European plant-based market hits US$17.7 billion but still trails mainstream food sales, Circana reports

The European plant-based food and drink market has reached a value of €16.3bn (US$17.7bn), according to new data from Circana, but continues to represent only a small share of total FMCG sales across the region.

• The European plant-based food and drink market reached €16.3 billion (US$17.7 billion), growing 5.1% year-on-year but accounting for just 2.4% of total food and drink sales.
• Nuts and seeds led the category with 45% of value sales, while meat and seafood alternatives accounted for only 4%, highlighting a shift toward everyday consumption.
• Flexitarian consumers grew to 31% of the population in 2024, up from 21% in 2023, emerging as the primary driver of category growth.

The figures, covering six major markets including the UK, Germany, Italy, Spain, France, and the Netherlands, pointed to a category that has moved beyond early adoption but has yet to achieve mainstream scale.

Circana reported that growth was increasingly being driven by everyday consumption rather than traditional meat and dairy substitutes. Nuts and seeds accounted for 45% of total plant-based value sales, followed by dairy alternatives at 21% and ready-to-eat meals at 15%. In contrast, meat and seafood alternatives made up just 4% of the category.

This distribution reflected a broader shift in consumer behavior, with plant-based products becoming more integrated into daily diets rather than being used solely as direct replacements for animal-based foods.

The data also showed that the category’s expansion was no longer reliant on a small base of dedicated plant-based consumers. Only around 11% of Europeans identified as vegan or vegetarian, while the number of flexitarians rose significantly to 31% in 2024, up from 21% the previous year.

This group, defined by reducing rather than eliminating animal products, has become the central force behind plant-based growth. Circana suggested that their purchasing habits were shaping product development, favoring options that fit naturally into existing eating patterns.

Despite representing a relatively small share of overall food and drink sales at 2.4%, plant-based products were outperforming animal-based equivalents on volume growth in several key segments, including dairy and ready meals. This performance came despite ongoing price gaps, which continued to act as a barrier to broader adoption.

Growth across Europe remained uneven. Germany led the category with value sales increasing 7.2% and volume rising 4.2% year-on-year, while Spain recorded 7.5% value growth. In contrast, the UK, one of the largest markets at €4.5 billion (US$4.9 billion), showed signs of stagnation, with volume declining by 0.7%.

Circana indicated that these differences highlighted the increasing importance of execution, pricing, and product relevance in determining market performance.

Consumer expectations were also evolving. The report noted that shoppers were looking beyond simple substitution and increasingly expected plant-based products to deliver tangible benefits such as protein, energy, and gut health. At the same time, trends such as the growing use of GLP-1 medications were influencing eating habits, with a shift toward smaller, more nutrient-dense meals.

Price remained a critical challenge. The gap between plant-based proteins and their animal-based counterparts continued to limit wider adoption, reinforcing the need for improved affordability if the category is to scale further.

Circana described the current stage of the market as a turning point, where future growth would depend less on awareness and more on execution. Speaking at the Plant FWD conference in Amsterdam, Ananda Roy, SVP Global Thought Leadership and Consumer Goods Advisor, Europe at Circana, said the sector was entering a more mature phase.

“Plant-based food and drinks have reached a pivotal moment. The foundations for growth are firmly in place, but the next phase will not be driven by hype or novelty. It will be driven by how effectively the industry delivers products that fit into everyday consumer behaviour,” he said.

He added that innovation was shifting direction, moving away from imitation-led approaches toward products designed to stand on their own.

“We are seeing a clear shift away from niche, imitation-led innovation towards more natural, functional and accessible products. The winners will be those who can close the gap between taste, nutrition and price, and integrate plant-based seamlessly into everyday consumption occasions,” Roy said.

Circana identified several priorities for manufacturers and retailers seeking to capture the next phase of growth. These included focusing on taste to drive repeat purchases, improving price competitiveness, delivering clear nutritional and functional benefits, expanding beyond traditional substitutes, and embedding plant-based products into core category strategies.

The report concluded that the market was entering a more competitive phase, with success increasingly tied to converting consumer interest into consistent purchasing behavior.