What is the future of plant-based products?

The plant-based market has been much maligned in recent years. In 2023, £1 billion was spent on meat and dairy-free alternatives in the UK – a figure that has dipped according to GFI Europe, as retailers anecdotally report a drop in sales.

Largely to blame, say experts, is greater recognition of the impact of heavily processed foods on their diets by consumers, who are looking more closely at labelling to discover how natural and ‘clean’ the products in their baskets are.

So, what can brands do to attract and retain the attention of the nation’s 2.1% vegans, 5% vegetarians and 12% flexitarians currently shopping in Britain?

A new Consumer Horizon Report from Vypr has some answers.

The study, which analysed responses from more than 2,000 people, identified two key groups of consumers. Open Omnivores are less committed to reducing meat intake, but open to trying alternatives, while Active Meat Reducers are consciously cutting down on meat and dairy, proving to be more au fait with plant-based brands and ingredients, motivated by concerns for animal welfare and their health. These tend to be women over 25, and men between the ages of 25 to 34.

Vypr’s report details that two-thirds of UK shoppers already buy plant-based products, but a huge 89% cited at least one barrier to purchase. Two of the most significant barriers were high levels of processing (mostly concerning women aged 55 to 64), and a perception of lack of flavour and blandness (cited by mostly males over 65).

In fact, older shoppers were more likely to be sceptical, while a quarter of all respondents said price was a major deterrent.

Just under one in four (24%) questioned the use of lab-grown ingredients, with women aged 45 or over 1.4 times more likely to be put off. 

Ben Davies, founder of product intelligence platform Vypr, said, “Some of consumers’ concerns are perception issues and others are real product development challenges. Brands often market to all flexitarians as one group. But these two audiences have distinct awareness levels, motivations, and concerns. One group needs education and inspiration; the other is looking for better quality, less processed choices.

“Brands that succeed in this space won’t be the ones shouting the loudest about being vegan. They’ll be the ones who offer clarity for the two audience groups and take on board feedback about improving taste, simplifying labels or reducing processing.”

Consumer awareness

Vypr identified that brands need to greater understand their target markets and build on that foundation. Open Omnivores, for example, are willing to trying plant-based products, but are not yet regular consumers, and have a limited knowledge of what plant-based actually means. When asked to describe what a plant-based diet might include, they were often limited in their responses, referring to tofu, mushrooms and lentils – ingredients that did little to raise their excitement.

Active Meat Reducers, on the other hand, proved themselves engaged, keeping up with new trends, products and innovations, and being aware of a wide variety of plant-based ingredients, from alternative meats, to tofu, edamame, chickpeas and spinach.

Key takeaways

In order to enhance sales and navigate changing consumer desires, plant-based brands and retailers have some work to do, Vypr says.

1. To attract Open Omnivores, they must focus on improving flavour, making their products more visually appealing and vibrant.

2. NPD must go into reducing heavy processing of ingredients, cleaning up labels, and making products as natural as possible to fit in with the desires of both categories of consumer.

3. More should be done to capitalise on the health benefits of certain products, from promoting protein levels on-pack, to highlighting concentrations of nutrients and how they can can be incorporated into a balanced diet.

4. Often the person buying plant-based products is not the end consumer – a parent buying dairy-free for their child with allergies, for example. More can be done to enhance packaging and labelling, helping them in their purchasing decisions.

5. The climate and health of the planet matters to both types of consumer. Brand values and operations should reflect their concerns for the environment and health.

6. Plant-based food is often considered more expensive, as revealed in this study. Brands should look at ways to deliver consumers plant-based versions of the foods they love, at affordable prices.

“For the brands that can grow their markets, the rewards could be fruitful – not only for customers, but for the whole planet,” the platform said.