THE 2021 STATE OF MEAT IN FOODSERVICE

Page created by Julie Ramos
 
CONTINUE READING
THE 2021 STATE OF MEAT IN FOODSERVICE
THE 2021
STATE OF MEAT
IN FOODSERVICE
THE 2021 STATE OF MEAT IN FOODSERVICE
The 2021 State of Meat in FoodService

THE RISE OF PLANTS AND THE POWER OF IMPOSSIBLE™ PRODUCTS
The meat industry is rapidly changing                                                        KEY TAKEAWAYS
in response to consumer demand
for options that are better for their                                                       • CONSUMERS ARE ACTIVELY REDUCING
health and the planet. This report                                                             ANIMAL MEAT CONSUMPTION
summarizes the current state of the                                                         	Across the United States, non-animal meat products
meat industry, and highlights the                                                             continue to grow in popularity among meat eaters who
                                                                                              are trying to reduce their meat consumption for health
key differences between what con-                                                             and environmental reasons. On the national level, 40%
                                                                                              of US adults are actively reducing meat consumption,
sumers consider “plant-based meat”                                                            and 39% are considering it,1 illustrating that consumers
and Impossible™ products. It also                                                             are changing habits and plant-based meat consumption
                                                                                              is not a trend—it is here to stay.
includes key insights for restaurant
operators looking to stay relevant and
competitive in the face of changing
                                                                                            • WHEN CHOOSING ANIMAL-MEAT
consumer preferences.
                                                                                               ALTERNATIVES, TASTE IS PARAMOUNT
                                                                                            	Taste remains the top barrier to trial and repeat purchase
                                                                                              for plant-based meat products, so choosing a product
                                                                                              that satisfies meat cravings is crucial. Many products on
                                                                                              the market today do not deliver meat flavor or texture,
                                                                                              which are the qualities that set Impossible products apart
                                                                                              from the rest. Among a sample of restaurant operators,
                                                                                              89% rank Impossible Foods in the top three brands they
                                                                                              believe to be best in class, with the majority ranking it at
                                                                                              the very top.2

                                                                                            • ADDING IMPOSSIBLE PRODUCTS TO
                                                                                              YOUR MENU DRIVES PROFITS
                                                                                            	Consumers are motivated and excited to eat at restau-
                                                                                              rants that offer Impossible products. In a survey of
                                                                                              customers who visited restaurants serving Impossible™
                                                                                              items in 2020, 52% said they decided to order Impossible
                                                                                              products before even going to the restaurant.3 In fact,
                                                                                              some restaurants selling Impossible™ Burger have
                                                                                              reported up to a 36% month over month increase in
                                                                                              same-store sales after adding it to the menu.4

1   YouGov Profiles, Dec 2020
2   August 2020, Impossible Operator Tracker.
3   2020, In the Wild Field Study, MFour
4   Earnest Research. “Burger King Bets on the Impossible.” Medium, Earnest Research, 30 Oct. 2019, www.medium.com/earnest-research/burger-king-bets-on-the-impossible-d9bc86c0bff4
THE 2021 STATE OF MEAT IN FOODSERVICE
The 2021 State of Meat in FoodService

DEMAND FOR MEAT ALTERNATIVES
IS ON THE RISE
The alternative meat marketplace is booming. UBS fore-
casts the U.S. market for plant-based meat to reach ~$15
billion by 2025—up from $1 billion in 2018 5—with 38%
of adults already eating plant-based meat at least once
a month (50% for adults below age 35).6 In an analysis
of over 1,000,000 menu items, plant-based burgers are
among the top ten fastest growing, expanding 362% in the
past four years,7 and in retail, plant-based meat sales have
risen +94% on average, outpacing animal-based meat.8

On menus and shelves across the United States, con-
sumers can choose from myriad products that market
themselves as tasting like meat from animals. But not all
animal-free meat products are created equal.

