New analysis from the $90 trillion-backed FAIRR investor network finds that, despite the business opportunity from plant-based proteins, many global food companies are not effectively meeting consumer demand – limiting the category’s growth and weakening the resilience of food supply chains through over-reliance on animal protein.
The report, Feeding Change: Building a Resilient Food System Through Protein Diversification, contains results from the second year of an investor engagement with 20 of the world’s largest food retailers and manufacturers supported by 73 investors with US$11.5 trillion in combined assets.
Investors are calling for companies to diversify their protein sources to address growing supply chain and transition risks and seize growth opportunities – as well as improving consumers’ nutritional intake and health outcomes.
The untapped opportunity of nutrition
Consumer trends indicate a move towards fitness, wellness and the use of GLP-1 drugs for weight loss. Although at least 70% of companies identify health and wellness as one of the most material issues to their businesses, only 30% of companies have nutrition expertise at the board level. Meanwhile, 25% of companies have no dedicated health strategy.
Demand for fresh, wholefoods is increasing and scrutiny of ultra-processed foods (UPF) is on the rise. 88% of global dietary guidelines encourage greater intake of plant-based foods including vegetables, legumes, nuts and whole grains to reduce diet-related disease risk, with the EAT Lancet Commission’s latest recommendations assessing that this shift could prevent up to 15 million premature deaths annually. Despite this, only 3 of 8 brand manufacturers launched a plant-based wholefood product in the past year – favouring more processed alternatives to animal products.
By focusing on plant-based wholefood proteins that align with consumer preferences, Carrefour exceeded its target of €500 million in plant-based sales – originally set for 2026 – in 2024, and expanded its goal to €650 million. In 2025, Ahold Delhaize expanded the scope of its target for all its European retailers to achieve 50% plant-based protein sales by 2030.
Further, 75% are yet to acknowledge the sustainability and nutrition potential from the substitution of animal ingredients with plant-based options. Only one company, Nestlé, has quantified the emissions mitigation opportunity so far.
Dana Wilson, manager, research & engagements – protein diversification, at FAIRR, said: “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. 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.”
Sophie Kamphuis, sr. advisor responsible investment at MN, said: “The findings point to a sizable gap in the market at the intersection of wholefood, high-protein and reduced meat diets. 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.”
