After booming growth in 2020, the meat alternatives market has faced three consecutive years of decline, sinking to $1.1 billion in 2023, according to Circana (formerly IRI). Despite the setbacks, there are bright spots and opportunities that brands can leverage to reignite consumer interest.
After peaking at $1.3 billion in 2020, meat alternatives sales have lagged, yet they remain higher than pre-pandemic levels. The percentage of households purchasing meat alternatives is shrinking, but frequent buyers — who make up 75% of dollar sales — remain critical to the category’s success.
Circana defines meat alternatives as plant-based, mycelium-based and cultured meat. Currently there are no sales in the cultured meat category. Products that are blended with meat and plant-protein are included, but Circana says that number is small.
A growing price gap between meat alternatives and traditional meat is a significant factor in declining sales, emphasizing the need for brands to redefine “value.” One opportunity for growth is innovation around flavor, form and convenience, which are driving growth in frozen alternatives, which outpace fresh products.
