Plant-based meat sales pick up in Australia as consumer interest grows and brands improve offerings

16 Feb 2024 --- Plant-based meat products in Australia have experienced significant growth over the past three years, according to recent data from independent alternative protein think tank Food Frontier.

The findings, derived from audits of major supermarkets in Melbourne and Sydney conducted in mid-2023, reveal shifts in both the volume and variety of plant-based offerings available to consumers.

Food Ingredients First sits down with Dr. Simon Eassom, CEO of Food Frontier, to discuss the trends, challenges and future prospects of the plant-based meat sector in the country.

“Australian plant-based meat consumers are more discerning about the quality of products, they are also looking for a wider variety of formats,” he tells us.

“While the country has built a dynamic environment, it has also maintained a fierce independence and protectionism around Australian identity and a resistance to being told what to eat and how to eat.”

Consequently, Australians are less oriented toward dietary modification as a means of addressing climate change than their European counterparts, he adds.

According to the think tank, in major retail in Australia, the plant-based meat category has gone from fewer than five brands made by regional businesses in 2017 to more than 30. 

The plant-based meat industry in Australia explores more plant-centric diets.Moreover, there has been a three-fold increase in the number of products on shelves over the last few years. Since early 2023, the number of plant-based meat products in Australia has peaked at approximately 350. 

Environmental awareness
The broader food industry in Australia still has considerable strides to take in acknowledging its environmental footprint, according to Dr. Eassom. While there has been industry-internal competition, there has not been a unilateral incentive for manufacturers, he flags.

“At present, marketing and communication strategies have not focused on the environmental credentials of the products. There is evidence slowly emerging that manufacturers are recognizing the value of clear and compelling proof points on their packaging that highlights simple climate-friendly messaging, so we expect to see an increase in the future.”

According to him, the Australian food industry is largely “food supply independent.” 

“The sustainability agenda is impacting food production and Australia’s leading government research authority, the Commonwealth and Scientific Research Organisation, is working to drive sustainable agriculture and promote a future protein roadmap.”

He also flags that Australia and its South Pacific neighbors experience the impacts of climate change first-hand. 

“However, the focus in consumer’s minds around diet and food choices is more focused on health and diet-related disease than on sustainability and, in general, the politics has led to the government being slower than in other countries to implement policy change and regulations that directly control individual choices and behaviors.”

Nevertheless, Dr. Eassom notes that various Australian states are beginning to form a more explicit focus within ministerial portfolios.

 Distinctive market dynamics
The Australian food industry has various differences from other countries and regions, with a strong food culture shaped by diverse influences from Europe, the Middle East, Asia, and indigenous heritage as well as close connections with local farming and agriculture. 

“The plant-based meat market in Australia developed later than European countries and so, as recently as three years ago, there wasn’t a lot of variety in formats and quality and some of the products in the market weren’t meeting consumers’ expectations,” reveals Dr. Eassom.

“With an increase in the number of overseas products, some coming from market leaders, consumers have been exposed to higher quality products and this has raised their expectations.”

The balance between international and domestic brands is influenced by product quality and pricing dynamics and the procurement and profit strategies of the retail sector. Inflation has driven up prices across various products, prompting consumers to seek more affordable options, particularly in meat and fish. As a result, the market for cheese and fish alternatives is burgeoning.As people increasingly prioritize health and environmental concerns, the momentum behind plant-based food is expected to endure.

“Australia operates a strong duopoly of grocery retail (over 65% of total grocery sales) that controls cost and profit margins. That is an environment that has proved difficult for international players to manage whereas domestic manufacturers are better placed to work with the sector,” he continues. 

“The anecdotal evidence is that the international brands are shifting their focus from retail to foodservice and directly supplying quick-service restaurants and fast-food outlets.”

Emerging trends and innovations
Dr. Eassom thinks the first phase of the plant-based meat industry growth has focused on producing “attractive” meat analogs that appeal to flexitarians. They are increasingly contributing to environmental protection by reducing meat consumption while calling for affordability and health.

According to the think tank, there is also a growing interest in versatile products that can be integrated into various dishes. Meanwhile, the demand for convenience has also fueled an increase in the availability of plant-based meat formats such as schnitzels, nuggets, mince, meatballs, deli slices, and finger foods.

“Consumers have looked for more options to replace conventional chicken and so manufacturers have increased chicken-style products both as ready-to-use finished products and for inclusion in their cooking and ready-meals.”

Dr. Eassom highlights that Australia is also witnessing innovation around diversification of protein ingredient supply and the emergence of a number of precision fermentation companies working toward sustainable ingredient production. This includes precision fermented animal fats and oils that improve taste and texture. 

“We are fortunate to have well over 30 companies in Australia involved in cellular agriculture, plant protein ingredient supply and manufacturing able to provide solutions now and in the future,” he concludes. 

By Sichong Wang