Produced by the FAIRR investor network, and called Feeding Change: Building a Resilient Food System Through Protein Diversification, the report contains results from the second year of an investor engagement with 20 of the world’s largest food retailers and manufacturers.
The report found that although at least 70% of food companies consider health and wellness to be a material issue, only a quarter have a health strategy and just 30% have nutrition expertise at board level.
While over three-quarters (77%) of companies agree that concerns over plant-based product performance, affordability or nutritional value are constraining consumer uptake just 40% are innovating to address these issues, the report concluded.
Access to and affordability of plant-based products as well as consumer dissatisfaction with the taste and texture of plant-based protein remain key barriers to consumer adoption of plant-based proteins, it said.
Food manufacturers while failing to innovate are also failing to understand consumer demands in plant protein. It added that only 25% of companies in the report have surveyed their consumer base to better understand their preferences.
While additionally only 40% of companies have assessed the financial risk from a dietary shift towards plant-based and the impact of physical climate risks on their animal agriculture supply chains.
The analysis also revealed that investors are calling for companies to diversify their protein sources to address growing supply chain and transition risks and seize growth opportunities as well as improving consumers’ nutritional intake and health outcomes.
While consumer trends indicate a move towards fitness, wellness and the use of GLP-1 drugs for weight loss with demand for fresh, wholefoods increasing only three of eight brand manufacturers launched a plant-based wholefood product in the past year.
It highlighted the case of Carrefour which it said exceeded its target of€500 million in plant-based sales – originally set for 2026 in 2024 - after focusing on plant-based wholefood proteins that align with consumer preferences.
Dana Wilson, Manager, Research & Engagements – Protein Diversification, at FAIRR, said: “Shoppers are looking for affordability, great taste and healthiness in 2025, yet food companies are investing too little in product innovation to cater for consumer expectations. By engaging customers towards nutritious and sustainable plant-based proteins, proactive companies can harness a significant market growth opportunity, as well as build a more resilient product portfolio.”
