Strategic insights for expanding plant-based convenience food offerings
The increasing demand for healthier, more sustainable food options has paved the way for exponential growth in the plant-based market, with retailers, supermarkets, and fast food chains creating more and more plant-based offerings that address the diverse needs of consumers.
Among these, plant-based convenience foods have become a significant segment, catering to the fast-paced lifestyles of modern consumers who look for quick, but delicious and nutritious meals. The popular category includes an array of product types – ready-to-eat meals, single-serve portions that can be consumed on the go, and microwaveable options, to name a few.
According to market research company, Future Market Insights, the ready-to-eat food market is expected to grow at a compound annual growth rate (CAGR) of +9.2% between 2024 and 2034, taking the sector from USD 195.9 billion in 2024 to USD 391.1 billion by 2034.1 This indicates strong consumer demand and we’re likely to see businesses tapping into this in the years ahead.
Emergence of plant-based convenience foods
Many retailers have already started to take advantage of this trend. Supermarket shelves and online marketplaces are now teeming with plant-based ready-meals, snacks, and beverages – each offering a seemingly unique benefit and competing for consumers’ attention.
However, as the plant-based market becomes increasingly saturated, there is a need for a more discerning approach from brands and retailers to identify underserved niches within the market and continue to stand out in an increasingly competitive space.
So how can businesses navigate this expanding landscape and identify whitespace opportunities? Let’s dive in.
What whitespace opportunities are there?
Focus on the following opportunities to thrive in the plant-based convenience sector:
- Diversify. Many plant-based products in the market today cater to Western palates. As the plant-based market sees a growing proportion of multicultural consumers, research by Danone North America indicates that these groups often feel underrepresented and less engaged by plant-based food brands. According to their findings, 55% of respondents believe their community and culture are “not that well” or “not at all” represented by plant-based companies. This sentiment is shared by 58% of Hispanic/Latino, 52% of Asian American, and 60% of African American/Black respondents.2 There is clearly untapped potential in creating plant-based foods inspired by diverse culinary traditions that cater to multicultural consumer bases. Retailers and brands can invest in developing plant-based products that are appealing to consumers from diverse cultural backgrounds.
- Invest in product development. Consumers are looking for plant-based options that offer additional health benefits, with a short, recognizable ingredient list and minimal processing. This is particularly challenging for convenience foods. Brands and retailers should explore innovative ways to create plant-based foods that appeal to health-conscious consumers, seeking transparency, simplicity, and health benefits. This may include adding functional ingredients such as probiotics, fortifying plant-based meals with vitamins and minerals, and creating clean-label convenience foods. According to a study by Washington State University, consumers are willing to pay a premium for ‘ready-to-eat meals with a clean label’ and showing few ingredients.3 This also includes “processed foods […] made with a new technology that helps limit the number of additives and preservatives commonly found in most ready‑to‑eat meals.” 4
- Cater to specific dietary needs. Many plant-based products contain common allergens such as soy and nuts. Developing allergen-free plant-based convenience foods can tap into a market of consumers with dietary restrictions. In addition, there is a gap in the market for plant-based convenience foods that respond to the popularity of high-protein foods, catering to fitness enthusiasts and athletes.
- Sustainability and ethical considerations. As sustainability and ethical sourcing become a priority for many consumers, brands can differentiate themselves by using environmentally-friendly packaging and highlighting the origins of plant-based foods. A survey by Trivium Packaging found that 73% of consumers are willing to pay more for sustainable packaging,5 and retailers can explore using biodegradable, compostable, or recyclable materials that reduce environmental impact. They can further highlight Fairtrade and organic certifications to build trust and loyalty among conscious consumers.
- In-demand ingredients. 53% of European consumers have expressed a desire to consume more legumes.6 Likewise, 44% of flexitarians would like to see lentils as a main ingredient in plant-based food.7 Currently, plant-based convenience foods made from these ingredients are limited. Tap into these consumer appetites and use this whitespace by incorporating more legumes, like lentils, into your convenience foods.
