Plant-based meat substitute sales grew 18 per cent in the US last year to almost $1bn amid increasing consumer interest in alternative proteins.
The rise on the previous year’s figures comes as overall plant-based food sales increased by 11 per cent to $5bn in 2019, compared with the total US retail food market, which grew by 2 per cent, according to the Good Food Institute and the Plant Based Foods Association, which commissioned data from market research group SPINS.
The environmental impact of livestock and dairy sectors as well as concerns about animal welfare and health have been driving interest in plant-based alternatives, increasing the number of so-called “flexitarians” who are reducing their meat intake.
Plant-based meat sales have been boosted by an increase in offerings from food manufacturers ranging from start-ups such as Beyond Meat to leading consumer goods companies including Nestlé and Kellogg’s as well as leading meat suppliers such as Tyson.
According to GFI, 14 per cent of US households now purchase plant-based meat, which accounted for 1 per cent of the total US retail meat market.
Innovation in plant-based alternatives continued to be strong, according to analysts who attended a leading consumer goods conference in New York.
“Plant-based meat continued to be a hot topic for food companies with upcoming launches and innovations,” said analysts at Bernstein, the research group. “Clearly companies see this plant-based trend as an area for growth, though competition is increasing fiercely.”
GFI, an alternative protein lobby and consulting group, said the retail numbers indicated that the plant-based food trend was not a just a “bubble or a fad”. “This is a tipping point, with so much product innovation yet to hit the market,” said Caroline Bushnell, associate director of corporate engagement.
The growing market for plant-based meat has meant increasing production for market leaders, helping them to lower manufacturing costs. Impossible Foods last week said it was cutting whole prices to its distributors thanks to a widening customer base and operational efficiencies.
Sales of plant-based milk, the largest category of plant-based foods, totalled $2bn, a 14 per cent market share. While almond milk was the category leader, oat milk was the fastest-growing plant-based milk, with dollar sales surging 690 per cent in 2019.
Meat alternatives have also been rising in restaurants, with an increase in offerings from burgers to tacos and pizzas. Dining Alliance, the leading US purchasing group for restaurants, reported a 268 per cent increase in 2019 sales volumes from a year before.
