The market for meat substitutes is no longer in growth
Within Europe, only the UK spends more money per head on meat substitutes than the Netherlands. On average, Dutch people spend three times more compared to other countries in the European Union. However recently this trend is showing a decrease. This not only the case for The Netherlands, but also Great Britain, Sweden, Norway and Belgium. According to research conducted in 2021, 26% of the Dutch were willing to swap meat and dairy for plant-based alternatives, however, this does not seem to have materialised in 2022. Turnover of plant-based products fell by 5.7% by week 24, while the volume of sales dropped by 6.4%.
According to Nielsen, this is explained mainly by the fact that the assortment expansion of this range no longer contributes to category sales growth. Additionally, promotional activities caused an increase in the quantity of meat substitutes sold until 2020. Promotional pressure on the meat substitutes group is still increasing but is also reducing value. Where promotions were 30.8% in 2020, they are now around 37.9%. This is much higher compared to the 23.5% average per supermarket on the remaining range. Another factor making consumers buy fewer meat substitutes is price. Meat substitutes are on average still 25% more expensive than their traditional counterparts.
Furthermore, Nielsen also examined the development of the various segments within meat substitutes. The meat substitutes that most closely resemble meat perform the best, with the remaining sales being achieved from processed plant-based meat, plant-based burgers and other alternatives. Today, meat substitutes represent 8% of turnover and 6% of the volume within the meat and meat substitutes category.