IKEA, a global giant not only in furniture but also as the fifth-largest food operator, is making waves in Japan with a remarkable pricing strategy highlighting a significant shift towards sustainable food practices.
In a bold move, the company is now offering its plant-based meatballs in Japan at a price point significantly lower than their animal-based counterparts - 400YEN cheaper. This positive price differential marks a first in the Japanese market and perhaps globally, where a plant-based option is cheaper than an animal-based product at a national or global chain.
Source: IKEA
This strategic pricing in Japan is part of IKEA's broader commitment announced in 2020 to transform its food offerings. The company has set ambitious targets to ensure that by 2025, 50% of its main meals will be plant-based and 80% non-red meat. Additionally, 80% of all packaged food offered will be plant-based. This global stance by IKEA reflects a growing awareness and responsibility towards a sustainable and healthy food system.
Simultaneously, a significant development in the plant-based sector is the grant awarded to UMAMI UNITED, has received nearly $9 million from Japan's Ministry of Agriculture, Forestry and Fisheries to support the accelerating of production of plant-based egg products (shown below courtesy Umami) using konjac flour and wood-eared mushrooms as its main ingredient.
With this substantial support, Umami United wants to make a significant entry into the North American market.
The convergence of IKEA's price parity in Japan and Umami's Japanese Government grant exemplifies a broader Japanese trend towards sustainable food practices. IKEA's approach is particularly noteworthy as it makes sustainable and healthy food options more accessible and desirable.
By offering plant-based foods at a lower cost than animal-based products, IKEA is challenging the conventional food market and paving the way for a more sustainable future.
Lena Pripp-Kovac, Chief Sustainability Officer at Inter IKEA Group in 2020, said the company wants to support consumers in making sustainable choices the most desirable option.
'The company's strategy aligns with consumer demands for sustainable, affordable, and appealing products', says Lena Pripp-Kovac.
As IKEA continues to cater to millions worldwide, its pricing strategy in Japan, combined with its global commitment to sustainability, could set a precedent for other food providers. With this focus on affordability, taste, and sustainability, IKEA and companies like are at the vanguard of a movement reshaping the global approach to food consumption.
For more information about IKEA's plant-based stance CLICK HERE
For more information about Umami's Japanese Government grant CLICK HERE
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