Meat-free sausages bucking category dip, but they’re on a knife-edge

Meat-free category growth remains on knife-edge as makers contend with a series of market pressures that could easily spook consumers out of the category, such as shifts in their economic circumstances, dietary needs or working patterns.

“Earlier this year, the meat-free category saw a steep decline as consumers tightened their belts and looked away from meat-free products,” says Pilgrim’s Europe marketing and innovation director, Chris Doe.

“Now, thanks to rising wages, lowering inflation, and a little more wiggle room in people’s budgets, things are looking up.”

Following two years of category decline, the business is beginning to see sales lifts, “particularly in chilled meat-free meal components, which have attracted 0.6% more shoppers,” says Doe.

Meat-free sales performance

Unlike other FMCG categories, brands in meat-free were leading the way within chilled, seeing share up 81.8%. “Richmond Meat Free, for example, has seen four consecutive periods of growth, with 11.3% increase in sales year-on-year,” he continues.

Though continued positivity was not a given, with taste being a big barrier to category growth. “Forty-five percent of British consumers in a November 2023 IGD survey believed that vegan food does not taste as good as non-vegan food,” explains Doe, who adds taste, versatility and value were the top volume-driving factors to purchase in the category.

Within versatility, consumers sought products they could use in multiple dishes, not just as a one-off. “And it’s not just vegetarians and plant-based consumers they [manufacturers] should be going after – there’s an opportunity to attract flexitarians who are looking to meat-free products as a regular part of their diets.”

Despite wage rises, affordability also remained a pinch point for many consumers as the cost-of-living crisis continues to impact consumer spending, leading to 15% more eating at home now, compared to before COVID-19.

“Ongoing changes to working patterns are also affecting consumer behaviour,” continues Doe. “Increasingly flexible working hours have led to an increase in in-home lunches by 12%, along with a 45% jump in lunchtime meals outside.”

How will Pilgrim’s innovate?

However, as taste was the ultimate challenge in retaining or shedding category consumers, this was an area Pilgrim’s and Richmond will keep a keen investment eye on going forward, explains Doe.

“Richmond is investing a lot in improving flavour and diversity of products to meet consumer expectations,” he says. “We make sure to communicate these credentials to consumers through our advertising campaigns.”

Meanwhile, Richmond’s meat sales rose 2.3% in value, with pork taking 93% of market share and chicken growing at 15% up.

“We’ve recently revamped our chicken sausages to ensure they deliver on great taste at an accessible price, with the goal of making  sausages more accessible to all customers.”

A series of new meat sausage launches would also help to bolster sales by 35% in the coming months, he adds.