In numerous major markets, the plant-based meat category is experiencing a slowdown in growth. According to the Good Food Institute, this decline is attributed to a slight decrease in consumer purchases within the category amid rising inflation. This poses challenges for plant-based meat makers, many of whom are now reconsidering their shelf presence. However, it is important to investigate whether this trend is consistent across different markets such as the UK, Israel, and Iceland.
In the UK, the plant-based market has undeniably experienced a slowdown, as confirmed by Matthew McAuliffe, the group innovation and product development director at The Compleat Food Group, which owns the plant-based meat brand Squeaky Bean. After a period of incredible growth, the market has now declined both in value and volume. However, McAuliffe suggests that the term “slowdown” does not fully capture the situation. Instead, he believes it is a “shakedown” resulting from an overcrowded category. With an excess of brands in the market, the industry is undergoing a process of consolidation, leading to some brands falling by the wayside.
Israel, another country with a developed alternative protein sector, also experiences changes and trends as a natural part of commercial life. Dr Yishai Mishor, founder and CEO of alt meat supplier Meat.The End, acknowledges that a temporary slowdown is expected in any new food category. However, he does not anticipate a long-term downward trend. Dr Mishor believes in the future of the plant-based market due to its environmental sustainability and affordability. In fact, Meat.The End has witnessed growing demand for plant-based meat alternatives in Israel, as reflected in its successful partnership with Burger King.
Meanwhile, in Iceland, plant-based seafood start-up Loki has not observed a slowdown in the category. While traditional meat, fish, chicken, and dairy consumption has slowed, there is a shift towards more sustainable options. Loki offers plant-based alternatives to whitefish, aligning with Iceland’s strong ties to commercial fishing. Despite this, Iceland has a significant base of plant-based eaters, with over 6.5% of the population identifying as vegan. However, the country is also susceptible to inflationary conditions, which may have a more significant impact on the overall slowdown rather than specifically within the plant-based category.
Overall, it is crucial to assess the specific dynamics and trends in each market to determine the extent of the slowdown in the plant-based meat category. While the UK experiences a “shakedown” resulting from an overcrowded market, Israel remains optimistic about the long-term growth of the sector, and Iceland’s economic conditions may be driving the observed slowdown. By understanding these variations, plant-based meat makers can adapt their strategies accordingly to navigate the challenges and opportunities in each market.
