The market for plant-based protein products in the United States is rapidly growing, but Michael McCain, CEO of Maple Leaf Foods said that many people who purchase those products are not necessarily looking to stop consumption of meat and poultry products.
The Canadian company most widely known as a processor of poultry and pork products, on February 21 announced its intent to purchase the U.S.-based Lightlife Foods, a producer of refrigerated plant-based protein products that are an alternative to meats.
Speaking during the company’s quarterly earnings call one day after the planned acquisition was announced, McCain addressed the appeal of entering a market that competes with its other products.
“In the United States, it’s a roughly a $110-120 million market in refrigerated meat substitutes. If you include the frozen segment, it’s in the $600 million range,” McCain said, adding that the refrigerated meat alternative segment is growing faster than the frozen plant-based protein segment.
“The underlying systemic growth in plant-based proteins is indisputable. There’s a significant consumer trend to not eat less meat, but to increase protein consumption in a more balanced way. … It’s really about consumers’ choice, not one or the other, it’s typically both and finding the balance for both.”
McCain said there were “tremendous consumer research and evidence and insights that underpin” his views.
Can Maple Leaf Foods increase plant-based protein’s market share?
McCain is confident Lightlife Foods can be a strong asset for Maple Leaf Foods. It has a 38 percent market share and is the leading brand in the refrigerated plant protein segment in the United States, he said.
The refrigerated plant-based protein segment is growing at a rate of around 11 percent, In the segment that we’ve acquired a position inwith lightlife foods, who have a 38 percent market share and the leading brand in the refrigerated plant protein segment in the United States, that segment is growing at a clip of around 11 percent.
“Double-digit category growth is very rare in the grocery store, and it is likely to continue well into the foreseeable future,” McCain said.
McCain believes that Maple Leaf Foods has the sales and marketing expertise, and the capital investment committment to help Lightlife Foods’ reach and the plant-based protein sector’s market share grow. However, McCain said it is yet to be determined how much it can accelerate that growth.
