Demand for vegan and vegetarian food continues to grow. This report analyses drivers behind demand, how manufacturers are marketing these products and the most popular claims featured. It also delves into opportunities for the future and expected category developments moving forward.
Consumers following strict vegan and vegetarian diets remain a small group of the population, whereas those restricting animal-based foods account for over 40% of global consumers in 2020. Overall, health and animal rights are the two key motivators for choosing these diets but there are country-specific nuances – while more ethical reasons clearly dominate in countries like the UK and Germany, health reasons are just as important in markets such as the US and Australia.
The demand for plant-based food has accelerated during the COVID-19 pandemic. Retail sales of categories like milk alternatives and meat substitutes have skyrocketed, mainly in Western countries. However, one of the main barriers for adoption remains price as the plant-based offering is significantly more expensive than its animal-based counterparts. With disposable incomes falling, closing the price gap is more important than ever.
In terms of positioning, vegan and vegetarian claims (or “dairy-free” in the case of dairy alternatives) are much more widespread than the “plant-based” claim. Featuring plant-based is perceived to be more inclusive and appealing for a wider consumer base; however, combining it with a vegan claim or trademark can build trust and add transparency about the product being 100% plant-based.
The plant-based food space is set to grow fast in the coming years. It is expected that a wide range of manufactures and ingredient companies will further develop niche categories, such as cheese or fish replacements. Recent launches in the space from big food players such as Fromageries Bel and Nestlé are proof of this. Other areas with potential ahead include vegan confectionery and baked goods.
In packaged food we consider two aspects of food sales: 1) Retail sales. 2) Foodservice. Retail sales is defined as sales through establishments primarily engaged in the sale of fresh, packaged and prepared foods for home preparation and consumption. This excludes hotels, restaurant, cafés, duty free sales and institutional sales (canteens, prisons/jails, hospitals, army, etc). Our retail definition EXCLUDES the purchase of food products from foodservice outlets for consumption off-premises, eg impulse confectionery bought from counters of cafés/bars. This falls under foodservice sales. For foodservice, we capture all sales to foodservice outlets, regardless of whether the products are eventually consumed on-premise or off-premise. Foodservice sales is defined as sales to consumer foodservice outlets that serve the general public in a non-captive environment. Outlets include cafés/bars, FSR (full-service restaurants), fast food, 100% home delivery/takeaway, self-service cafeterias and street stalls/kiosks. Sales to semicaptive foodservice outlets are also included. This describes outlets located in leisure, travel and retail environments. 1) Retail refers to units located in retail outlets such as department stores, shopping malls, shopping centres, super/hypermarkets etc. 2) Leisure refers to units located in leisure establishments such as museums, health clubs, cinemas, theatres, theme parks and sports stadiums. 3) Travel refers to units located in based in airports, rail stations, coach stations, motorway service stations offering gas facilities etc. Beyond the scope of the foodservice research are captive foodservice units that serve captive populations around institutions such as hospitals, schools, and prisons. This is also known as institutional sales.
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