Sales of plant-based meat alternatives surged by 45% in 2020 pushing the category past the billion-dollar mark, according to US retail data from the Good Food Institute and the Plant Based Foods Association.
In 2021, sales were flat. And 2022 is proving to be a challenging year so far with dollar sales flat at -0.9% and units down -7.2% in August 2022 vs. August 2021, according to IRI data crunched by 210 Analytics. The downturn was more drastic for refrigerated plant-based meat alternatives (vs. frozen), which experienced double-digit declines in both dollar sales and volumes during the same time period.
While uncontrollable factors such as continued supply chain issues and a tough comparison with record sales from the previous two years are partly to blame for the downturn, Deloitte found that a shift in consumer sentiment around plant-based meat alternatives is becoming an increasingly significant factor.
Appeal wears off
“The addressable market may be more limited than many thought,” said Deloitte in its recent report.
For some time, the appeal of the plant-based meat category seemed to be winning over meat-eating consumers looking to reduce their meat consumption, or at the very least, intrigued by the notion of a burger that tasted like real beef. But that excitement appears to be wearing off, according to Deloitte’s research into consumer sentiment around plant-based meat alternatives.
“Dramatically improved taste in recent years (vouched for by seven in 10 consumers) unlocked new interest in PBA (plant-based alternative) meat. But the portion of the US population open to trying (and repeat buying) may already have reached a saturation point,” claimed Deloitte in its report.