Nestle Cuts Plant Based Foods After Drop in Demand

Nestle has been a big name in plant based foods for years. It launched products like Garden Gourmet meals, oat milk creamers, and even a Vegan KitKat. These products showed Nestle’s strong interest in the growing demand for foods made without animal products. But now, the company is rethinking its approach.

Plant Based Market Slowing Down

A few years ago, plant based products were very popular. During the pandemic, sales grew quickly. But recently, growth has slowed down, especially in the US. Some well-known products have been removed from shelves:

Heinz stopped its vegan salad cream
Quorn dropped its vegan bacon slices
Pret A Manger closed its Veggie Pret stores
Neat Burgers, backed by Lewis Hamilton and Leonardo DiCaprio, shut down after heavy losses

This slowdown has also affected Nestle. It has stopped making the Vegan KitKat worldwide, pulled Garden Gourmet from UK supermarkets, and reduced its Sweet Earth range in the US.

Why Nestle Is Changing Its Strategy

Nestle’s CEO admitted the company may have invested too much in plant based meat. The demand wasn’t as high as expected. Still, Nestle is not quitting plant based foods altogether it is just being more careful and focusing on products and regions where sales are stronger.

Even though growth has slowed, the market is still big and getting bigger. Experts say the plant based industry is worth $28 billion today and could reach $176 billion by 2032. This means food companies like Nestlé still see plant-based foods as a good long-term investment.

Main Challenges: Health and Price

Two big issues are stopping some people from buying plant-based products:

Health Concerns: Many plant based foods are seen as “ultra processed,” which makes health conscious buyers hesitate. People want more natural and clean label products.

High Prices: Plant based foods are often more expensive than animal based ones. For example, in Germany, a Vegan KitKat cost almost three times more per kilo than a regular KitKat. With rising food prices, this has become a major problem for many shoppers.
What’s Next for Plant Based Foods

Experts believe the future of plant based foods will focus more on quality than quantity. Instead of launching many new products, companies will try to make them taste better, feel better, and be healthier. But making better quality foods could also mean higher prices, which may slow down sales.

Nestle’s decision to stop some of its plant-based products shows that the market is going through a reset. But it doesn’t mean Nestlé or other big companies are leaving the sector. Instead, they will likely take a smarter, more focused approach to plant-based foods in the coming years.