With plant-based protein gaining momentum in the marketplace, retailers have got their eye on product performance. Studies show that plant-based diets are gaining popularity, with retailers struggling to catch up with growing demand. Plant-based eating is rapidly becoming the norm, with the National Research Council of Canada (NRC) predicting that total protein production will double, reaching 943.5 metric tons by 2054.
Grocers are continuing to experience rising sales. “Year over year, we’re seeing double-digit growth,” asserts John Mastroianni, vice president of merchandising, Pusateri’s Fine Foods, describing plant-based meat and dairy. Kathlyne Ross, vice president of product development and innovation at Loblaw concurs, saying “our plant-curious customers span across all age categories… for more meat and dairy alternatives.”
Based on Supermarket News findings, four out of 10 shoppers are buying plant-based or dairy alternative products, with 60 per cent buying from this category several times per month.
This is great news for retailers, but it is not looking so optimistic for producers. Maple Leaf Foods has been producing Canadian protein for over 100 years, getting into the plant-based market in 2017, with the purchase of Lightlife. In 2019, Maple Leaf grew that division, acquiring a 118,000 square foot plant in Indianapolis, as Phase 1 of their expansion project.
However, Maple Leaf has since reduced its plant-based protein division by 25 per cent, a move motivated by declining consumer demand, according to CEO Michael McCain. The decision was made following two consecutive quarters with less-than-expected sales. A few other retailers, like Kellogg, Beyond Meat and Nestle have also adjusted production based on soft sales.
Could price be a factor? Sylvain Charlebois, director of the Agri-Food Lab at Dalhousie University, states that plant-based protein is still about 38 per cent more expensive for consumers than its meat-based counterparts. More competition in the marketplace could also have producers seeing a decline in sales, as consumers have more to choose from when they go to the store.
Based on grocery sales, it looks like plant-based diets are not a passing fad, and producers will need to take a good look at demand in each sector if they want to continue to be successful in this space.
