Nearly 47% – that’s how much sales of plant-based products have increased over the past few years1. Also, market trends show that the category’s popularity will continue to gain momentum. According to GfK2 data, the lion’s share of new consumers of products in this category are residents of small and medium-sized towns. The trend is supported by the increasing availability of plant-based products, as well as a wide range of variants.
The change in eating habits is, among other things, an aftermath of the pandemic and a turn towards taking care of one’s own health. The topic of food intolerances has strongly influenced the activities of manufacturers and the development of their offer to meet specialised nutritional needs. Lactose intolerance, for example, is one example of these, resulting in a sizeable category of dairy substitutes.
The growth of the plant-based food segment is also supported by the aspect of awareness, the need to move towards organic production and to make sustainable purchasing choices. Meat production generates significantly higher CO2 emissions and more water has to be used. Hence, even a partial switch to a plant-based diet can reduce the negative impact on the environment.
The plant-based era is upon us
You don’t have to be a vegan or vegetarian to be keen on plant-based products. Consumers, aware of the impact of meat production on the planet and the environment, are trying to limit their consumption of animal products. Such a diet, due to its flexibility, has gained a sizeable following, referring to themselves as flexitarians.
When one member of the family changes their eating habits, their diet quickly transfers to the rest of the household as well. This is especially true if the new way of eating has been chosen by the person responsible for shopping and preparing meals.
According to GfK – in the last five years, the percentage of households in Poland with plant-based products has almost tripled. Just a few years ago, it was 11.5 per cent, and in 2023 it grew to 31.7 per cent (period July 2022-June 2023). GfK calculations show that between July 2022 and June 2023, more than 400,000 households reached for products in this category.
This market is growing rapidly. Meat or dairy companies are very keen to add plant-based products to their offer in a bid to open up to the growing group of consumers choosing vegetarian items. In addition, looking at NielsenIQ research on behalf of Danone, it is clear that the category is maintaining double-digit growth – both in value terms (up 17.2% year-on-year) and in volume terms (up 14.7% year-on-year).
No longer milk...
Plant-based drinks have become a hit on the vegetarian shelf in every shop. Such dairy alternatives – according to NielsenIQ data – generated more than 90% of all category sales in 2023. Of these, oat and almond drinks proved to be the most popular variants.
„The category of plant-based dairy substitutes, although still relatively small, is growing year on year. Between April 2023 and March this year, the value of its sales increased by as much as 23% compared to the same period a year earlier. At the same time, it is worth noting that these increases are not primarily driven by rising prices – the number of packages of products in this category also went up, by as much as 17%,” emphasises Nikodem Pankowiak, sales data analyst at the CMR Institute.
It is worth noting that plant-based dairy substitutes are a category that relies primarily on plant-based drinks – these accounted for as much as two-thirds of the category’s sales value between April 2023 and March 2024. This is an increase of several percentage points compared to the same period a year earlier.
Private labels have the largest share in this sub-segment. „From April 2023 to March 2024, they accounted for 46% of the sales value of this sub-category. The other major player, Danone (Alpro brand), recorded a result of 35%. However, as there is a large price disparity here – Alpro is a much more expensive brand – the true dominance of private labels in the market is shown by the fact that they account for as much as 60% of all plant-based beverage packets sold,” – points out the CMR expert.
The proportions are slightly different if we look at the number of packets sold. In this breakdown, own brands account for 60.8% of the share. Danone accounts for 23%. A few percent, but also significant in the perspective of the entire category, are OSM Piątnica (4.8%), Grana (3.5%), Maspex (2.9%) and Sante (1.7%). The remaining producers account for shares of 3.4%.
Plant-based beverages are the only subcategory among veggie dairy substitutes with a clearly expanding and growing distribution in shops in Poland. According to data collected by CMR, in the period April 2023-March 2024, these products could be found in one in two shops in Poland. A year earlier, the figure was four out of 10 shops. „This is due to the considerable – especially compared to other subcategories of plant-based dairy substitutes – distribution in small-format shops up to 300 sq.m” – Nikodem Pankowiak emphasises.
