It looked as if plant-based food was going to be a thing of the past at one time. Beyond Meat’s 2023 sales report, which was often regarded as the standard bearer of this sector, did not go well. This sent plant-based meat into a downward spiral. The fear was that plant-based meat substitutes were just a fad, and would soon be forgotten.
But 2024 was a completely different tale. Sales increased despite ongoing challenges, such as taste problems, lack of parity in price, and the consumer’s backlash towards ultra-processing.
The sector has changed significantly since its inception. If they are to remain in business, plant-based producers will have to adapt to changing consumer tastes.
The old brands suffer
Linda McCartney Foods was founded in 1991 by the late Linda McCartney. It is among the oldest brands of meat alternatives on the market. Linda McCartney founded the Linda McCartney Foods brand in 1991. This was several decades before the trend of plant-based foods.
Quorn, which is older still, was launched in 1985 following a long period of experiments dating back to the 1960s.
Both brands are experiencing a downturn. Quorn revenues dropped 6.9% between 2021 and 2023. Sales have fallen to the lowest levels since 2017.
Hain Celestial Group (parent company of Linda McCartney) saw its net sales fall by 11% year on year in the third quarter of last year. Its CEO then resigned.
What is the reason for such steep losses in some of these brands?
We have found that taste is the key success factor in plant-based food retailing and serving. Gemma Tadman is the business communications manager for ProVeg International. She says that all companies must ensure their product tastes as good, if not better than meat alternatives. She stresses, however, that ProVeg cannot comment directly on these two brands.
The competition among newer brands is intense. They have invested heavily into taste and texture. The consumer is going to choose the product they feel has the best taste.
A changing market
Newer brands are not facing the same challenges as these older brands.
This brand, founded in the UK, has been a success. It has had a high level of success in sales, despite its struggles to achieve profitability. Sales had increased by 47% at the end of 2023.
Moving Mountains was established in 2016 and has seen success in sales. The company reported a 30 percent increase month over month in sales in 2021 for the new website Sifted.
Tadman from ProVeg believes that such a success can be attributed to recognizing and addressing current trends.
These companies adapt to changing consumer preferences and demands. We are seeing a growing demand for products like wholefoods, wholefood inspired products and products with less processing or products that appear to be less processed.
Moving Mountains and THIS have both launched superfoods that are not meat mimics. The consumer is looking for more than just meat-like products. They want to see vegetables at the forefront and less processing.
Helen Breewood explains that understanding your audience is key to success in the plant-based world.
To encourage more people to adopt healthier and more sustainable diets and act on their intention, brands that are plant-based need to clearly communicate the needs of their target segment, whether it’s to lose weight, build muscle, or provide affordable meals for families.