A state on the Plant-Based Market

A state on the Plant-Based Market

Those last years, vegan claims were the most popular positioning in Asia-Pacific’s packaged food industry ; in Europe and North America, vegetarian claims got a high penetration in retail. Still, in 2019 only 3% of the global population considered themselves as vegans and 6% as vegetarians.

The global Plant Based market is still a niche sector but has a high potential of growth thanks to consumers’ claims of a “flexitarian” diet.

Key Figures about the Plant Based market*

The plant based protein market’s value in 2020 was 10.3$ billion, in 2021 it is estimated at 11$ billion and it is forecasted at 15.6$ billion in 2026.

The USA are one of the most consuming countries of plant based food. In 2019, the plant based market grew from 11.4% while total food retail grew from only 2%.

Blowing categories of Plant Based Food

Among the sector, there are promising categories of products which accelerate the plant based sales growth.

In 2019, dairy alternatives generated more sales than any other categories, worldwide.

Soy Milk global value (2019) was evaluated around 7.4$ billion.

And products sales such as egg alternatives grew from 191.7% and dips, sour cream and sauce from 53.7% in 2019.

Some vegan’s greatest global certification

Consumers’ insights : How to explain the Plant Based Boom ?**

Impacted by the global ‘raise of awareness’ movement, the Plant Based market expanded mainly thanks to consumers’ concerns.

Climate change, health, ethics and environment issues are more reasons for consumers to claim protein and dairy alternatives : a worldwide trend reinforced by the media and social media’s pushing on these issues. This explains why consumers’ restrictions are the highest for beef meat (carbon footprint) and dairy (digestive health).

Experts even speak about a “plant based revolution”.

In fact, those last few years, brands like Beyond Meat disrupted the way we consume protein and the new generations (15-29 y.o) are the main targets of the market : they see in plant based consumption a way of commitment for causes.

How Covid-19 increased the shift towards Plant Based food**

During the crisis, general concerns about ethics and health were intensified.

Moreover, during global lockdowns, supply chains suffered from shortages and disruption, especially meat and dairy. So, plant based foods benefited from increasing sales in retail and these alternatives remained as habits in consumers’ diet.

This growth during the pandemic was beneficial because it led to a downward price pressure. For instance, the discount retailer Lidl introduced many private plant based labels in its ranges of products.

Challenges and expectations for the future Plant Based Market*

Even if the market blows up, the global meat consumption continues to grow from 2% annually. Actually, many experienced consumers are aware that plant based food is lobbied by many associations and is highly processed (an average of 20 ingredients for a finished product) while fresh meat is only…meat.

However, it is forecasted that processed plant based food as meat alternatives will increase with a global value of 35.5 billion $ in 2027. This is the illustration of the discrepancy between consumers’ search for a “clean diet” (where processed food shouldn’t fit) and their lack of awareness about food’s production. Indeed, consumers are more willing to pay for an extra when it comes to plant based food (even if processed) because of its perceived added value (healthy, environment friendly).

So, Plant Based market is definitely here to stay and is a fish tank for innovation on products like non dairy cheese, vegan fish & seafood which are bright categories with big entrances on the market.

Sources : Statista’s Vegan Food Market Studies, 2019 & 2020*

Euromonitor International’s Insights, 2020 & 2021**

uFoodin Team