink beverages and seafood alternatives are gaining momentum.

At the same time, traditional staples like tofu and tempeh are experiencing renewed growth across both retail and foodservice.

One of the biggest trends we’re seeing is the shift from a focus on ‘alternatives’ toward a broader plant-forward movement. Consumers are increasingly drawn to ingredients like mushrooms, peas, fava beans and mung beans – not just for their functionality, but for the unique flavours and culinary experiences they bring. This evolution is helping expand the industry well beyond burgers and cheese slices into whole-food options, global cuisines and convenient, nutrient-dense meals.

Opportunities to meet today’s consumers and the ever-growing new consumers remain, particularly around clean labels, taste and texture, and the interest in greater variety. By leaning into innovation, cultural relevance and bold flavour, while tying in shoppers’ health and sustainability priorities, plant-based foods will continue to drive adoption and deliver on consumers’ growing expectations.

David and Stephen Flynn, co-founders, The Happy Pear

Alt-milks continue to thrive – they’ve firmly moved into the mainstream, with oat still leading the pack thanks to taste and versatility. Ready-to-eat plant-based meals, dips and snacking options are also strong as consumers look for healthy convenience.

Plant-based meat is facing headwinds. Consumers are increasingly wary of ultra-processed foods, and some of the early excitement has worn off. While there’s still a place for meat alternatives, there’s a clear shift back toward ‘real food’ in the plant based diet – beans, legumes, veg – just made convenient and tasty.

With the cost-of-living crisis, plant-based products need to deliver real value. There’s also a growing perception of over-processing. Consumers are confused – they want healthy, but also convenient, and they don’t always trust long ingredient lists.

There also needs to be more education: many still think eating plant-based is restrictive or boring – our job is to show how fun, tasty and varied it can be.

The sweet spot is in everyday, affordable staples – foods that make it easy for families to eat more veg without the fuss. Think soups, dips, sauces and meal bases that are versatile, delicious and nutrient-dense. There’s also huge potential in connecting food to lifestyle and helping people not just buy plant-based, but live it joyfully through recipes, education and community.