Growth of meat and dairy alternatives is stirring up the European food industry - ING report
A report produced by the ING bank:
European retail sales of meat and dairy alternatives have grown by almost 10% per year between 2010 and 2020, but alternatives still represent a very small share of the market. At ING, we estimate that the plant-based alternatives food market in the EU and the UK will be worth €7.5 billion by 2025, compared to €4.4 billion in 2019
Despite high growth, plant-based alternatives are still a small category
Retail sales of meat and dairy alternatives in Europe have grown by almost 10% per year between 2010 and 2020. Much of this achievement can be attributed to the introduction of new products and the underlying trend among consumers to consider health, animal welfare and sustainability in their decision making. But the rise of plant-based sales is coming from a small base and alternatives represent only 0.7% of the market for meat and 2.5% of the dairy market.
Three barriers determine future growth
The supply of meat and dairy alternatives will keep evolving and future growth will depend on the food sectors’ ability to:
1. Bridge the price gap with animal-based products;
2. Improve user experience (through better taste and nutritional profile);
3. Increase distribution and availability.