Food Innovation

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US plant-based sales skyrocket beyond US$7B despite supply chain disruptions

https://www.foodingredientsfirst.com/news/us-plant-based-sales-skyrocket-beyond-us7b-despite-supply-chain-disruptions.html

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Plant-based retail sales are booming with a record year of growth which has bolstered the total plant-based market value to an “all-time high” of US$7.4 billion. This is according to research from the Plant-Based Foods Association (PBFA), The Good Food Institute (GFI) and SPINS.

Plant-based food retail sales grew three times faster than total retail sales, with many plant-based categories outpacing conventional counterparts.

The growth in this category went unscathed by surrounding supply chain disruptions, escalating inflation and COVID-19 pandemic restrictions.

“Product innovation is critical for plant-based categories to continue to earn a larger share of the market. Getting more consumers to eat plant-based foods more often requires improved taste and texture to compete with animal products, more product diversity, and greater affordability and accessibility,” says Karen Formanski, GFI’s research and analysis manager.

“As businesses recognize the staying power of plant-based foods, the food industry must seize these opportunities to maximize the vast potential of plant-based alternatives to compete with animal products,” says Formanski.

PB milk and dairy at top of profit pyramid
As the largest category in the plant-based space, plant-based milk now accounts for 16% of all retail milk sales, contributing to US$105 million. Sales grew 33% in the past three years to reach US$2.6 billion, while animal-based milk sales declined by 2% in 2021, a loss of about US$264 million.

About 42% of households purchase plant-based milk and 76% of plant-based milk buyers bought it multiple times in 2021, the research shows. Plant-based milk benefits from product innovation, including ingredient diversification, product development to improve taste, functionality and nutrition.

“The data shows that, despite the challenges of the past two years, retailers and foodservice providers are meeting consumers where they are by partnering with brands across the entire store to expand space, increase assortment, and make it easier than ever to find and purchase plant-based foods,” says Julie Emmett, senior director, marketplace development, PBFA.