Keeping bodies fuelled, minds alert and emotions in check, snacking can be a meaningful experience meeting a range of consumer needs. Sue Bancroft, director healthful solutions EMEA at Ingredion, considers how brands are keeping up with the growth in clean label and plant-based snacking behaviours as consumers search for treats with specific health benefits. Sue Bancroft For too long, snacks have been seen as an indulgence in a balanced diet. But as consumers become more conscious of wellness and nutrition, food and drink brands are finding that clean label, plant-based and ‘functional’ snacks are helping satisfy the need to fill the hunger gap while delivering a health boost. Figures show the annual volume per person in the snack food market was expected to reach 5.2kg in 2025. Consumers want snacks with minimal, eas y to recognise  ingredients,  which presents a clear  opportunity for manufacturers to reshape the future of snacks and the choices available to buyers with clean label reformulation. Helping consumers make intentional snack choices requires convenience, enjoyment and clear nutritional cues. While many people seek alternatives to traditional indulgent snacks, plant‑based formats that offer satisfying taste and texture can support long‑term mindful eating habits, including higher protein or fibre intake. Meeting consumer demand The healthy snacks market in the UK  generated $5.7 billion in revenue in 2023 according to Grand View Research – and this is expected to reach more than $8 billion by 2030. It’s a stat that stands up to reason when, aside from brand loyalty, insight data shows us some of the most important purchase drivers for consumers in 2026 are the ingredient list, nutritional information and ingredient claims.   Research by the Food Standards Agency  (FSA) shows that salt, sugar, fat and calorie  content remain top concerns for UK shoppers from April to June 2025. The agency’s Eatwell guidance encourages people to review food labels to help them compare products and choose a balanced diet.   Meanwhile, the latest Mintel  report on UK consumer snacking trends shows 54% of those surveyed deliberately choose snacks to boost their daily nut rient  intake, showing clear demand for options that offer meaningful nutritional attributes. Protein has long been in the nutrition spotlight, but the days when protein powders and shakes were only for the fitness elite have long gone. Today, there is growing consumer interest in increasing protein levels, as it is widely associated with supporting overall health and wellness. Now there are other similar drivers creeping into the consumer consciousness. Added fibre, often associated by consumers with supporting digestion, gut health and the regulation of blood sugars, aligns with the priorities of health-driven snack eaters. Hydration products, and food and drink which prioritise reduced sugar and plant-based sweetener alternatives, are also on the rise in response to consumer preferences. In fact, sugar content is probably the most sought-after information for snack eaters. This means manufacturers are increasingly under pressure to reduce sugar while keeping their products enjoyable and affordable. Plant-based stevia sweeteners, extracted from pure stevia leaves, have long been used as a sugar substitute, while the latest innovations in sugar reduction technology combine the Reb M molecule found naturally in the plant with sugar reduction solutions to balance taste, affordability and consumer appeal. Prioritising transparency Today’s snacks must meet increasingly varied consumer preferences. Assessing and comparing products is becoming a deliberate part of the process when consumers choose the best snacks to enjoy. Functional snacks are growing in popularity because they often allow consumers to indulge ‘guilt-free’ by combining properties such as low sugar, high protein, added fibre and great taste. Convenient, easy to digest and able to deliver a sustainable energy boost, the new norm of functional, healthy snacks is breaking down the snacking taboo.   As demand for high-protein snacks continues to grow, brands are under increasing pressure to deliver stronger nutritional credentials without compromising on taste or texture.   The acceptability of ‘clean label’ ingredients comes as consumers seek clarity from manufacturers, with 77% of snack eaters finding products with only a few ingredients most appealing. In addition to looking for ‘added value’ options, shoppers are increasingly checking product details against label  claims.   This is where plant ingredients are becoming more important. Clean label ingredient solutions enable manufacturers to replace what consumers perceive to be undesirable content without compromising on factors such as taste or texture. Starting with the right plant-based ingredients and flavour solutions, food and drink products with nutrition, health and wellness properties will naturally follow. Benefits for consumers Snacks remain a means of refuelling or fulfilling an emotional need like stress or boredom. But thanks to advances in food labelling practices, ingredient technology and reduced sugar or alternative plant-based sweetener options, manufacturers can better align their products with consumers' lifestyle choices. The value placed on being able to access healthier vegan and vegetarian snack options is motivating manufacturers to develop their product offering and lead the way in snacking innovation.

