The report is based on findings from a survey conducted by Opinium, on behalf of UK and Ireland law firm Browne Jacobson.
After surveying 2,000 people, Browne Jacobson concluded that consumer habits are being driven by the cost-of-living crisis and that plant-based manufacturers need to have a strategy in place to expand market share, innovate and diversify product portfolios.
Key findings uncovered for the report include that 39% of UK adults are put off buying plant-based products due to the cost and 54% of consider plant-based products more expensive than animal products. Meanwhile, 25% feel there are fewer options for plant-based products in supermarkets this year compared to last year and 43% of vegans feel there are fewer plant-based options.
Browne Jacobson analysts argued that the suggests that manufacturers should re-evaluate their pricing strategies and predicted that private equity investors may view this as an opportune time to acquire emerging plant-based brands.
Sam Sharp, senior associate and head of the food and drink group at Browne Jacobson, explained: “There is potential for increased mergers and acquisitions activity in areas of the plant-based market that are showing resilience or growth, such as indulgent categories or products offered by discount retailers. Companies might look to acquire or invest in brands that have successfully navigated the current economic climate or are aligned with consumer trends towards healthier and more sustainable options.”
Paul Kirkpatrick, partner and head of the manufacturing and industrials sector, added that manufacturers need to take a closer look at their product portfolios and assess what is driving growth.
“The cost-of-living crisis is clearly having a continual impact on consumer habits meaning pricing strategies must be analysed closely by plant-based food manufacturers,” Kirkpatrick continued.
“Cost should be carefully considered when expanding product ranges. Manufacturers should focus on strong market niches or innovative products here, to increase chances of achieving cut-through in the market.”
In other news, Roebuck Food Group acquires Scottish ingredients supplier for £2.23m.
