Exploring the Primary Drivers of Increasing Plant-Based Meat Consumption in Europe

Growth of Plant-Based Meat Market in Europe

The European plant-based foods market has grown rapidly in recent years as illustrated in Figure 1. According to the Good Food Institute (GFI), retail sales of plant-based foods across Europe grew from EUR 4.8 billion in 2020 to EUR 5.5 billion in 2021 (+15%) and to EUR 5.8 billion in 2022 (+6%). Retail sales of plant-based foods grew 21% over the two-year period. Furthermore, the European plant-based food market is expected to grow at a compound annual growth rate (CAGR) of around 10% from 2023 until 2030, suggesting a continued upward trend for the industry in the coming years.

Figure 1. Market size of plant-based food in Europe from 2020-2022

Plant-based meat, as a subcategory of plant-based foods, accounted for EUR 2.01 billion in sales in 2022 – up 3% compared to the EUR 1.96 million achieved in 2021 and 19% compared to the EUR 1.69 million in 2020. Plant-based meat made up 35% of the total plant-based food category in terms of retail sales in 2022. As illustrated in Figure 2, plant-based meat sales in Europe have experienced significant and consistent growth in recent years. In terms of volume, plant-based meat sales grew 1% in 2022 to 846 million units, with this sales volume being 21% higher than in 2020. Similar to the overarching plant-based food category, plant-based meat is expected to grow at a CAGR of around 10% between 2023 and 2028, suggesting a sustained growth rate in coming years.

It is important to consider the unique macroeconomic environment during 2022 due to the ongoing Russia-Ukraine war, global trade tensions, and high global inflation. While the growth of the plant-based retail market slowed in 2022 compared to 2021, sales continued to grow in both volume and value, demonstrating strong consumer demand for plant-based products despite these challenges. What is driving this increased consumption of plant-based meat in Europe and what are potential barriers to increased future consumption?

Figure 2. Market size of plant-based meat in Europe from 2016-2022

High Levels of Plant-Based Meat Consumption

Overall, European consumers exhibit high levels of plant-based meat consumption. A recent study by the GFI found that a large portion of European consumers eat plant-based meat on a monthly basis. In Italy, 50% of consumers reported eating plant-based meat at least once a month, followed by Spanish consumers at 47%, Germans at 41%, and French consumers at 27%. Similarly, the EU's Smart Protein project found that 27% of Europeans identify as flexitarians, with the highest rates found in Germany (40%), Austria (37%), and the Netherlands (35%). Furthermore, 8% of Europeans identify as plant-based eaters (vegan and vegetarian). 27% of consumers eat plant-based poultry at least once a week, followed by 24% who consume beef, and 22% who consume pork at least once per week. On average, 24% of European consumers eat some form of plant-based meat at least once per week.

Increased Future Plant-Based Meat Consumption

European consumers also express intention to increase their plant-based meat consumption in the future. The EU’s Smart Protein project found that 40% of Europeans intend to increase their plant-based meat consumption in the next six months, further underscoring the growing acceptance of plant-based options in Europe. Similarly, the GFI observed that among German consumers, 25% expressed intentions to consume more plant-based meat in the coming years, followed by 24% of Spanish and 22% of Italian consumers who expressed the same sentiment. France had the lowest expressed interest in consuming more plant-based meat in the future at 11%.

Reduced Conventional Meat Consumption

In conjunction with increasing their plant-based meat consumption, European consumers have reduced their conventional meat consumption in recent years and intend to continue doing so in the future. The EU’s Smart Protein project observed that 51% of European consumers eat less meat now compared to a year ago, with Germany and Italy reporting the highest reductions, both at 59%, followed by France at 57%. Furthermore, the GFI found that in the last five years, 61% of Italian consumers have reduced their conventional meat consumption, with 21% reported to have stopped eating meat. In Spain, 58% have reduced their consumption and 24% have stopped. France has a similar reduction figure of 59%, with 16% reportedly stopped eating meat. Germany has the lowest rate of reduction at 50% but has the most consumers who have stopped eating meat at 31%. European consumers also believe that meat production and consumption must be reduced. Italian consumers feel the strongest about this fact, with 75% agreeing, followed by 67% of Germans, 64% of Spanish consumers, and 60% of French consumers. This reported lower consumption by consumers is evidenced by the fact that conventional meat unit sales across Europe dropped 8% from 2020 to 2022.

