The plant-based sector has been on a bit of a roller coaster over the past decade. Following years of limited attention and popularity among a very specific consumer base, it climbed to new heights in the years right before the pandemic. For a while, it seemed like the sky was the limit for the plant-based sector, having finally reached a broader consumer base and gaining widespread popularity, thanks to health and wellness trends that emphasized reducing animal proteins and finding creative ways to increase the number of plants in one’s daily diet. Now, however, the plant-based sector is experiencing some twists and turns, as consumers face budgetary constraints.
How can the plant-based industry take advantage of the latest trends to get back on the up-and-up? Keep reading for our experts’ insights into what’s going on in the plant-based industry right now and how plant-based brands can be proactive to get back on track.
Overcoming Inflation
Inflation and economic uncertainty are the biggest challenges facing the plant-based sector. Although wage growth is outpacing inflation for the first time in several years, consumers are still feeling the economic aftershocks of the pandemic, having less disposable income and struggling to maintain the same standard of living they had before. This means that they’ve been cutting back on unnecessary expenses when possible, and some of that cutting back has been taking place at the grocery store.
The plant-based sector has been a casualty in all of this, as plant-based products tend to be more expensive than their counterparts. Indeed, plant-based meat and dairy alternatives, in particular, have suffered, as consumers simply cannot justify their cost when compared to cheaper, animal-based alternatives.
Despite budgetary constraints, the interest in plant-based products is still there, however. According to Datassential, 44% of consumers are interested in a “plant forward” diet, in which they prioritize eating primarily plant-based foods. The challenge – and opportunity – therefore, is to innovate to create more affordable plant-based products that help consumers achieve their health and wellness goals without breaking the bank.
Leveraging Other Trends
The plant-based products and restaurant chains that have been thriving amidst the ups and downs in the industry are those that leverage
other trends. In the early days of the plant-based trend, it was all about introducing products that tasted just like or just as good as their non-plant-based counterparts. Now, it’s all about introducing plant-based products that allow consumers to experience the latest trends in ways that they can feel good about.
Plant-based brands should look to the latest food and flavor trends for inspiration. Drawing inspiration from international cuisines, for example, has seen much success in the plant-based sector. Many popular global cuisines, like Indian, Ethiopian, and Greek, heavily feature plants, making them ideal for serving as a source of inspiration for plant-based innovations. Consumers have been growing increasingly adventurous, making them more willing to spend money on food that feels like an experience. Allow consumers to broaden their horizons through plant-based products with global roots.
Several plant-based ingredients have been on-trend recently, making them perfect for sparking new product ideas. Peppers, for example, have been picking up steam, as consumers continue to crave heat. Mushrooms, too, have been gaining in popularity, thanks not only to their potential health benefits, but also to their earthy flavor. Consider innovating with plant-based ingredients that just so happen to be trending to grab consumers’ attention.
Looking to the Future
Digital media is having an ever-increasing influence on the food industry, and the plant-based sector is no exception. Indeed, according to Datassential, more than one-third of consumers report that exposure to content on social media has made them more interested in trying plant-based foods. Plant-based brands should focus on leveraging the influence of online media to educate consumers about their products.
Beyond health and wellness, one of the biggest drivers of plant-based consumption is climate change. Younger consumers, especially, are concerned about what the future will be like as the climate crisis heats up. Plant-based brands, therefore, should amplify the ways in which their products support sustainability.
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