Flexitarian Consumer Largely Contributing to the Plant Based Beef Market Growth
Rising awareness regarding health problems such as obesity, diabetes, heart diseases and other ailments, plant-based diet has been surging among individuals. Given their health benefits, consumers are shifting towards a semi-vegan lifestyle. These flexitarian consumers along with millennials largely prefer plant-based products, such as plant-based beef owing to their higher nutritive value and taste quotient. To add, the flexitarian consumer count has been increasing since past several years. For instance, according to a survey done by IFT (Institute of Food Technologists), over 36% population in the US is flexitarian. This trend is rapidly proliferating across regions and will continue to fuel growth of plant-based beef and associated products.
Availability of Different Choices of Plant Based Beef Products to Drive Sales
Consumer preference towards different tastes and healthy food has been a major factor boosting sales of plant-based food products. Considering the consumer preference aspect, manufacturers of plant-based beef are providing different types of products ranging from sausages and nuggets to meat balls. At the same time, nutritional value and taste of these plant-based beef products is being monitored for quality assurance in a bid to ensure all dietary needs are being met. Moreover, texture and flavour quotient are also looked upon by plant-based beef manufacturers, which is driving sales significantly. Alternatively, plant-based beef can be suited to people who are allergic to traditional beef. To conclude, availability of different plant-based beef products meeting consumer choices is expected to drive market growth.
Higher Price of Plant Based Beef Compared to its Animal Based Counterpart Likely to Hinder Market Growth
Although all consumer requirements from taste and nutritional standpoints are being met, a critical aspect – pricing – continues to impact the plant-based beef market growth. Compared to traditional beef, the prices of plant-based beef and its products are relatively higher. Average price of plant-based beef is around US$ 10/pound whereas traditional beef average price is US$4.5/pound in United States. Higher pricing will largely impact developing countries that are price sensitive, such as South Africa, India, and China. Taking this into consideration, manufacturers of plant-based beef are struggling to reduce production costs to lower consumer burden. However, this aspect is likely to remain a major growth cutting factor.
COVID-19’s Impact to Spur Plant Based Beef Sales?
COVID-19 has affected several businesses worldwide due to strict lockdown restrictions. Due to shutdown of offices and restaurants, sales of plant-based beef through online channels and grocery stores witnessed a significant boom. For instance, according to U.S. Census Bureau grocery sector sales reflected a 26.9% increase in March 2021 as compared to the previous month. Grocery stores in that month sold over 230% plant-based products than the previous year in the US. This can be attributed to the shift in consumer choice towards home cooked food as purchases could be done either by visiting stores (following COVID rules set by authorities) or through online channels. Although corona virus disrupted several businesses in 2020, coming years certainly seem positive with regards to sales of plant-based beef.
North America Likely to Cement Dominance in the Plant Based Beef Market
Plant based food demand in developed countries of North America has been a key factor driving sales of plant-based beef. For example, according to Good Food Institute analysis, the US market for plant-based products is over US$7 Bn and a US$14 billion opportunity stands for plant-based meat in the country in the coming years. Moreover, meat substitutes being a popular choice of consumers in North America, sales of plant-based beef products are likely to witness spike in the years to follow. In addition, obesity has been on the rise in the region. According to CDC, US obesity was over 42% in 2018. It also stated that sixteen states in the region are having obesity over 35%. This has shifted consumer’s preference towards healthy lifestyle and diet which is expected to accelerate the market for plant-based beef in the region.
Companies involved in the manufacturing of plant-based beef include Impossible Foods Inc., Gardein by Congra Brands, Symrise, Kellogg’s, Archer Daniels Midland Company, Tyson Foods and Beneo GmbH, to name a few.
Key Elements Included In The Study: Global Plant Based Beef Market
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