Healthier eating has been a growing trend since the 2010s, further boosted by the pandemic and the government’s ramp-up in anti-obesity legislation. Two in five consumers agreed that the pandemic motivated them to change their diet to be healthier and that eating healthy food is important to them.
More recently, 42% of consumers stated that they are health conscious: these are consumers who exercise regularly and are more interested in a plant-based diet.
Interest in healthy eating appears to be cyclical, particularly prior to the pandemic, with peaks in January. This interest is now more stable than in previous years – likely due to the pandemic cementing healthy eating into consumers’ minds.
Wellness is a more recent trend to grow in popularity, particularly over the past year, indicating an increasing holistic focus on health.
Who is the plant-based consumer?
Examining the largest over indexes within the demographics of each plant-based segment reveals that flexitarian consumers are more likely to be 65+ as this demographic has more time and money to focus on accessing healthier, plant-based diets.
Vegetarians and vegans over index for ages 45-54 and 35-44 respectively. These consumers are having more eating and drinking out occasions: younger vegetarians and vegans are staying at home because of the cost of living.
This doesn’t necessarily mean that fewer young people are choosing vegan and vegetarian lifestyles, but it does indicate that those eating out are typically older.
Nearly one-third of consumers are flexitarian
Flexitarian diets are followed by 30.1% of consumers, with this figure stabilising after peaking in 2022. This reflects consumers who are consciously reducing meat consumption, but not adhering to a vegan/vegetarian diet.
Flexitarianism allows for greater variety – good news for meat alternative operators as it widens their target consumer base. Operators need to offer a menu that caters to a range of dietary requirements and meets consumer need for choice.
Declines in vegans and vegetarians within the eating out sector have been driven by younger consumers dropping out of the market as it realigns post pandemic, and older demographics returning.
Vegan dish counts are rising on menus
Vegetarian dishes make up the highest number of mains that cater for dietary requirements, accounting for the larger proportion of vegetarians and flexitarians who are not necessarily looking for dishes that contain zero animal products.
Operators have focused on expanding vegan dish counts: an efficient, cost-effective move as vegan dishes also cater for vegetarians and flexitarians.
The total plant-based market has remained largely stable throughout the year, with an average of 1% of total occasions. Meat occasions, however, have been more varied, with meat dishes often more expensive. This means that demand is slightly more volatile as consumers are affected by the cost of living crisis.
Market shifts
Some groups have been growing and others dropping out of plant-based markets:
Many brands are currently suffering as consumers choose value and own-brand plant-based alternatives. Beyond Meat experienced a year-on-year sales decline of £35.4m as consumers cut back on more expensive plant-based alternatives.
The shift towards cheaper and own-brand alternatives comes as they become increasingly available and value-driven consumers can turn to a wider range of options.
How operators have adapted to plant-based agendas
Restaurants have the largest plant-based menus. Operators with Italian offerings have more vegetarian dishes, as pizza and pasta dishes lend themselves to easy adaptations.
It’s noteworthy that vegan and vegetarian dishes on pub & bar menus are declining, as the proportion of consumers following these diets has dropped.
One in 10 plant-based menus names a meat alternative brand: one-third name Beyond Meat and 27% name Quorn. These two are market leaders, brands that resonate with consumers looking for familiarity.
Meat alternatives and mimics
QSR is the market leader for meat alternatives, followed by coffee & sandwich shops, indicating a high demand for plant-based classics such as burgers. Greggs has the largest share of meat alternative purchases, with its extensive vegan range and low prices appealing to consumers in the current economic climate.
McDonald’s has seen considerable rise in plant-based occasion share year on year. The launch of McPlant burger last year – a collaboration with Beyond Meat – extended range and demand.
Plant-based burgers on menus are predominantly meat mimics such as Byron’s Truffler, which has a Beyond Meat patty. Mimics are more expensive than the average burger and therefore more lucrative for operators than vegetable-based burgers such as bean burgers.