Dutch meat alternatives company Schouten Europe has launched a new plant-based fillet featuring a proprietary fibre structure designed to deliver improved texture, functionality and sustainability credentials. The 95g fillet represents what the company describes as a ‘next step’ in its ongoing development of meat alternatives, combining a firm, meat-like bite with reduced processing requirements. Niek-Jan Schouten, CEO, said: “With this fillet, we are taking a next step that is relevant for both our partners and the consumer.” The launch comes amid growing scrutiny of production methods within the plant-based sector, particularly around energy-intensive texturization processes and globally sourced ingredients. Schouten’s new fibre-based approach aims to address these concerns by simplifying structure formation. Internal analyses suggest the technology could reduce environmental impact by approximately 10–30%, depending on formulation and supply chain factors. “Our R&D department has worked hard over the past year on further developing our fibre technology. Texturization is the process by which protein is transformed into a fibrous structure that resembles meat,” Schouten added. The company says the fillet has been engineered to deliver on both sensory and functional performance. It features a light, chicken-like colour and is designed to remain juicy during cooking, an area where some meat alternatives struggle. The product is suitable for hot applications and marinates effectively, with a pre-marinated version also available for chilled uses. Its structure is created using 3D shaping technology to achieve a recognisable whole-cut format. Nutritionally, the fillet carries a Nutri-Score A and offers high levels of protein and fibre. It can also be fortified with iron and vitamin B12, aligning with growing demand for nutritionally complete plant-based options. Founded in 1990, Schouten Europe has positioned itself as one of the early pioneers in plant-based protein development in the Netherlands. The company supplies a broad private-label portfolio across more than 50 countries and continues to focus on tailored product development for retail and foodservice partners.

Australia-based biomanufacturing company Cauldron Ferm has secured $13.25 million in a Series A2 funding round, bringing its total funding to $26 million. The round was led by Main Sequence Ventures, with participation from Horizons Ventures, SOSV and NGS Super. The new funding will support expansion of Cauldron’s operations, including scaling its technology for commercial production and growing its demonstration facilities in Orange, New South Wales. The company has also secured government grants in Australia and the US to support development. Cauldron develops continuous fermentation technology, described as “hyper-fermentation,” aimed at improving efficiency in biomanufacturing processes. The platform keeps bio-engineered microbes in a steady, highly productive state over extended periods, increasing output while reducing production costs. Biomanufacturing uses living cells to convert inputs such as sugars into products including food ingredients, chemicals and nutraceuticals. The company said its approach is designed to make bio-based production more cost-competitive with conventional industrial methods. Cauldron has demonstrated its technology at industrial scale, operating continuous fermentation for synthetic biology strains at 10,000-litre capacity. It is working with partners to apply the system across existing facilities, including retrofitting sites to support continuous production. The investment comes as demand for resilient and scalable supply chains grows. Industry estimates suggest a significant share of industrial inputs could be produced biologically, creating opportunities for alternative manufacturing models. Michele Stansfield, co-founder and CEO of Cauldron, said: “For biomanufacturing to compete in industrial sectors, bioproducts have to deliver on costs, scale and quality. Bioprocess innovation is how we get there.” Ben Squires, chief investment officer at NGS Super, one of the largest pension funds in Australia, added that the firm backed Cauldron due to its focus on improving productivity and economics at industrial scale. Top image: © Cauldron

Armored Fresh has announced the launch of its new clean label protein brand, Piilk, making its debut in the US with a high-protein beverage line. The drink is powered by naturally fermented, non-GMO yeast protein, formulated with just seven ingredients. Piilk contains no carrageenan, no emulsifiers, and no artificial sweeteners or flavours. The protein is a complete protein with a PDCAAS of 1.0. Food-tech company Armored Fresh, which operates from bases in the US and South Korea, said that sensory issues like heaviness, aftertaste and ‘texture fatigue’ can be a barrier to consumers boosting their protein intake. Rather than adding ingredients to compensate for these issues, Armored Fresh’s Piilk is claimed to ‘simplify the protein system itself’ to deliver ‘a lighter, cleaner drinking experience that can integrate more naturally into daily routines’. The yeast protein ingredient is designed to support a clean and smooth mouthfeel without traditional emulsifying systems. The single-protein approach delivers a more minimal and integrated formulation, responding to demand for cleaner labels in the protein drink and snack category. The drink is launching initially in two flavours: Protein Chocolate and Café Latte, available through the direct-to-consumer channel in the US.

