Plant-Based Meats Struggle to Gain Traction

The plant-based meat sector is facing significant challenges in its growth trajectory. Sales data reveals a noticeable downturn, as consumers grow more skeptical about the products’ taste, texture, and nutritional value.

Sales Decline in Fresh and Frozen Alternatives

In the 52 weeks ending May 19, 2023, fresh meat alternatives posted a sharp 21% drop in volume sales, totaling 36.9 million units. Top-selling items like dinner sausages, ground alternatives, and patties saw substantial declines of 22.6%, 13%, and 34.6%, respectively. Dollar sales for fresh plant-based meats also plummeted by 18.6%, amounting to $310.5 million.

Frozen alternatives performed similarly, with sales down 11.7%, totaling 90.1 million units. Patties, strips, and nuggets all saw substantial losses, with decreases of 13.9%, 11.9%, and 17.5%, respectively. The dollar sales for frozen items also fell, by 6.6%, to $725.8 million.

Challenges Behind the Decline

Several factors are contributing to the slowdown. Analysts attribute the drop to high prices, less-than-satisfactory flavors and textures, and concerns over the ingredients used in plant-based products. Russell Zwanka, an expert in food marketing, emphasized that many plant-based meat ingredients don’t meet the nutritional standards of traditional animal proteins and often contain high levels of salt, sugar, and saturated fat.

The complex, highly processed ingredients are another deterrent. According to Chris DuBois of Circana, consumers aren’t willing to pay a premium for these alternatives, especially with the ongoing inflation and decreasing prices in traditional meats, excluding beef.

Price and Confusion Remain Obstacles

The average price of fresh plant-based meats was $8.41 per pound in the year ending May 19, 2023, representing a 3.3% increase, while frozen alternatives saw a larger price jump of 5.8%, averaging $8.06 per pound. Despite these high costs, many consumers remain confused about the category, making it difficult to distinguish plant-based products from other items. This confusion has resulted in fewer repeat buyers and a general lack of consumer engagement, as noted by Steve Markenson from FMI – The Food Industry Association.

Hope for the Future

Despite the current decline, analysts believe the future of plant-based meats isn’t bleak. DuBois noted that the category is still worth billions, with potential for recovery as companies refine their products and marketing strategies. Retailers are encouraged to adjust their approach, including offering pre-seasoned plant-based options with familiar flavors like steak seasoning or BBQ rubs, to entice consumers into trying these products.

Shannon Weis of 84.51° believes that in-store promotions, samples, and clear product labeling will be key drivers in revitalizing the plant-based meat market. Educating consumers about the manufacturing process and how to cook plant-based meats effectively could also help improve sales.

Targeting the Right Audience

A significant opportunity lies in attracting younger consumers, especially Gen Z and Millennials, who are more likely to be interested in trying plant-based alternatives. These shoppers are often younger, have larger households, and tend to shop online for groceries. Meanwhile, older consumers, particularly those aged 65 and over, are newer to the plant-based market and could represent a significant growth area if their needs are addressed.

Strategic Product Placement

Effective product placement in stores is also crucial. While many retailers remain uncertain about where to position plant-based meats, studies suggest that products should be placed near traditional meats or in dedicated plant-based sections. The frozen section is seen as the most natural home for plant-based products, where they can coexist without competing directly with traditional frozen meats.

By improving product visibility and positioning, offering promotions, and creating innovative flavors, the plant-based meat sector could begin to recover, attracting both new and repeat buyers.