70% of US Population is Now Consuming Plant-Based Foods, According to New PBFA Report

Despite inflation, US consumer demand for plant-based foods remained strong in 2022, according to a newly released report, The Plant Based Foods State of the Marketplace. Compiled by the Plant Based Foods Association (PBFA) and GFI using data from SPINS, the report shows that plant-based food dollar sales grew 6.6% in 2022 to $8 billion.

In addition, the report found the number of Americans consuming plant-based foods increased to 70%, while several categories, including plant-based creamers and eggs, saw markedly strong growth last year. 

“The plant-based foods industry has proven its resilience”

According to PBFA, consumer research demonstrates that, despite challenges of scaling, lack of subsidies, and shrinking retail space, US demand for plant-based foods remains strong and is growing. Research reveals 70% of the total US population is consuming plant-based foods, an increase from 66% one year ago, says PBFA. In addition, plant-based foods saw 60% household penetration in 2022, and achieved a repeat purchase rate of 80% across all categories. 

Plant-based milk dominates

The report found plant-based milk continues to make up the largest segment of plant-based foods, with the category growing 9% in 2022 to $2.8Bn. Approximately 15% of all milk sold in the US is now plant-based milk, which has become a category “powerhouse” and household staple, says PBFA. With 40.6% of households purchasing dairy-free milk, an incredible 75.7% of consumers repeated their purchases in 2022. 

Plant-based meat remains stable

While overall unit sales of plant-based meat declined by 8.2% in 2022, US dollar sales of plant-based meat remained “remarkably stable”, with a slight decrease of of 1.2%. With household penetration of 17.5%, this category demonstrates consistent consumer interest, with a repeat purchase rate of over 62%, says PBFA.

In addition, the category continues to evolve and diversify: frozen plant-based meats still make up the largest segment, but shelf-stable products are seeing steady growth. 

Growth in eggs and creamers

In 2022, five categories – plant-based eggs, creamers,  protein powders, ready-to-drink beverages, and dips and spreads – saw particularly strong US retail growth. This indicates that  “consumers are now seeking out plant-based options in even the most nascent categories, with consistent annual growth despite persistent industry challenges,” states PBFA.

Plant-based creamers saw unit growth of 12% last year, while plant-based eggs grew 14% in dollars and 21% in units.

Overall, PBFA’s research shows that 67% of the US population still believes that plant-based foods are healthier than animal-based foods, with 42% planning to substitute animal foods with more plant-based foods, and 27% planning to eat less animal-based food in the future. 

Weathering challenges

“The plant-based foods industry has proven its resilience, weathering unprecedented challenges to maintain cross-category market shares and achieve $8 billion in US retail sales,” said Rachel Dreskin CEO of PBFA. “This success is a testament to the dedication of consumers who are looking for plant-based options for every eating occasion, and the innovative brands and marketplace partners who are working to meet growing demand for sustainable, healthy, and delicious options.”

Article Credits: Vegconomist