Marketing Plant-Based Meat

The market for plant-based meat products has seen significant growth in recent years but can marketers sell sizzle without steak?

The rise of plant-based eating is undeniable, but convincing committed meat-eaters to swap out their burgers for a plant-based alternative is proving difficult. It’s a substantial marketing challenge to effectively communicate the delicious possibilities of the next generation of plant-based meat products.

Global sales of plant-based meat alternatives were estimated to be around $5 billion in 2021, up from $3.6 billion in 2018. Industry analysts expect the market to continue growing, potentially reaching $8-10 billion by 2025.

The major drivers of this growth include consumer demand for more sustainable and healthier protein options, as well as innovations in plant-based formulations that have improved the taste and texture of these products. The products span a wide range, from plant-based burgers and sausages to alternatives for chicken, pork, and seafood. The most popular categories are beef and chicken substitutes.

The key players in the plant-based meat market include industry leaders like Beyond Meat and Impossible Foods, as well as established food companies like Tyson Foods, Kellogg's, and Nestlé expanding into this space.

North America is currently the largest market, accounting for around 50 per cent of global sales. However, other regions like Europe and Asia-Pacific are also seeing rapid growth.

The plant-based meat market is considered a high-growth segment within the broader alternative protein space as consumers increasingly seek out more sustainable and ethical protein sources. However, challenges for the industry include scaling up production, maintaining price competitiveness, and overcoming consumer scepticism about the taste and nutrition of plant-based meats.

The market for plant-based meat products extends well beyond just vegan consumers. Vegans and vegetarians make up an important part of the customer base, but they are not the only target market. Plant-based meat alternatives are appealing to a much broader range of consumers.

A significant portion of the market are “flexitarians”, consumers who are actively trying to reduce their meat consumption for health, environmental or ethical reasons, but are not completely eliminating meat from their diets. While precise data is hard to come by, industry estimates suggest that only around 30-40 per cent of plant-based meat consumers identify as vegan or vegetarian, but the majority are flexitarians or regular meat-eaters.

The appeal of plant-based meat cuts across demographic lines. It's popular with younger consumers as well as older age groups, and spans income levels and geographic regions. Drivers of purchase extend beyond just veganism/vegetarianism to include concerns about climate change, animal welfare, personal health, and a general desire for more diverse protein options.

The plant-based meat market is now a mainstream consumer trend that is attracting a wide range of shoppers interested in more sustainable and diverse protein choices. Many meat-eating consumers are also purchasing plant-based meat products, either to try them out of curiosity or to occasionally substitute them for traditional meat products.

Marketers looking to expand the market for plant-based meat products are focusing on several key strategies, especially appealing to flexitarian consumers by emphasising the taste, texture and cooking experience being similar to traditional meat products. Plant-based meats are an easy way for flexitarians to reduce their meat consumption. Some marketers are partnering with mainstream food brands and restaurants to increase visibility and accessibility.

Certainly, there is a need to improve product quality and innovation. There has to be continuing investment in R&D to enhance the sensory experience and nutritional profile. The product portfolio needs to be expanded to offer alternatives for a wider range of meat-based dishes. And cost-reduction strategies need to be pursued to improve price competitiveness.

Advertising, social media, and influencer partnerships are required, and consumers need to be educated on the environmental, health and ethical benefits of plant-based meats, as well as highlighting how plant-based meat can be easily substituted into favourite recipes.

Work to get plant-based meat products placed prominently in mainstream grocery and foodservice channels is a challenge and new retail formats like plant-based meat “butcher” sections are being explored.

Overcoming perceptions around taste, nutrition, and price through transparent labelling and marketing is needed to address concerns about processing and ingredient lists through clear communication, emphasising that plant-based meats are suitable for a wide range of dietary preferences, not just vegans.

The key is to make plant-based meats appeal to a broad, mainstream audience by highlighting the sensory experience, convenience, and sustainability benefits. A multi-pronged marketing approach focused on awareness, accessibility, and education will be crucial.

The countries seeing the most success and rapid growth in the plant-based meat market currently include the United States and European countries like UK, Germany, and the Netherlands. The U.S. is the largest and most mature plant-based meat market globally with major players like Beyond Meat and Impossible Foods having their origins and stronghold in the U.S. Significant investment, innovation, and consumer adoption have driven strong double-digit annual growth. European companies like Quorn and Vivera have also gained significant traction.

China, Japan, and Australia are seeing accelerating adoption of plant-based meat alternatives with a growing middle-class populations and concern over food security driving plant-based meat interest. Local players like OmniPork in Hong Kong and Marlow Foods in Australia are gaining ground.

Israel has emerged as a global leader in alternative protein innovation, including plant-based meats. Startups like Redefine Meat and Supermeat are pioneering new technologies in this space. Strong government support and a culture of food-tech entrepreneurship have contributed to Israel's leadership.

Some other markets like Canada, Brazil, and parts of Southeast Asia are also witnessing increasing consumer adoption, albeit at a slower pace compared to the top markets.

The plant-based meat market in New Zealand (estimated to be around NZ$30-40 million in 2021) is smaller compared to some of the major global markets, but it is still showing steady growth and development. Industry analysts expect the market to grow at a CAGR (Compound Annual Growth Rate) of around 15-20 per cent over the next few years.

New Zealanders are health-conscious and environmentally aware, which is driving growing interest in plant-based meat alternatives. Younger consumers, especially in urban areas, are the early adopters of these products, and flexitarian and reducetarian diets are becoming more popular, leading to increased demand.

The market is dominated by global brands like Beyond Meat and Impossible Foods, which are available in major supermarkets. Some local New Zealand brands, such as Lord of the Fries and Vegetarian Butcher, are also gaining traction. Supermarket chains, including Countdown and New World have been expanding their plant-based meat offerings.

There are challenges, what with our small population size and geographic isolation, which can limit economies of scale and ease of distribution. Plant-based meats are still perceived as premium-priced products by some New Zealand consumers, and the regulatory environment and labelling requirements can sometimes pose hurdles for new product introductions.

As consumer awareness and demand grow, experts predict the New Zealand plant-based meat market will continue to expand. Increased investment, innovation, and collaboration between local and global players are expected to drive further market development, and the successful export of New Zealand-made plant-based meat products to other markets could also boost the local industry.

While the New Zealand plant-based meat market is still relatively small compared to larger global hubs, it is seeing steady growth and holds promise for further expansion in the coming years.

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