Following recent news that Tesco intends to set a plant-based sales target of 300% growth in the next five years;
Frederick Diamond, Consumer Analyst at GlobalData, a leading market research company, offers his view on what Tesco’s announcement means:
“Tesco’s ambitious new sales targets serve to reinforce the notion that the future is plant-based. Health fears provoked by the pandemic, an increased media focus on the environmental impact of livestock, and advances in food-processing technology as a result and driver of this growing demand, all point towards the same future.
“In GlobalData’s Q3 2019 consumer survey, 39% of UK respondents said that ‘plant-based’ was a claim they found to be ‘somewhat appealing’, with a further 26% saying they found it ‘very appealing’. Comparing these results with GlobalData’s latest COVID-19 UK recovery survey**, which asked how shopping behavior has changed as a result of COVID-19, it can be seen that *16% are buying slightly more plant-based meat alternatives than before. Plant-based dairy follows a similar trend.
“Alternative dairy such as yogurts made from coconut or almonds have also seen a surge. Yet, faux-meat is perhaps the most iconic in the plant-based revolution, as food scientists work to reproduce the flavours and textures people love with none of the animal suffering, or health problems associated with meat.
“Tesco‘s announcement can be read as a challenge to its competitors, as well as a signal to manufacturers wanting to stock their products in Tesco. It is quite literally a signal of intent. Achieving 300% growth by 2025 will likely involve the expansion of the company’s current range to include as-of-yet unknown brands and products that may still be under the radar. This would allow consumers the chance to sample smaller brands that have new products and innovations, while this newly-expanding market continues to grow.”
*Combined responses: buying slightly more, significantly more, stockpiling
** published 23 September