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GET THE REPORTWhether you think itâs a fad or a food revolution, the popularity of veganism has skyrocketed in recent years. It carries an identity or value dimension that goes beyond the diet itself. There is more to being vegan than simply avoiding animal-based products. It often influences how a person sees themselves.Â
And even for those who havenât sworn off meat completely, more and more are consciously reducing their meat consumption. Data from Zappiâs âSustainability Usage & Attitudes (U&A) studyâ in Q4 2022 shows that nearly half of UK consumers (45%) state theyâre already cutting down on eating meat purchases to reduce their environmental impact. Others are doing so for health benefits.
These so-called âflexitariansâ are often reducing meat consumption for environmental and health benefits. Itâs this group that is often attracted to meat-substitute products. As the name suggests, meat substitutes are plant-based food products typically made to mimic the appearance and texture of traditional meat products.
This category is fast approaching a $1 billion market. With a forecasted CAGR (compound annual growth rate) of nearly 8% from 2021 to 2026, itâs growth that canât be ignored.
The Zappi Sustainability U&A showed more than half of adults in the UK now avoid products they know are bad for the planet. More than one in three (39%) of those aged 18-25 actively look up a brandâs sustainability efforts before purchasing their products. Only 25% of those aged over 45 do this.
And specifically for food, 45% of UK consumers state they are already reducing meat purchases to reduce their environmental impact. This is relatively consistent across age groups, so it is a strong indicator of why the substitute meat market is showing such growth potential in the UK.
With strong market growth and rising consumer interest, we thought it was a good time to look at some more recently introduced meat substitute food products to see what brands could learn to drive their own successful innovation with the ongoing trend.
Some questions we were looking to answer:
What are consumers looking for in this category?Â
What appeals to them? What doesnât?Â
How do different products perform when we assess their messaging, claims and packaging?
How does this vary among different groups, especially by age?
What can brands do through new product development and packaging to capture their slice of this strong growth market?
For more on innovation trends, check out our article on 10 Halloween products we researched to understand their potential based on consumer feedback.
We looked at six different vegan food products in the UK (three chicken substitute products and three sausage substitute products), surveying 2,400 consumers to understand their opinions of them.
The research was done using Activate It â a key solution from Zappiâs Innovation Suite. Activate It supports brands in assessing and deciding which innovation concepts offer the best commercial potential and incremental growth opportunity for the business.
Our main takeaways from the research include:Â
Get creative: Thereâs room for further innovation and new product development â specifically targeted to younger consumers.Â
Highlight the right benefits: Prioritize healthy eating, but donât forget sustainability.
Beware of greenwashing: Be clear about the specific sustainability benefits of the product, but proceed carefully â consumers are wary of âgreenâ claims that lack authenticity.Â
Show the product looking delicious: Focus on cooked, not raw imagery!
Letâs go through each of these.
A growing market like this will usually warrant further consideration for innovation and new product development.
But which consumers are the target audience for the category? Digging deeper into the growth opportunities, our research showed appeal is especially strong for younger consumers.Â
Younger consumers (under 25) vs. older (over 45) are much more likely to say they âdefinitely would buyâ (averaged across the six products we looked at).
Other growth opportunity segments include:Â
Sustainability-minded consumers: Those classified as âsustainability mindedâ (defined as people who strongly agree with the statement: âsustainability is a serious concern for the future of our planetâ) show even stronger purchase intent (40% definitely would buy) given the alignment of the meat-substitute productâs claims to their sustainability interests.
Early adopters: Early adopters in this category (defined as people who strongly agree with the statement: âIâm usually amongst the first to try new chilled and ready to cook mealsâ) are worth a closer look. They were more likely to buy all six of the products, but two in particular had the strongest appeal: The Vegetarian Butcher and Moving Mountains products. (In a later section weâll look at whatâs driving their stronger appeal.)
đĄTakeaway: The growth in this category, combined with the interest of younger consumers, suggests brands should invest time and energy into building this category. But there is some nuance in the drivers of interest and purchase, so get close to consumers to understand their needs and preferences.
Falling above taste, appearance, recipe flexibility, and ability to satisfy appetite, it is health and sustainability benefits that resonate the most with consumers.
Being âa healthy choiceâ was the most important benefit associated with the products we tested. Most of the products carry prominent nutritional information and health messaging (âlow fat,â âgluten free,â âsource of fibre,â etc.) which clearly help support this.
âHigh proteinâ is a claim that resonates with consumers as well, as consumers responded favorably to messaging of the âproteinâ content of the products we looked at. The Squeaky Bean Chicken Pieces and Moving Mountains packs demonstrate this well.
The second most associated attribute for the products we tested was whether the product was âa good choice for the environment.âÂ
The Vegetarian Butcher product, for example, has a clear ârecyclable packagingâ logo which consumers appreciated.
