Consumer Demand Reshapes Plant-Based Food Landscape: What New Data Really Says About the Industry

The Plant Based Foods Association's new 2024 State of the Marketplace Report provides data-driven insights into the evolving plant-based food landscape – illustrating how much the industry has changed in the past few years alone. Thanks to innovative brands who are leaning into consumer insights and developing foods that meet growing interest in clean labels, bold flavors, and ready-to-eat options, the plant-based food industry has grown from six primary categories in 2018 to over 20 today. The picture of plant-based foods and the categories that encompass this dynamic industry has changed – vastly. As the report reveals, the shifts in this space are being driven by a keen focus on consumer insights and dedication to delivering products that suit every eating occasion and offer functional benefits attuned to top interests like protein, simple ingredients, and convenience.

The report also outlines key strategies for marketplace partners, including investing in consumer education, optimizing merchandising and visibility, and highlighting the health and environmental benefits of plant-based foods, which align with growing consumer interest in sustainability. It also incorporates insights from top marketplace leaders from Walmart, KeHe, and Sodexo speaking to how they are incorporating plant-based foods into their business. You can purchase this report here.

Key findings from the report illustrating the industry's evolution and areas of growth include:

• Strong consumer engagement, with 59% household penetration and a 79% repeat purchase rate in grocery retail. Health is cited as the primary motivation for purchase.

• The report highlights that consumer feedback has driven innovation, leading to improved taste perception (up from 23% to 36% compared to prior year) and a trend towards diverse ingredients and plant-forward products.

• Despite a challenging economic environment, including inflation and supply chain disruptions, the sector maintained a value of approximately $8.1 billion in U.S. retail sales for the past three years, while total grocery food sales remained flat in unit sales and grew only 2.3% in dollars.

• Several retail categories experienced growth in 2024, such as plant-based protein powders and liquids (up 11% in dollars, 13% in units to $450M), baked goods (up 13% in both dollars and units to $111M), and tofu and tempeh (up 7% in dollars, 6% in units to $221M).

• The industry is expanding its presence in foodservice sectors, particularly in business and industry, education, healthcare, and government operations, with operators increasing investment in categories like plant-based milk and tofu.