Plant-based meat sales dropped `significantly'

The once-sizzling plant-based meat sector has waned over the past two years, according to the Good Food Institute's State of the Industry report.

Despite a decade of growth and five years of intense innovation, sales returned to pre-pandemic levels in 2023. Plant-based meat and seafood dollar sales dropped 12 per cent, and unit sales fell by 19 per cent in the U.S.

In 2023, people spent less on groceries in general, with unit sales of conventional meat and seafood dropping two per cent. The Good Food Institute (GFI) attributes the outsized decline in plantbased meat and seafood to several factors, including price.

Plant-based food prices increased an average of eight per cent in 2023, while prices for conventional meat and seafood products increased three per cent.

“In an inflation-driven market, many consumers chose to trade down within protein categories, posing salient challenges for plantbased categories whose products often sit at a premium to their conventional counterparts,” the report said.

There's also the question of taste. Ninety-five per cent of households that purchased plant-based meat and seafood also bought animal-based products. The growth of the plant-based food market “has been driven by products that appeal to mainstream consumers by mimicking the taste, texture, and functionality of conventional animal products,” the report said.

Yet, taste parity remains a major hurdle. According to an August 2023 GFI poll, half of adults who tried plant-based meat said they wouldn't eat it again because of the taste.

One-quarter of consumers are lapsed plant-based meat purchasers, according to a 2023 Mintel report cited by GFI, meaning they've tried it but didn't repurchase it in the following three months. Improved taste and lower prices would convince them to return, a December 2023 GFI survey suggests. Nearly half (49 per cent) said it would take meat-like taste and texture, and 43 per cent said a lower price than conventional meat would persuade them to try it again, followed by nutritional attributes (e.g., less fat, less cholesterol, more protein) and environmental impact.

“Consumers say they'd be more willing to eat plantbased meat if it tasted better and were more affordable. This underscores the opportunity for brands to innovate to improve the eating experience of their products. Companies and retailers can work to lower prices,” the report said.

Sales of plant-based meat rose rapidly between 2016 and 2019 and spiked again when the pandemic hit.

While plant-based meat sales dropped “significantly” in 2023, the report highlights some bright spots.

Three plant-based categories grew: plant-based creamers, protein powders and liquids, and baked goods and other desserts. Plant-based milk dollar sales increased by one per cent.