Report Highlights Shoppers’ Shift Toward Plant-Based Foods

A new report from Kroger Co., Plant Based Foods Institute (PBFI), and 84.51° reveals key insights into consumer behavior regarding plant-based foods. The findings, based on a two-year study of approximately 7 million households (2022-2023), show that shoppers are consistently shifting toward plant-based alternatives, decreasing their spending on animal-based products like milk, cheese, and meat. The research, conducted for the fourth consecutive year, highlights several trends that retailers can leverage to grow plant-based food categories and enhance customer loyalty.

Key Findings from the Study:

1. Ongoing Shift From Animal-Based to Plant-Based Products:
   • For the fourth year in a row, consumers are reducing their spending on corresponding animal-based foods as they increase their plant-based purchases. This trend is most evident in categories like milk, cheese, and fresh meat.
   • The growth in plant-based food variety and availability has been a significant factor driving this change.
2. Increased Loyalty in Plant-Based Categories:
   • Consumers engaged with plant-based foods are showing stronger loyalty and higher spending in plant-based milk, frozen meat, and frozen meal categories.
3. Health and Cost as Major Motivators:
   • Nearly 50% of households increasing their plant-based spending cited health as the primary motivator, with a 7% increase from the previous year.
   • The rising cost of animal-based foods is the second-largest driver of this shift, with a 9% increase in influence.
4. Barriers to Plant-Based Purchases:
   • Taste/flavor and budget constraints were the main reasons for consumers reducing their plant-based purchases.
   • Additionally, consumers noted that the perceived limited options of plant-based foods compared to animal products also played a role in this shift.

Implications for Retailers:

• Retailers can use these insights to adjust merchandising and marketing strategies, encouraging consumers to make more plant-based purchases.
• By expanding plant-based product offerings and improving availability, retailers can capture growth in this segment and build long-term customer loyalty.

Future Outlook:

Despite economic challenges, the report indicates sustained interest and engagement with plant-based foods. With ongoing improvements in price and availability, plant-based categories are expected to have increased opportunities to reach a broader audience.

Kroger’s continued focus on plant-based products, alongside its data insights from 84.51°, positions the company to capitalize on this growing trend as it serves more than 11 million customers daily across its stores and digital shopping platforms.