Meat+Poultry - July 2022 - 35

Foodservice has become the testing
ground for alternative protein products
BY DONNA BERRY | meatpoult r y@sosland.com
T
here's no denying that plant-based meat
alternatives have carved out a spot in
the center-of-plate protein sector. The
unknown is: will the category ever become
more than a niche in this space? Yes, it
currently is a niche, despite all the hype in the
media and trade. This is why some innovators
are betting their success in foodservice,
where consumers are often more willing to
try something new prepared by a culinary
professional. Consumers also don't see the
ingredient statement.
THE MARKET
The Plant Based Foods Association, San
Francisco, reported that in 2021, the meatalternative
sector experienced $1.4 billion in
sales. Now, while the data showed growth of
74% during the past three years, that is just a
smidgeon of combined fresh ($81.9 billion) and
frozen ($15 billion) meat, poultry and seafood
retail dollar sales, according to IRI, Chicago,
which totaled $96.9 billion in 2021.
The most current sales data from IRI
suggests that plant-based is losing traction
at retail. May 2022 meat alternative unit and
volume retail sales were down year-on-year by
10.0% and 7.3%, respectively.
" Combined refrigerated and frozen plantbased
meat alternatives generated $118 million
(according to IRI) in retail sales during the five
May 2022 weeks, " said Anne-Marie Roerink,
president, 210 Analytics LLC, San Antonio, Texas.
" This moved sales down 0.9% behind May 2021
levels. Additionally, dollar gains were boosted by
the inflation predominantly seen in frozen - not
as much in refrigerated - meat alternatives. "
Refrigerated items, commonly
merchandised in the meat or produce
departments, saw accelerated sales growth
pressure in May 2022. The five-week period
saw $41.8 million in sales, down 16.1% versus a
year ago and 16.3% versus two years ago.
Frozen meat, poultry and seafood
alternatives sales reached $76 million in May
2022. This is about $34 million more than
refrigerated alternatives. It's also an increase of
10.1% versus a year ago. It is important to note
that this increase came from inflation. Units
and volume were down year-on-year.
" Plant-based meat alternatives remain
mostly an occasional choice, with only 9% of
consumers reporting to eat them weekly in
2021, " said Roerink, author of The Power of
Meat 2022 study. " Those who buy them believe
they are healthier than meat and a good source
of protein.
" When it comes to the idea of cultivated
meat, consumers remain somewhat skeptical
about the idea, with 40% unwilling to try versus
29% being open to the concept, " Roerink said.
" Concerns center on feeling it is not natural
(63%), too processed (48%) and not safe (46%).
But those in favor like the idea of securing the
food supply (41%) and feel it could be better
for their health (41%). "
FORM AND DELIVERY
Patties and burgers lead the plant-based
meat category as the top-selling product
type, according to the Plant Based Foods
Association. At the same time, the fastestgrowing
formats in 2021 were balls, nuggets,
tenders, cutlets and deli slices. In fact, plantbased
chicken-type products were a growth
leader in 2021, with probably more brands
trying to enter the marketplace than there
are currently brands of real chicken nuggets,
tenders and cutlets in the marketplace.
This oversaturation of the market is likely
cannibalizing sales for individual brands and
soon, only a handful of the best plant-based
products will survive.
This is why foodservice is attractive.
Chicago-based Technomic reported that
one-third of Millennial and Gen Z restaurant
diners are seeking out vegetarian/vegan
entrées as a first choice on menus, as are
27% of older adults. Most major fast-food
and quick-service chains include at least one
www.meatpoultry.com | 07.22 | MEAT+POULTRY 35
" When we
first started
thinking about
bringing a
plant-based
hot dog to our
menus, we
tasted dozens
of different
versions. "
- MICHAEL OSANLOO
http://meatpoultry@sosland.com http://www.meatpoultry.com
Meat+Poultry - July 2022

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