New data released by the Plant Based Foods Association (PBFA) and The Good Food Institute (GFI) shows US retail sales of plant-based foods continued to increase by double digits in 2020, growing 27% and bringing the total plant-based market value to $7 billion. This growth in dollar sales (“sales”) was consistent across the nation, with more than 25% growth in every US census region.
The plant-based food market grew almost twice as fast as the total US retail food market, which increased 15% in 2020 as Covid-19 shuttered restaurants and consumers stocked up on food amid lockdowns. 57% of households now purchase plant-based foods, up from 53% in 2019. GFI and PBFA commissioned the data from SPINS and custom refined the data to reflect only plant-based products that directly replace animal-based products.
High-repeat customers
The value of plant-based meat — the second-largest plant-based category — hit $1.4 billion in 2020, with sales growing 45%, up from $962 million in 2019. The plant-based meat category grew twice as fast as conventional meat and now accounts for 2.7% of retail packaged meat sales. Eighteen percent of U.S. households now purchase plant-based meat, up from 14% in 2019. Consumers are coming back for more — 63% of shoppers are high-repeat customers. Refrigerated plant-based meat sales grew 75% in 2020, with products increasingly shelved adjacent to conventional meat. This placement in the meat section helped propel growth in the segment, with refrigerated plant-based meat sales increasing more than twice as fast as frozen plant-based meat sales, which grew 30% in 2020 — 10 times faster than in 2019.
Plant-based milk — the largest plant-based category in the US— has reached $2.5 billion and accounts for 35% of the total plant-based food market. Even as the most developed category, plant-based milk grew 20% in dollar sales, up from 5% in 2019. Plant-based milk grew twice as fast as cow’s milk and is now purchased by 39% of US households. Almond milk remains the category leader and accounts for about 2/3 of plant-based milk dollar sales. Oat milk catapulted to the second-leading segment, ahead of soy milk, with sales more than tripling in 2020 and growing 25-fold since 2018. Plant-based product share of all conventional categories is increasing, with plant-based milk now making up 15% of the milk category, plant-based butter making up 7% of the butter category, and plant-based creamer making up 6% of the creamer category. While plant-based milk boasts a significant share of milk sales in all stores at 15%, it constitutes an even greater share of milk sales in natural food stores at 45%.
“2020, plant-based yogurt grew 20%, almost seven times the rate of conventional yogurt”
Outpacing convention
The success of plant-based milk has laid the groundwork for major increases in sales of other plant-based dairy products, which are collectively approaching $2 billion. Across the store, plant-based food dollar sales are growing faster than those of many conventional animal products. In 2020, plant-based yogurt grew 20%, almost seven times the rate of conventional yogurt; plant-based cheese grew 42%, almost twice the rate of conventional cheese; and plant-based eggs grew 168%, almost 10 times the rate of conventional eggs. The plant-based egg category grew more than 700% from 2018, 100 times the rate of conventional eggs.
The PBFA says that Covid-19 gave retail sales of plant-based foods an extra boost at a time when interest in the sector was already surging, driven by a focus among consumers on personal health, sustainability, food safety, and animal welfare. It predicted that these factors will continue to “propel consumption of plant-based foods far into the future”.
Photo: Plant Based Foods Association
