In their publication “the market and prospects for plant substitutes”, published in October 2021, the analysts of Echos Etudes, sectoral expertise center of the Les Echos Group, provide a complete overview of the plant-based alternatives market. This market with promising prospects will be a key contributor to the food transition. But its development requires broadening the target of consumers with convincing offers likely to lastingly change their eating habits..
To meet the global challenges before us, both demographic and (feed 10 billion people), nutritional (protein needs will increase by 50% by 2050), agricole (with non-expandable agricultural land) and environmental (the impact of intensive breeding), the search for complementary and sustainable solutions is essential. It involves in particular the diversification of the protein resource in which plant proteins are included.. As such, The market potential for plant-based alternatives is immense and global forecasts for this market confirm it. In this context, plants are becoming a strategic category for the entire agri-food sector. And many actors are giving in to the sirens of plants : food manufacturers, agricultural cooperatives, young plants, mass distribution via specific private labels or dedicated corners, restaurant chains…
Everyone is getting involved…
The French market thus continued in 2021 to arouse the desire of agri-food players and to attract investors. : the Bel group, after the acquisition of the startup All in Food, launched the Nurishh brand, the Savencia group launched its Vivre Vert brand, Nxtfood raised 10 million euros from Roquette Ventures and Creadev, Umiami and left 2,3 million euros. On his side, Biogroup has announced fundraising to establish itself in supermarkets… At a global level, meat alternative companies, with eggs and plant-based dairy products have risen 4,4 billion dollars of investments over the last decade (2010-2020) according to the Group of Industrial Federations (GFI). And almost half, or 2,1 billion dollars, was lifted in 2020 alone.
Promising development potential
The French market for plant substitutes was growing by 10% in mid-2021. With momentum fueled largely by numerous launches and the development of the offering in historic market categories. Plant-based drinks : leading category in turnover. Ultra-fresh plant-based : a category boosted by the diversification of the offer. The plant-based caterer : the most dynamic category. Plant-based culinary aids driven by the rise of coconut milk. The frozen section : a small growing segment. But also in new emerging segments driven by the creative and inventive spirit of this agri-food sector. (which should represent, according to our estimates, more than 10% of the market in 2025). If there is still a niche (0,5% of LS food in mass distribution), its development potential is however very promising according to Les Echos Etudes forecasts for 2025.
Change habits with compelling offers
More, demand side, the share of households purchasing these products in France has changed little over the past three years and the consumption of plant substitutes remains reserved for a minority of informed consumers. The challenge for the various market players is therefore to convince as many people as possible. The arguments are numerous : reduction of the ecological footprint, health concern, animal wellbeing… However, the obstacles to purchasing are also very important : too high a price, often ultra-processed products, nutritional qualities in question, a taste not always up to par. So many elements to work on to convince a wider target, constituted in part by the flexitarians, whose share in the population continues to increase (nearly 35% of French people already tend to limit their meat consumption). So many sine qua non conditions to ensure sustainable development of the market.
