PLANT-BASED FOR THE FUTURE - Insights on European consumer and expert opinions

Page created by Arnold Burns
 
CONTINUE READING
PLANT-BASED FOR THE FUTURE - Insights on European consumer and expert opinions
PLANT-BASED FOR THE FUTURE
Insights on European consumer
and expert opinions

Findings are based on the results of a qualitative study carried out by Dr Beate Gebhardt, University of Hohenheim,
Department of Agricultural Markets, in cooperation with the University of Turin (Italy), the Polish Academy of Sciences,
Olsztyn (Poland), the University of Aarhus (Denmark), and the Consejo Superior de Investigaciones Científicas (CSIC),
Spain, as part of the 2020 EIT Food project "The V-Place – Enabling consumer choice in Vegan or Vegetarian Food
Products", led by the Hohenheim Research Center for Bioeconomy at the University of Hohenheim, Germany.
PLANT-BASED FOR THE FUTURE - Insights on European consumer and expert opinions
PLANT-BASED FOOD IN EUROPE
Scope of This Study
Product variety has come a long way in the past                    Today, this development is mainly driven by this                    groups. But even though such products are
years. While vegetarian and vegan specialty                        rather diverse target group: ‘flexitarians’ – people                becoming more widely accepted by the day,
products used to be the exception, they are                        who actively seek to reduce their consumption                       plant-based and vegan alternatives are far
now more popular than ever. Approximately 75                       of animal products without banning them from                        from being the norm and many consumers
million European consumers purchase vegan                          their menus altogether. As the demand for such                      still treat them with caution. Aiming
or vegetarian foods and the trend is rising. One                   products has increased, supermarkets have                           at gathering candid insights about the
in five European consumers even deliberately                       begun to adapt and offer an increasing amount                       background, drivers and barriers of these
aims to consume fewer animal products and this                     of plant-based options in their aisles. In this                     developments, experts and consumers of five
number is growing rapidly. 1                                       process, plant-based meat and dairy alternatives                    European countries were interviewed and
                                                                   have emerged as the most sought-after product                       form the basis of this Whitepaper.

         PLANT-BASED FOODS TODAY – WHAT ARE THE GUIDING THEMES?
             1. Do consumers opt for plant-based foods for health, ethical, ecological, or other very different reasons?
                 2. What reservations and barriers do consumers have towards these novel foods?
                  3. What needs do consumers express in terms of communication and information?

                    The study consists of qualitative interviews with 70 experts and consumers in 5 EU countries 2: Germany, Italy,
                    Denmark, Spain and Poland. It will be followed by a further quantitative study to appear in 2021.

1
    Veganz study, October 2020: https://veganz.com/blog/veganz-nutrition-study-2020.   2
                                                                                           The interviews were conducted by telephone and in writing.                                2
PLANT-BASED FOR THE FUTURE - Insights on European consumer and expert opinions
PRODUCTS & LIFESTYLES – TERMINOLOGY AND IMPORTANT DIFFERENCES
Product variety, labels, lifestyles, and eating habits have evolved throughout the last decade and have certainly have become more complex. When discussing different products and eating habits,
it is important to be precise in terminology to ensure clarity and avoid misunderstandings. In the various countries of the survey, the words in the native language may have more nuanced connotations.

Product properties                                                                                                                   Eating habits
  Vegan – Vegan products do not contain any animal-based ingredients, such as meat, fish, dairy,
 	
  eggs and honey. The production process must not use animal-derived products either, such as
  gelatine for clarifying juice or wine, or animal-based glue for product packaging.
                                                                                                                                     V egan
  Vegetarian – Vegetarian foods exclude meat and fish, but may include ingredients like dairy,
 	                                                                                                                                   Vegans refrain from
  eggs, and honey.                                                                                                                    including any animal
                                                                                                                                      based products in their    V egetarian
  Plant-based – For food, the term plant-based refers only to a processed product's ingredients.
 	                                                                                                                                   diet, thus excluding        A vegetarian diet
  A plant-based product does not contain any animal-based ingredients.                                                                meat, fish, dairy, eggs,    includes animal-based    F lexitarian*
                                                                                                                                      honey, etc. Their diet      ingredients but no        Flexitarians deliberately
  Plant food – Plant foods refer to unprocessed plants that are part of the human diet,
 	                                                                                                                                   may consist of plant        meat. Therefore, eggs,    aim to reduce animal
  such as fruit, vegetables, legumes and spices.                                                                                      foods and processed         dairy and honey may       products in their diet,      mnivore
                                                                                                                                                                                                                        O
                                                                                                                                      foods that purely           be included whereas       but do not strictly         An omnivore diet does
                                                                                                                                      contain plant-based         meat and fish are         exclude any food            not exclude any foods
                                                                                                                                      ingredients.                excluded.                 group.                      or food groups.

