Food budgeting impacts plant-based choices as price remains a roadblock for green gastronomy
16 Feb 2023 --- Consumers are calling for price parity on plant-based products with a new ProVeg International report revealing they want alternatives to be the same price as meat. Most consumers flag that plant-based foods are too expensive and think there should be government subsidization, especially as the cost-of-living crisis continues to bite and forces many to cut back on meat and dairy alternatives.
The likelihood of consumers buying plant-based foods rather than the animal-meat equivalents increases dramatically when prices of the former are cheaper, the latest analysis from ProVeg International shows.
The survey, which explores consumers’ willingness to pay for plant-based foods, also found that price remains a key barrier for consumers when purchasing plant-based products, with 52% of consumers attesting to this.
“Almost half (49%) of participants said that they would choose plant-based products if they were cheaper than the animal-based equivalent, while only 23% said they would not, suggesting that price is a key barrier to plant-based consumption,” Peter Rixon, senior international PR manager at ProVeg International, tells FoodIngredientsFirst.
Green gastronomy will blossom as a standalone sector in 2023.“Perhaps what surprised us most was that the willingness to purchase plant-based food over the meat alternatives went up significantly when the price dropped. A price reduction from £6 (US$7.23) to £2 (US$2.41) for plant-based burgers, making them £1 (US$1.21) cheaper than the animal-based option on offer, increased the likelihood of choosing plant-based burgers by a significant 134% and decreased the likelihood of choosing beef burgers by 14%.”
Rixon says ProVeg also found it insightful that “48% of people said that price is more important to them than convenience, which should send a message to plant-based companies about the importance of pricing their products.”
In the UK, input costs for meat production have gone up, such as fuel and fertilizer costs and cattle prices ended 2022 at an historic high, Rixon notes.
“We see this as an opportunity for companies who sell plant-based products to examine their pricing to see if it is possible to capture more of the flexitarian market. Price is very important to consumers, particularly during times when the cost of living goes up, and plant-based companies are potentially in a position to support consumers with affordable products,” he underscores.
“There is also a growing number of plant-based meat alternatives reaching the shelves and their taste and texture continue to improve, so we expect the sector to continue to grow. For example, the company Richmond, a well-established and popular producer of meat sausages, has produced a tasty plant-based alternative in the UK,” adds Rixon.
As we also note in the report, the margins on meat have been kept historically low, at around 8%, whereas the margins on plant-based foods are around 35% to 50%. So, there is room for maneuvering,” he affirms.
Cost-of-living versus ethics
While the desire for plant-based food is undoubtedly there, consumers struggle with costs, highlighted even further as most people are in the grips of the cost-of-living crisis, with peak food inflation eating into their salaries.
Consumers are being more careful than ever with how they spend their money. This, in turn, could impact the volume of plant-based products sold.
In fact, the survey shows that the increase in living costs does challenge ethical buying decisions.
Sixty-seven percent of people said that when there is an increase in living costs, they prioritize saving money over making ethical decisions, while 40% of consumers stated that the increase in the cost of living has led to them cutting down on plant-based foods and purchasing fewer of these products.
On the other hand, most people agreed that animal-based products form a significant part of their food expenses (53%) and that these are more expensive than whole plant foods, fruits and vegetables (49%).
Most of the respondents surveyed (70%) said that plant-based food is more expensive and harder to afford than animal-based products.
Two-thirds of Innova’s global survey respondents expressed a desire to try plant-based versions of traditional, local cuisines.
Just under a quarter of participants said they would pay more (between £3.50 (US$4.22) – £6 (US$7.24)) and 18% said they would only pay less (between £1 (US$1.21) – £2.50 (US$3.02)) for the plant-based option. In conclusion, most consumers are willing to pay the same price for plant-based alternatives that they pay for animal-based products.
Plant-based trends
The ProVeg survey focused on a range of consumers identifying different eating habits, with 66% omnivores, 24% flexitarian, 4% vegetarians, 4% pescatarian and 1% vegan.
The survey’s findings are in line with #4 of Innova Market Insights Top Ten Trends for 2023, “Plant-Based: Unlocking a New Narrative,” which highlights how the rapid rise of the plant-based sector has, almost inevitably, hit some roadblocks, necessitating a refocus around consumer demands for high-quality, flavorful products.
No longer merely a mimic, green gastronomy will blossom as a standalone sector in 2023, giving brands significant opportunities to diversify and expand.
Consumers still want to see improvements in taste and texture, but there is a vast appetite for culinary creativity and worldwide flavor profiles. Two-thirds of Innova’s global survey respondents expressed a desire to try plant-based versions of traditional, local cuisines.
ProVeg recommendations
The survey lists several recommendations to plant-based food innovators, including how important communication is with consumers because they want to know what they are paying for. ProVeg advises communicating the value of a product and what the buyer is investing in – their health, the environment, animal welfare, great taste, etc.
Another recommendation is to keep the product’s price as low as possible. This can be done by using plant-based ingredients that are low in cost but still high in nutritional value, such as beans, lentils, peas and oats, ProVeg says.
“If products contain expensive, high-quality ingredients or require a costly production process, explain to consumers how the price is determined. By communicating in a transparent and authentic way, consumers will gain trust in brands and be more willing to pay the price,” the report notes.
Another suggestion is investing in R&D and process management to manufacture plant-based products in a way that makes them as affordable as possible to the end consumer.
By Gaynor Selby and Elizabeth Green
