Sales of plant-based alternatives to red meat, poultry, and seafood are down 20% from their peak in 2020 and the industry “faces something of a tipping point,” said a report by agricultural lender CoBank on Monday. “Consumers remain interested in the concept of plant-based meats, but concerns about highly processed products and higher prices have put off many prospective regular consumers,” wrote CoBank senior economist Billy Roberts.
Sales plateaued at around $1.4 billion in 2020, 2021, and 2022, said the report. Competition is increasing with the approval of retail sales of cell-cultured meat, while high food inflation in 2022 discouraged consumers from trying protein alternatives.
“Innovation in plant-based proteins will focus on replacing highly processed varieties with healthier alternatives; better aligning the assortment of plant-based meats in supermarkets; and distributing with a focus on core locations of interest: More in urban, younger-focused stores, less in areas where demand lags,” concluded Roberts. “Competition and scaling up will reduce prices for plant-based meats, though not enough to achieve parity with animal-based proteins. Nevertheless, lower price points and quality improvements in the category will resonate with the considerable portion of consumers interested in a more flexitarian approach to eating, whether due to climate concerns or an interest in health.”
