February 19, 2024
Consumers are turning increasingly to plant-based products – but to make them safe and affordable while spurring innovation, the right regulations are essential.
The rise of plant-based foods is not just a passing trend. As studies have shown, eating more plants and plant-based products has positive consequences for both human health and the environment – and it’s a public-health transition that is hopefully here to stay.
But this blossoming industry is not without its challenges. From the need to build consumer trust in novel and unfamiliar foods, to the hurdle of achieving recognition on an institutional level, and the issue of high price tags, there is much work to be done to increase the availability and adoption of plant-based products.
“The price tag that consumers are paying for plant-based today really reflects one major hurdle: that the industry is not benefitting from subsidies in the way other agriculture-based production is,” says Sara Carvalho, Good Systems Manager at Tetra Pak. “And that high price is really limiting access, affordability, and possibility of adoption for a lot of people.”
In light of these challenges, a strategic combination of policy support and regulation will be essential to the plant-based industry’s bright future.
“If governments don’t recognise plant-based as a good food for people, public institutions like schools and hospitals will not adopt it – and this will continue to slow down mainstream consumption.”
The high price of plant-based won’t go down without regulation
One of the most persistent challenges facing the plant-based food industry is the high cost of products, which remain expensive despite growing consumer demand. Their lofty price tags can be attributed to several factors, including the cost of ingredients, economy of scale in production processes, and, significantly, the regulatory environment.
Regulations can impact costs both directly and indirectly, and the need for compliance with different regulatory frameworks in various markets can also drive-up costs for companies that operate internationally.
“There are a lot of regulatory steps that act as scaling-up enablers in terms of public health, which will ultimately influence procuring of plant-based products,” Sara says. “Because if governments don’t recognise plant-based as a good food for people, public institutions like schools and hospitals will not adopt it – and this will continue to slow down mainstream consumption.”
But the fact is, regulation and legislation also hold the key to bringing the cost down. Before plant-based can get policy support like subsidies for sustainable agriculture and incentives for research and development, there are some other essential challenges to tackle. The fundamental hurdle of institutional recognition is primary among them.
The role of dietary guidelines
Institutional recognition across the board begins with dietary guidelines, and we’ve recently seen an increasing number of countries – specifically Austria, Germany, Norway, and Finland—decide to include plant-based alternatives in theirs. This is an important step for plant-based, as these countries are not only recognising the nutritional value of alternative proteins but adopting a protective public-health stance on them.
“We’re missing that body of regulation to enable other areas of society to benefit from plant-based alternatives, and potentially enable prices to drop for consumers.”
In addition to getting plant-based products included in dietary guidelines, they also need to be featured on nutrient profile models, which score and classify foods based on their calories, sodium, sugar, and saturated-fats contents.
Getting alternative proteins incorporated into nutrient profile models is essential, as these models are often a regulatory basis for front-of-pack labelling, which is considered the gold standard in clear and trustworthy communication with consumers. Importantly, clear communication of their nutritional data via front-of-pack labels would enable a level playing field for alternative protein products.
“The retail market has played a fantastic role in promoting these products as far as they’ve come today,” Sara says. “But we’re missing that body of regulation to enable other areas of society to benefit from plant-based alternatives, and potentially enable prices to drop for consumers.”
Additionally, regulatory reforms that streamline approval processes for new plant-based ingredients and technologies can reduce barriers to innovation and help bring new products to market more quickly and affordably.
Standardising global regulations
Another key challenge facing the plant-based food industry is the lack of harmonisation in regulations across different regions. Consistent regulations across markets can streamline product development and reduce the complexity of navigating different legal frameworks.
While some countries have tried to implement strict regulations on the use of terms traditionally associated with meat (such as "steak" or "bacon") to describe plant-based products, for example, others have taken a different approach. Technologies and processing methods that are approved and accepted, such as biomass or precision fermentation, also vary across markets.
“The price tag that consumers are paying for plant-based today really reflects one major hurdle: that the industry is not benefitting from subsidies in the way other agriculture-based production is.”
These inconsistencies can create barriers to international trade and complicate efforts for companies looking to expand globally. Making it easier for global companies to adopt innovative plant-based products is essential for the industry to grow, and this means that the regulatory environment must both support innovation and sustainability while prioritising consumer safety.
“In a nutshell, we're paying attention to regulations regarding New Foods and plant-based products, but also how we can track processing regulations on energy, water, GHG emissions, and food waste,” Sara says. “We want to locate where the incentives are for businesses, and then help our customers to scale up – while also helping companies transition to be more future-proof in terms of net-zero emissions.”
A growing focus on the importance of labelling
A major issue being explored by regulatory bodies centres around clear labelling for plant-based products. Plant-based products are typically displayed alongside conventional products in supermarkets, making accurate labelling essential.
“Plant-based foods are brand new to a lot of people,” Sara says. “And that’s why consumers need to understand what they are buying, including ingredients, allergens, and nutritional benefits, to feel that they can make informed choices.”
In response, the Food and Drug Administration, the most respected public-health agency in the United States, is expected to issue draft guidelines that will help standardise labelling for plant-based foods. These rules will likely focus on ensuring labels clearly distinguish plant-based products from their conventional counterparts. There is also a push for labels to include more information on the environmental impact of products, such as carbon and water footprints, as well as animal welfare considerations.
A regulatory framework will encourage development
As the plant-based sector continues to evolve, the collaboration between producers, regulators, and other stakeholders will be key to ensuring that plant-based foods not only meet the highest standards of safety and quality but also become more accessible and affordable for consumers around the world. In this way, plant-based regulations will not just protect consumers—they will also empower the industry to reach new heights of innovation and sustainability.
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