Plant-based food sales through US retail dropped in value and volume terms in 2023, as revealed by new findings, with significant declines noted particularly in meat and seafood alternatives.
According to data from SPINS and the Good Food Institute’s (GFI) latest State of the Industry report, plant-based food dollar sales decreased by 2% last year to $8.1 billion. Sales volumes also saw a decline of 9% to 1.8 billion units.
Meat and seafood alternative dollar sales decreased by 12% since 2022 and by 13% since 2021, reaching $1.2 billion in 2023. Unit sales growth for plant-based meat and seafood saw declines of 19% compared to 2022 and 26% compared to 2021, totaling 215 million units.
According to the report, household penetration rates remained stagnant or declined in 2023, with plant-based meat and seafood experiencing a four-percentage-point drop to 15%. This highlights the necessity to reconnect with consumers.
Continue Exploring: Simply Good Foods to acquire plant-based protein shake brand OWYN in $280 Million deal
Plant-based meal sales also experienced notable declines in US retail, with dollar sales growth reaching $498 million in 2023, marking a 14% decrease from 2022 and a 15% drop from 2021. Unit sales growth stood at 96 million, reflecting a 22% decline from 2022 and a 28% slump compared to the previous year.
Among all plant-based categories, milk alternatives secured the leading position, with dollar sales increasing by 1% compared to 2022 and by 9% compared to 2021. However, unit sales witnessed a year-on-year decline of 8% and a 10% drop compared to 2021.
In terms of purchase repeat rates for 2023, plant-based milks demonstrated the highest performance, with 79% of consumers repurchasing the product. The report highlighted that nearly half of US households bought the product at least once during the year.
Continue Exploring: GFI India study unveils popular choices in plant-based foods: Chicken seekh kabab and soy milk lead the pack in consumer trials
Next in line were plant-based creamers, with 65% of consumers repeating their purchases, closely followed by meat and seafood alternatives, which saw 62% of consumers doing the same.
The repeat purchase rates were lowest for plant-based eggs and cheeses, at 48% and 49%, respectively.
As per the Good Food Institute (GFI), retail sales of plant-based foods in the US have surged by 51% since 2017, marking the inception of the think tank’s monitoring of this segment.
Continue Exploring: Nestlé India collaborates with SOCIAL and BOSS Burger to debut MAGGI’s plant-based menu across major cities
