Retailers Should 'Capture' Opportunity As Plant-Based Market Returns To Growth

A new report has called on retailers to “capture” the opportunity of plant-based food and protein diversification.

The report urged retailers to take alternative proteins and plant foods more seriously, particularly amid the sector’s return to growth, the instability of a meat-focused global food system, and the coming price parity between plant and animal foods.

The new report suggests that the UK’s plant-based protein category has returned to growth after a post-pandemic correction period, potentially with increased stability and longevity. According to the report, the plant-based share of UK protein sales could double in size from 14 percent in 2026 to 29 percent in 2040.

The report also notes that retailers are the primary growth lever, not consumers. As alternative proteins become a core segment, creating more private label options, improving promotions, and carefully considering shelf placement would benefit both the category and retailers themselves, particularly amid meat supply chain issues.

‘Why are we still treating protein diversification as niche?’

Systemiq, a sustainability strategy consultancy, and ProVeg International published the report, titled “Taking Root: The Case for Plant-Based Proteins in UK Retail.”

Writing on LinkedIn, Jeremy Oppenheimer, the co-founder and managing partner of Systemiq, said, “Why are we still treating protein diversification as niche, when it goes to the heart of margin stability, supply resilience, scope 3 and public health?”

He noted that protein diversification is increasingly a “commercial, health and resilience issue,” and one that will impact retailers’ profits.

“Here’s one stat that jumps out,” said Oppenheimer. “Own-label makes up 82 percent of processed meat sales, but just 15 percent of meat alternatives. That tells you this market is not yet being shaped with anything like the seriousness it deserves.”

He added, “The current protein model is exposed on cost, volatility, emissions, and health. Are retailers ready to treat plant-based protein as a core business, rather than a peripheral experimentation?”

The plant-based category is evolving, not dying

Photo shows an empty supermarket aisle. A new report has called on retailers to “capture” the opportunity of plant-based growth and protein diversification — Adobe Stock Alternative proteins are closer than ever to price parity with traditional meat

In December, SPINS found that the plant-based category is simply evolving, not dying. SPINS noted that consumers are increasingly prioritizing plant food options that support health, sustainability, and functionality.

In March, Tesco reported plant-based food growth “for the first time in years.” The supermarket highlighted particular demand for high-protein products, including tofu, seitan, and tempeh, which showed a 12 percent increase in sales.

Meanwhile, recent analysis from the Good Food Institute Europe (GFI Europe), a nonprofit thinktank, found that the cost of plant-based meat and meatballs is approximately 33 percent cheaper at Tesco than traditional minced beef or lamb. This brings alternative proteins closer to consistent price parity with meat than ever.

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