What could prevent the plant-based sector growing even faster?
In recent years, plant-based diets have become mainstream. Big brands have embraced what was once a niche sector, launching plant-based alternatives of flagship products, whilst new players have emerged bringing with them truly innovative NPD & marketing – ensuring a sizable market share of a growing sector.
And the sector growth is indeed impressive. A quick look shows a 22% CAGR in plant-based retail product launches since 2016, and a projected market value growth of 12% in 2023.
What’s driving plant-based growth?
The plant-based sector has succeeded in expanding its appeal to a much greater proportion of consumers.
The language that is used is an interesting measure of this success. Since 2017, there has been 82% growth in products positioned as ‘Plant-Based’ (as opposed to more modest growth of “vegan” positionings).
This is because of both a widening commercial opportunity, as well as a broader cultural shift – namely that consumers are now increasingly basing their purchasing decisions on considerations around health, sustainability & diet variation.
Accessibility & Variation
The plant-based category is now far more accessible to the masses. Providing a range of eating experiences, from something entirely novel, to a like-for-like replacement of meat & fish.
Campaigns such as Meat Free Mondays and Veganuary, coupled with high profile media coverage & endorsements around the benefits of a plant-based diet has also helped to cultivate the movement.
Since 2019, brands have expanded their green portfolios. Either creating entirely new brands or developing new product lines using their existing brands to provide those more conservative consumers with an element of familiarity.
The Plant-Based Evolution
This reflects a new accepted orthodoxy that plant-based is more about achieving a healthy & sustainable balance between animal & plant rather than an all or nothing approach.
Health
Health is a key driver behind the diet choice with 53% of consumers placing emphasis on this reason as their main consideration for buying plant-based alternatives.
Sustainability
The environmental benefits of consuming a plant-based diet have become increasingly prevalent with 32% of consumers considering a plant-based diet because it’s better for the planet.
What are the next development challenges with Plant-Based?
Consumers now demand an extra level of sophistication from plant-based products. As health is the single most significant driver behind the expansion of the sector, this is an area of focus:
Functionalism
The development of plant-based products which match, or have better, nutritional profiles than their animal-based equivalents is vital. However, this poses a challenge as whilst plant-based ingredients are often lower in saturated fat & calories, they lack essential micronutrients such as iron & omega 3, as well as not providing complete amino acid profiles.
Naturalism
Less than 1 in 8 meat & fish substitute products have a clean label declaration. Artificial and chemically modified functional ingredients are often used to provide desirable textures & eating experiences to mimic that of meat & fish. Whilst functionally very good, increasing consumer demand for clean, transparent declarations is placing more emphasis on back of pack label declarations – posing a collective challenge to the sector.
Ensuring this perfect combination of nutrition, clean label & satisfaction is a challenge in this growing marketplace. To learn more about plant-based concepts & how to improve nutritional profiles in Plant-Based products, sign up to our webinar, or get in touch to speak to one of our Development & Field Support Team.
