Can plant-based survive if the market stays the same?
Independent of where you source it, protein is becoming an increasingly demanded product. Whether you are enjoying protein from conventional meat sources or opting for fortified pancake mix, the protein market is focused on improving consumption without compromising production feasibility. One example of these constraints would be the rising share of meat and dairy purchases of the rising cost of those products. Yet, despite the cost efficiency goal, segments of the protein industry (like plant-based options) are struggling to stay afloat.
A Case for Plant-Based
Plant-based products are not replacements for meat, and they don’t try to be. Ignoring for a moment the varying protection of the word ‘meat’ on labels, the design of ready-made products, which composes the majority of Canada’s plant-based consumption, simulates conventional protein sources as a transition for individuals looking to reduce their animal-based consumption without sacrificing the experiences they are used to. While some discussions have opposing views on the acceptability of animal-based simulations and their processing for vegan consumers, plant-based meat and dairy is still preferred to traditional meat alternatives like tofu or tempeh, which have been in our grocery stores for a much longer period of time.
In part, this complementarity is due to the comparison of plant-based to animal-based; certain plant-based options are critiqued for sensory or taste issues that prevent enjoyment for some. Hybrid products are one way companies are attempting to circumnavigate experience issues from the dairy aisle; the combination of plant-based and conventional inclusion takes advantage of the differences in processing emissions, blends the sensory properties of both inclusions, and, in some cases, plays upon preexisting reputations for brands and flavours. This latter point is particularly important as it alleviates some consumer uncertainty about a new product and skips over the traditional uphill battle for market access and productive capacity as with most start ups.
Improving product diversity allows consumers to explore plant-based preferences and opens Canada’s agricultural potential if more of our commodities can be processed. As an additional example, Impossible Foods, innovators of meat alternatives and founders of the Beyond Meat line of products, continues diversifying their brand, offering beef, pork alternatives and launching a new canned protein drink. As the plant-based market grows, labelling clarity and quality will play an increasingly important role for consumers, although the importance of that label will heavily depend on the purchase of purpose and individual preference.
Hospitality
Discussions since 2019 have touted the growth potential of plant-based protein however, since then, the realities of quality, production capacity and breadth, and pricing have made the sector less hospitable for companies. An increasingly dire cost of living crisis has moved Canadians to stick to basic groceries and goods they have purchased before, regardless of growing plant-based interest. Unfortunately, beginning in 2024, the upward momentum and widespread excitement about plant-based alternatives dwindled, with over 40 separate major alternative protein players dissolved, bankrupted, or acquired by autumn 2025. Within those closures, the trend seems to suggest plant-based alternatives have great starting investment but have difficulty scaling up to excel beyond maybe a breakeven position. There are exceptions, as is the case with highly processed foods that consumers generally negatively associate with nutrition and food quality, but believe are more acceptable for plant-based ingredients. However, when big plant-based companies like Lactalis Canada and Yves Veggie Cuisine fall out of the marketplace due to a lack of demand, it can be difficult to maintain sector optimism.
A Seafood Aside
Within discussions of more sustainable meat production is also innovations supporting fish production. The open ocean vs land-based facilities debate is separate from the plant-based response to a rising demand for fish protein. Similar to other plant-based meat options, plant-based fish uses a grain protein (typically pea, wheat, or rice) and algal omega-3s to simulate the taste and structure of conventional fish. Depending on the brand or product you purchase, the fish illusion success varies. Much like the wider plant-based segment, plant-based fish are critiqued for its comparability to the real thing. An investigation of commercially available vegan fish found that taste, familiarity, and texture heavily influenced the likability of products, although adults are more able to taste the difference between plant-based and traditional fish.
For this reason, millions of dollars worth of investment into plant-based fish has focused on taste, texture, and nutritional strength, using the similarity to conventional fish to build up its market position. In theory, having greater access to plant-based products makes it easier for consumers to explore available products. In August 2025, Canada’s Ocean Supercluster, an industry-led nonprofit focused on expanding Canada’s economic ocean potential through start ups and collaborative scale-ups, launched the Scaling-up Alternative Seafood Manufacturing Project to develop a whitefish fillet. Many plant-based options circumnavigate the taste and texture issues through processing and offering fish products like fish sticks, patties, etc.; a whole cut substitute would be a welcome addition for the gaps left in the marketplace.
Unfortunately, plant-based fish has faced similar barriers as other plant-based products, forcing out even some of our most prominent players within the last year. Take the case of British Columbia-based Konscious Foods. If you ever had the privilege of tasting some of their line of frozen plant-based sushi rolls or poki bowls, then you understand how delicious they were and how Konscious Foods was viewed as a leader in plant-based innovation. In March 2025, they were granted $5 million from the federal government to scale up their manufacturing process, promising increased job opportunity and plant-based availability. Konscious Foods was even one of the few companies included in the aforementioned Scaling-up Alternative Seafood Manufacturing Project. However, by January 2026, any attempts at scaling had been unprofitable and the company was shuttered, citing geopolitical uncertainty and similar challenges facing the broader plant-based sector.
Final Thoughts
Plant-based meat is likely to remain Canadians’ preferred plant-based consumption, suggesting some optimism remains for the future of plant-based products despite the tone taken in this blog. Innovation superclusters continue to invest in plant-based strength, albeit in sectors outside of fish products. The products with strong consumer bases and the ability to scale up to profitable production will have a much easier time staying afloat in a market segment designed to sink them. However, that ease is not guaranteed, as evidenced in the recent loss of brands previously assumed to be longstanding. It will be interesting to see which companies will survive and excel in this new year of market uncertainty.
