There are a few phrases we would like to leave behind with 2021, “supply chain disruption” and “lockdown” chief among them. But as the grocery industry emerges from another holiday season with all its traditional (and more recent) challenges, I wanted to share some happier data from the world of plant-based foods. As I’ve mentioned in this publication before, the strong growth of the plant-based food segment is looking more like a social movement than the reflection of a trendy consumer preference. A recent Leger Consumer Research study showed that 8 in 10 Canadians say they have eaten plant-based foods, and two-thirds of Canadian consumers say they eat plant-based foods “frequently.” That’s a seismic shift, not some fad diet.
How strong is the segment’s growth?
Retail sales data shows dollar growth for plant-based foods was twice that of total food and beverage, at 25 per cent versus 12 per cent, according to NielenIQ data, January 2021. But the numbers really get exciting when you look within the category. Non-dairy beverages— perhaps the most “mature” plant-based category—now represent 10 per cent of total milk sales. What’s more, those beverages saw sales growth of 19 per cent in 2020. Meat alternatives? A huge jump of 34 per cent. Non-dairy cheeses? Up 38 per cent. Non-dairy yogurt? Up a staggering 49 per cent. That’s disruptive growth, in the best sense of the word.
What’s driving growth?
Companies are bringing to market new options that offer variety and superior taste, and consumers are responding. To cite just one example, plant-based seafood and egg alternatives have seen several innovative new entrants. We’ve come a long way from a few tofu burgers relegated to a lonely corner of a cooler.
What’s in store for 2022?
My 2022 prediction: plant-based food sales will continue to grow in the year ahead. Here’s why: when researchers ask consumers why they choose to eat plant-based foods, the second answer they give (after health and nutrition) is “variety.” Well, if variety is what consumers seek, they will be amazed by the new choices coming to shelves in the year ahead, and these new choices will attract even more consumers looking to integrate plant-based options into their existing diets. And the most encouraging data point of all: consumers feel good about their plant-based options. Fully 71 per cent of those in the Leger survey said they have a positive view of plant-based foods. Health, choice, and a feel-good consumer sentiment? Plant-based food products are sounding like a great way for grocers to start the year.
Leslie Ewing is the executive director of Plant-Based Foods of Canada leslieewing@plantbasedfoodscanada.ca