Where Data Tells the Story
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Having long been limited to a handful of mostly soy-based products, plant-based alternatives to dairy and meat have made giant leaps forward over the past few years. Thanks to advances in food science, people can now enjoy a creamy oat milk cappuccino, have a tasty burger based on pea protein or even try chicken-free chicken nuggets that mimic the real thing surprisingly well.
And whether it’s due to allergies, intolerances, voluntary diet choices or simply to reduce the carbon footprint of their food intake, many people are enjoying the new variety of plant-based alternatives to dairy and meat. According to the Good Food Institute's State of the Industry report, U.S. retail sales of plant-based foods amounted to $8.1 billion in 2024, which is a slight decline from the previous year but still more than double of where the market was in 2017. With retail sales of $2.8 billion and $1.2 billion, respectively, milk alternatives and plant-based meat and seafood remain largest segments by far, despite both categories facing some headwinds more recently.
The slowdown in several categories can partly be explained with higher food and consumer prices in general, which may have impacted plant-based alternatives disproportionately. In an environment with widespread frustration over high food prices, it's not surprising that consumers tend to cut back on plant-based alternatives, which still carry a significant price premium over conventional meat, dairy or eggs. According to consumer research conducted by the Good Food Institute, taste and price are top barriers to eating plant-based meat, as consumers are looking for additional benefits (e.g. to their health) to make the switch.
In terms of adoption, plant-based milk alternatives are far ahead, with 4 in 10 U.S. household purchasing plant-based milk in 2024 versus just 13 percent who bought plant-based meat and seafood. Milk alternatives also stand out in terms of customer satisfaction, with 76 percent of buyers making repeat purchases.