Tackling new challenges in the booming plant-based market
How can plant-based food manufacturers de-risk their businesses?
As consumer attitudes continually change, manufacturers need to diversify and develop new product lines to stay relevant within competitive markets. This has been demonstrated on a large scale over the last few years in the plant-based food market, where consumers have been increasing concerned over the environmental impact of meat. With more manufacturers beginning to develop plant-based products, demand is continuing to increase. However, this presents them with a new challenge.
Outlook for the plant-based market
The plant-based market is forecast to have a multiplier of 5.5x, reaching USD 162 billion worldwide by 2030, an increase from USD 29.4 billion in 2020. This is driven not only by dairy free products, but also meat alternatives. Around the world consumer demand is changing, whether it’s down to sustainability, health or personal beliefs, and for many manufacturers this presents a unique opportunity. For some, the plant-based market is an untapped area where new product development could provide access to a rapidly growing market. For others, they’re long-standing manufacturers of plant-based products. As the market continues to grow, business continuity becomes critical to keeping up with demand.
Animal by-product contamination
Traditionally, contamination of animal by-product alone hasn’t been enough to meet the bodily injury requirement of product recall policies. However, the consequences of a recall from this event have the potential to be just as, if not more, catastrophic for a manufacturing business. There is a growing need for cover that considers product recall events on vegetarian or vegan products that could be driven by animal by-product contamination outside of allergens for this growing market.
Why is product recall insurance important for this market?
For manufacturers, product recall insurance can provide peace of mind when the worst happens. The cause could be a supplier issue, or an error within the manufacturing process, but the impact of a product recall event can be catastrophic in any case. Standalone product recall insurance provides growing manufacturers with crucial covers including first and third-party recall costs, loss of sales, rectification & rehabilitation costs. Product recall insurance can prove to be a lifeline, allowing manufacturers to get back on their feet and continue with their business during the aftermath of an unforeseen event.
For more information about CFC’s product recall policy, please contact productrecall@cfc.com.