It could be argued that the CPG story of 2019 was—and continues to be—the increased popularity of plant or lab-based food and beverage options.
Consider:
- Growth of plant-based protein alternatives is expected to jump from $4.6 billion last year to $85 billion by 2030.
- U.S. sales of plant-based milk products grew by almost six percent in the past year. The plant-based dairy market alone could hit $37.5 billion by 2025.
- More than a third of all consumers have turned to plant-based meat products, while 60 percent of millennials prefer protein alternatives.
The latest data from the Plant Based Foods Association and The Good Food Institute reveal “U.S. retail sales of plant-based foods have grown 11 percent in the past year, bringing the total plant-based market value to $4.5 billion.”
That stands in stark contrast to the total U.S. retail food market that grew just two percent in dollar sales last year.
“Plant-based foods are a growth engine, significantly outpacing overall grocery sales,” PBFA Senior Director of Retail Partnerships, Julie Emmett, explained. “We’re now at the tipping point with the rapid expansion of plant-based foods across the entire store, so it is critical for retailers to continue to respond to this demand by offering more variety and maximizing shelf space to further grow total store sales.”
It’s a lot numbers to digest, so to speak, but suffice it to say that consumers are buying these new products in droves—and their demand for them shows no signs of slowing down. A growing appetite for healthier food options remains the leading driver behind this consumer pivot, responsible for more than a third of purchases. But consumers have also responded positively to the environmental benefits of plant-based protein products, in particular.
Food and beverage manufacturers need to move more quickly if they want a piece of this emerging market niche. Getting those products to market faster requires greater efficiency at every stage of new product development. Confidence in the supply chain, immediate ingredient identification, more informed specification creation, and accelerated research and development all demand a more seamless collaboration between buyers and their suppliers.
TraceGains can breakthrough external and internal knowledge silos, replacing them instead with a collaborative platform that better unites teams, simplifies workflows, and regulates and digitizes documents to allow businesses to scale without the need for additional resources.
With a single location for all supply chain information and documentation, teams can bring new products to market faster. R&D can research suppliers and their ingredients rapidly. The regulatory department can address any compliance requirements at the front end of development, removing downstream delays. Quality can pre-approve ingredients and suppliers and recommend replacement suppliers if needed.
Today’s consumers want more options on the store shelf, and they want them yesterday. Only the companies that can deliver those options stand a chance of competing in this changing marketplace.
*Thank you TraceGains for sponsoring this post. If you’d like to know a bit about them, we have episodes with their Marketer and their CEO.