The plant-based industry has faced increasing criticism in recent years, particularly concerning its ingredients and production methods. In response, plant-based seafood manufacturers are leveraging innovation to regain consumer trust and meet growing market demand.

Consumer awareness about food ingredients and production processes has led to what is termed the "plant-based backlash," with some consumers turning away from these products due to concerns about ultra-processing. According to Christopher Kong, CEO and co-founder of Better Nature, nearly half of consumers (49%) are worried that meat alternatives are too processed. This concern has driven a shift towards wholefood products with clear nutritional benefits, such as high protein and gut health support.

Industry Response to Negative Perceptions

The plant-based seafood industry acknowledges the negative consumer response and the increasing demand for plant-based products as the supply of real seafood struggles to meet market needs. Frankie Fox, CEO of FoodSquared, highlighted this at the recent Future of Fish event in London. Fox noted that while there is significant potential for alternative proteins to fill the gap, the plant-based sector has not yet fully met consumer expectations. FoodSquared is addressing this by using a patent-pending process to create plant-based shellfish, starting with plant-based prawns. "Our innovation is creating shellfish texture from plant protein," Fox explained.

Berlin-based startup Pacifico Biolabs is taking a different approach by creating seafood alternatives through mycelium fermentation. Co-founder and CEO Zac Austin described their process: "We grow a strain of fungi and a strain of microalgae in bioreactors, feeding them agricultural by-products. After 16 hours, we can harvest a batch of our protein." This method naturally imparts seafood flavors through the algae, making the product taste like fish.

Another Berlin-based brand, BettaF!sh, has launched 'SAL-NOM,' a plant-based alternative to hot-smoked salmon made from seaweed, fava beans, and pea proteins. CEO Deniz Ficicioglu emphasized that 'SAL-NOM' represents their commitment to innovation, sustainability, and taste, offering a fish alternative that supports ocean protection and personal health.

Challenges and Innovations

Despite these advancements, some brands have been slower to address the shift away from ultra-processed foods. Colette Jessamy, head of product development at the Compleat Food Group and Squeaky Bean, described their smoked salmon slices as being made from a dried powder mix of starches, gums, rice flour, rice protein, and natural flavors, which is then emulsified with oil and water and molded.

Cost remains a significant barrier for the plant-based seafood industry. With rising living costs, consumers are looking to cut grocery expenses, often starting with higher-priced items like meat, dairy, and plant-based meat substitutes. Maisie Stedman, media and PR officer for The Vegan Society, noted that wholefoods such as dried lentils, peanut butter, and baked beans have fared better in consumer preference due to their affordability.

FoodSquared's Fox emphasized the need for cost-effective solutions: "We are looking to be much lower in cost, at least price parity, or lower, at scale." This sentiment is echoed by Pacifico BioLabs’ Austin, who noted that for consumers to substitute fish with plant-based alternatives regularly, the cost must be comparable.

As the plant-based seafood industry continues to innovate, its ability to address consumer concerns about ultra-processing and cost will be crucial. By developing more natural and affordable products, companies like FoodSquared, Pacifico Biolabs, and BettaF!sh are working to win back consumer trust and expand their market share in the growing plant-based sector.