French plant-based cheese producer Jay&Joy has raised €2 million in funding to support its growth in the UK and Europe. The investment will accelerate the international development of its two brands, Jay&Joy and Les Nouveaux Affineurs, as well as support the company’s overall mission to become a leading European platform for dairy-free cheese products. Jay&Joy’s existing investors Demeter, Beyond Impact, Mindstone and Vivegan primarily led the round, with additional participation from new investors including Makesense. Headquartered in Lacroix-Saint-Ouen, Jay&Joy has established a strong presence within France’s organic retail networks – the core of the company’s strategy and values. It is currently expanding internationally following its UK launch in 2025. Les Nouveaux Affineurs, a French brand acquired by Jay&Joy in January last year, was launched in French supermarkets in May 2025. The company said it has planned ‘significant acceleration’ of the brand for 2026. Having secured recent listings with Monoprix, Franprix, Intermarché and Carrefour among others, Les Nouveaux Affineur is already present in over 1,000 stores in France, with Jay&Joy aiming to double this network and hit 2,000 points of sale by the end of the year. To support this expansion, the funds raised will be allocated to three priorities: strengthening the field sales force, supporting brand awareness and accessibility for Jay&Joy and Les Nouveaux Affineurs, and improving and optimising production facilities. The company’s goal is to accommodate an increased volume exceeding 3 million plant-based cheeses produced annually by 2027. Jay&Joy draws inspiration from traditional French cheesemaking methods in its plant-based cheese production, including fermentation and ripening processes. Its formulations are focused on short, minimally processed ingredients lists, with all products free from preservatives, additives and colouring, while prioritising local sourcing. César Augier, CEO of Jay&Joy, said: “Thank you to our shareholders for supporting Jay&Joy. This investment round will allow us to build on our strong sales momentum across Europe and further contribute to the food transition, while staying true to what makes us unique: a genuine cheesemaking culture, minimally processed products, high quality standards and a deep respect for the environment.”

Italian food-tech start-up Foreverland has raised €6 million in funding to support the international expansion of its cocoa-free chocolate alternative, Choruba. The round, which brings Foreverland’s total capital raised to €9.4 million following its previous funding raise in 2024 , includes follow-on participation from existing investors Kost Capital and Maia Ventures. It also saw new backing from CDP Venture Capital’s Accelerator Fund and Italia Venture II Fund; Riello Investimenti SGR’s Linfa AgriFoodTech Fund; and Newtree Impact. Foreverland said the latest funding will accelerate its expansion across Europe, with a focus on strengthening relationships with confectionery players in Germany, France and Italy. Based in Puglia, Italy, Foreverland processes locally sourced ingredients, such as carob, into cocoa-free chocolate alternatives at its production facility, opened last year . These alternatives, which are fully plant-based, are designed for industrial use, supporting manufacturers as they navigate cocoa price volatility and supply disruption. The site recently obtained International Featured Standards (IFS) certification, confirming its adherence to international quality and safety standards. Another key focus for Foreverland is a move into the organic space, having recently introduced a dedicated organic Choruba line to complement its core conventional offering. The company believes it is currently the only producer offering an organic cocoa-free alternative at industrial scale, with several organic products made with Choruba already available in Italian and French retail. Massimo Sabatini, co-founder and CEO of Foreverland, said: “This round validates our execution, not just as a food-tech innovator, but as a reliable industrial partner for confectionery manufacturers”. He added: “With IFS Food certification in place and demand accelerating, we’re scaling commercial growth across Europe, strengthening key partnerships and bringing in senior talent from the cocoa and chocolate industry to support manufacturers at scale”.

