Meat Alternatives Face Three Years of Decline
After peaking at $1.3 billion in 2020, the meat alternatives market has experienced three years of consecutive decline, dropping to $1.1 billion in 2023.
Despite this downturn, the market remains above pre-pandemic levels, offering brands opportunities to pivot and spark renewed interest in plant-based options.
While the percentage of households purchasing these alternatives continues to shrink, frequent buyers still contribute significantly, accounting for 75% of total sales.
One of the main challenges lies in the widening price gap between traditional meat and its plant-based counterparts, pushing brands to re-evaluate how they convey value to consumers.
Innovation, particularly in flavor, form, and convenience, could offer a much-needed boost. Frozen meat alternatives have shown resilience, outperforming their fresh counterparts as consumers gravitate toward easier, more accessible options.
With continued consumer interest in sustainability and health, brands that can address these factors while narrowing the price gap might turn the tide in the coming years.
The data comes from Circana, which defines meat alternatives as plant-based, mycelium-based, and cultured meats—though the latter has not yet hit the market. Blended meat-and-plant products also form part of this category but remain a small segment.
As the market adapts, the key to survival seems to lie in targeted innovations and appealing to the critical mass of frequent buyers who continue to drive sales, despite the broader decline.
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Its interesting that the study found no significant cognitive benefit for men. I wonder if other factors like genetics play a role.