* Definition used in the context of this Whitepaper. The flexitarian share of consumers is harder to pinpoint compared to other consumer groups.                                                                                                3
PLANT-BASED FOR THE FUTURE - Insights on European consumer and expert opinions
TWO TERMS NOT CREATED EQUAL:
VEGAN VS. PLANT-BASED
With numbers on the rise, flexitarians seem to be        While foods that are labelled as vegan could also   Despite being a promising target group for the         Confused but curious:
the fastest growing target group for plant-based         be labelled plant-based, research shows that both   plant-based industry, flexitarians often do not feel   Consumers yearn for credible information
products. However, currently available plant-            terms are not created equal. Consumers seem to      addressed. One reason may be that flexitarians         Overall, the results of this study indicate that
based alternatives are not really marketed or            associate the term vegan with an ideological, al-   are difficult to pinpoint. Some may only reduce        consumers in all countries wish for basic and
communicated towards them, leaving consumers             most unforgiving approach. The term plant-based,    meat or dairy and are thus often considered to         practical information on plant-based foods, what
in want of more information, more variety and            on the other hand, seems to be more appealing       be part of the omnivore or vegetarian group.           they’re made from, where to buy, and how to
improved availability. The term flexitarian is           and inviting – and to be attracting more and more   Reasons for flexitarians to reduce animal              prepare them. Most importantly, resources need
still vague and consumers simply interested in           consumers.                                          products are highly diverse and range from             to be credible, as there exists already too much
plant-based alternatives most likely do not define                                                           personal wellbeing to sustainability and animal        misinformation. Credible sources of information
themselves as flexitarian. In this study, flexitarians   Diverse and misunderstood:                          welfare. Equally, barriers that keep consumers         may be governmental and scientific institutions.
are defined as consumers who actively aim to             Target groups for plant-based foods                 from deciding for plant-based alternatives             Vegan and vegetarian organisations are consid-
reduce their consumption of animal products              Traditionally, plant-based products are marketed    vary greatly and include lack of availability,         ered credible resources to only a limited extent.
without cutting them out completely.                     mainly towards consumers following a vegan or       unappealing taste and even health concerns.            Consumers request more objective resources,
                                                         vegetarian diet and therefore strictly excluding                                                           available conveniently, for instance on social
The term plant-based includes all products that          certain animal products from their diets. The       While plant-based foods can be found all over          media, apps, or at the point of sale.
are made from plants and designed as substitutes         significant increase in demand of plant-based       Europe, we found that reasons to decide for or
to common animal-based products, some even               products, however, is not driven by vegans or       against plant-based products vary between the          Insights of experts in the field and consumers are
mimick their taste, texture, or appearance. Popular      vegetarians, but by flexitarians: a diverse, yet    countries. These regional differences might also       highly diverse, representing the diverse character
examples are plant-based drinks as milk alterna-         large group of consumers who actively seek to       depend on local market dynamics, product offers        of the flexitarian target group.
tives, meatless burger patties and egg substitutes.      reduce their consumption of animal products         and legal regulations.
                                                         to varying degrees – without cutting them out
                                                                                                                                                                                                                        4
                                                         strictly from their diet.
PLANT-BASED FOR THE FUTURE - Insights on European consumer and expert opinions
VARIETY IS KEY
Expert voices on plant-based meat alternatives

Poland                          Germany                         Denmark                           Italy                        Spain
"Not so diverse“                "A lot of of innovation“        "Very limited product range“      "Medium variety“             "Limited diversity"

