Frozen & Refrigerated BuyerHOW SHOPPERS PLAN PLANT-BASED BUYS

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HOW SHOPPERS PLAN PLANT-BASED BUYS

Understanding how consumers shop for plant-based foods — from demand generation to usage — is essential to growing sales and profitability.

Nearly 80% of shoppers say they actively plan their plant-based purchases. In fact, our recent survey of plant-based buyers indicated that only

Shelf signage is a demand trigger for plant-based milk and meat. It came out
behind recommen-dations but ahead of social media, promo-tion, ads, retailer samples and availabil-
ity in restaurants.

21% reported putting “little or no thought into the process.” So it’s clearly vital to understand what goes into the path to purchase for plant-based alternatives. This will be our focus today.

Cadent’s survey of plant-based buyers late last year yielded key insights on how consumers shop for these products. The study encompassed plant-based meat, milk, and other alternatives. We used Cadent’s Consumer/Shopper Journey approach as highlighted to better understand and maximize sales and profit opportunities for retailers and manufacturers. The market for plant-based alternatives should generate more than $8 billion in sales this year with higher profits than conventional products. This is a win for everyone.

“Demand generation” typically starts with manufacturer sales and marketing efforts. The two key product categories — milk and meat alternatives — have been the focal point, supported by social, traditional and retailer-channeled marketing efforts. This has generated exceptional growth. The broader demand generation factors are related to health, environment and the ethical treatment of animals. But there are other specific demand triggers, seen below.

Now, let’s take some further steps down the path to purchase.

In a survey of consumer perceptions, plant-based meat scored higher on “appears cleaner and healthier ” vs. traditional animal meat.

—Retailer selection, which is typically driven by grocery, mass, natural grocery and club outlets. This is also being influenced by omni-channel capabilities and Covid-infused shopper demand.

—Navigation is guided by placement adjacent to conventional analogs. This has been proven in controlled store tests and through retailer fieldwork. Using the conventional analog as the anchor for plant-based sections is the catalyst for success. Cadent retail analyst Torrey Foster indicated through shopper research that many buyers shop the broader meat and dairy sections before choosing plant-based alternatives. Shoppers often chose products from both areas, indicating the broad appeal among flexitarians or consumers who would eat most anything.

—In Item Selection, we assessed how consumers think about shopping for plant-based alternatives. Many respondents (37%) indicated they are loyal to a brand, but there are also significant groups who are more deal driven (23%), and those who shop around (19%).

SELECTION CRITERIA

Cadent’s Consumer/Shopper Journey approach helps clarify and maximize sales and profit opportunities for retailers and manufacturers.

When selecting a plant-based item, the top factors are product attribute related, not price. These include flavor, taste, texture and “satisfying my appetite.” These factors are followed by “contains simple, transparent ingredients” and then price. It is rare to find consumer product categories where price is not a top-3 factor. When gauging the importance to consumers of the attribute “contains simple, transparent ingredients,” we were surprised by its high rating

Another key factor is how shoppers respond if a desired plant-based product is not available. Most shoppers will switch, but the walk rate actually increased from 35% last year to 41% this year, indicating stronger brand loyalty and preference for specific products.

ONLY 30% WILL SWITCH BRANDS
Of the total, 30% switched to a different brand, 21% bought a different type of plant-based item in the same category and 8% bought a different flavor (mostly in the non-meat segment). Walkers came back to the same store at an

other time (12%); went to a different store (11%); bought product online (9%); and 9% bought nothing at all.

We will be exploring “usage/satisfaction” in future articles. For now, it is important to note that multiple category plant-based buyers generate plant-based spending 1.5-3x versus the average plant-based buyer basket.

So what comes next? We are entering a new reality, not only post-Covid, but post-initial launches of plant-based products across categories.