The growth of meatless products is on a knife edge as manufacturers face market pressures that could easily deter consumers from the category. These include changes in economic conditions, dietary requirements or work patterns.
Chris Doe, Pilgrim's Europe's marketing and innovation director, says the meat-free category has seen a sharp decline in recent years as consumers have tightened their budgets.
The economy is now improving, thanks to rising wages and falling inflation. There is also more room to budget.
Doe reports that sales are starting to pick up after two years of decline in the category. “Refrigerated meatless meal components in particular saw a 0.6% increase,” he says.
Meatless Product Sales Performance
Unlike other FMCG products, meat-free brands dominate refrigerated foods, with a share of 81.8%. He continues: “Richmond Meat Free, for example, has seen sales increase by 11.3% year-on-year for four successive periods.
While continued positive growth is not guaranteed, taste is a major hurdle. In a November 2023 survey conducted by IGD, 45% of UK respondents thought vegan food did not taste the same as other foods.
Consumers were looking for products that could be used in multiple recipes, not just as one. It’s not just vegetarians or vegan customers who are looking for versatility. [manufacturers] “There’s an opportunity to appeal to flexitarians, who want to include meat-free foods in their regular diet.
The cost of living crisis continues to affect consumer spending. This has led consumers to eat more at home, up to 15%, than before COVID-19.
Doe continues: “Continuing changes in work patterns are also affecting consumer behavior.” Increasing flexibility in work schedules has led to a 12% increase in the number of lunches eaten at home and a 45% increase in lunches eaten away from home.
What will Pilgrims do to innovate?
Doe explains that since taste is the most important factor in retaining or losing category consumers, Pilgrim's will continue to invest heavily in this area.
He says Richmond invests heavily in flavoring and product diversification to meet consumer demands. We make a point of conveying these qualities to consumers through our advertising campaigns.
Richmond's meat sales value increased by $2.3 billion, with growth in chicken and pork sales.
We have redesigned the chicken sausages we sell to offer great taste and an affordable price. Our goal is to make sausages more accessible to everyone.
He added that a series of new meat sausages would help boost sales of 35 % in the coming months.
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