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Dive Brief:
- Plant-based meat and seafood sales declined in 2023 for the second year in a row, according to the Good Food Institute's State of the Industry report. Retail plant-based food dollar sales were $8.1 billion in 2023, a slight decline from $8.2 billion in 2022, indicating that plant-based foods are still falling short on consumer expectations of taste, texture and affordability.
- The plant-based meat and seafood sector has responded to declining demand by targeting a wider net of consumers, specifically those who follow an omnivore diet, the report said. Ninety-five percent of plant-based meat and seafood eaters also reported eating conventional meat, the report said, making up a significant chunk of market share.
- Leading plant-based companies are promoting their products as better-for-you and the environment, rather than simply as "plant-based" so as not to discourage potential customers.
Dive Insight:
When it comes to purchasing plant-based meats, consumers prioritize taste, availability, quality, and health benefits.
Familiarity, awareness, and trials of plant-based foods have grown dramatically over the last decade. But in recent years, the number of households purchasing has leveled off or declined for some plant-based categories, according to the report.
Nearly half of U.S. households purchased plant-based milk at least one time in 2023, whereas plant-based meat and seafood were purchased by only 15 percent of households.
The GFI State of the Industry Report is an annual pulse check on plant-based foods that looks at data from investments in the space, consumer research, commercial and foodservice sales and more.
“Consumers continue to see higher prices at the shelf, making the price gap between plant-based and their conventional counterparts a relevant challenge to plant-based brands hoping to reach a broader swath of consumers,” the report said.
Besides affordability, however, the quality of the actual plant-based meat products has also been a deterrent to potential consumers.
Taste parity was a major investment and top priority for researchers and manufacturers in 2023, the report said.
“New farming techniques that optimize plant protein cultivation, innovative uses of agricultural by-products, and research to create processes and ingredients that more closely mimic the sensory attributes of conventional meat, seafood, egg, and dairy products,” were some ways the industry advanced.
Companies have made strides to tackle the taste and texture of products. Last week,Beyond Meat launched its new burger product at retail, which uses avocado oil instead of canola and better quality plant protein sources like fava beans and lentils.
Daring, a plant-based chicken company, has a high quality frozen product with a very short list of ingredients.
Looking ahead to 2024, companies should continue to make changes to bring prices down, and create a product that more closely resembles the characteristics of conventional meat, according to GFI.
“Words such as “shakeout,” “normalization,” and “stabilization” were frequently used to describe the dynamics of the plant-based meat sector in 2023,” the report said, and the factors that shaped the industry last year, will likely extend into this year.
FAQs
According to PBFA's latest 'Plant-Based Foods State of the Marketplace,' published this week, sales of plant-based foods fell 2.2% to $8.1b in 2023 compared to $8.2b the prior year.
Is there an increased demand for plant-based food? ›
Overall plant-based food sales are poised to surge at a stupendous CAGR of 12.2% between 2023 and 2033. Growing trend of veganism and flexitarians and rising consumption of dairy and meat substitutes are key factors driving the global plant-based food market.
What is the trend in plant-based foods market? ›
Data from Mintel Global New Products Database highlights that consistent growth, the number of new packaged consumer goods launched with a plant-based claim has increased by 302% between 2018 and 2022. Mintel analysts forecast that the market could grow to $160 billion by 2030.
What is the market value of plant-based food? ›
The Global Plant Based Food Market was valued USD 43.77 Billion in 2023 and projected to reach USD 85 Billion by 2030, growing at a CAGR of 9.95% during the forecast period of 2023-2030.
Is plant-based meat losing popularity? ›
Plant-based food sales fall to $8.1B as consumers demand lower prices and higher quality. Though the space has made strides to reach more people, only 15% of U.S. households purchased its products in 2023, compared to 19% in 2022.
Why is plant-based food so expensive? ›
A report by CNBC last year, on efforts being made by plant-based giants Beyond Meat and Impossible Foods to reach price parity with meat, explains that some of the economic obstacles for alternatives brands include small-scale production, supply chain issues (only a few countries produce pea protein, including Canada) ...