Positive reactions to the âRecyclable Packagingâ logo included comments such as:
âGood that the wrapper is recyclableâ
âPositive messageâ
âGood for the planetâ
And other products promote the sustainability benefits in their off-pack messaging, which is included as a key diagnostic within the Activate It solution. The Moving Mountains product, for example, dials up the sustainability credentials of the brand and product with consumer feedback such as:
âThe product promotes sustainability and healthy eating.â
âI like that they are good for the planet.â
đĄTakeaway: Play up health and sustainability on your packaging, as theyâre the benefits resonating most strongly â especially with younger consumers. Their more niche eating habits today are fast-becoming the mainstream of tomorrow!
Of course, keep in mind that you have a fine line to walk when associating your product with sustainability. Consumers are on the look-out for brands that they might see as âgreenwashingâ â sharing questionable claims of âgreenâ or âsustainableâ products. Greenwashing carries a risk of very real, long-term reputational brand damage, as in the case of fast fashion retailer H&M who has recently been sued for allegedly providing inaccurate depictions of the environmental impact of its products.
Striking the right balance of authenticity, clarity and appeal is critical. In other words, itâs important to make realistic claims that make sense and matter to consumers.
Our research shines some light on this. We first explored the area of on-pack logos explaining a productâs sustainability credentials in Zappiâs Q4 2022 Sustainability U&A. We saw that 70% of UK consumers agree that a âsustainability badge, logo or textâ would make them more inclined to purchase a product.
And that was evidenced by the Meatless Farm product in our research. It carries the âEco Impactâ score in logo format.
This was well received, with consumers making comments such as:
âGood that this has a low impact ratingâ
âLike that this is in A ratingâ
âEco credentials visibleâ
But beware! 64% of UK consumers said they were skeptical about the sustainability of a product, even if it claims to be sustainable. Consumers have witnessed so much greenwashing that they donât always automatically trust sustainability claims.Â
In this particular case, there was a lack of clarity about what the âEco Impactâ label really means.Â
âIâm not sure what this meansâ
âDonât know what it stands forâ
âDonât get thisâ
Or more directly critical, we can see some consumer feedback along these lines: âUltra processed fake food is in no way better for the planet.â
|Without clarity and education, these kinds of claims might lead consumers to think a claim isnât completely authentic.
Of the products we tested, one that stands out for good âspecific detailâ around environmental and sustainability credentials was Moving Mountains. This brand explicitly points consumers to more information, and this additional information was well received â with some comments like âI like that it directs you to information about the sustainability mission.âÂ
And the Meatless Farm Chipolata Sausages also received positive feedback for the more specific information they provide around environmental and sustainability credentials.
With comments such as:
âThey have been rated highly by a respected company.â
âInteresting about an eco rating.â âGood that this has a low impact rating.â
đĄTakeaway: Don't assume a simple badge on your packaging does the job. Be specific about the health and sustainability benefits. Make it easy for consumers to believe and want to try and feel good about their choice. But do this without over cluttering. (We know thatâs not easy! Thatâs why itâs important to research your packaging with consumers to make sure theyâre interpreting it right.)
It was very evident in our research that packaging that showed meat-substitute food as part of an appetizing cooked meal performs better than packaging of raw food.
There was notable negative feedback about the appearance of the product when it is shown uncooked in the pack, for example of the bottom of the packs shown below for Squeaky Bean and Meatless Farm.
While it is common pack design practice to show raw food for traditional meat products, our research indicates this is less relevant for meat substitutes.Â
Our recommendation is that showing the food as part of a cooked meal would make stronger or more universal appeal e.g. Moving Mountains and The Vegetarian Butcher products that both focus the pack design on cooked product only.
Most dislikes focused on the appearance of the food through the transparent packaging window.
The better performing products show only the cooked product as part of an appetizing recipe, such as in the example below from The Vegetarian Butcher.
đĄTakeaway: Show your product cooked as part of a meal, not raw.
If you're going to redesign your packaging, take a look at our article on the three things brands should keep in mind.
Through our research, we learned a few key things for brands to think about when developing and packaging their meat substitute products:
Key segments for the category include early adopters, younger age groups and sustainability-minded consumers
Health and sustainability are the key benefits to highlight on packaging
When making sustainability-related claims, focus on authenticity and clarity to avoid greenwashing suspicionsÂ
When depicting the product, focus on showing it as part of a cooked meal
Of course, itâs easy to say these things â but much harder to execute it well. Thatâs where consumer research comes in. Researching your product concepts, pack design, pricing and more with consumers will help you be sure your final product will succeed in the market.
If you're looking to create more products people love, learn more about how Zappiâs Product Innovation System can help.