Investors are calling on some of the world’s largest food manufacturers and retailers to include more plant-based proteins in their product lineups, citing supply chain stability and consumer demands, according to a new report from investor network FAIRR.
The new report contains results from the second year of FAIRR’s engagement with some of the world’s largest food retailers and manufacturers, including 12 retailers* and eight manufacturers.** Investors supporting the engagement represent some $11.5 trillion in assets.
These investors call for these large companies to address risks in the meat industry related to both changing consumer preference trends and supply chain vulnerabilities.
‘Investing too little’ into product innovation
“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,” noted FAIRR’s manager, research and engagements for protein diversification Dana Wilson.
“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.”
Diversification via offering more plant-based products would help these companies mitigate supply chain risks, FAIRR’s report argues.
It cites the skyrocketing price of eggs in the US, caused by an outbreak of avian influenza, as one example. Meanwhile, the price of beef in the US has steadily risen for much of the year and is now at its highest since the US Department of Labor began tracking prices in the 1980s.
Meanwhile, demand for beef is strong, but climate events (e.g., drought) have reduced cattle herds, and, along with inflation and other factors, have created a strain on supply. According to FAIRR, US cattle herd sizes have fallen to their lowest levels since the early 1970s. Like eggs, beef prices are hitting record highs.
Even so, just 40% of the companies in FAIRR’s engagement have assessed “the impact of changing consumer preferences for plant-based products and physical climate risks on their animal agriculture supply chains.”
Changing consumer preferences
Even more pronounced are the impacts of changing consumer preferences, says FAIRR.
For example, “ultra-processed foods” (UPFs) have entered the mainstream dialogue. While there is great debate over definitions and where the line between healthy and unhealthy lies, consumers are nonetheless thinking more about UPFs in everyday diets. According to FAIRR’s report, demand for more whole foods is on the rise. This calls into question the health profile of those meat analogues made through hyperprocessing or with high sodium content.
Despite this, only three of eight brand manufacturers in the engagement have launched a plant-based whole-food product in the past year, and just 25% of all 20 companies have surveyed their consumer base to understand preferences.
Some plant-based products have also been discontinued in the recent past: Nestlé discontinued its SweetEarth brand (and discontinued vegan KitKats), for example, while Unilever offloaded its Vegetarian Butcher brand.
Part of these companies’ struggle is that taste and texture remain a challenge for many plant-based products, which has led to falling sales and, hence, the discontinuation of some items.
Under half (40%) of the engagement companies said they had “dedicated resources to improve product innovation” in this area. This is down from 45% in 2024.
FAIRR’s report highlights some good news, however. Retailer Carrefour exceeded its plant-based sales target of €500 million (which was originally set for 2026) in 2024 and has now expanded its goal to €650 million. Elsewhere, Ahold Delhaize “expanded the scope of its target for all its European retailers to achieve 50% plant-based protein sales by 2030.”
“The findings point to a sizable gap in the market at the intersection of whole food, high-protein and reduced meat diets,” noted Sophie Kamphuis, senior advisor, responsible investment at asset management firm MN.
“Added to this, we have also seen a number of shocks to animal protein supply chains this year, due to changing weather patterns, macroeconomic conditions and zoonotic diseases. Diversification into plant-based proteins is a key strategy to increase resilience and meet climate goals, as well as to tap into a burgeoning market.”
*Amazon, Ahold Delhaize, Carrefour, Coles Group, Costco, Kroger, Loblaw Co. Ltd, Sainsbury’s, Target Corp., Tesco, Walmart, Woolworth’s Group
**Conagra Brands, Danone, General Mills, Kraft Heinz, Mondelez Int., Nestle, The Hershey Co, Unilever
