The plant-based meat alternative (PBMA) category is facing challenges as consumers abandon it due to concerns about taste, nutrition, and price, according to a report by Mintel. Caleb Bryant, associate director of food and drink reports at Mintel, emphasized the need for brands to address these concerns in order to achieve real market growth. However, there are still some positive aspects for the PBMA category, with the frozen segment remaining relatively resilient and new product innovation potentially expanding the market.
According to Circana InfoScan Reviews and Mintel data, PBMA total sales for 2023 are estimated to be worth $1.46 billion and are forecasted to reach $1.801 billion in 2028. However, there is a worst-case prediction of $995 million and a best-case prediction of $2.6 billion. Mintel also found that budget-conscious consumers are less likely to take risks in shopping, with only 20% of consumers following a reduced meat diet in 2023. Additionally, 53% of consumers claim that inflation makes them less likely to try new foods, including plant-based options.
Kantar Profiles and Mintel data showed that consumers are less likely to identify themselves as flexitarians, vegetarians, or vegans compared to the previous year. In 2023, 8% of consumers identified as flexitarians, 4% as vegetarians, and 2% as vegans, compared to 10%, 5%, and 4%, respectively, in 2022. The percentage of consumers who ascribe to a reduced meat diet also decreased from 21% in the previous year to 18% in 2023.
Mintel conducted a survey of over 1,400 adults and found that taste and flavor were major concerns for 48% of consumers, while 35% believed that meat was a better source of nutrition. Additionally, 34% of consumers stated that PBMA products were too expensive, 24% had texture concerns, and 21% felt that the products were too processed.
To revitalize the PBMA market, Mintel suggests that new product launches, particularly in the frozen food and clean label segments, could be an opportunity. Mintel highlighted the importance of combating the perception that PBMA products are overly processed, as this was a deterrent for 30% of flexitarians. The report mentioned specific brands that tap into the cleaner label trend, such as Sweet Earth’s Mindful Chik’N, Hungry Planet’s Grilled Strips, Jack & Annie’s Classic Jack Meatballs, and My Bacon’s Original Recipe Farm-Grown Meatless Mycelium, which emphasize natural and health claims.
In terms of product launches, there has been an increase in frozen and shelf-stable products, with refrigerated products not meeting consumer expectations. In 2022, 51% of PBMA product launches were frozen, 29% were chilled, and 20% were shelf-stable, compared to 40% frozen, 56% chilled, and 4% shelf-stable in 2021. Mintel suggested that CPG brands should focus on frozen and shelf-stable products to help PBMAs expand into the center of the store.
In summary, the PBMA category is facing challenges as consumers abandon it due to taste, nutrition, and price concerns. Brands in this market should address these concerns to achieve real market growth. However, there are opportunities for a turnaround through new product launches, especially in the frozen food and clean label segments. It is necessary to combat the perception of overly processed products and focus on frozen and shelf-stable offerings.
