Food & Beverage News: Insights, Safety, and Dining Trends
Kraft Heinz’s presence in plant-based foods is heating up.
The CPG giant and food tech company NotCo are launching a spicy mayonnaise and a portable cup version of their Kraft NotMac & Cheese.
These debuts come as the once fast-growing plant-based space has seen enthusiasm dwindle and consumers pull back on spending.
The 2024 U.S. retail plant-based food market was worth $8.1 billion, according to the Good Food Institute and the Plant Based Foods Association, with unit sales down 5% from the prior year.
A slowdown in the once-hot plant-based category hasn’t deterred The Kraft Heinz Not Company from launching new innovations.
Danielle Murphy, brand manager for the Kraft Heinz Not Company, said the sector has reached “an inflection point” where consumers are most heavily purchasing only the top 15% of plant-based SKUs in any given category.
“While plant-based velocities have slowed, we are still seeing strong incrementality where shoppers are either new to the category as a whole or are purchasing in addition to their regular purchase,” Murphy said. “Empowered by these insights, we are focused on products, like Kraft NOTMac&Cheese, which are strategically positioned to meet consumer needs and capture market opportunities.”
The latest launches hit on demand for spicy flavors and convenience. Spicy mayonnaise flavors are outpacing the growth of the traditional condiment, with hotter offerings especially popular with younger consumers.
Nearly 60% of millennials in the U.S. use spicy condiments, according to data from Daymon’s March 2024 Flavor Study.
Kraft Heinz first partnered with NotCo in 2022. Since then, the companies have introduced several plant-based products, including mayonnaise, sliced cheese, Mac & Cheese and Oscar Mayer hot dogs. Its plant-based mayonnaise debuted two years ago.
In 2023, Kraft Heinz and NotCo announced a boxed plant-based mac and cheese after the companies observed that many flexitarian consumers did not have plant-based butter or milk on hand to make the popular dish. The cup version was created specifically for younger consumers seeking vegan convenience.
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