Refrigerated Segment Suffers Steepest Losses (Image Credits: Unsplash)
Refrigerated and frozen plant-based meat alternatives have posted consistent year-over-year declines in recent years. Brands now concentrate efforts on boosting protein levels, earning key certifications, and delivering sharper price points to recapture consumer interest. Innovations such as steak bites, multi-pack burgers, and diverse patties underscore a strategic regrouping in the category.[1][2]
Refrigerated Segment Suffers Steepest Losses
Unit sales for refrigerated plant-based meats dropped 33% between 2022 and 2024, outpacing declines in other areas.[1] In the 52 weeks ending May 19, 2024, fresh alternatives saw volume sales fall 21% to 36.9 million units and dollar sales decrease 18.6% to $310.5 million. Patties in this segment declined 34.6%, while grounds fell 13%.[2]
Frozen products fared slightly better, with volume down 11.7% to 90.1 million units and dollars off 6.6% to $725.8 million. Frozen now accounts for nearly 70% of plant-based meat and seafood dollar sales, up from 64% in 2022, as retailers favor longer shelf life and easier merchandising. Overall, plant-based meat and seafood dollar sales reached $1.2 billion in 2024, down 7% from 2023, with units off 11%.[1] Household penetration stood at 13%, down from 20% in 2021, as lapsed buyers cited taste, texture, and price as barriers.
Protein Power Becomes Central Selling Point
Sixty-six percent of U.S. consumers prioritize high-protein diets, prompting brands to highlight this attribute prominently on packaging.[3] New launches emphasize complete proteins to rival animal-based options. For instance, certain steak products now deliver 21 grams per serving alongside fiber, iron, and B vitamins.
Certifications bolster credibility, with approvals like the American Heart Association for select items signaling healthier profiles. Efforts address perceptions of high salt, sugar, and processing in plant-based meats. These moves aim to align with health trends while closing nutritional gaps against conventional proteins.[2]
Price Parity and Value Packs Enter the Fray
Plant-based meats carry an 82% price premium per pound over conventional counterparts, a key deterrent amid inflation.[1] Average prices hovered around $8.41 per pound for fresh and $8.06 for frozen in recent data. Thirty-five percent of prior buyers indicated they would repurchase if prices matched or undercut meat.
Brands countered with discounts, coupons, and value-oriented formats. A six-pack burger option emerged to enhance affordability and versatility, featuring 21 grams of protein per patty. Such packs target budget-conscious shoppers while maintaining quality perceptions. Deep promotions and alignment with falling meat costs (except beef) further support this shift.[2][4]
Innovative Formats Signal Category Evolution
Manufacturers introduced bite-sized steak pieces and spiced patties to broaden appeal. Pre-cooked steak bites offer convenience with meaty flavor profiles. Chickpea masala burgers, launched in select chains, incorporate bold spice blends for variety.[5][6]
Mycelium-based whole-muscle steaks joined the lineup, leveraging fungi for improved texture. Other advances include pre-seasoned options with steak rubs or BBQ flavors, plus expansions into chicken, pork, and fish mimics. These developments prioritize everyday usability and mainstream tastes.[3]
| Segment | Dollar Sales Change (52w to May 2024) | Volume Change |
|---|---|---|
| Fresh/Refrigerated | -18.6% | -21% |
| Frozen | -6.6% | -11.7% |
- Shift to frozen reduces waste and eases retail handling.
- New flavors like masala target diverse palates.
- Bite formats suit snacking and quick meals.
- Mycelium enhances realism in premium cuts.
Key Takeaways
- Sales declines stem largely from price premiums and lapsed households, but repeat buyers remain loyal.
- Protein emphasis and certifications address health concerns head-on.
- Innovation in formats and pricing positions the category for potential rebound.
The plant-based meat sector, now a $1.2 billion U.S. retail force despite headwinds, demonstrates resilience through targeted adaptations. As frozen gains ground and new products proliferate, the focus on affordability and performance could reignite growth. What strategies do you see working best for plant-based brands? Share in the comments.
