Plant-Based Meat Alternatives: Back to the Drawing Board

After a period of intense growth, plant-based meat alternatives now face challenges. Consumer engagement is declining, leading to reduced production and diminished offerings in supermarkets. This suggests that manufacturers of meat alternatives need to rethink their product development.

Despite earlier optimistic predictions that plant-based products would become mainstream, it appears that changes in eating habits don't happen that quickly. Products need to meet consumer expectations, such as taste, price, and health. Unfortunately, many meat alternatives have been found lacking in these areas. This has resulted in a 2.5% decline in sales volume compared to the previous year.

Strong headwinds for meat substitutes

Nevertheless, consumers' motivations for plant-based products remain unchanged. Consumers are looking for healthier, more sustainable, and animal-friendly options. However, taste remains the primary criterion. Repeat purchases, a crucial metric for product acceptance, are not taking off, suggesting there's still room for improvement in taste and quality.

Over the years, producers have tried to make their meat alternatives resemble meat as much as possible. This has led to the development of ultra-processed foods with a long list of ingredients, which is not in line with the health trend that consumers have in mind. From plant-based products, consumers also expect the inherent health benefits of plants, like fibers. Producers are currently missing opportunities by only focusing on the disadvantages of meat.

Where is the plant in plant based?

Pursuing sustainability alone isn't enough. Other factors like price, natural ingredients, health benefits, and variety are essential to make a product appealing. Furthermore, a step-by-step innovation strategy, starting with replacing smaller meat components in food, is likely more effective than directly replacing prominent meat products like steaks or hamburgers.

Taking a step back

The industry has overly focused on reducing costs by benefiting from economies of scale. However, less processed foods often mean fewer ingredients and thus lower costs. A reassessment of the raw material chain and production processes is needed, especially given the potential taste benefits that can be realized.

Unfortunately, not all producers have the means for this revision. A consolidation of brands, assortment, and production capacity is expected, as some brands and products don't meet the market's demands. Also, the plethora of choices available to consumers has contributed to confusion and lack of clear preferences.

In conclusion, despite current challenges, plant-based meat alternatives have laid the foundation for future growth. However, there's an urgent need for manufacturers to reconsider their approach to product development and marketing. They need to invest in innovation and development to produce products that are appealing to consumers while staying true to their plant-based roots.

Source: RaboResearch