Drivers of Reduced Meat Consumption

The GFI observed that among the consumers who have stopped or reduced their conventional meat consumption, three main reasons emerged: environmental concerns, health, and animal welfare. In Italy, health (35%) was the primary reason, followed by environmental concerns (30%) and animal welfare (26%). Spain had a similar rank order, albeit at lower levels of health (29%), environmental concerns (27%), and animal welfare (25%). In Germany, animal welfare (38%) was the primary concern, followed by environmental concerns (37%), and lastly, health (22%). Interestingly, in France, the price was the primary concern for reduced meat consumption at 39%, followed by environmental concerns (32%) and animal welfare (23%). The EU's Smart Protein project made similar observations, finding that at 47%, health is the primary driver of reduced meat consumption, followed by animal welfare at 29% and environmental concerns at 26%.

Driving Factors for Plant-Based Consumption

When choosing plant-based food products, taste, healthiness, affordability, and freshness are the most important factors for European consumers. Taste is the most important factor, ranging from 39% in Italy to 66% in the UK, with an average importance of 53%. Health is the second most important driver, ranging from 39% in France to 49% in Spain and Italy for an average of 46%. Consumers in most countries also prioritize health but with large variation, from 27% in Italy to 53% in the UK and 45% overall. Freshness is also a significant driver of purchase decisions, ranging from 29% in the UK to 48% in Poland and Romania, with an average importance of 34%.

Point of Purchase and Consumption

The majority (67%) of European consumers prefer to consume plant-based meals in the comfort of their own homes. Restaurants are the next most popular destination for plant-based consumption, with 22% of consumers preferring restaurants that serve both plant- and animal-based products compared to 17% of consumers preferring restaurants exclusively offering plant-based options. Takeaways and online orders are also relatively common at 16%, followed by canteens at school or at work (10%).

The vast majority of European consumers prefer to buy plant-based products from supermarkets (60%) and discounters (41%). Organic supermarkets (19%) and farmer’s markets (17%) featured in distant second and third places respectively. Online grocery stores featured fifth at 14%, suggesting that a substantial proportion of European consumers prefer to buy their plant-based products online.

Barriers to Increased Plant-Based Consumption

Price is the primary barrier that the plant-based food sector is facing in the drive to increase consumption. The EU's Smart Protein project found that 38% of Europeans find price as the primary reason not to eat more plant-based food, followed by 30% of Europeans who perceive plant-based food as not tasty enough. Furthermore, lack of information, at 25%, about plant-based foods and health concerns (24%) around only eating plant-based food are other important deterring factors.

Plant-based meat is still trading at a significant premium compared to animal based meat. Nielsen data demonstrates that, on average, plant-based meat is twice as expensive as beef, more than four times as expensive as chicken, and more than three times as expensive as pork. However, the plant-based meat industry is in the process of improving crop development and production processes in an effort to improve economies of scale and reduce production costs. This is evidenced by the fact that the average price per unit of plant-based meat in Europe increased by 1% in 2022, whereas conventional meat prices increased by 11%. Thus, the price difference between animal meat and plant-based meat is steadily closing, but will still take years to reach parity.

Conclusion

Overall, European consumers are already engaging in relatively high levels of plant-based meat consumption, with a large intention for increased future consumption. Consumers also believe that conventional meat consumption must be reduced and plant-based alternatives must take their place. This is evidenced by reduced conventional meat consumption in most European countries and increased plant-based meat consumption in recent years.