Innovation and Expansion Surround Plant-Based Dairy and Meat Alternatives but Market Still Remains Niche

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In recent years there has been a lot of expansion and innovation surrounding plant-based dairy and meat alternatives in the U.S., even with dairy and animal-protein manufacturers finding ways to enter the space, but the market’s potential is still being determined, finds The NPD Group

Plant-based dairy and meat alternatives may not appeal to everyone, but today's consumers are taking a personal approach in their pursuit of a healthy lifestyle and plant based alternatives are among the many choices at their disposal,” NPD's Portalatin.

In recent years there has been a lot of expansion and innovation surrounding plant-based dairy and meat alternatives in the U.S., even with dairy and animal-protein manufacturers finding ways to enter the space, but the market’s potential is still being determined. According to The NPD Group, a leading global information company, the market for plant-based alternatives is still evolving as consumers begin to leverage these items because of food allergies or they’re seeking what they believe to be more healthful options.

A logical conclusion to the plant-based alternatives buzz is that more people are living vegan (avoids all animal products), vegetarian (avoids meat products), or flexible vegetarian (mainly vegetarian with some exceptions) lifestyles; but, according to NPD Group’s ongoing tracking of eating attitudes and behaviors, very few follow the most restrictive vegan/ vegetarian diets. Only one percent of the population claims to be vegan or vegetarian and eight percent say they are flexible vegetarians, or about 27 million actually claim to follow a plant-based diet such as vegan, vegetarian or flexible vegetarian.

The 27 million consumers claiming to follow a plant-based diet aren’t necessarily consuming plant-based dairy and meat alternatives since the number who actually consume plant-based dairy or meat alternatives is approximately 25 million. Annual eatings per capita of dairy alternatives have grown from 19 in 2013 to 21 in 2016 or 6.8 billion eatings and the consumption of plant-based meat alternatives has declined from 5 in 2013 to 3 or 972 million eatings in 2016.

Consumption of plant-based alternatives still pales in comparison to dairy and meat consumption. For example, compared to the 3 annual eatings per capita of plant-based meat alternatives the average person consumes center-of-plate meat 73 times annually or what amounts to a total 23.3 billion eatings. Annual eatings per capita of milk is 117 or 37.9 billion eatings compared to the 21 annual eatings per capita of plant-based dairy alternatives.

“Plant-based dairy and meat alternatives may not appeal to everyone, but today's consumers are taking a personal approach in their pursuit of a healthy lifestyle and plant based alternatives are among the many choices at their disposal,” says David Portalatin, NPD’s vice president, industry analyst for Food and author of Eating Patterns in America. “Expanding consumer choice and empowering them to craft their own path may provide growth opportunities for manufacturers and retailers in this space.”

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About The NPD Group, Inc.
The NPD Group provides market information and business solutions that drive better decision-making and better results. The world’s leading brands rely on us to help them get the right products in the right places for the right people. Practice areas include apparel, appliances, automotive, beauty, consumer electronics, diamonds, e-commerce, entertainment, fashion accessories, food consumption, foodservice, footwear, home, mobile, office supplies, retail, sports, technology, toys, video games, and watches / jewelry. For more information, visit npd.com and npdgroupblog.com. Follow us on Twitter: @npdgroup

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Kim McLynn
The NPD Group
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