WHY DO PEOPLE CHOOSE IMPOSSIBLE PRODUCTS?
#1: TASTE
Meat eaters looking for satisfying alternatives to meat from                                   Uncertainty around taste is the main consumer barrier to
animals choose Impossible™ Sausage Made From Plants                                            ordering a menu item with non-animal meat. So restaurant
and Impossible Burger. Among foodservice operators                                             operators who want to offer a satisfying replacement for
aware of Impossible Foods, 89% rank it in the top three                                        meat eaters must put taste first. Plant-based meat is no
brands they believe to be best in class, with the major-                                       longer synonymous with frozen veggie burgers. And it’s
ity ranking it at the very top.9 In a survey of guests who                                     true that even as the industry has evolved, most products
visited restaurants serving Impossible products in 2020:                                       that call themselves plant-based meat do not have the
                                                                                              “real” flavor or texture of meat from animals.

                                                                                              That’s where Impossible Burger is unique—it’s meat
                                                                                              made from plants that cooks and tastes like ground
                                                            58%                               beef from cows.11 In fact, some prominent TV personal-
                                                                                              ities can’t tell the difference between Impossible Burger
     92%                                                      said their
                                                             perception of
                                                                                              and ground beef from cows, and a beef lobbyist called it
     said they                                              the restaurant                    the “real deal” and a “wake-up call” for the livestock sector.
 were extremely
                               84%
                                                            increased after
   satisfied by                                                seeing an                      The message is clear: Impossible Burger is the clear
   the taste of                who ordered                  Impossible™ item                  alternative that will keep meat lovers coming back
  Impossible™                    Impossible                   on the menu10                   for more.
     meat                     Burger said they
                               were likely to
                               order it again

5    “Future of Food I: Is Plant-Based Meat Poised to Rebalance Global Protein Consumption?” Investment Bank, www.ubs.com/global/en/investment-bank/in-focus/2019/future-of-food.html
6    2019 Generation IF Report, Harmon Atchison
7    Datassential MenuTrends
8    Total US MULO, Latest 26 weeks ending 1/24/21, IRI custom research
9    IF Operator Tracker
10   2020 In the Wild Field Study, MFour
11   IF Jan. 2020 IHUT, In a home usage study, 70% of 254 US consumers who cooked with Impossible™ Burger thought the taste was comparable to or better than ground beef from cows
THE 2021 STATE OF MEAT IN FOODSERVICE
The 2021 State of Meat in FoodService

                                                                                              #3: CURIOSITY AND EXCITEMENT
                                                                                              The cultural relevance of Impossible Burger drives purchase,
                                                                                               especially among consumers age 35 and under. The
                                                                                               Impossible Burger has been referenced in iconic television
                                                                                               shows like SNL and The Daily Show. Celebrities and athletes
                                                                                               have come out in big numbers to support the brand, and
                                                                                               more sustainable eating choices in general. Jay Z, will.i.am
                                                                                               and Serena Williams are among the celebrity investors in
                                                                                               Impossible Foods. Katy Perry wore an Impossible Burger
                                                                                              “dress” to the Met Gala in 2019.

                                                                                              		    “A plant-based diet is healthier for me and the
                                                                                                       environment.I invested in Impossible Foods to
                                                                                                       provide plant-based options for people that

#2: HEALTH AND SUSTAINABILITY                                                                          may not have ever had those choices due to
                                                                                                       cost and availability. I also don’t have to sacrifice
                                                                                                       the taste and flavors I enjoy. My entire family
Health is a top factor in consumer decision-making.
                                                                                                       can’t get enough.”
Increasingly, customers are trying to replace red meat
with other satisfying and satiating options, like Impossible
                                                                                                     — Serena Williams
products. Over 90% of Impossible Foods consumers
identify as meat-eaters and are actively looking for ways
                                                                                              Gen Z and Millennials love the Impossible Burger and
to incorporate healthier alternatives into their diets.12 On
                                                                                              Impossible Sausage Made From Plants, and are actively
the national level, 40% of U.S. adults say they are actively
                                                                                              seeking them out. While 18–34-year olds make up 30%
reducing meat consumption and an additional 39% say
                                                                                              of the total US general population, 45% of Impossible
they are considering it.13
                                                                                              eaters fall between the ages of 18 and 34.17 For opera-
                                                                                              tors, especially those with aging demographics, offering
Sustainability also continues to rise as a purchase motiva-
                                                                                              Impossible products is an opportunity to have the most
tor. When asked why they chose Impossible Burger
                                                                                              inclusive menu for existing customers, drawing in their
over beef from cows, 22% of consumers said “because
                                                                                              children and grandchildren for multigenerational dining
it’s environmentally friendly.”14 When Impossible Foods
                                                                                              experiences.
launched the Impossible Burger in 2016, concern for
the environment wasn’t even in the top ten reasons for
purchase—now it’s No. 3.15

