The plant-based segment is entering a new wave. From early momentum (2015-2017) around plant-based milk and meat alternatives to breakout growth (2018-2020) in plant-based staples and expanding shelf space, there has been a more recent realignment.
Market Maturation from 2021 to 2023 has seen growth slow as competition increased, taste perceptions/challenges emerged, and consumers began trading back to dairy and meat. The start of 2024 brought category-dollar sales declines, but new growth emerged in unexpected areas such as cookie dough, juices, and protein drinks. What 2026 and beyond will bring is what we will discuss in more depth today.
Social Drives Changes in Consumers Consumption Habits
Younger generations are turning to digital platforms for product discovery. Gen Z is turning to modern platforms like TikTok (57%) & Instagram (54%) to find new products, while Millennials are leaning on more traditional channels like Google (70%), Facebook (69%), & YouTube (69%).
Online interest in plant-based searches is softening, while searches for high-protein foods and tools to track food purchases are increasing.
Retail Drivers and Decliners
Plant-based declines begin to ease as we approach 2026. The total Food & Beverage unit % change has been relatively flat year over year this year.
Meanwhile, Plant-Based units are closer to reducing the gap between Plant-Based and Food & Beverage total performance. Compared to its performance 2 years ago, Plant-Based performance continues to improve.
Natural retailers outperform conventional retailers in growth. The success of plant-based products in the natural channel can be attributed to natural retailers’ continued focus on the best shelf assortment and dedicated space for innovation, along with shoppers who are less price-sensitive than conventional shoppers.
Plant-Based Growth
There are, however, categories where plant-based products are growing with significance.
Diving deeper into what’s winning are three core areas: Added Nutritional Value, Functionality, and Sustainability.
Consumers are choosing plant-based sources to bolster protein and plant-based items with added fiber and probiotics.
Functionality takes on a whole new spin with food that provides holistic health benefits through ingredient functionality, which is taking center stage.
Sustainability and better-for-you attributes are contributing to the growth of the plant-based segment, particularly in dairy-free items.
2026 and Beyond
The question now becomes what comes next? The next evolution stage of the plant-based segment will be driven by innovation. Let’s take a look at some of the potential drivers of innovation in 2026 and beyond.
Categories catering to trending nutrients have seen innovation gain traction and drive growth and are poised to continue this trend in 2026.
Innovation launching in 2025 and likely extending into 2026 over indexed in non-meal eating occasions.
International flavors are driving innovation and growth across the store.
Trendspotting: Protein maxing – passing fad or here to stay? Current data shows sustained growth, but there are also signs of pushbacks.
Key Takeaways
The Plant-Based segment is in a state of reset, not total collapse. Consumer trends and a shift toward more natural animal-based products swung a group of consumers back toward animal products, resulting in a decline in Plant-Based products. These consumers were looking for healthier alternatives and are not necessarily evangelists for a plant-based diet. Taste became a core component for brands to win in plant-based products. Consumption of plant-based products continues to grow in non-staple categories with cleaner, better-for-you options that win on taste. The next wave of plant-based food and beverages depends on brands bringing more innovation that drives consumers to switch.
Sources:
https://www.spins.com/data/pos-data/
https://gfi.org/marketresearch/
Attribute Ticker
Data Ticker
Below we break out total MULO with Natural Products, Total MULO Base, Total Natural Expanded with Natural Products, and Total Natural Expanded Base.
Looking for more information? Please contact the SPINS Account Manager for PRESENCE, Hans De Schaaf, hdeschaaf@spins.com.
(847) 277-9500