A healthy-looking market
According to Euromonitor, between 2015 and 2020 Australia is projected to continue as the third-fastest-growing vegan market in the world at 9.6% growth. As demand increases rapidly, Australia’s packaged vegan food market is set to reach $215 million by 2020.
"An increasing number of companies are expanding their consumer appeal by staying away from animal ingredients whenever possible. The rising demand and trend for vegetarian and vegan proteins indicates where the market is moving right now." Ewa Hudson (Head of Health and Wellness, Euromonitor International).
Australian Financial Review Food Editor, Jill Dupleix (director of Australia's Top Restaurants Awards) was recently quoted as saying
In the UK, Tesco and Sainsbury’s have launched private label vegan ranges following a jump in demand for dairy-free and meat-free chilled products by up to 25 per cent.
The latest in Europe is McDonalds have even launched a vegan burger (made from soy beans) to meet growing demand, alongside Nordic food group, Orkla.
Reasons for the shift
There have been a few key driving factors driving the shift towards veganism in recent years, including:
- Desire for transparency. People are asking: "Where does my food come from?"
- Increased awareness of health benefits due to the availability of information on the internet, the media and celebrity influencers.
- Stronger focus on taste and quality of plant-based products alongside a wider range of options available today (in stores and restaurants). This change is moving perceptions away from the ‘hippie’ stereotype and bringing these diets further into the mainstream
- Consumers are seeking more creativity, flexibility and variety in their diets by mixing up traditional meal combinations and experimenting with new flavours.
How can the food industry adapt?
1. No one likes being labelled
Focus on highlighting key benefits such as the protein content, rather than using ‘vegetarian’ or ‘vegan’ labelling, as this may limit the product’s appeal amongst the wider consumer base.
Amit Tewari, owner of Soul Burger (Sydney's gourmet plant-based burger joint) added to the conversation: "We're careful to not lump plant-based eating with 'organic', 'healthy,' 'raw' buzz words and instead will discuss it as 'satiating', 'flavour', 'satisfying' and 'gratifying'."
As raised in our recent blog featuring the top 3 food and beverage trends of 2018, consumers are still looking for indulgence, but without the guilt.
We’re seeing a rise in ‘value-add’ treats and snacks which highlight desirable benefits e.g. protein boosting chia desserts.
Manufacturers must now cater to all diets to provide an inclusive indulgent experience. As an example, Divine launched a dark chocolate and mint, dairy-free Easter egg to their range.
Food manufacturers can boost sales by using indulgent words to describe their products e.g. Sainsbury’s in the UK is now selling ‘Teriyaki-style noodles with sweet’n’savoury glaze, Asian-style vegetables and tangy lime’ as part of their vegan range.3. Innovation
As vegan, vegetarian and flexitarian diets trend across the world, plant-based foods are a key area for innovation.
Meat companies are even creating meat alternatives to cater for the vegetarian sector, helping them avoid the risk of shutting out a growing area of the market.
Proprietary technologies which require minimal processing and retain ingredient nutrients are now able to produce plant-based protein options such as bars, meat alternatives, cereals and snacks.
This kind of innovation is also useful to cater for the gluten-free market, using lentils, peas or chick peas to create pasta, for example.Passing trend or the future of food?
Over to you
How is your business adapting to this shift in consumer tastes and behaviour?