New report analyses 20 global food companies’ approach to protein diversification, following US$11.5 trillion investor engagement to meet consumer demands and build resilience against mounting supply chain risks.
Although at least 70% of food companies consider health and wellness to be a material issue, only a quarter have a health strategy, and just 30% have nutrition expertise at the board level.
77% of companies agree that concerns over plant-based product performance, affordability or nutritional value are constraining consumer uptake. Yet, just 40% are innovating to address these issues.
Only 40% of companies have assessed the financial risk from a dietary shift towards plant-based and the impact of physical climate risks on their animal agriculture supply chains.
(London, 28 October 2025) – New analysis from the US$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, whole foods 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.”
Plant-based product launches have room for improvement
Only 25% of companies in the engagement have surveyed their consumer base to better understand their preferences. This has led to a misalignment between product launches and market demand, with two companies acknowledging that some of the plant-based meat products launched in the last year were already discontinued due to low sales.
Access to and affordability of plant-based products similarly remain key barriers to consumer adoption of plant-based proteins. However, just 60% of companies disclosed evidence of working to improve either factor. Woolworths has added vegan and vegetarian filters to its online product search, and Tesco has replaced everyday items in its Express stores with cheaper options, including plant-based product lines.
The report also highlights consumer dissatisfaction with the taste and texture of plant-based proteins as a barrier to uptake. However, just 40% of the engagement cohort dedicated resources to increase product innovation – which could include research & development, partnerships and venture investments – compared to 45% in 2024.
Transition risks from changing consumer preferences undermine supply chain resilience
Only 40% of companies have assessed the transition risk of failing to respond to changing consumer preferences for plant-based products and the impact of physical climate risks on their animal agriculture supply chains.
Diversification into plant-based products can help mitigate supply chain risks. For instance, this year has seen an outbreak of avian influenza leading US egg prices to almost double, while drought, interest rates and feed costs have caused US cattle herds to fall to their lowest levels since 1973, with material financial impacts for the sector.
Almost all companies overlook the supply chain implications of protein diversification.
Danone is the only company reskilling its workers to support a transition to more sustainable and healthy diets, by supporting its factory staff in Villecomtal-sur-Arros to produce oat milk, as the factory has shifted away from producing dairy yoghurt products.
Notes to editor
*Companies in the engagement:
Retailers (12) = Amazon, Ahold Delhaize, Carrefour, Coles Group, Costco, Kroger, Loblaw Co. Ltd, Sainsbury's, Target Corp., Tesco, Walmart, Woolworths Group
Manufacturers (8) = Conagra Brands, Danone, General Mills, Kraft Heinz, Mondelez Int., Nestle, The Hershey Co, Unilever
Media contact
For more information, including interviews and further comment, please contact:
Ino Rousselet, ESG Communications (Part of the Flag Group)
Contact number: +44 77 8614 8010 | e: ino.rousselet@flag.co.uk
About FAIRR
The FAIRR Initiative is a global investor network, founded by Jeremy Coller, with a membership representing US$90 trillion in assets under management. FAIRR works with institutional investors to define the material risks and opportunities linked to intensive animal agriculture and provides investor members with the research, tools and engagements necessary to integrate this information into their asset stewardship and investment decisions. This includes the Coller FAIRR Protein Producer Index, the world’s only comprehensive assessment of the largest global animal protein companies. Visit www.fairr.org.
