Cost of living hits Veganuary sales | WARC | The Feed

Cost of living hits Veganuary sales

Veganuary, a focal point for the marketing and launch of plant-based products in recent years, hit the wall in 2023 as unit sales of chilled and frozen meat alternatives declined compared to a year earlier.

Figures from NielsenIQ show sales of chilled products down 16.8% and frozen ones down 13.5%; plant-based milks showed only slight growth, up 0.9%.

Why it matters

A focus on value and price points is causing the plant-based category to struggle for growth. Sales may be down on a year earlier but the market is very definitely still there: 4.1m (14.3%) of UK households contain a vegan, vegetarian, pescatarian or flexitarian diet in 2023, while four in 10 (38%) of the UK population are replacing meals containing meat with vegan or vegetarian alternatives at least once a week. 

Closer examination of the data reveals that the discounters are making rapid gains: both the MAT value share of dairy and meat alternatives rose to 7.7% at Aldi and to 5.4% at Lidl, while sales at other grocery retailers remained the same or declined. 

Takeaways 

• Three out of every four (73%) plant-diet shoppers are actively trying to make savings on their grocery bills, with buying into promotions (62%) their preferred way to do this.
• But consumers are also turning to plant-based categories when looking to indulge: value sales for Magnum Vegan ice cream are up 7% on two years ago, while value sales of Little Moons are up a whopping 2168% over the same period.
• More than half (55%) of plant-based shoppers say sustainability is important to them, while 72% say looking after their household’s health is very important.
• More than half (52%) buy new product developments (NPD) once a month or more, meaning retailers and brands must focus on innovation as well as these core trends to ensure they are targeting plant-based shoppers effectively.

Final thought

“There has been a gold rush followed by a cull. There were too many products on the shelf for the volume of sales” – Hamish Renton, managing director of food and drink consultancy HRA Global, speaking to The Guardian. 

Sourced from NIQ, Guardian