Important                       Important                       Important                         Important                    Important
Hams and sausages               Burger patties, nuggets         Mince, pip-free, sausages,        Burgers are definitely the   –
are dominant as well as         (DE-E7); Burgers and sliced     chunks and the like. Minced       most important group.
chilled products for lunch/     meats will probably be the      meat of pure raw materials                                     Missing
dinner (PL-E8); Soy cutlets     top-selling products (DE-E6);   (without extruded plant           Missing                      –
– various forms, soy grits      burger patties, nuggets, TVP,   proteins, clean label). Organic   There could be more
and frankfurters are widely     cold cuts, etc. are the most    is important. Consumers           products.
available (PL-E6); Generally    important (DE-E8).              have clear preferences for
there are plant-based                                           organic products – though
substitutes for hot-dogs,       Missing                         taste is also extremely
burgers and tofu (PL-E7).       The whole variety of sausage    important).
                                cuts (e.g.: salami, ham) is
Missing                         missing. So far there are       Missing
Little access to fresh meat     only good alternatives to       Alternatives to fish; Egg
alternatives, e.g. minced       mortadella and Lyoner           alternatives.
(such as Beyond Meat), but      sausage. Most (fried)
apparently a new company        sausage alternatives are
with such production.           not convincing (DE-E6);
Demand for regional plant-      technological challenges
based specialties is rising,    (ingredients) and there is
as well as better adoption by   also less variety than with
gastronomy.                     MoPro-Alt (DE-E8). In organic
                                quality: almost no convincing
                                products to be found (DE-E6).

                                                                                                                                                     5
PLANT-BASED FOR THE FUTURE - Insights on European consumer and expert opinions
MORE VARIETY TO WIN CUSTOMERS
Expert voices on plant-based dairy alternatives

Poland                            Germany                          Denmark                          Italy                            Spain
"big variety“                     "Quite diverse“                  "Most plant drinks are made      "High variety“                   "Wide diversity“"
                                                                   from oats, soy and almond. “

Important                         Important                        Important                        Important                        Still missing
Dairy drinks dominate             Classic milk alternatives        Product groups: Plant drinks,    Soy milk is the most             Cheese, ice cream
(PL-E6) / Plant-based milk: soy   with the highest sales,          organic. Oat drink. Plant        important with oat milk          alternatives.
milk is the main product but      followed by yoghurt and          butter and spreadable. Plant     growing and right behind.
new items are entering the        cheese alternatives (DE-         cream to a slightly lesser
market (almond, oat and rice      E6); Alternatives to cow's       extent.                          Missing
milks) (PL-E7).                   milk, yoghurt and cream                                           Plant-based cheese is
                                  cheese are most strongly         Missing                          definitely lacking, especially
Missing                           represented (DE-E8).             Sour cream and plant             in supermarkets.
There is a lack of cheese                                          cheeses that taste better –
and drinks other than yogurt      Missing                          and different flavors. /
(PL-E6); of products derived      Cheese in its diversity          Important product groups
from 100% local ingredients       analogous to animal              that are generally lacking.
(lupins, peas) and from Polish    products (feta, hard cheese,     Alternatives to fish and eggs.
concerns (the majority of         fondue cheese etc.), the
available marks are foregin).     different uses (DE-E6);
Other diary products              cheese alternatives of
are: recent availability of       convincing quality and variety
plant-based mayonnaise            (DE-E8).
and ice cream had strongly
improved but there is still a
lack of good quality cheese,
yoghurts, cream, etc. (PL-E7);
lack of a broad variety of
plant-based yoghurt, creams,
cheese (PL-E8).
                                                                                                                                                         6
PLANT-BASED FOR THE FUTURE - Insights on European consumer and expert opinions
CONVINCING CONSUMERS
Expert voices on plant-based marketing