Sales channels
According to CMR, plant-based dairy substitutes – including plant-based drinks – are by far the best-selling category at discounters. Private label products are the most important for rotation. This is partly due to the rather high prices of substitutes compared to traditional dairy products.
Discounters generated as much as 71% of the sales value of plant-based dairy substitutes in January-March this year. Supermarkets, in turn, accounted for 14%. At the same time, the ‚traditional’ channel, i.e. small-format shops and supermarkets, together accounted for 15% of the category’s sales value.
Development prospects
It is not only dairy products that have found a wide range of alternatives. Indeed, the range of plant-based meat substitutes is growing steadily. It is estimated that over the next five years, the global market for such products could reach USD 140 billion, representing 10% of the global meat industry. Similar trends can be observed in Poland. According to research by Smart Protein, 40% of Poles are already declaring a reduction in meat consumption.
In turn, a study by InsightOut Lab and the Ariadna Panel shows that already two years ago, nearly half of Polish consumers tried products that were plant-based meat substitutes. The main reason was curiosity about taste. 65% of respondents indicated that they were tasty, and 43% started buying them regularly. 62% of participating Poles indicated that they have access to plant-based meat alternatives in the shops they visit.
A report by Strategy& shows that the average Pole ate in 2022, 73.2 kg of meat. This value is 5 kg above the EU average. Despite rising meat consumption, there is also growing interest in meat substitutes. According to PwC estimates, the global market for such products could exceed $234 billion by 2030.
The plant shelf is a growing category that is increasing year on year. It is worth dedicating a separate shelf to it, as, looking at sales results, the segment can make a significant contribution to a shop’s profits. Attention to the comprehensiveness of the offer will certainly meet with the approval of customers. Changing eating habits has a global aspect, which is worth taking advantage of when composing a shop’s offer.
1 Danone for NielsenIQ - Retail Trade Panel, All of Poland (Food), volume sales, period W27 2020-W26 2023, category: Plant products - plant drinks and plant alternatives to yogurts, desserts and creams (Client’s own classification).
2 GfK, Point of Entry, period: April 2022-March 2023, plant-based drinks.
The change in eating habits is, among other things, an aftermath of the pandemic and a turn towards taking care of one’s own health. The topic of food intolerances has strongly influenced the activities of manufacturers and the development of their offer to meet specialised nutritional needs. Lactose intolerance, for example, is one example of these, resulting in a sizeable category of dairy substitutes.
The growth of the plant-based food segment is also supported by the aspect of awareness, the need to move towards organic production and to make sustainable purchasing choices. Meat production generates significantly higher CO2 emissions and more water has to be used. Hence, even a partial switch to a plant-based diet can reduce the negative impact on the environment.
The plant-based era is upon us
You don’t have to be a vegan or vegetarian to be keen on plant-based products. Consumers, aware of the impact of meat production on the planet and the environment, are trying to limit their consumption of animal products. Such a diet, due to its flexibility, has gained a sizeable following, referring to themselves as flexitarians.
When one member of the family changes their eating habits, their diet quickly transfers to the rest of the household as well. This is especially true if the new way of eating has been chosen by the person responsible for shopping and preparing meals.
According to GfK – in the last five years, the percentage of households in Poland with plant-based products has almost tripled. Just a few years ago, it was 11.5 per cent, and in 2023 it grew to 31.7 per cent (period July 2022-June 2023). GfK calculations show that between July 2022 and June 2023, more than 400,000 households reached for products in this category.
This market is growing rapidly. Meat or dairy companies are very keen to add plant-based products to their offer in a bid to open up to the growing group of consumers choosing vegetarian items. In addition, looking at NielsenIQ research on behalf of Danone, it is clear that the category is maintaining double-digit growth – both in value terms (up 17.2% year-on-year) and in volume terms (up 14.7% year-on-year).
No longer milk...
Plant-based drinks have become a hit on the vegetarian shelf in every shop. Such dairy alternatives – according to NielsenIQ data – generated more than 90% of all category sales in 2023. Of these, oat and almond drinks proved to be the most popular variants.
