In its latest report, the Plant-Based Foods Association (PBFA) highlighted that the data from 2022 indicates that the plant-based food sector demonstrates resilience and a strong potential for longevity. Last year posed challenges for all food companies, with inflation particularly impacting the plant-based industry. Due to the relatively smaller scale of these companies compared to more traditional food items, plant-based products often come with higher price tags. Nevertheless, as inflation prompted consumers to tighten their budgets, the report reveals that they opted not to eliminate plant-based products from their shopping lists.
“This achievement underscores the commitment of consumers seeking plant-based options for various dining occasions, alongside the innovative brands and retail partners striving to satisfy the rising demand for sustainable, healthy, and delicious choices,” stated PBFA CEO Rachel Dreskin in a written statement. The study, which encompasses various data points on plant-based sales and consumer behavior, illustrates that plant-based consumers have become increasingly entrenched over the years. Overall, plant-based foods have achieved a 60% household penetration rate and an 80% repeat purchase rate.
The report found that plant-based milk, which has consistently been the largest category within the segment, constituted 15.3% of all milk sold in the U.S. last year and occupied approximately a quarter of shelf space in the dairy section. This product was purchased by over 40% of households, boasting a repeat purchase rate exceeding 75%. According to a report from the Plant Based Foods Institute and Kroger, 43% of consumers who are either new to plant-based foods or increasing their purchases are opting for plant-based milk instead of dairy.
In contrast, plant-based meat, the second-largest category, faced challenges in 2022, with dollar sales declining by approximately $10 million compared to 2021 and unit sales decreasing by 8.2%. However, the report notes that plant-based options still represent about 2.5% of the overall packaged meat market. Positive aspects for plant-based meat include a household penetration rate of 17.5% and a repeat purchase rate of 62.5%. Additionally, frozen plant-based meat now accounts for 63% of sales, as consumers increasingly seek convenience. Emerging categories such as plant-based chicken, fish, and shellfish all experienced sales increases of about 15% to 16% last year.
Plant-based eggs have also shown significant growth, with dollar sales rising by 14.3% in 2022, reaching $45 million. As traditional egg prices surged and supply decreased, unit sales of plant-based eggs soared by 21%, while traditional egg sales dipped by 1%. With a household penetration rate of 1.5%, there remains considerable potential for both established and new entrants in the plant-based egg market.
PBFA emphasized that a broader examination of the segment over the past four years demonstrates that plant-based products are generally outpacing their traditional counterparts. Between 2019 and 2022, other foods and beverages saw only a 1% growth in unit sales, while plant-based unit sales surged by 23%. Additionally, as consumers seek nutritional supplements to enhance their diets, products like nutricost calcium citrate powder are gaining traction, further reflecting the growing interest in health-conscious choices that align with plant-based living.