Plant-based meat and milk are now mainstream choices for British consumers

There’s no doubt it’s been a tough few years for the UK’s plant-based sector – in common with other parts of the food and drink industry. But after a rollercoaster of sudden growth followed by struggling sales, there are now signs of stabilisation. 

24 October 2024

Solid grounds for optimism in the UK sector  

There’s no doubt it’s been a tough few years for the UK’s plant-based sector – in common with other parts of the food and drink industry. But after a rollercoaster of sudden growth followed by struggling sales, there are now signs of stabilisation. 

Our latest GFI Europe report examines British consumers’ shopping habits and finds that plant-based meat and dairy have become an established part of how millions of people eat and drink – with around a quarter of people now buying plant-based meat and milk more than once a year.

The latest sales data suggests that behind the challenges that have driven so much media speculation, something much quieter and potentially more significant has taken place – plant-based has become an everyday part of our food system.

Data source: Kantar’s GB Grocery Consumer Panel.1

Some commentators have branded the plant-based sector as little more than a fleeting vegan trend, but with YouGov finding that just 2-3% of British adults are vegans, it’s clear that people with a range of dietary preferences – such as flexitarians and omnivores – are buying these options.  

Evidence from organisations including the Food Standards Agency points to plant-based foods being part of a small but reasonably widespread change in the UK’s shopping habits – with 27% of adults now saying they purchase plant-based meat once a month. 

There are emerging signs that retailers are responding to this trend by making plant-based items more convenient for shoppers, with M&S and Tesco having changed the location of some of their plant-based products so they sit alongside animal-based counterparts rather than being confined to their own section.

Figures show slowdown may be levelling off

Our analysis of Circana retail sales data – looking at nine plant-based food categories – confirms the bumps in the road continued into 2023 as the sector faced challenging economic headwinds, but suggests the slowdown may be levelling off. 

UK consumers bought an average of 9.1 million plant-based products per week from major supermarkets in the first part of 2024. This is a drop of 2.6% compared to weekly averages during 2023 but follows a difficult period between 2022 and 2023 when unit sales dropped 9.9%. 

Weekly unit sales of plant-based meat fell by 6.7% in early 2024 compared to last year’s weekly average – a lower drop than between 2022 and 2023 when the category saw an 11.9% drop.

Unit sales of plant-based milk and other drinks experienced a 1.4% decline – much smaller than the 9% fall experienced between 2022 and 2023. 

Elsewhere, there are encouraging signs in smaller categories. Average weekly unit sales of plant-based cream were 12% higher in early 2024 than in 2022, and this plant-based option is now cheaper per litre than branded conventional dairy cream. Plant-based cheese and seafood, too, have seen rising demand.

And as 2024 draws to a close, it is positive to see one of the UK’s fastest-growing retailers,  Lidl, is poised to triple the number of plant-based products in its own-brand range, after seeing a 12% increase in demand last year.

Industry experts call for tastier, more nutritious and affordable products

I spoke to industry experts to understand what we should make of these figures and one word came up over and over again – taste. 

When the market expanded rapidly in the late 2010s, producers and retailers rushed to seize on the opportunity, resulting in products hitting the shelves that, frankly, weren’t good enough – just as the category was attracting a raft of attention. Many initially curious consumers were left feeling underwhelmed. 

The cost-of-living crisis is another factor likely to have affected demand, as Brits seek cheaper and more budget-range items

Our analysis found that plant-based milk is typically two-thirds more expensive per litre than cow’s milk, while Food Foundation research identifies price premiums for plant-based meat. Evidence suggests that higher-income consumers are substantially more likely to say they eat plant-based meat, possibly meaning that many UK households find these prices hard to swallow.

We have also seen that plant-based meat is one of the categories consumers most commonly associate with ultra-processed foods, despite solid evidence that plant-based products offer many health benefits over animal-based equivalents.

With food prices rising, a media storm around nutrition, and plant-based products that often don’t meet consumers’ expectations, it’s hardly surprising that some people have opted against purchasing plant-based options for now. 

The good news is that – with this sector still in its infancy – there is huge potential for improvement and work is taking place across the country to develop and market tastier, more affordable and more nutritious next-generation products. 

Findings from newly announced research hubs such as the National Alternative Protein Innovation Centre – working on these very problems – are likely to unleash a wave of insights the food industry can draw on over the next few years.  

UK government must act to unlock green growth and deliver health benefits

Correcting the course of the plant-based market isn’t just a problem for the private sector – the UK government will also benefit from plant-based foods becoming more appealing. 

First, we would be a healthier nation if we swapped some of the vast quantities of processed meat we eat for a plant-based meat option – as has been shown by the Food Foundation and the London School of Hygiene and Tropical Medicine. A government that wants to reduce the impact of diet-related ill health should see the plant-based sector as an untapped opportunity.

Second, this remains a young and dynamic sector that, by adopting new innovations developed by UK researchers, can deliver science-driven green growth

However, businesses’ uptake of new innovations and the creation of strong domestic supply chains are not guaranteed. A worst-case scenario would be that government apathy means Brits will simply tuck into tastier plant-based products imported from elsewhere, with other countries reaping the economic and food security benefits of this growing sector.

Three impactful actions that the new government must take to seize this opportunity include: 

  • Expanding public research and innovation funding for plant-based foods. Doing so can tackle issues around taste that are keeping consumers away, unlock latent demand among those still willing to try, and drive nutritional improvements. 
  • The UK lacks the infrastructure many plant-based businesses require. Identifying key bottlenecks, such as protein separation capacity, and working alongside the private sector to finance solutions will help to develop local supply chains for crops like peas and fava. This can provide opportunities for British farmers and increase domestic food production.
  • Reforming public procurement to help stimulate demand for plant-based foods while delivering health and nutrition benefits in schools, hospitals and other institutions.

The sector’s difficulties are well documented. However, it is too often forgotten that a large number of ordinary Brits now choose oat milk in their morning coffee, opt for a plant-based bolognese for their evening meal or enjoy a plant-based burger at the weekend. 

There is now a solid foundation on which a future expanded sector can be built. The food industry and the government need to recognise this opportunity – and build it.

  1. Gross sample 30,000 households, 52w/e December 2021, 2022, 2023, penetration %, repeat rate % for plant-based meat alternatives (meat analogues) and plant-based milk. The panel is weighted up to be demographically representative of households in Great Britain (not including Northern Ireland) with household main shoppers aged 18 and over. It continuously and electronically records purchases taken back into the home for private consumption and shows them weighted and extrapolated. ↩︎

Author

Linus Pardoe Senior Policy Manager, UK

Linus works with policymakers in the UK to advance plant-based foods, cultivated meat and fermentation.