Poland                            Germany                         Denmark                          Italy                           Spain
Do’s                              Do’s                            Do’s                             Do’s                            Do’s
 	Depict delicious meals          	Position products as          	Focus on sustainability or     	High quality products are     	Focus on environmental
   and show variety                  culinary enrichment rather      organic ingredients and          needed as a base                benefits or animal-related
 	Be aware of gluten’s mixed        than a substitute               address scepticism openly      	Communicate ingredients,        advantages
   image, label products           	Focus on positive,            	Communicate clearly and          quality and level of          	Invest in credible
   clearly                           fact-based messages             tangibly so consumers            processing clearly              certifications (e.g. V-Label)
 	Attractive packaging            	Stress environmental            can recognize the product      	Focus on clear information    	Support legal definition
   designs and information           benefits                        quickly                          provided on the packaging       processes to overcome
   provided on the packaging       	Regionality can be a new      	Give more attention              so consumers know what          the spread of misleading
   is important                      differentiator                  to media and initiate            to expect                       information and mistrust
 	Convince with scientific                                          cooperations with trusted      	Enable practical
   evidence                       Don‘ts                             associations or authorities      experiences and support      Don‘ts
                                   	Avoid moral or ideological                                       personal recommendations      	Don’t market a product
                                     messages. Instead focus      Don‘ts                                                              as healthy if it isn’t
Don‘ts                               on consumers’ curiosity       	Don’t use ‘original’ names    Don‘ts                           	Don’t make up own vegan
 	Don’t overuse terms like        	Don’t focus on health           but opt for new names for      	Don’t add animal-derived        labels, use existing ones
   ‘natural’ or ‘healthy’            or ethical motivators           plant-based products             flavours or additives in        instead
 	Don’t lose the right balance      at the POS                    	Don't stress the term            products labelled 'vegan'
   between informational and                                         'vegan', focus on                or 'natural'
   attractive                                                        plant-based instead

                                                                                                                                                                      7
DECISION FRAMEWORK:
                                                                                                              Nutrients
                                                                                                                             List of
                                                                                            Raw materials
                                                                                                                          ingredients

HOW CONSUMERS DECIDE                                                       Food additives
                                                                                                                                          Provenance &
                                                                                                                                         company details

FOR OR AGAINST A PLANT-                                      Technical
                                                                                                            Ingredients
                                                                                                                                                            Labelling

BASED PRODUCT
                                                             additives

The decision for or against a plant-based product      Further
                                                                                                                                                                  Awareness
is a multi-layered process. Consumers consider       components

numerous factors, from ingredients and degree
of processing to the quality and sustainability
                                                                               Production                   Product                Communication

of a product’s packaging. As the target group        Processing
                                                                                                                                                                  Knowledge
for plant-based products is characterised by a         steps

large degree of diversity, so are the factors that
individual consumers take into consideration
when shopping.
                                                           Animal ethics                                                                                   Confidence
                                                                                                            Packaging

                                                                           Sustainability                                                    Usage

                                                                                               Health                     Availability
                                                                                                              Sensory

                                                                                                                                                                              8
CONTEXT AND KEY FACTS & FIGURES
The dietary profile of Europeans has changed considerably over the last generation, becoming more heterogeneous and harder to pinpoint.
There is an overall trend towards meat and dairy reduction for a variety of motives.

Changing consumer profiles                                                                  Growing Market                                                                            Regulations & the lack thereof
Since 2016, the number of those who identify as vegans has                                  European retail sales of meat and dairy alternatives have                                 An official definition and label for both vegan and plant-based
doubled from 1.3 million to 2.6 million in Europe3. Looking                                 grown by almost 10% per year between 2010 and 2020. The                                   foods can be a key driver for a more transparent market for
at all those who actively reduce or fully exclude at least                                  plant-based alternatives market in the EU and the UK is set to                            producers and consumers. Of the countries in the study, only
some animal products, including vegetarians, pescatarians                                   be worth €7.5 billion by 2025, compared to €4.4 billion in 20194,                         Germany (2016) and Poland (2014) have a vegan definition. No
and flexitarians, the group in total represents 30.8% of the                                a 70% increase.                                                                           country in the study yet has a definition for plant-based foods.
population: 10 to 30 % of Europeans no longer consider
themselves full meat-eaters anymore.                                                        The product groups with the highest revenue are meat and                                  The need for clarity on labelling has recently been brought
                                                                                            dairy alternatives. In 2019, the global meat alternatives market                          to the fore at EU level in the controversy around using meat
                                                                                            was valued at US$ 4,532.6 million and is anticipated to reach                             labels for meat alternatives5. In the meantime, multiple terms
                                                                                            US$ 7,106.7 million by 2025. The global dairy alternatives market                         are used to describe plant-based foods, from ‘floral’ (Poland)
                                                                                            (including milk substitutes) was valued at US$ 16,130.9 million                           to ‘planetary diets’ (Denmark) to ‘plant powered’ (Germany).
                                                                                            in 2019 and is anticipated to reach US$ 41,061 million in 2025.6

