Why you should stock more plant-based foods

Unlock growth, sustainability, and innovation by expanding your plant-based offerings

In some supermarkets around the world, plant-based foods have been losing shelf space. Why? Concerns over a reported ‘dip in growth’ and the supposed ‘end of the plant-based trend’. Yet, in other regions, stores are giving plant-based options greater attention and shelf space. 

For example, Lidl GB recently added 28 new plant-based items to its shelves and announced a goal to increase plant-based proteins to 25% of total protein sales by 2030. We’re here to tell you to follow in the footsteps of Lidl, and stock more plant-based foods! 

In this article, we’ll explore why retailers should allocate more shelf space to plant-based foods, highlighting growing consumer demand, market resilience, and long-term benefits. 

The plant-based revolution isn’t over. It’s evolving. And your business should evolve with it. Let’s dive in.

Plant-based foods: a market that’s here to stay

Despite a turbulent global economy, the plant-based sector continues to grow across all sectors.¹ In Europe, plant-based food sales reached EUR 5.4 billion in 2023 across six major markets – a 5.5% increase from 2022. Volume sales grew by 3.5% over the same period, with Germany leading the charge at an impressive 11% growth.²

Globally, the plant-based food market reached USD 27.8 billion in 2024, up from USD 25 billion in 2023. Experts at Statista project this growth will continue through 2025 and beyond.³ While the growth rate has slowed compared to the industry’s explosive early years, this signals a maturing market. Industry leaders see this as a phase of necessary corrections that will strengthen the sector in the long run, improving resilience.

“What is really happening is that the sector is entering a new stage of maturity as growth slows down after many years of explosive growth and innovation. This is common in most sectors and is no reason to write off plant-based as a fad,” explains Joe Hill, Co-Founder of One Planet Pizza.⁴

“Ultimately, the plant-based category is in a better place than 10 years ago,” adds Jack Reade, EMEA APAC sales director at Future Farm. “The highs and lows are natural for the evolution of a more premium category like ours.”⁵

Certain product categories are proving even more successful. For instance, the dairy-free milk market is currently valued at USD 23.2 billion and is projected to reach USD 37.86 billion by 2029.⁶ Industry experts predict that over the next three to five years, alternative protein products will achieve parity with conventional foods in terms of taste, texture, and price – further accelerating growth.

Your next big customers: rising demand

Research shows that consumers are actively looking for plant-based foods and alternatives. This growing demand is driven by health, environmental, and ethical concerns. 

Recent data shows:

• 51% of European consumers reduced their meat intake in 2023, with Germany, France, and Italy leading the way.⁷
• 38% of Europeans follow flexitarian, pescatarian, vegetarian, or vegan diets, with flexitarians comprising the largest group at 27%.⁸
• 53% of Europeans intend to increase their consumption of legumes in the next year, while 40% plan on consuming more plant-based alternatives.⁹
• 15% of Chinese consumers consume plant-based beverages daily.¹⁰
• Over a fifth of Brazilian consumers are interested in milk substitutes designed for athletic recovery.¹¹
• 37% of the US population are flexitarians (currently reducing meat consumption).¹²

Interestingly, flexitarians and a growing group of ‘open-omnivores’ (consumers open to trying plant-based foods) are shaping the future of food retail. 86% of plant-based purchases are made by flexitarians,¹⁶ making them the key driver of growth in this sector. Flexitarians also represent the demographic experiencing the fastest growth, outpacing the uptake of both vegan and vegetarian diets. Additionally, 57% of flexitarians say they want to gradually eliminate meat from their diets,¹⁷ showing a keen interest in increasing their consumption of plant-based foods.

Phase two of the ‘plant-based revolution’ not only includes flexitarians becoming the main consumer base for plant-based foods, but also a new surge of products hitting the market that are better tasting, more price-competitive, more nutritious, and with cleaner labels and improved texture.

The growing interest in plant-based foods is clear. By expanding your plant-based offerings, you’ll meet this rising demand while attracting new customers and boosting sales.

A sustainable future starts with plant-based foods

Numerous studies show that plant-based foods can reduce climate impact by up to 90%¹⁸ while also lowering other environmental burdens. For example, one 1/4 lb Beyond Burger generates 90% fewer CO2 emissions and uses 97% less land and water compared to an equivalent beef burger.¹⁹

These findings can be extrapolated across plant-based alternatives in general. A recent life-cycle analysis of 56 meat substitutes showed that their GHG emissions were similar, irrespective of the main source of protein (soy, wheat, wheat/soya, nuts).²⁰ 

Retailers can play a pivotal role in reducing food-related emissions and advancing net-zero goals by increasing the ratio of plant-based to animal-based products. This not only aligns with sustainability targets but also resonates with consumers.

According to the Smart Protein Project:

• 26% of consumers who are reducing their meat intake are doing so for environmental reasons. ²¹
• 32% of flexitarians reduce meat intake for environmental reasons.²²
• 62% of European consumers want their food to be sustainable and climate-friendly.²³

A McKinsey study also found that half of consumers in Germany, Austria, and Switzerland are willing to pay more for sustainable goods.²⁴ Likewise, Forbes research revealed that 65% of modern consumers are seeking brands and products that are socially and environmentally responsible.²⁵ Positioning your store as a leader in sustainability can attract these environmentally-conscious shoppers and generate a positive brand image.

Health-conscious shoppers want plant-based options

Health remains the top reason for increasing plant-based consumption, with 47% of European consumers²⁷ and 60% of US consumers²⁸ reducing meat intake due to health concerns. Plant-based diets have been linked to lower risks of lifestyle diseases, such as heart disease, diabetes, and certain cancers.

Today’s consumers are also looking for new ways to increase their fiber consumption, off the back of increased interest in gut health trends. Plant-based foods are much higher in fiber than animal-based foods and therefore cater to these healthy eating trends. 

By stocking a diverse range of healthy plant-based products, you can appeal to the growing demographic of health-conscious consumers, while positioning your store as a destination for wellness-focussed shopping.

Innovation drives differentiation

Retailers that expand their plant-based offerings signal innovation and adaptability. By recognizing and acting on trends such as the rise of flexitarian diets, sustainable consumers, and the demand for healthier options, retailers position themselves as forward-thinking leaders. This agility sets them apart from other retailers who may be slower to respond to evolving consumer needs. 

Meanwhile, collaborating with plant-based startups or developing exclusive product lines allows you to offer unique products that stand out in a crowded marketplace or meet criteria your customers value. For example, Kaufland’s ‘K take it veggie’ brand has gained praise for its affordability and variety, helping the retailer differentiate itself as an accessible option for plant-based shoppers.

Consumers are also eager to try new products. Up to 67% are willing to explore new ingredients – particularly those aligned with values like sustainability and health.²⁹ Retailers can capitalize on this curiosity by educating shoppers about new products and their benefits, fostering both trial and loyalty.

Conclusion: take the lead in plant-based

Plant-based food isn’t just a passing trend – it’s an evolving industry with immense potential. By expanding your plant-based range, you can meet growing consumer demand, cater to flexitarians and open-omnivores, and position your business as a leader in sustainability and innovation.

The question isn’t whether to stock more plant-based foods, but how quickly you can start reaping the rewards.

For expert guidance on enhancing your alternative protein strategy, and to learn more about ProVeg’s Protein Tracker, contact us at [email protected]. Make sure to look out for the next article in this series, where we’ll share actionable insights for curating an irresistible plant-based offering.

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