 Consumers who choose to eat plant-based foods more
 often rank the fact that it’s “better for the environment” in
 their top five motivations. According to a June 2020 poll of
 U.S. adults by Mattson, 65% of people said they choose to
 eat plant-based foods more often because of the “general
 health benefits” and 48% said they chose it because it’s
“better for the environment.” While health benefits are a
 top motivation for choosing plant-based foods, Mattson
 president and chief innovation officer Barb Stuckey said
                                                                                                       MILLENNIAL
 the motivation is shifting: “more people [are] choosing                                                       Born: 1980–1994
                                                                                                               Age: 25–39 years                     GEN Z
 toeat plant-based foods…because they think it’s better
 for the environment—a major change in just two years—                                                                                            Born: 1995–2001
 especially among younger consumers,whereas for older                                                                                             Age: 18–24 years
 consumers it’s more about health.”16

12 January 2021 Impossible Foods Brand Tracker
13 Sep. 2020, YouGov Profiles
14 2020, In the Wild Field Study, MFour
15 Impossible Foods Impact Report 2019
16	Watson, Elaine. “SHIFT20: How Are Consumers Thinking about Plant-Based Eating? Mattson Unveils New Survey Data.” Foodnavigator, William Reed Business Media Ltd., 14 July 2020,
    www.foodnavigator-usa.com/Article/2020/07/14/SHIFT20-How-are-consumers-thinking-about-plant-based-eating-Mattson-unveils-new-survey-data
17 Sep. 2020, Impossible Foods Brand Tracker
THE 2021 STATE OF MEAT IN FOODSERVICE
The 2021 State of Meat in FoodService

   WHO IS SELLING IMPOSSIBLE PRODUCTS?
   The availability of alternative meat is expanding rapidly
   across the United States, and it’s now easy to find in over
   100,000 retail stores, national chains, corner cafes, and
   local spots like your favorite neighborhood pizza joint.

   Restaurant operators and retailers have an increasingly
   good reason to offer animal-meat alternatives—especially
   Impossible products—because they are a proven busi-
   ness driver, with restaurants who sell Impossible products
   reporting up to a 36% MoM increase in same-store sales
   after adding Impossible™ Burger to the menu.18

   Adding Impossible products to the menu also increases
   brand perception, traffic, and repeat sales with
   customers who purchased Impossible Burger at restau-
   rants reporting:19

                                            70%
                                                of those who
                                          purchased an Impossible
                                           product in the past six
                                           months have come back
                                              to purchase again
                                                                                                 Sales of plant-based meat in grocery stores are also

   52%
                                                                                                 experiencing massive growth. In September of 2020, the
                                                                                                 consumer insights firm Numerator found that Impossible
                                                                                                 Burger sales come in lieu of animal meat or other plant-
  think adding Impossible                                                                        based brands, not in addition to it, with 78 cents per
products to the menu would                                                                       dollar of Impossible Burger sales coming from shoppers
improve the overall percep-                                                                      who decide to buy Impossible products instead of other
   tion of the restaurant                                                                        plant-based brands or animal-derived meat. Within this
                                                                                                 group of consumers, 92% of Impossible Burger sales come
                                                                                                 at the direct expense of animal meat.20

                                             55%                                                 Additionally, in retail stores where it is sold, Impossible
                                                                                                 Burger is reported to be the #1 item in plant-based ground
                                        would visit the restaurant                               beef in dollar productivity and has been incremental to the
                                           just to order the                                     plant-based ground beef category, contributing to overall
                                         Impossible Burger                                       segment growth of 22%.21 Our foodservice partners echo
                                                                                                 this sentiment, reporting that Impossible Burgers sell 3X
                                                                                                 more than leading competitors when they are head-to-
                                                                                                 head on the menu.22

