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Examining effective strategies in the plant-based space [Interview]

There have been increasing concerns that the plant-based success story might be souring. Euromonitor analyst Javier Muñoz looks at what is really going on behind the headlines and identifies several strategies for success.

Anthony Fletcher, Freelance Journalist

July 29, 2024

3 Min Read
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A renewed focus on health – accelerated by the Covid-19 pandemic – has led more and more consumers to examine their diets. Growing numbers have been searching out plant-based alternatives, not just for health reasons but also because of issues such as sustainability and personal ethics. This in turn has driven manufacturers to formulate and launch ranges of plant-based products, targeted at a broad consumer base.

More recently however, there have been fears that the plant-based bubble might be able to burst. Consumer worries over costs, as well as supply chain issues have been cited as possible reasons. At this year’s Fi Europe, Euromonitor’s Javier Muñoz will examine such concerns in more detail, and present an accurate picture of the market that aims to cut through the noise.

“I have the impression that some of these concerns come more from certain companies not meeting their goals, rather than the actual current state of the industry,” he says. “We also must differentiate between plant-based dairy, and plant-based meat and fish substitutes. The second category does raise some concerns, from what I see. We are coming from a period of great expansion of plant-based categories, which cannot be sustained at the same level every year.”

Opportunities and challenges in the plant-based market

Muñoz notes that while the plant-based meat substitute market is indeed declining in North America – the US makes up most of the market – it is still growing in Western Europe, the other key global market. What’s more, it is growing at higher rates in Eastern Europe, where there is more margin to grow.

“Consumers overall are adapting to new trends, and approaching this sector with curiosity,” he says. “They are still finding out what they like, and what works best for their needs.”

Muñoz also notes that the range of products on offer has continued to increase, across all types of outlets and for all types of plant-based products. This has been key to triggering curiosity among consumers, many of whom have already expressed an interest in plant-based products.

On the other hand, as consumers have been becoming more informed, new issues have arisen. These include concerns that meat substitutes are often overprocessed, contain too many ingredients, and are not that nutritionally beneficial.

“Consumers are now questioning things more than ever, and demand transparency and honesty from companies,” says Muñoz. “Manufacturers have reacted in turn, by making their labels as clean as possible, highlighting health benefits, and putting huge effort into communicating with consumers.”

How manufacturers are responding to consumers

At Fi Europe, Muñoz will examine in more depth how manufacturers are addressing these opportunities and challenges. “Interest in plant-based products is still evolving rapidly, which is why our research looks deep into categories, and closely tracks new product developments,” he says. “We can see for example that different shapes and cuts of plant-based meat are still growing, with pea protein growing quickly over the last couple of years thanks to its popular flavour and texture.”

Muñoz notes that plant-based fish substitutes are also finding their place in the market, while still behind meat substitutes. Battered fish alternatives are one of the most popular options in the category, while canned tuna is also proving popular.

As for plant-based milk, formats are a big part of the current evolution,” he says. “These include smaller Tetra Paks, as well as alternatives like dried oat milk sheets and tabs. We still have to wait to see the public’s reaction to these.”

Manufacturers are also taking account of health concerns, through reducing ingredient lists. “At Fi Europe, we will discuss the current state of the industry, and delve a bit deeper into new product development, to see what kind of attributes and claims are proving successful,” says Muñoz.

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