In 2021, Bloomberg Intelligence predicted that the global plant-based foods market could be valued at more than $162 billion in 2030, an increase of $132.6bn from 2020.
Meanwhile, Mintel – a global market research firm – has shown that UK-specific sales of meat-free products have experienced extraordinary growth, rising from £582 million in 2014 to £816m in 2019 (40%). By 2024, the UK market is expected to reach £1.1bn.
In Europe, EU-funded project Smart Protein analysed retail data from 11 countries and found a 49% increase in sales revenue from 2018-2020, amounting to €3.6bn, with Germany accounting for the largest share.
A survey by FMCG Gurus detailing a broad consensus of consumers turning to dairy alternatives found that 52%, 57%, and 50% of consumers in the APAC, South American, and Middle East and African markets, respectively, said they are turning towards them. Interestingly, only 34% of European consumers said so.
While the number of vegetarians and vegans is relatively small, Euromonitor notes that “flexitarian” consumers have been driving growth, with those actively trying to reduce meat intake globally at 23%, with climate change, sustainability, and health being primary drivers.
In the UK, a study conducted by the London School of Hygiene and Tropical Medicine with the University of Oxford concluded that the proportion of people eating and drinking plant-based alternatives nearly doubled between 2008-2011 and 2017-2019.
More than 15,000 people were analysed using consumption data from the National Diet and Nutrition Survey, with generation Y (11- to 23-year-olds) and millennials (25- to 40-year-olds) accounting for most growth. Interestingly, women were 46% more likely to report plant-based eating habits.
Despite a clear bias towards younger generations, studies have shown an opportunity for consumption among older demographics. For example, older consumers’ readiness to accept alternative proteins was highest when it came to plant-based products compared to options such as cultured meat, with green eating behaviour and higher educational attainment as facilitators.
Should brands looking to target older consumers focus on overall green eating habits and education? Susan Gafsen, founder and CEO of Pep & Lekker, a high-fibre baked snack company, thinks so, citing educational aspects.
She notes a correlation between education and plant-based diets, with consumers from more traditional areas – including rural regions with elderly consumers – not opting for plant-based foods, even if the price is right.
That said, couples in their forties and fifties – perhaps because they were “young” when plant-based nutrition started to gain traction – are interested and looking to improve health and welfare, despite this general reluctance, she says.
Rachel Yarcony, founder and CEOof myAir, a personalised nutrition startup that tailors plant-based products to consumer profiles, agrees, citing consumers “across the board” as potential customers.
It is crucial [that brands] understand which consumer segment [to address]
Additionally, Yarcony highlights that plant-based products and alternatives are often expensive, creating a burden for low-income families and those in developing countries, something Gafsen says is heightened by the cost-of-living crisis. Again, education is key.
And while processed, convenient meat replacements may be more expensive, researchers at the University of Oxford revealed that in countries such as the US, UK, Australia, and western Europe, more plant-based diets are cheaper (using food prices from the World Bank’s International Comparison Program and not taking into account processed meat replacements).
Aurore de Monclin, managing partner at the Healthy Marketing Team, a food marketing and product development consultancy, says not all consumers are the same, and “it is crucial [that brands] understand which consumer segment [to address]”. For example, a large portion will be driven by “climate anxiety”, health, or animal welfare. Brands need to realise that consumers want to know how they are contributing to a cause, ensuring they feel positive about their choice.
She says on one hand, there is the activist market driven by ethical beliefs, prepared to compromise on taste and texture, and on the other, those who expect alternative products to be just as good as their meat-derived counterparts, being primarily driven by health.
Moreover, the pandemic has heightened concerns around food safety and health, adding to de Monclin’s second category of consumers.
