CHICAGO — The plant-based food sector is undergoing a period of adjustment in 2026 as manufacturers broaden product offerings, pursue acquisitions and focus on nutrition-focused categories, while demand for some traditional meat alternatives remains under pressure, according to company statements, industry reports and market data released this year.
Food companies have continued to invest in plant-based products, but recent developments indicate a shift away from relying solely on meat substitutes. French food company Danone said on Monday it would acquire Australia's Made Group to strengthen its position in high-protein foods and beverages across the Asia-Pacific region. Danone said the acquisition would also support its essential dairy and plant-based business as consumer demand evolves.
Several companies have also adjusted their product strategies. Beyond Meat forecast second-quarter revenue below analysts' expectations in May, citing continued weak demand for its plant-based products. The company has expanded into additional plant-based protein categories, including protein beverages, as part of efforts to diversify its portfolio.
Industry groups said the broader plant-based market remains larger and more diverse than meat alternatives alone. A report published by the Good Food Institute in May said global retail sales of plant-based meat, seafood, dairy and egg alternatives increased modestly in 2025, supported by investments in manufacturing capacity and ingredient production.
Separate market research published in April found that plant-based meat represents only a small share of the wider plant-based food sector in Europe, with dairy alternatives, nuts, seeds and other traditional plant-based foods accounting for most sales. The report said consumer interest has increasingly centered on affordability, taste and nutritional value rather than products designed solely to replicate meat.
"The acquisition significantly strengthens our Essential Dairy and Plant-Based business in Asia-Pacific," Danone said in announcing its purchase of Made Group, describing the transaction as part of its strategy to expand health-focused food offerings.
Industry analysts have cited several factors behind the market's changing direction, including consumer concerns about food prices, interest in higher-protein diets and increased scrutiny of highly processed foods. Some manufacturers have responded by reformulating products, expanding into new categories and emphasizing ingredient quality.
As of late June, companies across the sector continued to invest in plant-based foods while adapting product portfolios to changing consumer preferences. Industry participants said innovation remains focused on nutrition, product variety and manufacturing efficiency, even as demand differs across product categories.
