The quiet shift to alternative proteins: Collaboration and silent reformulation are reshaping the industry, say experts

This shift was a key theme at the ProVeg New Food Conference 2024 in Berlin, where two panel discussions also explored how the sector is moving beyond its initial phase of loud, consumer-facing campaigns to a more nuanced strategy, focusing on product quality, affordability, and quiet reformulation.

From opposition to collaboration

In the early years of the alternative protein movement, particularly during the foodtech boom of 2018-19, the relationship between innovators and traditional animal-based industries was often one of confrontation. Alternative protein products and startups were marketed as revolutionary alternatives ready to disrupt the conventional dairy or meat industry, with bold messaging designed to appeal to ethical and environmentally conscious consumers. However, as Christian Pichler, managing director and founder of Italian private investment company Gerber-Rauth, noted during a panel on precision fermentation, this dynamic is shifting.

"The hype cycle was accelerated by the pandemic, and a lot of venture capital money poured in, creating a sense of threat for the traditional dairy industry," Pichler explained. But now, the landscape has changed. "Among the top 500 dairy companies, many are now investing or collaborating with precision fermentation ventures."

This new approach marks a shift towards cooperation, where both legacy industries and innovators recognise the need for diverse protein sources in the future food system.

This collaboration is seen in the dairy sector, where companies are adopting new technologies such as precision fermentation to diversify their product offerings. Julia Martin, cellular agriculture lead at ProVeg International, highlighted that precision fermentation, which can be used to produce dairy proteins without animals, is becoming an "unavoidable" part of the dairy landscape.

“Large corporations are backing this transition,” she said, noting that dairy companies no longer see plant-based or precision-fermentation dairy as a threat, but as a complementary innovation.

Eva Sommer, CEO and founder of Fermify, an Austrian precision fermentation startup, echoed this sentiment, stressing that dairy producers are beginning to work with fermentation companies to address issues like price sensitivity and sustainability. "In many countries, there’s a limit on the number of cows due to the nitrogen crisis," Sommer said. "Growth will come from precision fermentation."

This shift towards collaboration is driven by the recognition that both industries are working towards a common goal: creating a sustainable and resilient food system.

The silent transition: A quieter consumer strategy

Another sign of the sector’s maturity is its evolving relationship with consumers. The early plant-based and alternative protein market was characterised by products that loudly declared their plant-based or vegan credentials, often targeting niche groups of environmentally or ethically motivated consumers. But today, companies are increasingly opting for a more discreet approach, focusing on taste and price rather than overtly promoting their vegan or vegetarian status.

Experts discussed this trend on a panel titled “the silent transition” about strategies for nudging and ingredient substitution. Martine van Haperen, health and nutrition expert at ProVeg explained that companies are quietly reformulating products, such as mayonnaise, cakes, or soups, to replace animal-based ingredients with plant-based alternatives, often without informing consumers upfront. "People’s lives are complicated enough – they don’t want to think about sustainability when shopping or cooking," van Haperen explained. "The more silent[ly] we can do it, the easier."

This strategy is particularly effective in foodservice and retail, where blended or hybrid products are gaining traction, even as this is not highlighted prominently on the front of the pack. Instead, companies often signal the product’s plant-based credentials on the back of the pack, while the marketing emphasises taste and familiarity.

This shift from overtly ethical branding to a focus on flavour and price was also highlighted by Kim van Drie, marketing manager at Hands Off, a plant-based chocolate brand.

"We started with big vegan banners to differentiate our bars, but once we became fully plant-based, we dialled it down to just a small front-of-pack ‘v’ logo," van Drie explained. "We don’t want to scare off regular consumers – we put ourselves on the regular chocolate shelf and focus on taste."

Van Drie’s experience mirrors a broader trend in the alternative protein sector: companies are learning that consumers are more likely to embrace their products if they do not feel pressured by environmental or ethical messaging. As van Drie put it, "People don’t think about the climate footprint when buying confectionery – taste is what matters."

Maturity brings new challenges

As the alternative protein sector moves towards maturity, it faces new challenges, particularly around regulation and consumer perception. In Europe, stringent regulations have slowed the progress of novel food technologies like precision fermentation, even as demand for alternative proteins grows. "There’s a green paradox," noted van Sint Fiet, CEO of Vivici, a precision fermentation start-up. "Europe wants to become more sustainable, but kneejerk bans on new technologies are holding us back."

Nevertheless, industry leaders remain optimistic that this regulatory environment will evolve, particularly as the public becomes more familiar with technologies like precision fermentation. According to Martin, while European consumers are currently cautious about ultra-processed foods (UPFs), education and transparent communication can help overcome these concerns. "We need to demystify technologies and show consumers that it’s safe, nutritious, and sustainable," Martin said.