From food to beauty to hotels, companies across industries are adding plant-based products and services to cater to sustainability-focused consumers.
Among several potential environmental effects, going meat-free could help lower greenhouse gas emissions, decrease land use, and reduce water consumption — contributing to a more sustainable food system.
Moreover, consumers’ growing awareness of the ethical debates related to industrial meat production and an increasing preference for healthier alternatives are driving the growth of meatless products.
Pasta giant Barilla is the latest major food company to launch a venture fund. In November 2017, the company unveiled Blu1877, a new fund which will invest in sustainable pasta and condiment startups.
Since 2015, we’ve seen a domino effect of leading global food companies establishing venture funds and startup incubator programs.These include Campbell’s Soup with Acre Venture Partners($125M fund), Kellogg’s with Eighteen94 Capital ($100M fund), Chobani with its food incubator (provides $25K grants), and AB InBev with ZX Ventures.
The food and beverage industry is remarkably concentrated, with top companies wielding multiple, sometimes dozens, of brands to capture over 70% market share in the US market in key segments like beer, soda, chocolate, and cereal.