Danone has entered into an agreement to acquire UK plant-based functional nutrition brand Huel in a deal reportedly worth around €1 billion. In a statement shared this morning (23 March 2026), dairy giant Danone said the acquisition aligns with its Renew Danone strategy, which aims to drive sustainable, profitable growth for the company. While the exact amount was not disclosed in Danone's announcement, the Financial Times reported the €1 billion figure, citing a 'person close to the deal' as its source. Huel, headquartered in Hertfordshire, UK, has built a successful brand within the active/complete nutrition space since its establishment in 2015. The company’s range, made with fully plant-based ingredients, spans RTD drinks, powdered beverages and savoury meal solutions. The transaction will combine Huel – which has built a strong direct-to-consumer sales platform and established audience in the UK, Europe and US – with Danone’s scale, R&D capabilities and global reach. Danone said it aims to accelerate growth, innovation and international expansion for the functional nutrition brand. The deal remains subject to customary closing conditions, including regulatory approvals. Huel will continue to operate as it does today, run by its existing leadership team, Danone confirmed. James McMaster, CEO of Huel, commented: “We've spent ten years building a brand with a positive impact on people's health…Most people don't get enough protein, fibre or the right nutrients. That's the problem Huel exists to solve.” He added: “With Danone, we will now have the infrastructure, distribution and R&D capability to go further, into new markets and to more people, as demand for convenient, complete nutrition continues to grow. We're so proud of what the team has built, and excited about what comes next.” This latest agreement follows Danone’s acquisition of Kate Farms , a plant-based clinical nutrition brand based in the US, last year. Danone’s acquisition of plant-based and functional nutrition brands broadens its reach in the health and wellbeing segment, enabling it to capitalise on growing consumer interest in functional foods and further expand beyond traditional dairy products. Meal replacement shakes – a key part of Huel’s core offering, though the brand prefers to position them as ‘complete nutrition’ products – have grown significantly in recent years, valued at over $15 billion globally in 2025. Interest in these products, as well as other functional nutrition offerings, has risen as busy consumers seek products that are positioned as both healthy and convenient. Additionally, high-protein and complete nutrition products have become increasingly popular in line with rising use of GLP-1 medications, as well as those generally seeking support with weight management, muscle growth and overall wellbeing.

Plant-based snack brand Well&Truly has launched two new oat milk-based chocolate products in Sainsbury’s stores across the UK, ahead of Easter. Its new Easter Truffles, suitable for gifting and sharing over the Easter season, are made with the brand’s signature oat milk-based chocolate, using 43% single-origin Fino de Aroma cocoa. Offering a ‘melt-in-your-mouth’ texture, the truffles are filled with a smooth Piedmont hazelnut paste and oat milk white chocolate centre. Also joining the line-up is the Fudge & Marshmallow Oat M&lk Chocolate Bar, a combination of the brand’s oat chocolate topped with gooey fudge and plant-based pink marshmallows. Well&Truly said its range is developed in partnership with a B-Corp-certified Colombian supplier, with a focus on fair farming practices, palm oil-free production and a 50% lower carbon footprint than conventional chocolate. The brand’s packaging is also plastic-free and fully recyclable. “Easter is all about joy, sharing and a little bit of indulgence,” said Sara Trechman, co-founder of Well&Truly. “We wanted to bring something truly special to the shelves, treats that are not only delicious and fun, but made with care for people and the planet.”

Singapore-based beverage manufacturer Yeo Hiap Seng has introduced a limited-edition Pandan Chiffon Soy Milk, tapping into café-inspired flavour trends and seasonal demand ahead of the Eid al-Fitr (Raya) period. The new product draws inspiration from the classic Southeast Asian dessert, pandan chiffon cake, reimagining its flavour profile into a ready-to-drink soy beverage format. Positioned as an accessible indulgence, the launch reflects growing consumer interest in hybrid products that blend traditional flavours with modern, convenience-led consumption. Yeo’s Pandan Chiffon Soy Milk combines freshly extracted whole soybeans with real pandan extract and coconut water, delivering a flavour profile that mirrors the light, aromatic qualities of pandan desserts, complemented by a subtle toasted coconut finish. The product is designed to offer a “lighter indulgence,” with a formulation that is lower in fat and less sweet compared to typical flavoured beverages, while maintaining a rich and smooth texture. Available in both 1L family-size packs and 250ml single-serve formats, the beverage targets multiple consumption occasions, from at-home sharing during festive gatherings to on-the-go consumption during the Ramadan period, including Sahur and Iftar. The launch aligns with the Raya festive season, a key consumption period across Southeast Asia, where demand for shareable and culturally resonant food and beverage products typically rises. Alex Chen, head of marketing and business development at Yeo’s Singapore, said: "Raya is a season filled with tradition, togetherness and familiar flavours, With Pandan Chiffon Soy Milk, we wanted to reimagine a beloved local dessert in a smooth soy milk format that feels indulgent, shareable, and perfect for the festive period." The limited-edition beverage is being rolled out across major supermarkets, convenience stores, and e-commerce platforms in Singapore for a limited period.

