The growth trajectory of the meat-free category remains precarious as manufacturers grapple with various market pressures. These pressures have the potential to deter consumers, particularly as they navigate fluctuations in economic conditions, dietary requirements, or shifts in work patterns.
“Earlier this year, the meat-free category saw a steep decline as consumers tightened their belts and looked away from meat-free products,” says Pilgrim’s Europe marketing and innovation director Chris Doe. However, recent improvements such as rising wages and diminishing inflation are creating a favorable outlook. “Now, thanks to rising wages, lowering inflation, and a little more wiggle room in people’s budgets, things are looking up,” he notes.
After a two-year period of decline, the business is now observing an uptick in sales, particularly in chilled meat-free meal components, which have attracted 0.6% more shoppers, according to Doe.
Meat-Free Sales Performance
In contrast to other fast-moving consumer goods (FMCG) categories, meat-free brands are outperforming in the chilled section, registering an impressive share increase of 81.8%. “Richmond Meat Free, for example, has seen four consecutive periods of growth, with an 11.3% increase in sales year-on-year,” he explains.
Despite this optimism, ongoing challenges remain, notably regarding taste, which is a significant barrier to sustained category growth. “Forty-five percent of British consumers in a November 2023 IGD survey believed that vegan food does not taste as good as non-vegan food,” Doe elaborates. He emphasizes that taste, versatility, and value are critical factors influencing purchasing decisions within this category.
When considering versatility, consumers are increasingly seeking products that can be incorporated into multiple dishes rather than being relegated to occasional use. “And it’s not just vegetarians and plant-based consumers they [manufacturers] should be going after – there’s an opportunity to attract flexitarians who are looking to meat-free products as a regular part of their diets.”
Nevertheless, affordability continues to be a concern for many as the cost-of-living crisis impacts consumer spending behavior. This shift has resulted in 15% more meals being prepared at home compared to pre-COVID-19 times.
“Ongoing changes to working patterns are also affecting consumer behavior,” Doe highlights. As flexible working arrangements gain popularity, in-home lunches have risen by 12%, complemented by a 45% increase in meals eaten outside during lunchtime.
How Will Pilgrim’s Innovate?
Recognizing that taste is paramount in retaining consumers, Pilgrim’s and Richmond are prioritizing this aspect in their future developments. “Richmond is investing a lot in improving flavor and diversity of products to meet consumer expectations,” he states, adding that effective communication of these improvements will be crucial through advertising campaigns.
In addition to focusing on meat-free offerings, Richmond’s meat sales have increased by 2.3% in value, with pork claiming 93% of market share and chicken experiencing a 15% growth. “We’ve recently revamped our chicken sausages to ensure they deliver on great taste at an accessible price, with the goal of making sausages more accessible to all customers,” he adds.
Looking ahead, a series of new meat sausage launches is expected to bolster sales by 35% in the coming months, reinforcing Richmond’s commitment to innovation in the food and drink industry.
