The latest State of the Industry (SOI) report, released by Australia's Food Frontier, sheds light on the flourishing trajectory of the plant-based meat industry in Australia. Amidst economic hurdles, the sector showcases resilience and growth, particularly in the foodservice domain.
Source: Food Frontier
According to the report, spanning from 2020 to 2023, plant-based meat sales surged by an impressive 47%, paralleled by a substantial 28% increase in per-capita consumption. Dr. Simon Eassom, CEO of Food Frontier, says the sector's stability amidst global economic strains is a key observation, asserting Australia's out-performance in the face of local economic downturn.
The report underscores the economic significance of Australia's plant-based meat industry, projecting a promising outlook despite growth fluctuations inherent in nascent markets. Deloitte Access Economics insights, coupled with Food Frontier's industry data, reveal a compelling narrative of expansion. In 2023, total plant-based meat sales reached $272.5 million, with notable growth observed in foodservice, boasting a 59% compound average growth rate since 2020.
However, retail sales encountered a slight contraction, attributed to inflation and shifting consumer preferences. Simon Eassom added product dissatisfaction and pricing differentials contributed to subdued retail performance.
Source: Public Domain
Remarkably, the report highlights a narrowing price gap between plant-based and conventional meats, fostering greater accessibility for consumers. This convergence, from a 49% disparity in 2020 to 33% in 2023, signals a pivotal shift in market dynamics.
Looking ahead, Deloitte Access Economics anticipates a market size of $1.65 billion by 2033, prompting discussions on sector strategies amidst evolving consumer landscapes. Taste, texture and general appearance have also emerged as governing factors for consumer uptake.
Simon Eassom anticipates a paradigm shift in consumer behavior, driven by heightened awareness of food systems' environmental impact. As Australia embraces sustainable dietary choices, the plant-based meat industry is poised for continued growth, spearheading innovation and sustainability in the culinary landscape. This bodes well for the sector at large.
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