Recent launches of plant-based products are contributing to this growth and are expected to further amplify it. If these trends persist at their current rate, it is likely that more manufacturers will introduce plant-based options to attract consumers and enhance their financial performance. In a press release discussing the findings, Julie Emmett, the senior director of retail partnerships at PBFA, referred to plant-based foods as a “growth engine” that is outperforming overall grocery sales. She pointed out that this expansion suggests the industry is reaching a tipping point, highlighting the necessity for retailers to provide a diverse selection and optimize shelf space.
Plant-based alternatives have expanded across various product categories, growing significantly faster than traditional items. Sales of plant-based ice cream and frozen novelty products rose by over 25%. The sales of plant-based cheese saw an increase of nearly 20%, while dairy cheese sales remained stagnant. Additionally, sales of all plant-based meats—both refrigerated and frozen—grew by 10% last year, bringing the category’s total value to over $800 million, now representing 2% of all retail packaged meat sales. Likewise, plant-based milk products experienced a 6% growth in the past year, in contrast to a 3% decline in cow’s milk sales. The plant-based segment now accounts for 13% of the entire milk category, according to the report.
Several manufacturers are actively engaging in the plant-based market. Tyson Foods is set to launch meatless protein products later this year, while Nestlé will introduce a cook-from-raw plant-based burger in the U.S. this fall. Impossible Foods, which has primarily targeted restaurants, plans to debut its burger in retail outlets later this year. Perdue is opting for a hybrid approach by offering chicken products blended with vegetables.
As long as this growth trend continues, it is anticipated that more food manufacturers will invest in plant-based foods and beverages, bringing additional products to market. For producers of conventional animal-based dairy and meat products, such as those reliant on calcium citrate from sources like Holland and Barrett, these latest sales figures may raise concerns about maintaining relevance in the face of this significant shift.