Market leaders and analysts are more upbeat when looking at the future of the plant-based sector. The industry has had a few tough years but looks to be turning a corner with the consolidation of brands, advancements in technology, consumer drivers and more innovation. Purposeful leadership, cross-sector collaboration and long-term strategy aims to move the plant-based foods and beverage industry from a niche category into a mainstream growth engine.

“I’m excited about our outlook,” Brian Kocher, CEO of SunOpta Foods, told BNN when talking about quarterly results. “We’re feeling really bullish about our future.” SunOpta produces plant-based beverages and ingredients, and better-for-you fruit snacks.

Three-quarters of global consumers are interested in plant-based alternatives to dairy and meat, according to ADM’s 2025 Alternative Protein Landscape Report. Every generation wants to eat more protein, with demand peaking with millennials and Gen Zs.

Advancements in technology, product and ingredient innovation, and consumer demand for healthier products, are positive drivers in the marketplace.

The industry still faces some taste and texture issues, and technology is advancing solutions through new or better processing, such as high-moisture extrusion and precision fermentation. According to ADM’s report, fermentation has gained consumer acceptance for use in meat, dairy and seafood alternatives, as well as specialized nutrition. Investment in the alternative protein industry is still subdued, but the fermentation segment stands out and artificial intelligence is the one area that is growing substantially.

There’s increasing use — and growing potential — of AI to address taste issues, discover ingredients and optimize processes. AI models can analyze consumer taste data and molecular properties of proteins to improve textures and flavors. NotCo uses its proprietary AI platform Giuseppe to predict unusual ingredient combinations that replicate dairy and meat flavors. Climax Foods is using AI to identify plant proteins that function like casein for better melt in plant-based cheese.

It can also help in supply-chain and sourcing. Cargill is working with farmers on AI-driven agronomy tools to optimize sourcing of alternative protein crops and to improve resilience and sustainability. Companies like SunOpta integrate AI into manufacturing analytics to improve efficiency and sustainability in its facilities.

Hybrid solutions are a current trend with companies integrating plant-based proteins such as pea and soy with mycoprotein, fungi and algae or cultivated meat to enhance flavor, texture and nutritional components. There’s also been a big surge in hybrid products combining animal and plant-based ingredients, with new offerings that include plant proteins blended with meat, dairy or eggs.

Consumers are leading the movement for cleaner labels, preferring products that use fewer ingredients, more natural ingredients, and that are less processed and more nutrient dense. They want simpler, more transparent labels and the FDA is currently developing a standardized front-of-package label aimed to provide consumers with clearer nutritional information. Other regulatory changes and the evolving tariff situation require upcoming changes and challenges to be managed.

Health and wellness is a top food trend, with consumers looking not just for cleaner labels but also products that meet diverse concerns such as high protein, reduced calorie, lower saturated fats, enhanced fibre, lactose intolerance, emotional regulation or longevity. There’s an increasing push to personalize or tailor products to meet consumers’ varied needs.

The rise of GLP-1 medications like Ozempic and Wegovy for weight loss and diabetes is creating significant effects in the food industry and the plant-based sector is uniquely positioned to benefit. In the U.S., notes the ADM report, 64% of the drug users pay more attention to a product’s protein content and 44% are adding more plant-based sources to their diets. Even consumers not on the drugs are looking for GLP-1 products in an effort to manage weight. Companies are innovating and creating products with plant-based proteins and soluble fiber.

Busy consumers in today’s world are also creating growth in different categories with shoppers looking for snacks, frozen foods and ready-to-eat meals and beverages — without sacrificing flavor or nutrition.

The plant-based industry is starting to see a generational impact, noted Kocher, as the sector over indexes in younger generations and as these younger generations become more powerful consumers, they’ll retain their buying habits.

Higher prices of plant-based products are still a barrier for many consumers, particularly in an economy where affordability is a top concern for shoppers. Just achieving price parity between plant-based and traditional proteins is likely not enough to change buying patterns. An academic study released in December 2024 indicated that making plant-based alternatives cheaper than animal proteins is a “strategic lever” and would increase their popularity among Americans.

Of course, consumer concern around ultra-processed foods is hitting the plant-based industry and some studies and coverage have lacked knowledge or spread misinformation when looking at the nutritional profile and processing of plant-based products. There is a need and opportunity for brands and the industry to tell a clear story about their health and nutritional benefits.

Many of these opportunities and challenges need to be addressed along the value chain to accelerate change, drive wider consumer adoption of plant-based products and develop a mainstream scalable industry. It can’t be done alone — long-term partnerships and relationships are essential among growers, researchers, startups, industry, retail, food-service providers and other stakeholders.

Cargill has been investing in plant based and cultivated meat for the long term, investing in several food-tech startups and innovators alongside its in-house R&D. It partnered with PURIS to expand pea-protein supply, giving farmers new markets and stabilizing supply for food producers. SunOpta works closely with large retailers and coffee chains to develop private label and branded plant-based milks, expanding mainstream consumer exposure and access to products at multiple points.

“There’s no silver bullet,” David VandenEinde, Vice-President Food Ingredients Americas and R&D Leader of Cargill, said on LinkedIn. “Just a strong toolbox and a commitment to build together.”

Expert Insight

Brian Kocher and David VandenEinde will be leading a candid discussion on how they and other leaders are driving innovation across the protein and food value chains. Their fireside chat at the Bridge2Food North America conference, Oct. 21-23 in Minneapolis, will highlight how purposeful leadership, collaboration and long-term strategy are shaping the future. They will address evolving consumer expectations, market dynamics and sustainability goals.

Hosted in partnership with the MBOLD Coalition, Bridge2Food North America will take place at the McNamara Alumni Center and brings together 400+ industry leaders and pioneering companies in the sustainable food production industry.

⮞ An Early-Bird 3-Day Full Pass is on sale until Sept. 26

⮞ View the full program

⮞ Minneapolis, MN | Oct. 21–23, 2025