As inflation soars, shoppers are feeling the pinch. Understandably, they are even more conscious about how they spend their hard-earned pounds. In this context, it could be tempting for retailers to react by relying on ‘safe’ ranges that are proven hits with consumers and avoid taking risks with new products in less mature categories.
But the world is changing and the boom in plant-based products can’t, and shouldn’t, be ignored.
The astronomical rise of the plant-based category shows no sign of slowing down. The category is projected to reach nearly £1bn by 2026 – an incredible 74% increase. The opportunity for retailers to capitalise is huge. When it comes to the plant-based category, brands and retailers must resist turning their back on NPD.
Plant-based alternatives are no longer a novelty: shoppers are increasingly expecting to see them on the shelves as standard. The consumer base for the category is continuing to grow – it’s not just vegetarians and vegans any more. In fact, 43.7% of UK shoppers consider themselves to be following a flexitarian diet compared with 2% following a vegan diet and 5.2% a vegetarian diet.
For this flexitarian group of shoppers, perhaps looking to dabble in the plant-based space for the first time, known brands are a gateway into the category. If they spot a new plant-based product from a brand they recognise and trust already, it helps reassure customers they will enjoy the product and make them feel confident that they’re not wasting money at a time when they are feeling the pinch.
As the plant-based category grows, there is an increasing expectation that stores offer as many options as in meat, and particularly a variety of products at accessible price points. There has been a lot of progress towards meeting this expectation. The popularity of plant-based has been driven by a steady stream of NPD, which keeps the category competitive for shoppers.
However, there is still a long way to go before the plant-based aisle offers as wide a selection of products as the meat aisles. More innovation is still needed to provide choice that caters to different dietary requirements and budgets.
The growth of plant-based is indicative of a shift towards consumers seeking out healthier, more sustainable options – something that remains important as the cost of living bites. New data from NielsenIQ reveals 60% of UK households believe it’s important to buy sustainably sourced grocery products. Plant-based products are an easy option for shoppers wanting to make small changes that are better for them and the planet.
I’m confident the future holds great things for the plant-based category, and it will continue to be a reliable way to meet customers’ needs. But it relies on brands continuing to innovate and push boundaries. We must make the plant-based choice easier for shoppers by offering a variety of products at competitive price points that are clearly visible in store. Now is not the time to turn our backs on innovation.
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