This research was published at a pivotal moment for the plant-based industry. Following a surge in business during 2020 and a slowdown in 2021, this year has offered a different perspective. While some media outlets appear ready to declare the demise of the plant-based sector, there remains substantial investment, innovation, and sales activity in this area, along with companies that recognize its significance. Consumer interest also persists; a study conducted by Moonshot Collaborative in October revealed that two-thirds of consumers had plant-based food at least once a month in the preceding quarter. Although this report does not focus on the current year, it highlights several factors that attract consumers to plant-based options and what might keep them engaged.
The study examines consumer purchasing patterns across various plant-based categories, including milk, cheese, yogurt, frozen meals, frozen meat, and refrigerated meat. In 2020, 59% of shoppers were either newcomers to the plant-based category or had maintained or increased their previous purchases. The following year, this figure dropped slightly to 54%, with nearly 30% of consumers increasing their purchases of plant-based products compared to the previous year. In 2021, more than a third of consumers in the plant-based cheese and yogurt categories were trying these products for the first time, with nearly a third of those buying frozen meals and refrigerated meat also being newcomers.
The study also found that households spending more on plant-based products tended to spend less on animal-derived alternatives. In 2021, households purchasing plant-based products spent an average of $31 less on traditional foods year-over-year. This trend wasn’t limited to those who bought more plant-based items; individuals who purchased fewer plant-based foods in 2021 compared to 2020 spent about $42 less in that category and over $60 less on animal-based products.
Additionally, the data identified trends among plant-based consumers. They generally prioritize convenience, believe they are making less healthy choices, and are particularly price-sensitive. In response to these consumer preferences, some of the latest initiatives from plant-based companies are specifically targeting this demographic. For instance, Impossible Foods recently introduced frozen meal bowls aimed at the convenience meal market. Plant-based breakfast sandwiches and burritos are also now available in grocery store freezers. Beyond Meat, which is striving to recover sales and return to profitability by the second half of 2023, is focusing on promoting its health benefits. The company has partnered with the American Cancer Society to investigate whether plant-based meat could contribute to cancer prevention.
Despite these efforts, the plant-based sector faces challenges in attracting price-sensitive consumers. With inflation reaching a four-decade high earlier this year, consumers are experiencing increased prices across grocery stores, while many plant-based products remain premium priced. Analysts studying purchasing behaviors have noted a trend towards cheaper meats and products, further complicating the position of plant-based offerings. To address this, the industry may need to leverage insights from tools like tab ccm 500, which can help identify market trends and consumer preferences more effectively. As the sector evolves, it will be essential to find ways to balance quality and pricing to maintain consumer interest and competitiveness.