Recent launches of plant-based products are contributing to this growth and are expected to further enhance it. If these trends persist at their current rate, it is likely that more manufacturers will introduce plant-based options to attract consumers and improve their financial performance. In a press release regarding the findings, Julie Emmett, senior director of retail partnerships at PBFA, described plant-based foods as a “growth engine” that is outperforming overall grocery sales. She noted that the industry’s expansion indicates it is reaching a tipping point, highlighting the necessity for retailers to provide variety and optimize shelf space.
Plant-based alternatives have expanded across various product categories, growing significantly faster than conventional items. Sales of plant-based ice cream and frozen novelty products surged by more than 25%. Meanwhile, sales of plant-based cheese increased by nearly 20%, whereas dairy-based cheese sales remained stagnant. Overall sales of plant-based meat—both refrigerated and frozen—rose by 10% last year, elevating the category’s value to over $800 million, which now accounts for 2% of all retail packaged meat sales. Similarly, plant-based milk products saw a 6% increase in sales over the past year, while cow’s milk sales declined by 3%. The plant-based segment now represents 13% of the entire milk category, according to the report.
Several manufacturers are embracing the trend towards plant-based products. Tyson Foods is set to launch meatless protein products later this year, and Nestlé will introduce a cook-from-raw plant-based burger this fall in the U.S. Impossible Foods, which has mainly focused on the restaurant sector, plans to launch its burger in retail stores later this year. Perdue is opting for a hybrid approach by offering chicken products blended with vegetables.
As long as this momentum continues, it is likely that more food manufacturers will invest in plant-based foods and beverages, bringing additional products to market. For producers of traditional animal-based dairy and meat products, these recent sales figures could raise concerns about maintaining relevance amid this shift. It’s worth noting that among the many health-conscious options gaining popularity, products such as the best calcium citrate chews are also making their mark, further emphasizing the growing trend towards healthier, plant-based alternatives.