Recent insights from the “Plant-Based Migration Analysis” conducted by The Kroger Co., the Plant Based Foods Institute, and 84.51° reveal a significant trend in consumer behavior. For the fourth consecutive year, households that increased their plant-based food purchases have consistently reduced their spending on animal-based food categories. This shift is underscored by data analyzed from approximately 7 million consumer households over the two-year period from 2022 to 2023, creating a valuable resource for retailers aiming to expand their plant-based offerings.
Julie Emmett, Vice President of Marketplace Development at the Plant Based Foods Institute (PBFI), expressed enthusiasm about the research partnership with 84.51°. The collaboration has provided a comprehensive view of household spending patterns across various food categories. Emmett noted, “This research reveals evidence of a shift away from animal-based food and toward plant-based foods for a variety of reasons.” This understanding allows retailers to strategically devise merchandising and marketing tactics that promote growth in this burgeoning market.
Key Findings
Several crucial findings from the report highlight the ongoing transition in consumer preferences:
1. Continued Shift from Animal-Based Products: Consumers new to or increasing their plant-based purchases are noticeably cutting their spending on animal-derived products, particularly in categories like milk, cheese, and fresh meat. The expanding variety of plant-based options has encouraged shoppers to move away from traditional animal-based diets.
2. Increased Loyalty in Key Categories: Engagement with plant-based foods correlates with heightened spending and loyalty in specific segments such as plant-based milk, frozen meat alternatives, and frozen meals. This trend indicates that once shoppers incorporate plant-based items into their diets, they often remain loyal to these new choices.
3. Health and Financial Drivers: Health consciousness remains a primary motivator for consumers shifting to plant-based foods, with nearly half of households indicating it as their main reason for increased spending in this category—reflecting a 7% rise from the previous year. Moreover, the rising costs associated with animal-based foods have emerged as a significant influencing factor, showcasing a 9% increase from last year.
4. Challenges for Some Consumers: For households reducing their plant-based purchases, taste, flavor preferences, and budget limitations were noted as primary barriers. Additionally, some consumers expressed the perception that plant-based options are more limited than their animal-based counterparts, which can discourage their adoption.
Linette Kwon, a data and consumer insights analyst at PBFI, highlighted the resilience of consumer interest in plant-based foods despite recent economic challenges. “As the challenges of price and findability improve, we believe different plant-based categories will have many more opportunities to better reach shoppers,” Kwon added, emphasizing the growing market potential as retailers adapt their offerings to meet changing consumer demands.
Implications for Retailers
The extensive findings from this analysis provide retailers with actionable insights to reinforce their plant-based product offerings. Here are several strategies retailers can consider:
1. Expand Product Range: Increasing the variety of plant-based products can attract a broader audience. Retailers might consider introducing innovative items, making plant-based foods more accessible and appealing to different consumer segments.
2. Health-Focused Marketing: Highlighting the health benefits associated with plant-based diets could resonate well with consumers driven by health-conscious motives. Informative labeling and marketing campaigns that emphasize health benefits may enhance consumer interest and trust.
3. Consumer Education and Sampling Programs: Initiatives that educate consumers about plant-based nutrition and provide sampling opportunities can address the taste and flavor concerns expressed by some. In-store tastings and online educational content can engage shoppers and promote their willingness to try new products.
4. Competitive Pricing: Especially for households concerned about budget constraints, competitive pricing strategies may be crucial. Retailers could explore promotional offers or bundled pricing to encourage trial and repeated purchases of plant-based items.
Conclusion
The findings from the “Plant-Based Migration Analysis” underscore a significant shift in consumer behavior toward plant-based foods, impacting animal-based food sales. With health and cost considerations driving these changes, retailers have unprecedented opportunities to pivot their strategies. As the demand for plant-based products continues to grow, those that can adapt their offerings and marketing tactics effectively will likely cultivate deeper customer loyalty and drive long-term growth.
