In an earlier blog we saw that online searches for plant-based diets decreased by 18% over the course of 2022. In addition, Meatless Farm, a plant-based meat company, went into administration in June 2023 and a number of meat-free brands have been cutting the number of products they manufacture. Does this mean the plant-based trend is officially over?
Based upon our experience researching in this sector, consumers believe that there are three main benefits of plant-based food:
Health. This is the most important benefit for most consumers. They believe that plant-based options will be healthier for them than meat or dairy as consumers assume these products will be less calorific, better for the gut, etc.
Environment. The second most important benefit to consumers is that of broad environmental benefits. Although consumers typically do not know a lot of detail behind how their food is produced, they assume that anything plant-based will be better for the environment than a meat or dairy option. This belief typically comes from their understanding of the dairy industry.
Animal welfare. Fewer consumers quote animal welfare as the main benefit of going plant-based. However, those who do feel this is the most important reason are often the most passionate about following this type of diet. This group are more likely to be Vegan or Vegetarian.
There has been no major change in consumers’ mindsets about these benefits, so if the pull of plant-based is still there why might challenges in this category exist? This must come down to the barriers that consumers have to accessing plant-based food. From previous research undertaken we have observed three main barriers – Awareness, Budget and Convenience (ABC).
Awareness. Quite simply, customers need to be aware of plant-based food choices in order to be drawn to them. Given how high-profile plant-based has been this is not a major challenge for the category as a whole, although visibility in store/on shelf must also be taken into consideration.
Budget. The biggest challenge for plant-based food is arguably price. Given the cost-of-living crisis consumers are having to change their shopping habits considerably to be able to continue to feed themselves and their families well. Many plant-based food items are priced at a premium vs. their meat or dairy alternatives.
Convenience. Unless consumers are very dedicated to the plant-based lifestyle, e.g., if they are Vegan or feel that it gives them a very measurable health benefit, plant-based options must be convenient for them to purchase, e.g., being available in their usual supermarkets(s). Whilst some brands have reduced the number of plant-based SKUs, these options are generally still broadly available, so are not presenting a big barrier to purchase.
The benefits of buying plant-based foods must outweigh the barriers to make it into the consumers basket. Currently, the priority is navigating the cost-of-living crisis. Therefore, it is not surprising that some plant-based food companies are experiencing difficulties. However, it is also important to note that many plant-based brands are also thriving. These brands know the importance of delivering value to their consumers, e.g. Califia Farms are part of the lunch meal deal in Sainsbury’s, THISTM offer ready to eat solutions in addition to their ready to cook range.
So, is the plant-based trend over?
At Directions, we don’t think so. Once the pressure on consumers’ wallets eases the fundamental importance of health, the environment and animal welfare will still remain. Those consumers who have lapsed will return to the category. Those who have been buying less will increase their frequency. The future for the plant-based category is still bright and we can’t wait to see what comes next.
Comments