Improving consumer perception of plant-based dairy may start with better biosolutions

Amid rising inflation and shifting consumer priorities, plant-based milk sales have waned, signaling an urgent need for brands to balance affordability, clean labels and clearer nutrition messaging with enzymatic technology as a possible solution, industry players say.

With 87% of American consumers changing how they shop due to inflationary prices, plant-based milk sales dropped for the first time in years in 2024 to $2.9 billion, a 4.4% decrease from 2023, according to Nielsen NIQ data.

Since the COVID-19 pandemic, consumer food preferences have centered around health and wellness with clean label products increaseing8% in the last year - highlighting an opportunity for brands to improve their ingredient list while simultaneously keeping costs down or at least at parity to conventional milk, per the data.

Consumers' priorities since the pandemic have shifted towards purchasing essentials as they are spending 15% more than they were for the same goods in 2022, per Nielsen. The drop in purchase volume has impacted nearly every category in store, with plant-based milk sales declining $150 million for almond, oat milk and blends.

Yet, despite this decrease in sales, consumers are still looking for plant-based foods - particularly vegan yogurt, launches of which increased 15% in late 2024, according to Novonesis.

However, given the overwhelming number of options in the category, consumers are still unclear about which products contain macronutrients, such as protein, and whether they are the same quality as animal-based products - highlighting a need for brands to reevaluate how they educate consumers.

One of the challenges in fortifying plant-based dairy with protein is a thicker texture with unwanted side effects, such as a grainy texture and clumping, according to Birgitte Borch, head of plant and food at Novonesis.

One solution to improve quality and formulation is Novonesis' Vertera Smooth enzyme portfolio boosts protein content while delivering a creamier texture, Borch said.

Plant proteins, such as pea or soy, often result in undesirable off notes that interfere with the flavor experience. Vertera's Culture Kit is made up of 14 cultures that manfacturers can mix and match based on their desired results, while reducing green, beany notes to deliver a more dairy-like flavors to plant-based recipes, Borch added.

Biosolutions like Vertera address texture and taste challenges across a wide range of protein sources and clean-label stabilizers while reducing the need for expensive raw materials or ingredients and potentially improving the overall formulation cost, she explained.

"Add in process simplification with lower viscosities and time savings, and the end result is a great product with efficient cost controls. And of course, an even better final product can lead to consumers being willing to pay a bit more, making an upside in revenue possible," Borch said.