Navigating plant-based retail challenges

Although the retail landscape for plant-based products has transformed in recent years, sometimes products just won’t shift. So, what are the barriers, and how do we navigate them? Let’s address some of the biggest retail challenges that exist and uncover the solutions for optimizing plant-based sales.

Limited consumer awareness and knowledge: It might seem obvious but customers may not actually be aware of your plant-based options. When shopping, they tend to frequent the same aisles – most people are time-poor and habitual; they might not have seen your plant-based aisle or sought out plant-based products before.

They might also have misconceptions about the taste, nutritional value, and preparation of plant-based products, due to a lack of previous knowledge, in-store information, or sampling.

There’s a simple fix for both challenges – work to improve consumer familiarity and understanding of plant-based products. Do this by implementing educational campaigns. Use in-store signage, brochures, and digital displays to inform and educate customers about the plant-based products you stock and encourage trial. Provide information on the benefits of plant-based diets, focusing on how tasty these products can be. To improve familiarity, host live cooking demonstrations and sampling events in-store to let customers taste your plant-based products. You can also boost familiarity by moving the position of your offerings. At ProVeg, we recommend using the ‘segregated-integrated’ approach, whereby plant-based products are grouped but still positioned within animal-based aisles, rather than a different part of the store. This merchandising ‘nudge’ places plant-based products where the most potential shoppers are, familiarizes shoppers with the products, normalizes them, and makes them more accessible.

Getting consumers to switch to a plant-based version of an animal-based product can be difficult when they’re happy with their usual items

‍Higher price point: Plant-based products often have a higher price than traditional ones, but price is a major barrier for many consumers. With the inflated cost of living, many consumers will opt for cheaper, more familiar, animal-based products.

Many people also shop with perceived value versus cost in mind. If your customers do not think that the value of your plant-based products outweighs their cost, they won’t buy them. The solution is to reduce price concerns. Create price parity by matching the cost of plant-based products in-store with their animal-based equivalents. Many European retailers have now done this with great success. In 2023, Lidl Germany priced-matched its own-brand Vemondo range to animal-based equivalents and has since seen a 30% increase in plant-based sales. You could also offer promotions on plant-based products – implement introductory offers, discounts, loyalty rewards, and bulk deals to encourage new customers and attract repeat buys. Finally, educate on cost-effectiveness. Highlight the long-term cost savings of plant-based diets (many products can be cheaper than animal-based foods) and compare more expensive plant-based products with premium animal-based products to justify the price point. You can do this by placing them next to their animal-based equivalents in aisles and in marketing materials.

Consumer resistance to change: Now, we’ve reached what many businesses would consider the greatest retail barrier… consumer opposition.People are creatures of habit, preferring to stick to what they know rather than try something new. Getting consumers to switch to a plant-based version of an animal-based product can be difficult when they’re happy with their usual items.

Likewise, some cultural backgrounds and lifestyles favor foods and recipes that are heavy in meat and dairy. It can be challenging to encourage consumers from these backgrounds to purchase plant-based alternatives, especially when social pressures persist.

However, with simple strategies, you can encourage acceptance. Use customer testimonials and success stories to build trust and credibility. Emphasize the health benefits, taste, ease, and variety of plant-based products (display these in the same places as just mentioned and on any own-brand product packaging). It’s also vital
you market plant-based products to all customers, not just vegans and vegetarians. Showcase the versatility and appeal of plant-based foods for various diets and cuisines by handing out recipe cards in-store and featuring plant-based recipes in your in-store leaflets/magazines. Most importantly, provide more and better plant-based options. The worst thing a retailer can do is supply poor-tasting options, so ensure that the ranges you offer are the best. This is crucial as taste is the top motivator for plant-based purchases. Track and increase their ratio compared to animal-based products, to normalize plant-based options and reduce resistance to change.

Optimize your plant-based sales: Whether your challenges are related to product awareness, cost, or consumer resistance, there’s a lot that can be done to turn the tide on your sales. For more support on your alternative protein strategy, head over to ProVeg’s New Food Hub, and read my next article for more industry insights!

Gemma Tadman is ProVeg International’s B2B Communications Manager. In her role, she works to engage and support businesses in the transition to sustainable food and drink production, and accelerate the growth of the alternative protein industry.This article is republished from the Q4 2024 edition of Protein Production Technology International, the industry's leading resource for alternative proteins. To subscribe to all future editions, please click here