😲 Licious, Tata, ITC Betting Big on Vegan Meat?
India's biggest brands are betting on plant-based meat now. But is India ready to accept it?
One of the biggest misconceptions about India is that it is a vegetarian country.
Data shows that over 70% of Indians eat non-vegetarian food.
Despite India’s voracious appetite for meat a lot of companies are betting big on vegan food like plant-based meat.
And the latest entrant surprisingly is Licious, with its new brand UnCrave.
Wondering why one of the most-popular meat-sellers is entering the vegan market? ReadOn!
🌱 India is Flirting with Veganism
Plant-based meat and plant-based dairy is the latest trend taking over the world.
That’s because the youth has become increasingly more conscious about both their health and the world.
And both their health and the world can improve if they cut meat out of their diet.
Disclaimer: We don’t want to diss any meat-eaters. But the fact is that livestock farming releases 14.5% of our global greenhouse emissions and uses 1/3rd of our fresh water.
And eating red meat can cause heart diseases and diabetes.
These facts have convinced a lot of people to at least reduce their meat consumption.
But in India the vegan story plays out a little differently.
While Indians are also concerned about their health and the planet, they have another major reason to embrace vegan meat with open arms: Religion.
A lot of Indians don’t eat meat on Tuesdays, Saturdays, or at least during religious festivals.
81% of Indians cut back on their meat consumption in one way or the other for one of the above reasons.
So, there is a huge market for products that taste like meat but aren’t meat.
And a lot of vegetarians in India are also protein-deficient and are often asked to have chicken or eggs. These vegan meat products are also perfect for them.
That’s why a lot of startups have entered this space like Shaka Harry, Blue Tribe, GoodDot Enterprises, Imagine Foods and so on.
And it's not just startups that are capitalising on this market. Mainstream FMCG brands like ITC and Tata have also launched plant-based meat.
But why should FMCG brands have all the fun?
Fast food chains like Haldiram’s and Domino’s have also launched vegan meat alternatives like keema samosa and the Unthinkable Pizza.
But with so many entrants crowding the market, will there be room for Licious?
📒 The Licious Story
For starters, the plant-based meat market in India is huge and is only set to grow further. Don’t believe us?
Facts about the plant-based meat market:
Sales of Meat Substitutes in India in 2020: $220.8 million
Expected Sales of Meat Substitutes in India by 2030: $1 billion
63% Indians are very willing to try vegan products, according to a recent survey.
The industry is also seeing a major boom thanks to millennials, who are more willing to try new products, are health conscious and have a higher spending capacity.
So, there is room for a lot of players in this market.
But Licious in particular has a major advantage.
You see, Licious already has a loyal meat-buying customer base. And it is these meat-buyers who are more likely to buy plant-based meat on days when they want to have veg food rather than vegetarians.
So, Licious will probably have much lower customer acquisition costs than these other brands.
P.S: Licious’ plant-based meat isn’t vegan but vegetarian as it contains butter and ghee
Moreover, this is just one step in Licious’ plans to become a house of brands.
It has also invested in pet food startup Pawfectly Made and is looking for more acquisitions.
However, Licious, though a unicorn, is still a loss-making startup.
Will it be able to compete with major brands like Tata and ITC, especially with ITC having a huge first-mover advantage in this space?
If you ask us, it will all boil down to the taste.
That is what most companies are trying to solve and fine tune right now.
While it is easy to get the flavour of some items like keema right, others like lamb chops are difficult to imitate.
So, whichever company cracks the taste code first will win the market.
What do you think the future holds for this space? Will India embrace plant-based meat or is it just a fad?Â
⚡ In a line: Indian FMCG companies and startups’ latest big bet is plant-based meat but the taste of their offerings will decide who will rule the market.
💡 Quick question: Have you tried plant-based meat? Tell us your experience!
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