Despite 4.1m (14.3%) of UK households containing a vegan, vegetarian, pescatarian or flexitarian diet in 2023, a focus on value and price points is leading the plant-based category to struggle for growth, reveals new data, released today from NIQ (formerly NielsenIQ).
These findings appear in “Flexitarianism: from niche to mainstream”, the latest global NIQ thought leadership analysis looking into the spending and consumption habits of consumers with vegan, vegetarian, pescatarian or flexitarian diets in the UK. The report reveals that amid a cost of living crisis, some categories are struggling for growth as cost pressures rise: 3 out of every 4 (73%) plant-diet shoppers are actively trying to make savings on their grocery bills, with buying into promotions (62%) their preferred way to do this.
Data from NIQ shows that alternatives still cost significantly more than the standard range (despite slower inflation) and it is likely that shoppers are becoming more price sensitive in the current challenging economic conditions. Veganuary – traditionally a time for shoppers to switch to dairy and meat alternative diets – resulted in a decline in unit sales for most dairy and meat alternative categories in January 2023 compared with the same period last year.
With this in mind, NIQ data shows that when shopping for plant-based alternative products, the discounters are making rapid gains. Aldi’s MAT value share of dairy and meat alternatives this year rose to 7.7% as well as Lidl (5.4%), compared with the other grocery retailers where sales either remained the same or declined.
However, there still remains a market for plant-based products, as NIQ data shows that 38% of the UK population are replacing meals containing meat with vegan or vegetarian alternatives at least once a week. They are also turning to plant-based categories when looking to indulge, with value sales for Magnum Vegan ice cream up +7% compared with two years ago, while value sales of Little Moons have supercharged by +2168% compared with two years ago.
Moreover, NIQ data shows that 55% of plant-based shoppers say sustainability is important to them, while 72% say looking after their household’s health is very important. Over half (52%) buy new product developments (NPD) once a month or more, meaning retailers and brands must focus on innovation as well as these core trends to ensure they are targeting plant-based shoppers effectively.
“UK consumers are being faced with challenging economic pressures, and price is an important factor dissuading flexible eaters from buying into meat and dairy alternatives, in the current climate. This is reflected in the impact Veganuary had in driving new interest this year, with retailer focus being more on overall price messaging, which impacted sales during this period, ” says Katrina Bishop, UK thought leadership activation manager at NIQ.
“However, there continues to be a market for plant-based alternatives, and many consumers are still reducing the amount of meat they eat, so it is important to appeal to flexitarians as well as those with vegan or vegetarian diets. Messaging is therefore key – bringing the out-of-home occasion inside can save money, even with premium products, and consumers are still willing to spend on occasional indulgent treats. It’s also crucial to pay closer attention to your target consumer – messages around health and sustainability resonate strongly with shoppers who are regularly eating a more plant-based diet, so focus on ensuring these are clear when promoting such products to shoppers,” Bishop adds.