„The category of plant-based dairy substitutes, although still relatively small, is growing year on year. Between April 2023 and March this year, the value of its sales increased by as much as 23% compared to the same period a year earlier. At the same time, it is worth noting that these increases are not primarily driven by rising prices – the number of packages of products in this category also went up, by as much as 17%,” emphasises Nikodem Pankowiak, sales data analyst at the CMR Institute.
It is worth noting that plant-based dairy substitutes are a category that relies primarily on plant-based drinks – these accounted for as much as two-thirds of the category’s sales value between April 2023 and March 2024. This is an increase of several percentage points compared to the same period a year earlier.
Private labels have the largest share in this sub-segment. „From April 2023 to March 2024, they accounted for 46% of the sales value of this sub-category. The other major player, Danone (Alpro brand), recorded a result of 35%. However, as there is a large price disparity here – Alpro is a much more expensive brand – the true dominance of private labels in the market is shown by the fact that they account for as much as 60% of all plant-based beverage packets sold,” – points out the CMR expert.
The proportions are slightly different if we look at the number of packets sold. In this breakdown, own brands account for 60.8% of the share. Danone accounts for 23%. A few percent, but also significant in the perspective of the entire category, are OSM Piątnica (4.8%), Grana (3.5%), Maspex (2.9%) and Sante (1.7%). The remaining producers account for shares of 3.4%.
Plant-based beverages are the only subcategory among veggie dairy substitutes with a clearly expanding and growing distribution in shops in Poland. According to data collected by CMR, in the period April 2023-March 2024, these products could be found in one in two shops in Poland. A year earlier, the figure was four out of 10 shops. „This is due to the considerable – especially compared to other subcategories of plant-based dairy substitutes – distribution in small-format shops up to 300 sq.m” – Nikodem Pankowiak emphasises.
Sales channels
According to CMR, plant-based dairy substitutes – including plant-based drinks – are by far the best-selling category at discounters. Private label products are the most important for rotation. This is partly due to the rather high prices of substitutes compared to traditional dairy products.
Discounters generated as much as 71% of the sales value of plant-based dairy substitutes in January-March this year. Supermarkets, in turn, accounted for 14%. At the same time, the ‚traditional’ channel, i.e. small-format shops and supermarkets, together accounted for 15% of the category’s sales value.
Development prospects
It is not only dairy products that have found a wide range of alternatives. Indeed, the range of plant-based meat substitutes is growing steadily. It is estimated that over the next five years, the global market for such products could reach USD 140 billion, representing 10% of the global meat industry. Similar trends can be observed in Poland. According to research by Smart Protein, 40% of Poles are already declaring a reduction in meat consumption.
In turn, a study by InsightOut Lab and the Ariadna Panel shows that already two years ago, nearly half of Polish consumers tried products that were plant-based meat substitutes. The main reason was curiosity about taste. 65% of respondents indicated that they were tasty, and 43% started buying them regularly. 62% of participating Poles indicated that they have access to plant-based meat alternatives in the shops they visit.
A report by Strategy& shows that the average Pole ate in 2022, 73.2 kg of meat. This value is 5 kg above the EU average. Despite rising meat consumption, there is also growing interest in meat substitutes. According to PwC estimates, the global market for such products could exceed $234 billion by 2030.
The plant shelf is a growing category that is increasing year on year. It is worth dedicating a separate shelf to it, as, looking at sales results, the segment can make a significant contribution to a shop’s profits. Attention to the comprehensiveness of the offer will certainly meet with the approval of customers. Changing eating habits has a global aspect, which is worth taking advantage of when composing a shop’s offer.
1 Danone for NielsenIQ - Retail Trade Panel, All of Poland (Food), volume sales, period W27 2020-W26 2023, category: Plant products - plant drinks and plant alternatives to yogurts, desserts and creams (Client’s own classification).
2 GfK, Point of Entry, period: April 2022-March 2023, plant-based drinks.
