The plant-based food boom has transformed grocery shelves over the past several years, but the industry could be hitting a wall.
According to new insights from the nonprofit Good Food Institute, plant-based product sales declined by four percent in 2024.
Early on, the industry focused on products designed to mimic meat, but that strategy may be shifting.
Michele Scott, director of insights at Innova Market Research, said the market is definitely evolving.
"Moving back towards the products that are plant-based in a pure sense of the word," Scott said.
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"If consumers are going to plant-based to be healthier, and then they're seeing that these are, in fact, heavily processed, that can feel like a red flag to consumers," Scott said.
Price is also a factor, especially for meat alternatives.
Paul Shapiro, CEO of The Better Meat Co., said the cost of living is a big concern for many people around the world.
"Plant-based meat today is still more expensive animal-based meat," Shapiro said.
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Shapiro said the industry is facing what he calls the three P's.
"That's price, performance, and perception. So it's too expensive. The performance isn't yet as good as animal-based meat, and the perception is that these foods are processed," Shapiro said.
While the reality is many plant-based meats are still heavily processed, Shapiro noted they are still often healthier than the alternative of animal-based meat.
And while the industry may be at a pivot point, it isn't disappearing. A recent survey from Innova Market Research found 30 percent of consumers eat plant-based foods at least once a week.
"This is an industry that is still very much alive and kicking. It is not where it was, let's say, five years ago when there was a lot more attention on the space, but it is still moving. And I think that it has a lot of room to grow," Shapiro said.
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