Plant based meat alternatives are gaining traction in the country as Australians are trying to reduce their meat intake due to health concerns. Also, consumers are becoming more aware of the effects of meat based diet on the environment and climate change. Australia is the third largest vegan market globally which could act as an opportunity for plant based meat alternative market players.
The impact of animal-sourced foods on land use, water consumption, and greenhouse gas (GHG) emissions are assessed by Australian authorities as well. Meat & Livestock Australia (MLA) is working on improving the sustainability of the domestic red meat industry, with a target to make this sector carbon neutral by 2030. The technologies required for achieving this are also developed and being researched further. These technologies are more complex than those used in plant-based protein processing.
Australian consumers are strongly aware of climate change and are keen on buying more sustainable products. The increasing demand for sustainability is expected to impact the Australian food processing companies and protein suppliers in the coming years. The projected change in the protein mix will eventually create multi-billion dollar opportunities for alternative protein sources by 2025.
Retail channels have been playing a prominent role in expanding plant based food in Australia. The demand for plant based meat alternatives is growing in the country and major supermarket such as Coles and Woolsworth have embraced plant based food which reflects the growing consumer interest in this product category.
Woolworths already features plant based meat products by various companies including Made with Plants, Wildly Good, The Vegan Factor, Veef, Next Gen and Why Meat Co, as well as braised beef made from mushrooms by former Shoes of Prey founder Michael Fox’s Fable Food Co. In September 2020, V2Food, CSIRO-backed alternative protein startup launched its plant-based meat products at over 600 Woolworths supermarkets.
Earlier, in August 2020, the company introduced v2mince and v2burger products at 61 outlets of Drakes supermarkets in Australia. It also partnered with, Marley Spoon, a meal-kit delivery company, to offer v2mince to customers at home, April 2020.
V2food introduced v2sausages, a plant based sausage which contains soy protein, coconut oil, onions, garlic, thyme and parsley, January 2021. The launch was in line with the growing market for plant based sausage globally.
Fable, a startup, launched plant-based ready meals including meat-free chilli con carne, stroganoff and rogan josh at Woolworths, in October 2020. The plant-based braised beef introduced earlier at Woolworths in June 2020 sold out at Victoria, Queensland, and South Australian stores in its initial weeks in stores. The company later introduced plant-based Braised Beef at 470 Coles stores in November 2020.
Moreover, Australian plant-based meat startups have been thriving in the recent years. These companies are working towards fundraising and expanding the reach. Fundraising and investments are supporting plant-based protein or alternative meat products market growth in Australia. Vow Foods, a cell-based meat company, received US$6 million in seed funding in January 2021. V2food raised US $55 million (Australian $77 million) in a series B funding in October 2020.
Apart from this, Proform Foods established a plant-based meat manufacturing facility at Mount Kuring-Gai in Sydney's north in November 2020, which can manufacture 5000 tonnes of fake meat every year. The company supplies its core plant-based meat product under MEET brand to various supermarkets and restaurants.
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