Novonesis is working with Technical University of Denmark (DTU)’s Bright Biofoundry, aiming to accelerate the development of sustainable protein by converting waste carbon dioxide into nutritious food ingredients at an industrial scale. The partnership operates under the umbrella of The Acetate Consortium, a multi-stakeholder initiative launched in 2023 with backing from the Gates Foundation and the Novo Nordisk Foundation. The consortium brings together industry and academic players, including energy tech group Topsoe, to tackle one of the food sector’s most pressing sustainability challenges – reducing reliance on land- and resource-intensive agriculture – by transforming captured CO₂ into viable protein sources. At the core of the collaboration is a technical hurdle that has limited progress in carbon-based food production: enabling microbes to efficiently consume acetate derived from captured CO₂. Conventional fermentation processes rely on glucose from agricultural crops, while most microorganisms struggle to metabolise acetic acid from captured carbon effectively. Bright researchers will work alongside Novonesis to address this limitation by engineering yeast strains capable of thriving on acetate. Using advanced evolutionary engineering techniques, the team will focus on improving microbial tolerance to acetate, increasing consumption rates, enhancing protein yields and reducing fermentation time and cost, key factors for commercial viability. Adam Feist, who is leading the project at Bright, said, “This is where evolution becomes a design tool. We are evolving microbes to perform in ways that make industrial sense, not just proving they can survive on low-carbon inputs.” The work will be conducted through Bright's automated, high-throughput biofoundry platform, enabling rapid strain optimisation at a scale significantly faster than traditional lab methods. The collaboration reflects a growing convergence between industrial biotechnology and food innovation, as companies seek scalable alternatives to conventional protein production. Novonesis brings decades of expertise in microbial strain development, while DTU contributes cutting-edge capabilities in microbial evolution and systems biology. “We’re very excited that Bright will join forces with us to help turn captured CO₂ into a nutritious protein source,” said Claus Crone Fuglsang, chief scientific officer at Novonesis. “Together, we aim to develop microorganisms that grow faster, tolerate acetate more effectively and deliver higher protein yields.” According to Jochen Förster, director of the Bright Biofoundry, the partnership highlights the importance of aligned expertise in tackling complex sustainability challenges. “This collaboration shows what it takes to make an impact, bringing together complementary capabilities and a willingness to work through complexity.” As food manufacturers face mounting pressure to decarbonise supply chains and diversify protein sources, CO₂-derived ingredients represent a potentially transformative solution. By decoupling protein production from arable land, technologies like acetate-based fermentation could help stabilise supply, reduce environmental impact and support global food security.

This month, our 'start-up spotlight' is on Happy Plant Protein. The Finnish food-tech company's patented technology produces tailor-made plant protein ingredients for use across a wide range of food and beverage applications. We speak to the company's CEO and co-founder, Jari Karlsson, to find out more. What led to Happy Plant Protein’s establishment and what is the company’s long-term goal? The invention itself was the main motivator. It was discovered that there was an even easier, more responsible and more cost-effective way to produce plant-based proteins. This was especially true when compared to the current isolate/wet separation technology. At that stage, we did not know that the protein quality of the end product would be so good. The very mild taste, better structure and nutritional content clearly differentiated the technology from air separation, such as in current concentrates. The company's long-term goal is for this technology to become the industry standard for producing plant protein. In your view, what are the most critical challenges currently facing the alternative protein industry and how do you aim to address them? The bottom line is that we are running out of food, and all the technologies currently under development are needed. Since most new technologies are regulated, we must also be able to develop new methods for the present. The success of many alternative technologies is also slowed down by high investments, which also increase production costs. In our case, what makes us stand out from the rest is our simple, single-stage process, the use of existing extrusion equipment, and the use of a simple raw material, flour. How does Happy Plant Protein’s technology to turn local crops into valuable protein ingredients work? The process is very simple. We use basic legume or grain flour. It is fed into a dry extruder, and at the other end comes out as ready-made textured protein, equivalent to TVP products already on the market. If we consider the entire processing process, first we need beans, which are shelled and ground into flour. This is then fed into the extruder, where separation and texturing take place. This stage produces both protein and carbohydrate fractions. Next, they are separated from each