3THE
    Veganz  study,
       FUTURE      October 2020 https://veganz.com/blog/veganz-nutrition-study-2020. 4 ING study, October 2020 https://think.ing.com/articles/plant-based-meat-and-dairy-to-become-7.5-billion-market-in-europe-by-2025.
                IS PLANT-BASED                                                                                                                                                                                                                         9
5
    Financial Times article, October 2020 https://www.ft.com/content/f583d3f2-38a2-4f7a-9538-9899971413ec. 6 The Vegetarian Society of the United Kingdom.
WHAT DRIVES CONSUMERS                                                                                                                                                                           Trends & fashion
TO OPT FOR PLANT-BASED                                                                                                                                                                          Increasing popularity and visibility in

ALTERNATIVES?                                                                                                                                            Habitualization                        mainstream and social media drives
                                                                                                                                                                                                interest in consumers to try novel
                                                                                                                   Well-being                            & adaption                             plant-based foods.

                                                                                                                   Active reduction of animal products   Taste preference and familarity
Why are more consumers, regardless of their               The study identified many diverse motives,               to make a positive impact, e.g. on    with organic products, consumers
                                                                                                                   climate change, animal welfare.
dietary preferences, buying more plant-based              drivers and needs for the further development                                                  seeking more natural options on a
                                                                                                                                                         more habitual basis.
foods than ever before? The list of arguments en-         of plant-based food markets in Europe:
tertained by companies, NGOs and communities is
                                                                                                                                                                                                Product variety
long, ranging from benefits on personal and global
                                                                                                                                                                                                A wide variety of products are
health to positively impacting climate change with
                                                                                                                   Unintentional                         Lack of                                available, in particular alternative
individual food choices. The interviews with industry                        Curiosity                                                                   confidence                             milk drinks and meat alternatives.

experts and consumers reveal:                                                Interest in variety and to try new
                                                                                                                   consumption
                                                                                                                                                         Consumers grow increasingly wary
                                                                             textures, tastes and concepts         Consumers who do not deliberately     of animal food quality, particularly
the reasons are very diverse.
                                       Sustainability                        beyond what is known inspires
                                                                             consumers.
                                                                                                                   aim to consume plant-based
                                                                                                                   products but chose them or even
                                                                                                                                                         in the context of animal welfare and
                                                                                                                                                         and hygiene scandals in the meat
                                       & animal welfare                                                            by chance.                            industry.

  Health reasons
                                       Broadly available data and insights
                                       on animal welfare, as well as more
                                                                                                                                                                                                Religious reasons
                                       information on the impact of animal                                                                                                                      Consumers avoiding (certain)
  Concerns including allergies,                                                                                                                                                                 animal products may opt for plant-
                                       products on the environment and
  aesthetic motives (e. g. weight
  reduction), and nutrition-related
                                       climate change, inspire consumers     Taste                                 Availability                          Culture &                              based alternatives to add variety
                                                                                                                                                                                                to their diets.
  health issues inspire individuals
  to seek dietary alternatives to
                                       to make more ethical choices.
                                                                             preferences                           Products become more available        socialization
  conventional animal products.                                              Increasing availability and variety   in regular supermarkets and           Plant-based foods are more and
                                                                             of plant-based products inspire       the consumers' accustomed             more accepted these days,
                                                                             consumers to try alternatives to      environment. Known brands now         they have become part of the
                                                                             their favourite foods.                offer plant-based products.           culture and identity of consumers.               Most important drivers

