European market shows resilience in plant-based sales despite economic challenges

In a recent analysis of Circana retail sales data, The Good Food Institute Europe (GFI Europe) uncovered positive trends in the plant-based food sector across key European markets. Despite facing a turbulent period, marked by inflationary pressures and fluctuating consumer behavior, the plant-based market demonstrated notable resilience and even growth in certain categories between 2022 and 2023.

Germany, Europe’s largest plant-based market, continued to show impressive gains across multiple product categories. The sales volume also increased in France and Spain, while remaining stable in Italy. Although the Netherlands and the UK saw a decline in sales, the downward trend began to level off during the latter part of 2023, extending into early 2024.

An analysis of household purchasing behavior highlights the widespread adoption of plant-based meat and milk alternatives across Europe. Household panel data reveal that significant portions of households in major European markets are purchasing these products. In 2023, 37% of German households, 33% in the UK, and 19% in Spain bought plant-based meat at least once. Similarly, plant-based milk maintained its popularity, with over a third of German and British households and 40% in Spain purchasing it at least once.

Despite an already established presence in these markets, sales of plant-based milk continued to rise, growing by 7.1% in value to reach €2.2 billion. Plant-based milk now commands a share of total milk sales, ranging from 4.6% in France to 9.8% in Germany, highlighting its entrenched role in the European dairy market.

Plant-based meat sales also saw an increase in value, rising by 3.9% to €2 billion. While unit sales were up, total volume measured by weight declined by 3.2%, possibly due to inflation-driven price increases, making plant-based meat comparatively pricier than conventional options. Encouragingly, price disparities between plant-based and conventional meat have started to narrow in Germany and the Netherlands, though they widened slightly in Spain.

Beyond meat and milk, several smaller plant-based categories experienced strong growth, indicating expanding interest in more specialized plant-based options. Plant-based cream emerged as a standout, with sales growing by 24% to reach €138 million. This category’s performance has been supported by declining prices, with plant-based cream now cheaper on average than branded conventional cream in both Germany and the UK.

Sales of plant-based cheese also saw gains, rising by 7% to €194 million. The volume of plant-based cheese sold grew by 24% in France, 34% in Spain, and 33% in Italy. Plant-based yoghurt similarly gained traction, with value growth reported across six European countries.

Plant-based seafood, a newer entrant to the market, demonstrated promising growth, with sales increasing by 10% in both Germany and the UK. This category is still in the early stages of development, yet its growth reflects an expanding consumer interest in seafood alternatives.

Conversely, some plant-based product categories faced challenges, particularly in convenience and non-essential items. Sales of plant-based ready meals, desserts, and ice creams declined, likely due to cost-of-living pressures that have prompted consumers to focus on essential items and limit spending on higher-priced, non-essential products.

Helen Breewood, Research and Resource Manager at GFI Europe, noted that the plant-based sector has continued to make significant progress, despite recent challenges in the wider food industry. She emphasized that "plant-based meat and dairy are becoming mainstream options in many European countries, emerging plant-based categories are growing, and some products are beginning to compete with their animal-based counterparts on price".

Breewood added that the growth of sustainable food options could be driven further through continued investments in innovation and infrastructure. Such developments would enable manufacturers to create even tastier, more affordable plant-based products, which could play a crucial role in building a resilient and diversified European food system.