other using an optical separator and packed into bags. The short separation process is energy efficient, uses no water and produces no waste. The original nutritional values are also retained in the end product. The protein fraction has a protein content of between 55 and 70%. The fraction also contains healthy dietary fibre. What kinds of regional crops is Happy Plant Protein utilising in the production of its solutions? In general, all legumes work well. Peas, fava beans, lentils, chickpeas, soybeans. In addition, mixtures made from these can be used to influence the content, colour and properties of the final product as desired. How do you ensure sustainability within your approach? The process does not require chemicals, energy and water consumption is minimal, and everything that goes in comes out. There is only a small amount of waste when starting and stopping the machine. Additionally, if we also keep in mind that this enables regional production, all logistical distances are shortened. How does the company differentiate itself and provide a unique solution that stands apart from other innovators within the alt-protein category? This technology competes with other plant-based protein processing technologies. The technology can be implemented immediately and production can begin right away, with no regulatory restrictions. We have a partner in Latvia who has drawn up plans for the construction of a new Happy Plant Protein factory. The construction costs for the factory are approximately €6 million. An isolate factory is also currently being built in Latvia, with construction costs of around €150 million. This means that the capital required is also significantly lower. Above all, however, is the taste of the protein. We have received feedback from everyone who has tested the protein that the taste is very good. Taste is important for the industry, as it simplifies the development of new products. How do you approach collaboration with other businesses in the plant-based food industry? We approach this by utilising either the customer's own raw materials or their factory. The fact that inexpensive raw materials (flour) can be processed into products that are 7–10 times more valuable, or that current technology (such as air classification) no longer meets customer quality requirements, gives us a way to approach customers. We work together on a development project to achieve the desired end product quality and offer the technology to the customer on a license basis. The customer starts their own production and runs a successful business using our technology. What is Happy Plant Protein’s biggest achievement to date? We are working on a development project with a couple of major ingredient companies. We have partners close to primary production who are planning to build a new production line, and we have food companies that are enthusiastic about the taste and properties of the protein. So we are very close to commercialisation. So far, we have also ensured that the technology works on an industrial scale in collaboration with European equipment manufacturers. Has the company encountered any notable challenges on its journey? How have they been navigated? A year and a half ago, we started with the process itself and ensuring its maturity. Now we are working on the properties of protein and carbohydrate fractions and their utilisation in different products and applications. We are moving forward step by step, and are receiving valuable feedback from customers on what the industry and the market require. Things don't happen overnight, so I think the only challenge we've faced is time. We've progressed according to our plan. For aspiring start-ups in the plant-based food and beverage industry, what valuable advice or insights would you share to help them navigate the challenges and opportunities in this dynamic sector? Things take time. If you are creating something new, it will take time to implement it with your customers. Be prepared for that. And remember to focus on your own work. We have received many contacts that are really interesting, but unfortunately, there is not always enough time for everything!

Non-profit food research initiative Nectar has unveiled its Taste of the Industry 2026 report, built on what is claimed to be the most comprehensive public sensory analysis of dairy alternatives to date. The organisation aims to accelerate the transition of the $1.2 trillion global dairy industry toward less carbon-intensive plant-based alternatives, with the dairy industry among agriculture’s largest contributors to greenhouse gas emissions. Its latest report on alt-dairy follows its 2025 report that focused on meat alternatives . Like the alt-meat study, it is based on an extensive dataset on the sensory performance of alternative proteins, with Nectar having utilised over 30,000 consumer sensory evaluations to build its alt-protein research so far. The global dairy-free market is forecasted to reach $66.9 billion by 2030, but has historically been held back by taste and texture constraints as manufacturers struggle to replicate the familiar, tangy and creamy flavours of dairy products like cheese and yogurt. However, significant strides in enhancing taste and texture have been made in recent years – though Nectar’s report found that there is still a huge opportunity for improvement. For the new study, Nectar evaluated 98 commercialised dairy-free products across then categories, with 2,183 omnivore and flexitarian consumers in San Francisco and New York, US. The product selection spanned the US market, from established brands with nationwide distribution to emerging food-tech companies working with novel ingredients. Blind consumer panels and conventional dairy benchmarking were used to assess how dairy-free products perform in familiar applications – such as barista drinks in coffee, and mozzarella alternatives on pizza.   