FI Europe 2023 Conference Navigating the Future: Strategies for Plant-Based Meat Success

Plant-based meat alternatives have encountered a sales slump in recent years, prompting Cyrille Filott, a global strategist at RaboResearch, to outline five critical areas that brands must address to rejuvenate sales.

Back to the drawing board for plant-based meat, says Rabobank strategist

During the FI Europe 2023 Conference, Filott delivered a presentation titled "Plant-based meat alternatives: Back to the drawing board," delving into the reasons behind the stagnation of plant-based meat alternatives (PBMAs) and proposing strategies for a revival.

As part of Rabobank's market intelligence division, Filott emphasized the necessity for a comprehensive approach involving the entire supply chain to reinvigorate the plant-based meat sector. The presentation acknowledged the high expectations set for PBMAs in previous years, attributing the recent sales decline to consumer perceptions of taste and nutritional profiles.

Transitioning to Plant-Based Proteins

Filott noted a current shift in consumer preferences toward protein sources beyond traditional animal products. This transitional phase reflects a gradual move away from animal-based proteins, with consumers increasingly embracing plant-based and non-animal protein sources.

Despite initial growth driven by significant marketing efforts from industry giants like Beyond Meat and Impossible Foods, Filott highlighted a recent decline in PBMA sales. Notably, US sales spiked in 2020 but plateaued in 2021 and experienced a 1% year-on-year decline in 2022, reaching $1.199 billion.

Addressing Declining Sales: Loyalty and Retail Dynamics

Filott identified two key factors contributing to the sales downturn: consumer loyalty and retailer decisions. Recurring sales of PBMAs hover around 30%, significantly lower than other food categories where such figures often exceed 60%. Consumers trying the products and not adhering to them has been a substantial challenge.

Additionally, retailers have played a role in the decline, reducing the number of PBMA brands on shelves. For instance, UK supermarket chain Tesco decreased its SKUs from 200 in 2021 to approximately 150. Despite potential drawbacks, Filott views this reduction positively, suggesting it brings clarity to consumers overwhelmed by a plethora of brands, contributing to the category's maturation.

Texture, Flavor, and Processing: Keys to Success

The lack of mainstream adoption for plant-based meat alternatives is attributed to unmet expectations regarding texture and flavor. Filott emphasized that many offerings were heavily processed, featuring numerous unfamiliar ingredients, often categorized as Ultra Processed Foods (UPFs). Consumers, while eager for sustainable alternatives, are unwilling to compromise on health and taste.

Filott presented a five-point strategy to reinvigorate plant-based meat alternatives:

1. Addressing the perception of PBMAs as UPFs

2.Emphasizing the nutritional benefits

3.Acknowledging sustainability is not the sole marketing driver

4.Highlighting quality and sensory aspects over price

5.Deepening involvement in the entire plant-based chain, from farming to ingredients processes

In conclusion, Filott emphasized the need for PBMA manufacturers to pivot from the UPF label and showcase the nutritional benefits of plant-based options. He stressed the importance of taste, quality, and sensory appeal, underlining that a collective effort across the entire value chain is crucial for meaningful improvements in the category.