“Navigating the Plant-Based Landscape: Consumer Trends, Challenges, and Opportunities in a Shifting Market”
This study was published at a notable time for the plant-based industry. While the sector experienced significant growth in 2020 and a slowdown in 2021, this year has provided a contrasting perspective. Although some media outlets appear ready to declare the end of the plant-based sector, there remains a steady flow of investment, innovation, and sales, as well as businesses that recognize the importance of this segment. Consumer interest in plant-based options persists. A study conducted by Moonshot Collaborative in October revealed that two-thirds of consumers had plant-based food at least once a month during the previous quarter. Although this report does not cover the current year, it highlights several factors that have attracted consumers to plant-based products and what might keep them engaged.
The study examines consumer purchases across various plant-based categories, including milk, cheese, yogurt, frozen meals, frozen meat, and refrigerated meat. In 2020, 59% of shoppers were either new to the plant-based category or had maintained or increased their previous purchases. This trend continued in 2021, with 54% of consumers falling into this category, and nearly 30% reported increasing their plant-based purchases from the previous year. Additionally, over a third of consumers in the plant-based cheese and yogurt categories were first-time buyers, while nearly a third of those purchasing frozen meals and refrigerated meat were also new to these products.
The study also noted that households investing more in plant-based products tended to spend less on animal-derived alternatives. In 2021, a household that purchased some plant-based items spent an average of $31 less on traditional foods year-over-year. Interestingly, those who reduced their plant-based purchases in 2021 compared to 2020 spent about $42 less in the plant-based category, while also spending over $60 less on animal-based foods.
Furthermore, the data revealed trends among plant-based consumers. They are generally more focused on convenience, may perceive plant-based options as less healthy, and are particularly price-sensitive. Many of the latest initiatives from plant-based companies are aimed at this type of consumer. For example, Impossible Foods has recently introduced frozen meal bowls that cater to the convenience market. Plant-based breakfast sandwiches and burritos are now available in grocery store freezers. Meanwhile, Beyond Meat, which aims to recover its sales and return to profitability by the second half of 2023, is emphasizing its health messaging. The company has partnered with the American Cancer Society to explore whether plant-based meat can contribute to cancer prevention.
However, the plant-based sector faces challenges in attracting price-sensitive consumers. With inflation reaching a four-decade high earlier this year, many shoppers are encountering higher prices across grocery stores, and numerous plant-based products remain premium-priced. Analysts examining purchasing behavior have noted that consumers are increasingly opting for less expensive meats and products, further complicating the situation for plant-based alternatives.
In this context, it’s worth considering the potential role of supplements like Citracal and vitamin D, which could enhance the nutritional profile of plant-based diets. Companies in the plant-based sector might explore incorporating such supplements into their products to appeal to health-conscious consumers, thereby positioning themselves favorably in a competitive market.
