New analysis identifies protein diversification as a primary lever for profit quality and portfolio resilience in a volatile market
With UK food manufacturers warning of up to 9% food price inflation, retailers are facing acute pressure to protect already thin margins. As costs rise, supply chains remain volatile, and consumer demands grow more complex, every category is being scrutinized for its contribution to profitability and resilience. In this environment, where can supermarkets find growth? The answer may lie in an unexpected place… the protein aisle.
For years, plant-based foods have been framed as ‘niche’, subject to hype cycles and shifting consumer sentiment. But new analysis from Systemiq, supported by ProVeg International, suggests something more fundamental is underway. The data moves us past the debate of ‘fad versus fixture’ and into the territory of commercial resilience under mounting cost pressures. With this, protein diversification – rebalancing the proportion of animal-sourced, plant-based, and novel proteins sold – is emerging as a structural shift in retail economics.
The implications are significant. According to the study, Taking Root: The Case for Plant-Based Proteins in UK Retail, UK retailers risk missing out on a £2.8 billion growth opportunity if they fail to respond. And this is not simply about volume growth. In fact, Systemiq’s analysis shows that this is a story of profit quality.
Plant-based protein categories can offer more stable margins, lower shrinkage, and reduced reliance on deep promotional cycles. In a sector where profitability is often eroded by volatility, from feed prices to geopolitical shocks, this stability has tangible value.
Retailers have already seen the downside of over-reliance on animal protein, with supply chains exposed to climate pressures, rising input costs, and disease outbreaks. Diversifying protein portfolios provides a hedge, allowing businesses to build a more balanced and resilient system.
This is precisely what we are seeing in leading European markets. In the Netherlands, for example, coordinated action across the retail sector has helped drive a protein split of over 40% plant-based. This did not happen by accident. It was the result of deliberate strategy: setting targets, reporting progress, and aligning commercial incentives with long-term outcomes.
The UK, by contrast, has yet to engage with this shift fully. The barriers are often assumed to be consumer demand or price sensitivity. But the data suggests that demand is already there. More than half of consumers report reducing meat consumption, and plant-based categories have grown consistently over the past decade. Even after a post-pandemic correction, key segments have returned to growth. Chilled meat substitutes, for example, saw a 5% increase in retail sales value between 2024 and 2025.
Price is also becoming less of a constraint. The gap between meat and plant-based alternatives has narrowed significantly in recent years and is projected to close entirely by 2028 in key categories. Meanwhile, whole-food proteins such as legumes are already cheaper than meat.
What remains is execution.
Retailers are not passive participants in this transition; they actively shape it. Decisions on pricing, shelf placement, promotions, and private label development directly influence purchasing behavior. Trials have shown that simple interventions, such as placing plant-based products alongside animal-based products, can deliver immediate sales uplifts.
Perhaps the most striking missed opportunity lies in private-label. While own-brand products account for up to 82% of processed meat sales, they represent just a fraction of plant-based categories (15%). Closing this gap would give retailers more opportunity to leverage pricing, margins, and category direction, and accelerate the path to scale. The strategic case is therefore clear. Protein diversification is not a trade-off between sustainability and profitability. It is a route to strengthening both.
There are also broader system benefits. A shift towards plant-based proteins could reduce retail-related greenhouse gas emissions, land use, and water use by up to 16%, while improving public health outcomes by increasing average daily fiber intake by 71%. These are not abstract externalities; they increasingly shape regulatory environments, investor expectations, and consumer trust. But none of this will happen on its own. The shift requires intent. It requires retailers to treat protein diversification not as a peripheral category decision, but as a core element of commercial strategy, embedded across sourcing, merchandising, and portfolio design. It also demands bold leadership – there must be a willingness within retail businesses to make this happen.
The UK retail sector has demonstrated its ability to adapt before, whether through private label innovation, supply chain transformation, or digital disruption. The protein transition represents the next shift. Those who move early will not only capture growth but also define the market. Those who hesitate risk being left behind in a food system that is already beginning to change.
Read the summary of the Systemiq study here. To discuss the full report, get in touch with [email protected].
Gemma Tadman
Business Communications Manager
