PLANT-BASED FOR THE FUTURE Insights on European consumer and expert opinions

Findings are based on the results of a qualitative study carried out by Dr Beate Gebhardt, University of Hohenheim, Department of Agricultural Markets, in cooperation with the University of Turin (Italy), the Polish Academy of Sciences, Olsztyn (Poland), the University of Aarhus (Denmark), and the Consejo Superior de Investigaciones Científicas (CSIC), Spain, as part of the 2020 EIT Food project "The V-Place – Enabling consumer choice in Vegan or Vegetarian Food Products", led by the Hohenheim Research Center for Bioeconomy at the University of Hohenheim, Germany. -BASED FOOD IN EUROPE Scope of This Study

Product variety has come a long way in the past Today, this development is mainly driven by this groups. But even though such products are years. While vegetarian and vegan specialty rather diverse target group: ‘flexitarians’ – people becoming more widely accepted by the day, products used to be the exception, they are who actively seek to reduce their consumption plant-based and vegan alternatives are far now more popular than ever. Approximately 75 of animal products without banning them from from being the norm and many consumers million European consumers purchase vegan their menus altogether. As the demand for such still treat them with caution. Aiming or vegetarian foods and the trend is rising. One products has increased, supermarkets have at gathering candid insights about the in five European consumers even deliberately begun to adapt and offer an increasing amount background, drivers and barriers of these aims to consume fewer animal products and this of plant-based options in their aisles. In this developments, experts and consumers of five number is growing rapidly. 1 process, plant-based meat and dairy alternatives European countries were interviewed and have emerged as the most sought-after product form the basis of this Whitepaper.

PLANT-BASED FOODS TODAY – WHAT ARE THE GUIDING THEMES? 1. Do consumers opt for plant-based foods for health, ethical, ecological, or other very different reasons? 2. What reservations and barriers do consumers have towards these novel foods? 3. What needs do consumers express in terms of communication and information?

The study consists of qualitative interviews with 70 experts and consumers in 5 EU countries 2: Germany, Italy, Denmark, Spain and Poland. It will be followed by a further quantitative study to appear in 2021.

1 Veganz study, October 2020: https://veganz.com/blog/veganz-nutrition-study-2020. 2 The interviews were conducted by telephone and in writing. 2 PRODUCTS & LIFESTYLES – TERMINOLOGY AND IMPORTANT DIFFERENCES

Product variety, labels, lifestyles, and eating habits have evolved throughout the last decade and have certainly have become more complex. When discussing different products and eating habits, it is important to be precise in terminology to ensure clarity and avoid misunderstandings. In the various countries of the survey, the words in the native language may have more nuanced connotations.

Product properties Eating habits

Vegan – Vegan products do not contain any animal-based ingredients, such as meat, fish, dairy, eggs and honey. The production process must not use animal-derived products either, such as gelatine for clarifying juice or wine, or animal-based glue for product packaging. Vegan Vegetarian – Vegetarian foods exclude meat and fish, but may include ingredients like dairy, Vegans refrain from eggs, and honey. including any animal based products in their Vegetarian Plant-based – For food, the term plant-based refers only to a processed product's ingredients. diet, thus excluding A vegetarian diet A plant-based product does not contain any animal-based ingredients. meat, fish, dairy, eggs, includes animal-based Flexitarian* honey, etc. Their diet ingredients but no Flexitarians deliberately Plant food – Plant foods refer to unprocessed plants that are part of the human diet, may consist of plant meat. Therefore, eggs, aim to reduce animal such as , , and spices. foods and processed dairy and honey may products in their diet, Omnivore foods that purely be included whereas but do not strictly An omnivore diet does contain plant-based meat and fish are exclude any food not exclude any foods ingredients. excluded. group. or food groups.