What is the outlook for the plant-based food market? ›
The Plant-based Food Market is expected to reach $113.1 billion by 2031, at a CAGR of 12.3% during the forecast period of 2024 to 2031.
Who is the biggest plant-based food company? ›
List of Top Companies Operating in the Plant-Based Food Industry Worldwide:
- Beyond Meat Inc. ...
- Danone SA. ...
- Garden Protein International Inc. Establishment: ...
- Impossible Foods Inc. Establishment: ...
- Lightlife Foods Inc. (Maple Leaf Foods Inc.) ...
- Nestle S.A. Establishment: ...
- Tyson Foods Inc. Establishment: ...
- Vbite Food. Establishment:
Plant-based food is an important and growing category in the food industry. According to Grand View Research, the global vegan food market is expected to grow at 10.6% compound annual growth rate (CAGR) per year between 2022 and 2030, reaching $37.45bn by 2030.
Why are plant-based foods becoming more popular? ›
With many problems in the industrial farming industry, including animal cruelty, many people choose to eat fewer animal foods in protest of the outrageous harm that comes to animals for our food. A plant-based diet is much better for the environment than one that is heavy in meat and dairy.
Plant-Based Food: Statistics and Trends
Plant based foods were consumed by 60% of households in 2022 & had an 80% repeat purchase rate across all categories. The market for plant based food will be worth USD 22.3 Bn and will expand at a 11.82% CAGR by 2029.
Who is the target market for plant based diet? ›
The plant-based demographic is younger and tends to fall between the ages of 18-44 which embodies more than one generation of consumers – gen z and millennials. The gen z demographic reflects the plant-based market as the decisions of the younger generation influence generations to come.
How much cheaper is a plant based diet? ›
Is a vegan diet really expensive? Honestly, it doesn't have to be. A study by Oxford University discovered that plant-based eating is actually the most affordable diet. It also found that a vegan diet reduced food costs by up to one-third due to the use of whole foods over meat and meat replacements.
What are the disadvantages of plant-based meat? ›
As some plant-based meat and mock meat products are created to replicate animal meat, they may undergo more processing. This leads to a high content of saturated fat, sodium, and added sugar.
Will plant-based meat become cheaper? ›
EXISTING MOMENTUM: PLANT-BASED MEAT
In early 2021, Impossible Foods announced its second price reduction within a year for its plant-based grounds, decreasing the suggested retail price to $9.32/lb, a 20% drop. Beyond Meat has said that it aims to underprice animal protein in at least one category by the end of 2024.
Is plant-based really better than meat? ›
New research shows that although plant-based meat products are generally healthier than meat equivalents, they can be higher in sugar and are often lacking important nutrients found in real meat.
Are plant-based foods becoming more popular? ›
To that end, plant-based foods are a big business, representing a $7.4 billion market in the United States, according to April 2021 SPINS retail sales data. And retail sales continue to increase, growing 6.2% in 2021 over a year of record growth in 2020.
Is plant-based food growing? ›
Plant-based grew to an $8 billion industry in 2022, and while the double-digit growth years appear to be over, plant-based sales continue to increase faster than food sales overall. Experts say that while plant-based has not peaked, it is certainly evolving as consumers demand more than alternatives to meat and dairy.
Is there a demand for plant-based meat? ›
The market for plant-based protein alternatives is currently witnessing unprecedented growth. In 2022, its global value was estimated at a staggering $12.2 billion, with a projected compound annual growth rate of 7.3% from 2022 to 2027. Numerous factors are driving this market expansion.
What is the market demand for vegan food? ›
The global vegan food market size is estimated to be valued at US$ 16,532.3 Million in 2022 and is expected to exhibit a CAGR of 8.8% between 2023 and 2030. Rising environmental concern and growing awareness regarding animal welfare are fuelling the market.
