From Vegetarians to General Consumers... The Plant-Based Food Market Expands

Food Industry Targets Plant-Based Food Market One After Another
Alternative Meat Market Size Continues to Grow
CJ CheilJedang Fosters Plant-Based Foods with New Business
Shinsegae Food Launches Plant-Based Meat Deli 'The Better'
Nongshim and Pulmuone's Vegan Restaurants Also Popular

[Asia Economy Reporter Song Seung-yoon] As the food industry continues to enter the plant-based food market one after another, competition to secure market dominance domestically is expected to intensify. The demand has expanded from a niche group consuming vegan foods for health or ethical reasons to general consumers, leading to a steadily growing related market.

According to the Korea Agro-Fisheries & Food Trade Corporation (aT) and others on the 19th, the domestic plant-based meat substitute market size was $17.4 million in 2020, showing over 23% growth compared to $14.1 million in 2016 over four years. The industry expects this market to grow to $22.6 million by 2025. This is a global trend. The global plant-based meat substitute market, which was about $4.218 billion in 2016, grew to $6.071 billion in 2020 and is expected to reach approximately $11.033 billion by 2025.

Vegan used to refer to people following vegetarian dietary habits or the diet itself. However, recently, as the scope has expanded to include vegan-certified foods and plant-based meat substitutes, the demand base has broadened to include the value-conscious MZ generation (Millennials + Generation Z) and general consumers.

Domestically, the related market has mainly developed around small and medium-sized enterprises (SMEs) and startups. According to a global research survey, SMEs and startups account for 75.8% of domestic plant-based meat manufacturers. Specialized SMEs based on food technology, a fusion of food and technology known as food tech, had initially secured the market. However, recently, domestic food companies have also been turning their attention to the plant-based food market. More companies are targeting not just specific consumers but general consumers, adopting the alternative meat business as a future growth engine. The product range is expanding beyond frozen foods to include ready meals and desserts. The number of vegan-certified foods by the Korea Vegan Certification Institute was only 13 in 2018 but surged to 114 in 2019, increased to 199 in 2020, and reached 286 last year.

CJ CheilJedang has presented a vision to make the plant-based food business a future growth driver and grow sales to 200 billion KRW by 2025. In December last year, CJ CheilJedang launched the plant-based food specialty brand ‘Plantable.’ Following vegan dumplings and kimchi, Plantable plans to release additional related products this month, including tteokgalbi (grilled short rib patties), hamburger steak, and rice balls. CJ CheilJedang has established an in-house production line with an annual capacity of 1,000 tons at its Incheon Plant 2 for plant-based food production and plans to consider further expansion in line with global business growth. Along with expanding the product lineup, it will also broaden B2B (business-to-business) channels where plant-based foods can be experienced through research and development and collaborations with catering companies and franchise brands.

On the 14th, a promotional model is showcasing plant-based meat at The Better in Gangnam-gu, Seoul. The Better is a pop-up store created to allow customers to experience menus using plant-based alternative foods, including Shinsegae Food's alternative meat product "Better Meat"./Photo by Kang Jin-hyung aymsdream@

Various attempts to utilize plant-based foods are being made not only in product launches but also across multiple business areas. Shinsegae Food recently opened ‘The Better,’ the first plant-based meat deli in Korea. The Better is a pop-up store where consumers can experience various menus using Shinsegae Food’s alternative meat ‘Better Meat’ raw products and other plant-based alternative foods. Through this, Shinsegae Food aims to expand consumer experience with alternative meat, promote social value, and nurture Better Meat as a leading brand in the alternative meat market.

Nongshim’s recently launched vegan fine dining restaurant Forest Kitchen has also gained great popularity, surpassing 1,000 visitors in June alone since its opening at the end of May. Forest Kitchen offers various vegan menus in a single-course format. Earlier, Pulmuone opened the first vegan-certified restaurant ‘Plantude,’ where all dishes are made from 100% plant-based ingredients. Plantude is the first vegan-certified restaurant among major food companies, offering 13 menu items using Pulmuone’s plant-based protein and plant-based meat substitutes.

An industry insider said, "Plant-based foods are a global trend, and the demand base is expected to expand further." He added, "Since the core competitiveness lies in replicating the taste and texture of meat with alternative meat, companies are focusing on developing technologies for this purpose."

This content was produced with the assistance of AI translation services.