The food and beverage sector is constantly evolving – shaped by shifting consumer preferences, supply chain volatility, and a growing demand for sustainability. For investors, this represents both a challenge and an opportunity, particularly in the plant-based space.
The pandemic accelerated the adoption of plant-based diets, with one in four people in the United Kingdom reportedly reducing the amount of animal products consumed, according to the Vegan Society. Consumer motivations for this uptick varied. For some, it came back to health and environmental concerns. For others, it was a way of dealing with disrupted supply chains and the increasing cost of meat.
As a result, ‘fake’ or ‘mock’ meat product interest surged, with product launches claiming to be plant-based growing by 302% between 2018 and 2022, according to Mintel.
Beyond Meat is a well-known brand in this sector; the second most recognised meat alternative in the US, it offers a portfolio of plant-based products designed to replicate chicken, beef, and pork. While the company experienced strong growth during the pandemic, net revenues declined by 18% year-over-year in 2023. The downward trend continued in 2024, with revenues falling 4.9% compared to the previous year.
Beyond Meat was not the only mock meat business to feel the pressure. The Good Food Institute reported sales of plant-based meat and seafood stalled in 2022 and continued to decline through 2023.
Rebecca MacDermid, Investment Manager, at Maven Capital Partners, considers one of the drivers of this shift away from ‘fake’ meat products to be in part due to increasing scrutiny and awareness around ultra-processed foods (‘UPFs’) and those high in fat salt and sugar (‘HFSS’) .
“More consumers care about where they get their food from and what impact it’s having on the environment,” she says, citing recent proposed changes to food labelling in the UK where in March 2024, the UK government launched a consultation on proposals for clearer labelling requirements including the country of origin and method of production for certain foods.
British supermarket chain, Waitrose, for instance, has reported that 54% of its consumers proactively avoid processed foods, in its 2024 Food & Drink Report.
The continued decline in popularity of highly-processed fake/mock meats leaves the food sector at an interesting juncture.
However, the popularity of plant-based alternatives is expected to continue to rise – with analysts at Mintel projecting the global market will reach $160bn by 2030 – there is a need for sustainable, minimally processed, and nutrient-dense alternatives to fill the space left behind.
Private investment could be part of the answer.
Powering the shift
Maven recently invested £1m in Tiba Tempeh through the Northern Powerhouse Investment Fund II – Maven Equity Fund, alongside a follow-on investment from Perfect Redd, the venture capital arm of Samworth Brothers. Founded in 2019, Tiba Tempeh is based in Newcastle and produces plant-based tempeh products – a fermented soybean-based product originating from Indonesia.
A certified B Corp, Tiba Tempeh is the fastest growing brand in the UK chilled meat-free category, growing 736% year-on-year, according to MacDermid. The reason for this, she says, is that tempeh cuts across multiple food trends given that is plant-based, has high nutritional value, high in protein, and has a low carbon footprint.
Naturally high in protein, low in saturated fats, and rich in health benefits, it appeals to a broad cross-section of consumers – from gym-goers and flexitarians focused on healthy aging to those who have cut meat altogether, she explains. Furthermore, the ingredients list for tempeh is short, made from just three ingredients: soya beans, water and live culture, which means consumers know exactly what they are eating.
There is also an environmental benefit to the product, with tempeh producing less carbon than traditional meat farming.
“It’s really bucking the trend,” says MacDermid.
Globally, the tempeh market was valued at $4.3bn in 2023 and is projected to grow at a CAGR of 5.3% through 2032, according to Global Market Insights. While Asia-Pacific continues to lead in consumption, North America is the fastest-growing region.
A report by Research and Markets reveals, however, that Europe is on the uptick, with the tempeh market expected to grow at a CAGR of 8.4% between 2024 and 2031. In Maven’s view, Tiba is well-positioned to capitalise on this momentum.
Its products are currently listed in major retailers including Sainsbury’s, Waitrose, Morrisons, Ocado, Carrefour, and Leclerc. The recent investment is intended to accelerate growth across marketing, sales, and product innovation with plans to penetrate UK and EU markets, with some exciting new products due to launch.
The big challenge for Tiba, in Maven’s view, comes back to helping more consumers understand what tempeh is and the nutritional benefits it provides, as well as its versatility, which is where much of the firm’s investment will be directed.
“It’s all about increasing awareness. In the UK, a lot of families and consumers use meat as the basis of their meals but replacing meat, with something like tempeh, can add many benefits” says MacDermid.
