Groundbreaking PBFA Report Reveals Consumers Opt for Plant-Based when Given the Choice

Written by: Linette Kwon

From supermarkets to restaurants to e-commerce outlets—and everything in between—the bottom line is clear: Consumers want more plant-based foods.

In our 2022 State of Marketplace report, PBFA shared the latest industry data covering the performance of plant-based food sales across retail and foodservice. We found that the industry hit a record $8 billion in U.S. retail sales, driven by continuous innovation and a growing variety of options. These retail gains were significant considering the marketplace landscape coming off of the pandemic, supply chain disruptions, and a rising inflationary environment. Despite challenges for our nascent industry, plant-based food brands and marketplace partners alike helped sustain consumer demand for plant-based foods, and we saw a number of newer channels like ecommerce and foodservice grow.

This year, our Marketplace Development team has continued to analyze the performance of plant-based foods across channels, uncovering unique category trends and promising areas for further expansion, releasing the findings in our Plant-Based State of the Marketplace 2023 Report. In 2023, we saw the continuing effects of inflation on shopper behavior in retail, with overall dollar expenditures increasing but purchased units of all foods decreasing. Nevertheless, grocery shoppers have continued to seek out delicious and nutritious plant-based options (that now cover all classic foods), and the repeat rate of various plant-based categories have remained strong, demonstrating shopper loyalty and retention. In e-commerce, the annual growth rate for plant-based foods has now surpassed animal-based foods. Plant-based menu items are growing in foodservice outlets and not only are consumers coming back for more plant-based foods but operators are noting a significant increase in revenue from expanding their offerings. In short, we continue to see that plant-based foods ARE innovation and are driving growth and excitement.

2023 U.S. Retail Highlights for Plant-Based Foods

Our goal is to provide the latest, and most accurate data on the performance of the plant-based foods industry and deliver insights to inform and empower our members –– while also providing vital context to shape the broader understanding of the space. In our new report, 2023 Plant-Based Foods State of the Marketplace leverages insights from data partners SPINS, Technomic, 84.51°, Circana, Innova Market Insights, Palate Insights, and Mintel, and features crucial perspective from retailers and foodservice operators like Whole Foods, Earth Fare, and Sodexo. Our latest report is free to download for PBFA members (and available for purchase to non-members – to inquire about membership, click here).

The report covers retail, foodservice, e-commerce and consumer insights, but to give you a taste of what is in store, we’re happy to share some retail highlights.

While plant-based meat and milk still constitute the majority of sales, we see other categories gaining more traction in certain markets.The report uncovers opportunities for various plant-based categories such as dairy, cream cheese, sour cream and dips, baked goods, ready-to-drink beverages; and lays out data illuminating rapidly diversifying plant-based protein categories like tofu, eggs, and meals.

A few breakout highlights from the report:

• In 2023, plant-based foods dollar sales reached $8.1 billion, growing 79% over the past five years. The household penetration rate and repeat rate remained strong at 62% and 81%, respectively.
• From 2021 to 2023, a majority of plant-based categories grew in dollar sales, with plant-based creamers, plant-based ready-to-drink beverages, plant-based protein liquids and powders, plant-based baked goods, and plant-based eggs growing in both dollar sales and unit sales.
• While the plant-based dollar share was nearly five times greater in the natural channel alone, certain plant-based categories such as yogurt, butter, and baked goods also grew rapidly across convenience stores.
• When plant-based foods are easy for consumers to find with ample space and signage, both units and dollar sales outpace all other plant-based categories. As an example, in the case of plant-based milk, where sets are expansive, dollar sales are offsetting animal-based milk declines.Despite inflationary challenges, plant-based foods held firm at a 3.8% market share in total markets, and captured an impressive 18.4% in the natural market channel.
• Although health remains a top motivator today, we are now seeing consumers seek out plant-based options for many other salient reasons, including taste/flavor preferences, the excitement of trying something new, and the desire to add more variety to their eating.

Interested in learning more?

This report is exclusively available to PBFA members. To access the full report and more insights, learn more about joining here.

Plus, there’s more to come: Beyond this report, our Marketplace Development team is creating more member-exclusive industry data resources, such as informative videos and detailed one-pagers that will guide you through the data and help you advance your business. Stay tuned for more updates!