As the plant-based trends earns more and more followers, companies try to keep up by bringing new, more innovative products that aim to redefine the global food landscape. If a few years ago one thought primarily of meat when referring to plant-based, we now have a completely new class of products.
Plant-based food companies are constantly evolving and innovating in new and exciting ways, according to Julie Emmett, senior director of Marketplace Development at the Plant Based Foods Association (PBFA), an organization that represents over 350 members. ”From the variety of ingredients being used to the types of foods hitting shelves, we are seeing that there really is no limit to the potential for innovation in this industry. Our members and the broader industry are now able to meet consumers where they are and deliver on expectations for great tasting foods that also perform across many cooking occasions–from cooking and baking–while also improving nutritional content and sustainability.”
Five years ago, she says, pea protein was just making its way onto the scene and now companies are using everything from mung beans, to chickpea, nuts, and seeds–watermelon seeds most recently–to create plant-based foods, often using blends for optimal taste, texture and nutritional content. On the other hand, consumers are shopping for plant-based foods across the entire store. With plant-based options available in over 30 different categories, consumers are focused on variety to incorporate plant-based foods at all meal occasions. ”As our 2021 US retail sales data for the plant-based industry showed, 62% of American households are purchasing plant-based foods with a 79% repeat rate, growing each year. This signals to retailers that making it easy for shoppers to find the plant-based items they’re looking for is more important than ever. Through our marketplace development work here at PBFA, we’re focused on collaborating with retailers to optimize their plant-based food strategies. For example, we’ve seen plant-based meat sales increase by 23% when they are sold alongside animal-based meat. Integrated merchandising speaks to the fact that plant-based foods are for everyone. We are seeing expansion into many different types of plant-based meats as well such as chicken, pork, and seafood in many forms that consumers are familiar with such as nuggets, slices, filets.”
One big trend is the rise of the Millennial and Gen Z shopper. These younger shoppers now make up 47% of the US population and their primary motivation for purchasing plant-based foods is an interest in having a positive impact on the planet. There is strong interest in foods that are healthy and taste good but also align with their values, meeting expectations for sustainability and social justice. Another trend that PBFA points out is the incremental decline in the price of plant-based foods as the industry scales–decreasing the disparity of price between plant-based foods and animal-based foods, making them more accessible to all. And consumers are open to plant-based alternatives even when considering conventional products such are burger patties.
”On a broad scale, 58% of Americans said they would like to eat more plant-based and 47% of Americans consider themselves Flexitarians, meaning they are actively seeking to consume more plant-based foods and less meat and dairy. As our 2021 retail sales data showed, six out of 10 US households regularly purchase plant-based foods, and 79% of plant-based consumers are repeat buyers.” In terms of challenges, the past two years have brought significant volatility to the food industry and plant-based food companies have also faced challenges presented by the pandemic and disruptions in the supply network. The resilience of plant-based food companies is worth noting as, despite broad, global impacts on the food supply, the plant-based foods industry grew 6.2% in 2021 over a record year in 2020, Julie Emmett argues.
”The plant-based foods industry is experiencing enormous growth so the question is really how can we support innovative startups and mid-size companies to scale so they can meet growing consumer demand. Facing the barriers to success across categories is a big focus of PBFA’s work. The plant-based foods industry is uniquely positioned to be nimble and find creative long-term solutions. We’re able to directly connect plant-based food brands with suppliers, and examine how these supply network breakdowns intersect with what is happening at the government level. For example, what does the opportunity look like, in terms of acreage, to grow crops domestically that are in high demand within the plant-based industry? We see ourselves as well-positioned to play a key role in helping foster sustainable and resilient supply networks.”
Looking at food categories, it was a great year for plant-based milk. Dollar sales for this category have grown 33% in the past three years and it is now valued at USD2.6bn. This is particularly significant considering animal-based milk sales declined 2% in 2021. Effectively, plant-based milk is now the growth engine of the milk category, with a 16% share of all milk sold in the US, contributing USD105m in growth, while animal-based milk’s decline equated to a loss of USD264m, Julie Emmett points out. ”The success of plant-based milk has set the trend for other plant-based dairy categories and there are so many delicious options leading the way in terms of nutrition, functionality, and sustainability. We’re seeing significant growth and variety in plant-based creamers, yogurts, and cheeses alike. In terms of market share, plant-based creamer is the second-largest behind milk, making up a 9% share of all creamers sold, followed by ice cream, yogurt, cheese, and butter.” Plant-based meat is another area of interest. After record growth in years prior, 2021 plant-based meat dollar sales remain strong, delivering a repeat year of USD1.4bn in sales, and growing 74% in the past three years, outpacing conventional meat by almost three times. The plant-based egg category also grew rapidly in 2021 with a 42% increase in dollar sales. In the past three years, plant-based egg dollar sales have grown more than 1000%. And with conventional egg dollar sales declining by 4% in 2021, plant-based eggs have grown to earn a nearly 0.6% share of the total egg market, compared to a 0.05% share three years ago, making plant-based eggs a growth driver of the category.
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