                                                                                                                                                                                                          Other drivers                   10
BARRIERS
Taste, lack of choice and high price of                                                                Price point                                     Habits                              Ignorance
plant-based options are crucial barriers
                                                                                                   Higher price of plant-based              Habitualised shopping behaviour
                                                                                                 foods compared to conventional               (consistent choice of foods,              Lack of knowledge on how to
                                                                                                          counterparts                         brands and supermarkets)                  prepare plant-based foods

for consumers, experts & consumers say
Even though many consumers wish to reduce              The study highlighted paradoxes in                                             Taste                            Traditions                                    Variety
their consumption of meat and dairy for different      the perception of veganism in some                                    Negative expectations
                                                                                                                                                                      Continuance with habits                Lack of product variety of
                                                                                                                            and experiences with the
                                                                                                                                                                           and traditions                  existing plant-based meat and
reasons, this does not automatically result in other   countries: while Warsaw is for example                                 taste of plant-based
                                                                                                                                                                                                                    dairy options
                                                                                                                                  alternatives
products being placed in their shopping trolleys.      one of the top three cities for vegan
Apart from personal preferences and a certain          gastronomy, vegans are perceived by
tentativeness when it comes to product novelties,      some in Poland as ‘mentally disturbed’.
                                                                                                                                                 Processing
there are other arguments that drive consumers         Shifting towards the term ‘plant-based’       Availability                              Avoidance of foods that are                 Trendiness
away from the more sustainable plant-based             could help move away from this.           Lack of availabillity and variety,           perceived as (perception / ex-
                                                                                                                                                                                        Marketing messages making
                                                                                                    esp. in customers' usual                  pectation - compared to other
options. What really drives consumers?                                                                                                         products) with an excess of                 foods look too trendy
                                                                                                          supermarkets
                                                                                                                                                         additives

In the various countries of the survey, the words
in the native language may have more nuanced
                                                                                                                                  Image
connotations.
                                                                                                                           Veganism is perceived as
                                                                                                                                                                       Packaging
                                                                                                                            drastic and ideological.                   Excess packaging and
                                                                                                                            The term plant-based is                       usage of plastic
                                                                                                                                more attractive

                                                                                                                                                                                                        Most important drivers

                                                                                                                                                                                                        Other drivers                  11
KEY TAKE-AWAYS
Opinions of consumers and experts show the high diversity of drivers, barriers and
wants in the industry right now. Common denominators include:

                                2  Trust &                                                    4   Invest in research:                                        6  Innovate &

1                               transparency: having
                                                                3                                                             5                              broaden portfolios:
                                                                                              companies should now
  Flexitarians: the             a national definition and           Avoid ideology:           be working on improved             Focus on                    Consumers wish for
growth segment with             credible labels for vegan and   veganism and vegan            taste, culinary selection and   sustainability: perils of      practical middle ways
the highest potential:          plant-foods by institutions     foods still have negative     simpler ingredients. Not        global wellbeing and climate   and appreciate company
they want to cut their          that consumers trust can        connotations in the           only realistic alternatives     change are major disruptors    communications which
meat and dairy intake:          help build trust for both       countries studied. Plant-     are sought-after, but also      in the food sector.            show that incorporating
estimated at 10 to 30 %         market actors and reduce        based food is more neutral    product novelties. Wide         Consumers pay increasing       plant-based products into
of Europeans today, the         confusion for consumers.        but the term needs to be      selection of products is        attention to products'         one's diet is both easy and
flexitarian is a profile that   Additionally, communication     properly defined and the      now more important for          ecological footprint,          convenient.
is hard to pinpoint exactly,    and marketing should be         benefits linked to health,    consumers than ever. More       therefore companies will
also differing within given     honest and realistic, without   climate, water usage, CO2     simple recipes with plant-      benefit from taking up this
EU countries. Overall, it can   exaggerating or sugar-          emissions and sourcing need   based ingredients are in high   issue.
be better reached with          coating facts.                  to be better communicated.    demand.
plant-based products close
in taste and texture to the
animal original.
THE FUTURE IS PLANT-BASED
A qualitative study funded by EIT Food and conducted by

                                                    Contact                                                  Contact
                                        Dr Beate Gebhardt,                                                   Klaus Hadwiger,
University of Hohenheim, Department of Agricultural Markets                                                  University of Hohenheim, Hohenheim Research Center for Bioeconomy (Activity Leader)
                         Beate.Gebhardt@uni-hohenheim.de                                                     Klaus.hadwiger@uni-hohenheim.de

                       A report created by                    | united communications GmbH. Issued by University of Hohenheim. Version 1.20201218
You can also read