The Evolving Landscape of Plant-Based Foods in the US
A Closer Look at the Industry’s Growth and Challenges
The plant-based food industry in the US has undergone significant changes over the past three years. From 2018 to 2021, total sales in this sector surged from $4.8 billion to $7.4 billion, reflecting a growing interest in meat and dairy alternatives. However, despite this impressive growth, the industry has faced its fair share of challenges, with some consumers expressing dissatisfaction with the taste, texture, and affordability of certain products.
Plant-Based Milk: The Dominant Force
While plant-based meat alternatives have garnered considerable attention, it is the plant-based milk category that has truly taken the lead. Dairy milk alternatives, such as soy, oat, and almond milk, now account for nearly 15 percent of total milk sales in the US. In contrast, plant-based meat and seafood alternatives hold a mere 1 percent share in their respective markets. Plant-based milks alone constitute nearly a third of the entire plant-based food category in the US, as defined by the Good Food Institute.
The Broader Plant-Based Dairy Landscape
When considering the broader plant-based dairy landscape, which includes butter, ice cream, yogurt, and cheese alternatives, US sales in this category reached nearly $5 billion in 2023. Although dollar sales of plant-based milk grew by 9 percent from 2021 to 2023, unit sales declined by 10 percent during the same period. According to the Good Food Institute, total sales in the plant-based sector amounted to $8.1 billion.
The Climate Impact of Plant-Based Meat
Proponents of plant-based meat argue that replacing beef burgers with plant-based patties could significantly reduce the carbon footprint of our diets. Animal proteins, particularly beef, lamb, and dairy, are major contributors to food-related emissions. However, given the relatively small market share of plant-based meat alternatives, it remains uncertain whether the industry is having the desired impact on carbon emissions.
Industry Leaders Adapt to Challenges
In response to the challenges faced by the plant-based meat industry, prominent brands are taking steps to reinvent themselves. Impossible Foods recently relaunched its range of alternatives with a new, meatier style aimed at attracting “meat lovers” to the plant-based fold. Similarly, Beyond Meat introduced the fourth-generation version of its burger and ground beef in February, boasting improved taste and texture.
“We’re continuously working to improve our products to deliver the best possible consumer experience.”
Health concerns have also posed challenges for the plant-based meat industry, given the high level of processing often required to create these products. In response, Beyond’s new burgers have reduced salt and saturated fat content compared to the previous generation, and feature a “simplified ingredient list.” Many other plant-based companies are also emphasizing their ”clean-label” credentials to address these concerns.
The Future of Plant-Based Foods and Climate Impact
The success or failure of this plant-based pivot holds significant implications for the climate impact of our diets. As the plant-based revolution in the US experiences a slower start than anticipated, the industry continues to evolve and adapt to consumer preferences and environmental concerns. The coming years will be crucial in determining the trajectory of this sector and its potential to contribute to a more sustainable food system.
3 Comments
Plant-based meat’s journey really puts the “mock” in “mock meat,” huh?
Seems like plants got a taste of their own medicine, didn’t they?
Plant-based meat’s roller coaster market? Guess it’s not all green on this side!