- New products. According to the Smart Protein consumer survey, What Consumers Want, there’s strong demand from flexitarians for plant-based fish products. Nearly 1,000 consumers said they would like more plant-based salmon and tuna products in supermarkets. Consumers would also like to see more plant-based whitefish, shellfish, fish sticks, sushi, and whole-cut products, as well as plant-based fish used in ready-to-eat meals. Brands and retailers could develop convenience foods that focus on plant-based fish or feature it as an ingredient.8
Actionable insights for brands and retailers
To effectively seize whitespace opportunities in the plant-based convenience food sector, ProVeg makes the following recommendations for brands and retailers.
- Expand product range by developing a diverse range of plant-based convenience foods catering to various dietary preferences, cultural tastes, and consumer desires. Retailers and brands can also localize their offerings that cater to the demographics of different store locations.
- Collaborate with emerging plant-based brands and local producers to offer unique and exclusive products that address common challenges in the plant-based market, such as improved product taste, texture and nutritional value.
- Promote sustainability by highlighting the products’ sustainability aspects, including eco-friendly packaging, ethical sourcing practices, and plant-based certifications.
- Enhance product visibility by collaborating with influencers and brand ambassadors to promote products authentically, increasing accessibility to customers both in stores and online, and running targeted promotional campaigns including discounts and in-store tastings.
- Build trust through transparency by creating clean labels and communicating openly about product ingredients, sourcing, and manufacturing processes.
- Utilize existing sales data, customer feedback and market research to identify high-performing and underrepresented products, which can be used to drive decisions on plant-based products that have big potential.
As the plant-based convenience food market continues to grow, brands and retailers must navigate an increasingly competitive landscape with strategic foresight. By focusing on innovation, catering to specific dietary needs, prioritizing sustainability, and understanding consumer preferences, there are ample whitespace opportunities to explore. Embracing these strategies will not only meet the evolving demands of consumers but also position brands and retailers as leaders in the burgeoning plant-based food sector.
For more support on your plant-based strategy, feel free to contact our experts at [email protected].
References
- Ready-To-Eat Food Market Outlook from 2024 to 2034, (2024). Future Market Insights. Available: https://www.futuremarketinsights.com/reports/ready-to-eat-food-market. Accessed 2024-06-25.
- Danone North America Shares Insights from One of the Largest Studies on Multicultural Consumers and their Relationship with Plant-Based Food & Beverage – Finds Over 60% Are Open to Plant-Based Alternatives, (2021). Danone North America. Available: https://www.danonenorthamerica.com/newsroom/details/danone-north-america-shares-insights-from-one-of-the-largest-studies-on-multicultural-consumers-and-their-relationship-with-plant-based-food-&-beverage-finds-over-60-are-open-to-plant-based-alternatives.html.html.html.html Accessed 2024-06-25.
- Consumers will pay for ready-to-eat-meals made with fewer ingredients, (2021). Washington State University. Available: https://news.wsu.edu/press-release/2021/06/14/consumers-will-pay-ready-eat-meals-made-fewer-ingredients. Accessed 2024-06-25.
- Consumers will pay for ready-to-eat-meals made with fewer ingredients, (2021). Washington State University. Available: https://news.wsu.edu/press-release/2021/06/14/consumers-will-pay-ready-eat-meals-made-fewer-ingredients. Accessed 2024-06-25.
- 2021 Global Buying Green Report, (2021). Trivium Packaging. Retrieved from https://www.triviumpackaging.com/media/zvthtp1t/2021buyinggreenreport.pdf. Accessed 2024-06-25.
- Evolving appetites: an in-depth look at European attitudes towards plant-based eating, (2023). The Smart Protein project. Available at: Evolving appetites: an in-depth look at European attitudes towards plant-based eating – Smart Protein Project. Accessed 2024-03-20.
- What consumers want: a survey on European consumer attitudes towards plant-based foods, (2021). ProVeg International and the Smart Protein Project. Available at: What Consumers Want | ProVeg International. Accessed 2024-05-28.
- What consumers want: a survey on European consumer attitudes towards plant-based foods, (2021). ProVeg International and the Smart Protein Project. Available at: What Consumers Want | ProVeg International. Accessed 2024-05-28.
