Issue # 5 - What's in store for plant-based in 2024?
2024 marks the 10-year anniversary of Veganuary – so as we step into the new year, what will happen in the plant-based sector?
The plant-based sector continues to innovate and evolve, offering an array of products that cater to a health-conscious and environmentally aware consumer base. However, it's not without its challenges, as recent trends and reports indicate that the boom that some meat imitation products experienced over the last few years has stalled as consumer perceptions have shifted & household budgets have tightened.
From Niche to Mainstream – where are we now?
The journey from a niche market to mainstream acceptance has been stark.
Initially, plant-based products primarily appealed to vegetarians or those with dairy allergies, with soy-based products dominating the scene.
Over time, ingredient & process advancements have led to novel products aiming to closely mimic meat and dairy, appealing to a broader audience.
This shift reflected not just a change in consumer demand but also a broader acceptance in public and regulatory domains, representing a genuine cultural and lifestyle shift towards plant-based choices.
Consumer priorities have evolved, with increasing awareness of health, naturalness, and environmental sustainability driving demand, despite concerns over taste, price, and the artificiality of some products with label declarations such as carboxymethylcellulose(E466).
The recent financial challenges and unfortunate measures to close or place some businesses into administration for novel plant-based companies reflect a market in transition, needing further innovation and wider consumer acceptance[1].
Plant-based Sector in 2023
2023 was a challenging year for the plant-based sector.
While the European market experienced a promising 21% growth between 2020 and 2022, indicating robust demand for plant-based options across several countries[2].
More recent figures have been less positive, particularly in the U.S. market. During the last quarter of 2023, there was a downturn for key players in the sector with a decrease in revenues and consumer perceptions of plant-based meats as healthy dropped further this year after a 38% decline in 2022 from 50% in 2020[1].?
Therefore, while the sector experienced growth in previous years, it's not immune to rapid shifts due to factors such as market saturation, changing consumer tastes, economic conditions, and perhaps the evolving nutritional profile and public perception of plant-based products.
This underscores the plant-based market's volatility and the importance of ongoing innovation and responsiveness to consumer needs and market dynamics.
领英推荐
While meat imitation products continued to be developed, a new stage of innovation was increasingly, explored primarily based around two areas:
Additionally, Developments in cultivated animal fats and advances in biomass and fermentation marked significant progress. Alongside a surge in plant-based deli items, baby foods, snacks, and non-alcoholic beverages, highlighted the sector's diversification and response to health-conscious consumer demands[3].
What does it mean for plant-based in 2024?
For 2024, the plant-based market's outlook is cautiously optimistic. There are a number of short-term challenges, like changing consumer preferences & economic conditions, although despite the challenges, the rising demand for healthier, sustainable choices and consistent innovation sets the stage for long-term growth and sector stability.
Taste and price primarily drive consumer choice, with health and ethical reasons being secondary, while plant-based products are still perceived as healthier, increasing awareness of ultra-processing and artificiality in plant-based foods is affecting consumer perception[1] & this is a core focus for innovation in 2024.
Manufacturers who adapt to consumer needs and continue to innovate will continue to thrive.
[1] Innova Market Insights. Next Gen Plant Tech: Global Opportunities Ahead Report, Dec 2023.