Milk alternatives and creamers lead in taste parity The report found that multiple categories – milk alternatives, particularly barista-style, and creamers – are leading the way in competing with conventional dairy on taste. Califia Farms’ Oat Barista Blend product attained taste parity with the dairy Horizon Whole Milk in a hot latte. This was the only product to have achieved taste parity, defined as an at least 50% likelihood that Califia would be preferred on a future test against the dairy benchmark. Three other products – Ripple Barista Blend, Dream Oatmilk Barista, and Oatly Sweet & Creamy Oatmilk Creamer – neared parity, with the dairy benchmark failing to achieve statisticaly significant preference.   R&D needed to close taste gap The average dairy-free product was rated ‘like very much’ or ‘like’ by just 33% of participants, compared to 63% for the dairy benchmark, highlighting that taste improvements are still needed to unlock the category’s full potential. Ice cream, cream cheese and mozzarella were the furthest behind, highlighting opportunity for improvement, with gaps in liking of 1.3 points to 2.1 points compared to the dairy benchmark products. Flavour and texture are highlighted as key focus areas for improvement. Mozzarella and cheddar had the highest gaps in purchase intent (25% vs 67% for mozzarella, 40% vs 71% for cheddar), indicating the need for overall sensory improvements. This includes qualities such as stretching and melting capabilities, as well as decreasing stickiness and ‘gumminess’ to drive consumer adoption. Milk alternatives, the best-tasting category, had 15 times higher market share than cheese alternatives, the worst-tasting category. Categories that were rated at least 1.3 points worse than the dairy product have captured less than 2% of the market – these include cheese, cream cheese, sour cream and ice cream. The biggest opportunities to improve flavour were in areas such as increasing richness, creaminess, sweetness and expected colours (such as whiteness in alt-milks), while decreasing undesirable aftertastes and artificial/chemical flavours. In cheese, increasing sharpness is also a notable focus.   Opportunities to increase purchase intent Interestingly, despite increased scrutiny over ‘clean labels’ across the broader food and beverage industry, ingredients and macronutrients were found to have a ‘limited’ impact on purchase intent and product performance. Higher protein increases purchase intent but reduces overall product performance, Nectar’s research found. Protein ingredients overall, except for pea, were reported by at least 20% of consumers as having an impact on their purchase intent (versus 16% for oils on average). However, 48% of consumers said they ‘strongly agree’ that health factors into their decision making, suggesting an opportunity to drive growth through health-centric marketing. These consumers were also significantly more likely to purchase dairy-free products than the general population. Nectar’s report also found that dairy-free products benefit from making consumers feel ‘more refreshed and responsible,’ with these emotions associated with moderate increases in purchase intent. Nostalgia, indulgence, satiation and joy were more frequently associated with traditional dairy-based products. Dairy-free brands could therefore focus on attempting to replicate these positive emotions in order to drive adoption, with suspicion and disappointment more commonly experienced with dairy-free products and showing a large negative impact on purchase intent. Price was also a significant factor. Introducing a 25% price premium prices out almost half (43%) of consumers compared to price parity, the report found, highlighting an opportunity to reduce perceived price gaps with smaller pack sizes or messaging focused on absolute dollar discounts – consumers tend to focus on absolute dollars instead of percentages, Nectar stated.   The state of alt-dairy Generally, Nectar found that the purchase intent for dairy-free products is positive and outperforms plant-based meat. 67% of consumers said they ‘would buy’ or ‘definitely would buy,’ scoring 0.4 points higher on purchase intent compared to meat alternatives. Dairy products are still ahead, with 66% stating that they ‘definitely would buy’ or ‘would buy’ (compared to 49% for dairy-free). Creamer, milk and barista milk categories show that dairy-free could meet or even exceed dairy purchase intent – dairy-free creamer scored a purchase intent of 5.6 points vs 5.5 points for dairy creamer, and average purchase intent for dairy-free milk was equal to dairy. Caroline Cotto, director of Nectar, said: “The path to mainstream adoption for dairy alternatives runs through taste”. Though she noted “remarkable progress from category leaders,” she said that there is still “significant work ahead for the dairy-free industry”. “Our goal is to provide the objective sensory data that drives R&D innovation and ultimately expands consumer adoption of sustainable alternatives to dairy,” she concluded.