Miller Magazine Issue: 148 April 2022

77 COVER STORY MILLER / APRIL 2022 Amidst turbulent economic conditions amplified by the pandemic, supply chain issues, and inflation, new data re- leased on 24 March by the Plant Based Foods Association (PBFA), The Good Food Institute (GFI), and SPINS, shows U.S. retail sales of plant-based foods grew 6.2% in 2021 over a record year of growth in 2020, bringing the total plant-based market value to an all-time high of $7.4 billion. Overall, plant-based food retail sales grew three times faster than total food retail sales, with most plant-based catego- ries outpacing their conventional counterparts. Meanwhile, the conventional protein market has been rocked by sup- ply chain disruptions and escalating inflation. Convention- al meat dollar sales grew three times faster than its unit sales over the past three years, indicating that the apparent growth is driven solely by price hikes. Plant-based milk dollar sales grew 4% and 33% in the past three years to reach $2.6 billion —while animal-based milk sales declined 2% in 2021. Plant-based milk, which now accounts for 16% of all retail milk dollar sales, is the growth engine of the milk category, contributing $105 mil- lion in growth, while animal-based milk’s decline equated to a loss of $264 million. As the largest category in the plant-based market, plant- based milk continues to benefit from product innovation and expanded merchandising space and assortment. Almond milk is the category leader, accounting for 59% of the total category, and oat milk growth is the second-largest seg- ment, growing more than 44 times in the past three years, now making up 17% of category sales, up from only 0.5% in 2018. Plant-based milk now serves as the innovation leader in the milk category, supported by key advancements in ingre- dient diversification and product development to improve taste, functionality, and nutrition. PLANT-BASED MEAT LAPS A RECORD YEAR After record growth in years prior, 2021 plant-based meat dollar sales remain strong, delivering a repeat year of $1.4 billion in sales, and growing 74% in the past three years, outpacing conventional meat by almost three times. The unit comparison is even more striking—while convention- al meat unit sales have grown 8% in the past three years, plant-based meat unit sales have outpaced that by more than six times, growing 51% during the same period. In 2021, plant-based meat’s dollar share was 2.7% of retail packaged meat sales, or 1.4% of the total meat category (including random weight meat). Plant-based burgers continue to lead the plant-based meat category as the top-selling product type. At the same time, the industry is responding to consumer desire for more variety within the meat category. The fastest-growing plant-based meat product types in 2021 were plant- based meatballs, chicken nuggets, tenders, and cutlets, and deli slices. In fact, plant-based chicken was a growth leader in 2021 as more prod- ucts that match the taste, texture, and appearance of animal-based chicken hit retail shelves. HIGH DEMAND FROM CONSUMERS WITH INCREASING PURCHASING POWER Sixty-two percent or 79 million U.S. households are now buying plant-based products. This is an increase from 61% (77 million in 2020). Increased repeat rates in plant- based foods across numerous record-breaking years il- lustrate strong consumer commitment and interest—the percentage of consumers purchasing multiple times within the plant-based category grew from 78% in 2020 to 79% in 2021. Millennials and Gen Z, which compose 47% of the population and will continue to grow in their spend- ing power, have particularly high demand for plant-based foods. Consumers, particularly Millennials and Gen Z, are motivated by an interest in foods that are better for their health and deliver on positive environmen- tal impact and social responsibility. Plant- based foods are uniquely positioned to meet these consumer needs, and brands and retailers are swiftly responding to these trends and offering innovative new products and solutions. U.S. plant-based food retail sales hit $7.4 billion A new report shows U.S. retail sales of plant-based foods grew 6.2% in 2021 over a record year of growth in 2020, bringing the total plant-based market value to an all-time high of $7.4 billion.