The Plant-Based Meat Industry Will Face More Challenges

As with so many categories in the past year, cost is also an issue. Amid persistent inflation, 65% of grocery shoppers said in December 2022 that they bought less meat to save money. This could easily translate into fewer purchases of plant-based meats as well, as they are perceived to cost even more than traditional meat products. Consumers are more than twice as likely (52%) to say they believe plant-based meats cost more than traditional meats than they are to say they cost the same or less (23%).

What’s more, inflation is discouraging shoppers from trying out new items at the grocery store.  The share of U.S. adults who said they tried a new packaged food product in the past month declined from 22% to 18% year over year in December. And this is likely impacting meat even more than other grocery categories, as it doesn't inspire a lot of experimentation. Only 17% of grocery shoppers said in December that they make an effort to try new brands in meat, compared with 31% in snacks, a category more driven by branding, novelty and product innovation. 

Consumers know plant-based meats are better for the environment, but they’re divided on the health benefits 

Consumers know that environmental benefits, like helping to reduce greenhouse gas emissions,  are a key part of plant-based brands’ missions, and as such, they are much more likely to associate plant-based meats with being good for the environment: 40% of consumers said they are, compared with 17% who said the same about traditional meats.  

There’s also been a lot of conversation about the health benefits and nutritional value of plant-based meats. From a consumer perspective, there appears to be confusion on the topic. While 31% of consumers said “healthy” is better attributed to plant-based meats, compared with 24% for traditional meats, the near inverse is true for the attribute of “nutritious.”

But it’s important to note that factors like sustainability and health and wellness often take a back seat to taste and value when consumers are making purchases. More recently, these factors have taken a bit of a hit in the current economic environment as consumers prioritize more immediate needs over higher-order concerns. The importance of healthy eating among U.S. adults declined from 86% to 81% year over year in December, and the importance of food sustainability declined from 79% to 76% during the same time period. While these shares are still high, the dip indicates these issues might be less pressing for cash-strapped consumers, thus exacerbating plant-based meats’ challenges over the past year.

The future of plant-based meats

Significant hurdles remain for Beyond Meat and the wider plant-based meat industry if they hope to stake a permanent place in consumers’ diets. In the near term, when consumers start to shift their focus away from pinching pennies and back to health and sustainability, interest in the category may get another boost. In the long term, overcoming concerns around taste, cost and health is imperative.

But one constant truth is the ever-evolving nature of this category. Plant-based meats aren’t the only alternatives to traditional meats. The choice set is increasingly competitive, both with other plant-based options and emerging innovations like cultivated meat. Whatever the meat alternative, it will have to meet consumers’ demands to stay on retailers’ shelves.

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