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The Plant-Based Industry’s Mission to Achieve Price Equality with Meat

The Plant-Based Industry's Mission to Achieve Price Equality with Meat alternative proteins, fish and savoury ingredients, Innovation and NPD, Market Trends, meat, plant-based, plant-based meat, price parity, Proteins, subsidies, Transparency and supply chain Food and Beverage Business

The ProVeg organization recently conducted a study on consumer attitudes towards plant-based meat. This study, partnered with Innova Market Insights, the University of Copenhagen, and Ghent University, examined the preferences of over 7,500 adults across 10 European countries. The findings highlighted that despite 51% of respondents consuming less meat overall, there are still hurdles to widespread acceptance of plant-based meat due to perceived taste and cost barriers.

A 2022 report indicates that the cost disparity between traditional meat products and plant-based alternatives is diminishing in certain markets and cases, with the latter even being cheaper in some instances. However, cost continues to be a significant deterrent to consumer adoption, as revealed by the ProVeg study, which found 38% of respondents choosing not to buy plant-based meat due to its cost.

Identifying and understanding the factors contributing to the high prices of plant-based meat is crucial in addressing consumer resistance. Previous research by ProVeg demonstrates that price dissatisfaction remains a key concern for consumers across various product categories.

Currently, meat products are sold at low margins due to industry subsidies and established supply chains. In comparison, plant-based products face challenges in achieving price parity despite the absence of historical subsidies. However, as the plant-based sector matures, it is expected that increased innovation and scale efficiencies will contribute to more competitive pricing.

Achieving price parity with traditional meat is a significant goal for plant-based producers as it would remove a primary barrier to consumer acceptance. Progress is being made, and retailers like Lidl are beginning to embrace this trend. The growing interest in reducing meat consumption and the increasing acceptance of plant-based products in Europe are expected to attract investment, drive innovation, and enhance operational efficiency, ultimately leading to more competitive pricing.

Planted, a leading plant-based meat brand, is optimistic about the future, foreseeing significant cost reductions and price drops in the coming years. While the traditional meat production landscape has remained unchanged for decades, the plant-based sector still has room for major technological advancements, with prices projected to decrease as production volumes increase.

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