Nestlé is going full speed ahead to establish its presence in the plant-based space, as many consumers remain interested in having options to choose from when they eat or drink.
The consumer interest in plant-based products is strong enough, despite a recent slowdown, that the world’s largest food maker needs to have some of its most recognizable brands participate in the category.
While plant-based foods and beverages are a small part of the $104 billion in sales Nestlé recorded globally last year, they also remain a key area of growth for the company.
Nestlé entered plant-based foods in a big way in 2017 with its acquisition of Sweet Earth. Since then, it has expanded the brand into new categories, such as plant-based chicken, beef, and deli meats.
The food and beverage giant has also developed plant-based extensions for its Coffee Mate, Natural Bliss, Starbucks creamers, and Toll House chocolate chips. It also added plant-based meat as an option in its DiGiorno Pizza and Stouffer’s Lasagna.
Nestlé’s huge portfolio and recognizable brands give it an advantage in attracting and retaining consumers to plant-based alternatives. If an individual had an animal-based offering before from Nestlé and enjoyed it, they might be more likely to try the one made with plants, even if they may have had a bad experience with another plant-based brand outside of the company before.
The company is moving aggressively to boost consumer awareness of its plant-based products and plans to continue offering new flavour extensions in products where it already has a plant-based presence, such as Tollhouse morsels or coffee creamers.
Nestlé is using its innovation accelerator to develop new brands on a smaller scale that it could consider expanding more broadly if they prove successful.
The plant-based food sector, which was formerly seeing rapid expansion, has seen growth stall or even stop, particularly in the meat sector. Many big corporations have scaled back their presence as a result. JBS USA unexpectedly closed its Planterra plant-based company in 2022, and staff was let off at Beyond Meat, Impossible Foods, and Greenleaf Foods of Maple Leaf Foods.