Sales of plant-based products have grown over the last three years

Sales of plant-based products have grown 51% over the last three years, according to a new report from the FMI, the Food Industry Association.

Over the past year, sales of plant-based foods such as fruits, vegetables, beans and whole grains and alternatives to traditional animal-derived items have increased 8%, FMI's Power of Plant-Based Foods and Beverages 2022 report found.

Data shows that 42% of consumers “put either a lot or some effort into selecting plant-based foods or beverages.”

The FMI report, sponsored by NielsenIQ, surveyed 2,009 U.S. grocery shoppers, 18 years of age or older, between May 9 and May 25. The FMI study revealed consumers’ attitudes toward plant-based alternatives, such as awareness and interest.

Plant-based meat alternatives represent more than $1.5 billion in sales, with a growth of 60% over the past three years. But in the past year, there has been little to no growth. Of the shoppers who participated in the study, 36% identify as meat eaters, 9% occasionally eat meat and 10% avoid meat.

“More than 40% of shoppers at least occasionally eat a meat, dairy or seafood alternative, but dairy alternative sales are more than twice those of meat alternatives,” Steve Markenson, director of research and insights for FMI, said in a statement.

The plant-based foods most likely to be regularly consumed by shoppers are naturally plant-based—fruits and vegetables (75%), and beans, nuts or grains (47%), Markenson said.

Plant-based dairy milk alternatives make up more than $2.5 billion in sales annually, with growth over the past three years of more than 33%. In the past year, growth has only been 6%.

Plant-based ice cream, cheese, yogurt and sour cream generate more than $2 billion in sales annually. Over the past three years, sales have grown more than 20%, but in the past year, there has been very little to no growth.

The characteristics of plant-based consumers was also mentioned in the report, revealing that shoppers put either a lot (14%), or some effort (28%) into selecting plant-based options. Those who regularly eat animal-product alternatives (43% of shoppers) are more likely to put additional effort into selecting plant-based foods and beverages. Millennials put more effort (25% a lot, 37% some) into selecting plant-based foods and beverages than Gen X and Boomers.

Taste is an important factor when purchasing plant-based food and beverages (58% of consumers said it is extremely important), followed by quality (48%), and value (43%). A third of consumers expect to increase their consumption of plant-based products (16% said they will increase consumption a lot).

“Our ethnographic research suggests consumers are seeking out plant-based foods and beverages primarily for both taste and nutrition,” Krystal Register, senior director for health and well-being at FMI, said in a statement.

Feedback from shoppers also indicated that there is still some confusion about plant-based products, such as “ lack of knowledge about key attributes of these options.” Many consumers associate plant-based foods and beverages with words like  “vegan,” “vegetarian,” "organic” or “natural.” While other consumers admitted that the word “healthy” comes to mind when they think about plant-based items.

Two-thirds of consumers said they are somewhat knowledgeable about plant-based foods and beverages; and only about a fifth said they are very knowledgeable. Sixty percent of shoppers want to become more knowledgeable.

When asked if consumers knew where to find plant-based products in their store, 75% said they know where fruits and vegetables are, but are uncertain about other plant-based items.

“The food industry has an opportunity to provide guidance and educate consumers on overall healthy eating approaches that include plant-based options in alignment with the Dietary Guidelines,” said Register.

Sherry Frey, vice president, total wellness, NielsenIQ said, “This research comes at a critical inflection point that will help the industry understand consumers and their drivers around plant-based decisions.”