   18	Earnest Research 2019: April 2019 vs. March 2019 credit, debit, and bill pay activity from millions of anonymous U.S. consumers
   19 2019 Impossible Foods Concept Test 2. 2020 Impossible Foods Brand Tracker
   20	Starostinetskaya, Anna. “92 Percent of Impossible Burger Sales Directly Displace Animal Meat.” VegNews.com, 18 Sept. 2020, www.vegnews.com/2020/9/92-percent-of-impossible-
       burger-sales-directly-displace-animal-meat
   21 Impossible Foods custom research definitions based on IRI data, Total US MULO Ending 6-14-20
   22 Bloomberg 2019
THE 2021 STATE OF MEAT IN FOODSERVICE
The 2021 State of Meat in FoodService

WHICH MENU ITEMS ARE SELLING?
Today, it’s becoming common to find alternatives to                                          four years 23 and debuting as the second most popular
ground beef from cows, like Impossible Burger, in famil-                                     food ordered on GrubHub in 2020.24 Impossible Foods
iar dishes like meat sauces, tacos, or pastas thanks to                                      is at the heart of this explosion of growth as the only
their versatility. Plant-based sausage has also become                                       branded item on Yelp’s most mentioned words and
increasingly popular and preferred over animal-derived                                       phrases since 2010.25
meat options. In a test of over 200 U.S. consumers, an
Impossible Sausage Patty Made from Plants breakfast                                          		   “Nobody will miss the beef, the Impossible
sandwich was preferred 54% to 46% over the same                                                      Burger is delicious! It’s just a damn tasty burger!
breakfast sandwich made with the leading brand of animal-                                            I loved that Impossible [Burger] can be seared
derived sausage patty.                                                                               on the outside with a rosy, juicy inside—just like
                                                                                                     a medium-cooked beef burger.”
But the burger still holds the number one spot in menu
popularity. In an analysis of 1,000,000 menu items by                                               — Chef Craig Wong, Pastis
four-year growth, the plant-based burger is in the top ten
fastest growing menu items, expanding 362% in the past

                      THE PLANT-BASED
                            BURGER IS IN
                   THE TOP 10 FASTEST
                        GROWING MENU
                    ITEMS, EXPANDING

                      362%
                 IN THE PAST 4 YEARS

23 Datassential MenuTrends
24	Grubhub, “State of the Plate 2020.” grubhub.com, 9 July. 2020. https://media.grubhub.com/media/News/press-release-details/2020/Grubhub-Releases-Second-Annual-State-of-the-
    Plate-Report/default.aspx
25 “Yelp’s 15th Anniversary.” Yelp, www.yelp15.com/
THE 2021 STATE OF MEAT IN FOODSERVICE
The 2021 State of Meat in FoodService

CONCLUSIONS AND RECOMMENDATIONS
                           Consumers are increasingly choosing
                           to purchase products that align with
                           both their taste preferences and their
                           values. Incorporating plant-based
                           meat into the menu in familiar and
                           innovative ways is one way restaurants
                           can address these shifting consumer
                           demands, and serving delicious
                           products that consumers love and are
                           searching out makes all the difference.

                           Offering Impossible products in your store or restau-
                           rant drives business and brand perception. Impossible
                           products are displacing meat derived from animals in
                           grocery stores and showing up on restaurant menus all
                           over the world. They’re popular among meat eaters who
                           are trying to reduce their meat consumption, and those
                           looking to reduce their impact on the planet. Based on
                           these trends, restaurant chains should consider offering
                           alternative options that cater to everyone—specifically
                           people who love and eat meat.

                           Taste is what sets Impossible products apart from
                           plant-based meat alternatives. Many consumers are
                           curious but unsure about taste when it comes to meat
                           alternatives, so choosing a product that truly satisfies their
                           meat cravings is incredibly important. That’s what distin-
                           guishes Impossible products from the rest—even the most
                           devoted meat eaters will become converts with one bite.

                            Become a partner of Impossible Foods!
                             Email us at hello@impossiblefoods.com
                                    or request a sample here.
You can also read