Key Takeaways
- Plant-based meat sales in U.S. food service reached $730 million in 2022, a 7.8% increase from the previous year.
- Overall U.S. plant-based meat sales revenue rose from $2.1 billion to $2.2 billion, despite a 4% drop in sales volume.
- Quick-service restaurants accounted for the majority of plant-based meat sales in food service, at 39% of the total market.
Sales Highlights for Plant-Based Meat
A recent report from the Good Food Institute (GFI) reveals positive trends in the U.S. plant-based meat market, particularly within the food service sector. Sales attributed to restaurants and other food institutions reached $730 million in 2022, marking a 7.8% increase, or an additional $53 million compared to 2021.
Despite this growth in food service sales, the total U.S. retail sales for plant-based meat remained unchanged at $1.4 billion last year. When considering all segments, including retail and e-commerce, the GFI report indicated that total revenue for plant-based meat rose from $2.1 billion in 2021 to $2.2 billion in 2022—a growth of 2%. However, total sales volume expressed in pounds saw a decrease from 349 million to 336 million, which equals a 4% decline.
This raises questions about the relationship between the increase in revenue and the dip in volume. GFI attributes the discrepancy to inflationary price hikes. In 2022, wholesale prices for plant-based meat saw a 4% uptick, in contrast to an 8% rise for animal-based meat products. Both categories were aligned with the estimated 8% growth in overall food service pricing. Notably, prices for plant-based meat have decreased by 11% since 2019, attributed to economies of scale and better supplier agreements.
In terms of distribution channels within the food service sector, GFI identified that 39% of plant-based meat sales occurred through quick-service restaurants, such as fast-food chains. Full-service restaurants contributed 19% to the total, while educational institutions accounted for 16%.
The report showcases the ongoing evolution of the plant-based market, reflecting both consumer demand and economic factors influencing pricing and sales strategies. For a comprehensive understanding, the full GFI report is available for further insights.
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