* Definition used in the context of this Whitepaper. The flexitarian share of consumers is harder to pinpoint compared to other consumer groups. 3 TWO TERMS NOT CREATED EQUAL: VEGAN VS. PLANT-BASED

With numbers on the rise, flexitarians seem to be While foods that are labelled as vegan could also Despite being a promising target group for the Confused but curious: the fastest growing target group for plant-based be labelled plant-based, research shows that both plant-based industry, flexitarians often do not feel Consumers yearn for credible information products. However, currently available plant- terms are not created equal. Consumers seem to addressed. One reason may be that flexitarians Overall, the results of this study indicate that based alternatives are not really marketed or associate the term vegan with an ideological, al- are difficult to pinpoint. Some may only reduce consumers in all countries wish for basic and communicated towards them, leaving consumers most unforgiving approach. The term plant-based, meat or dairy and are thus often considered to practical information on plant-based foods, what in want of more information, more variety and on the other hand, seems to be more appealing be part of the omnivore or vegetarian group. they’re made from, where to buy, and how to improved availability. The term flexitarian is and inviting – and to be attracting more and more Reasons for flexitarians to reduce animal prepare them. Most importantly, resources need still vague and consumers simply interested in consumers. products are highly diverse and range from to be credible, as there exists already too much plant-based alternatives most likely do not define personal wellbeing to sustainability and animal misinformation. Credible sources of information themselves as flexitarian. In this study, flexitarians Diverse and misunderstood: welfare. Equally, barriers that keep consumers may be governmental and scientific institutions. are defined as consumers who actively aim to Target groups for plant-based foods from deciding for plant-based alternatives Vegan and vegetarian organisations are consid- reduce their consumption of animal products Traditionally, plant-based products are marketed vary greatly and include lack of availability, ered credible resources to only a limited extent. without cutting them out completely. mainly towards consumers following a vegan or unappealing taste and even health concerns. Consumers request more objective resources, vegetarian diet and therefore strictly excluding available conveniently, for instance on social The term plant-based includes all products that certain animal products from their diets. The While plant-based foods can be found all over media, apps, or at the point of sale. are made from plants and designed as substitutes significant increase in demand of plant-based Europe, we found that reasons to decide for or to common animal-based products, some even products, however, is not driven by vegans or against plant-based products vary between the Insights of experts in the field and consumers are mimick their taste, texture, or appearance. Popular vegetarians, but by flexitarians: a diverse, yet countries. These regional differences might also highly diverse, representing the diverse character examples are plant-based drinks as milk alterna- large group of consumers who actively seek to depend on local market dynamics, product offers of the flexitarian target group. tives, meatless burger patties and egg substitutes. reduce their consumption of animal products and legal regulations. to varying degrees – without cutting them out 4 strictly from their diet. VARIETY IS KEY Expert voices on plant-based meat alternatives

Poland Germany Denmark Italy Spain "Not so diverse“ "A lot of of innovation“ "Very limited product range“ "Medium variety“ "Limited diversity"

Important Important Important Important Important Hams and Burger patties, nuggets Mince, pip-free, sausages, Burgers are definitely the – are dominant as well as (DE-E7); Burgers and sliced chunks and the like. Minced most important group. chilled products for lunch/ meats will probably be the meat of pure raw materials Missing dinner (PL-E8); Soy cutlets top-selling products (DE-E6); (without extruded plant Missing – – various forms, soy grits burger patties, nuggets, TVP, proteins, clean label). Organic There could be more and frankfurters are widely cold cuts, etc. are the most is important. Consumers products. available (PL-E6); Generally important (DE-E8). have clear preferences for there are plant-based organic products – though substitutes for hot-dogs, Missing taste is also extremely burgers and (PL-E7). The whole variety of important). cuts (e.g.: salami, ham) is Missing missing. So far there are Missing Little access to fresh meat only good alternatives to Alternatives to fish; Egg alternatives, e.g. minced mortadella and Lyoner alternatives. (such as Beyond Meat), but sausage. Most (fried) apparently a new company sausage alternatives are with such production. not convincing (DE-E6); Demand for regional plant- technological challenges based specialties is rising, (ingredients) and there is as well as better adoption by also less variety than with gastronomy. MoPro-Alt (DE-E8). In organic quality: almost no convincing products to be found (DE-E6).

5 MORE VARIETY TO WIN CUSTOMERS Expert voices on plant-based dairy alternatives

Poland Germany Denmark Italy Spain "big variety“ "Quite diverse“ "Most plant drinks are made "High variety“ "Wide diversity“" from oats, soy and almond. “

Important Important Important Important Still missing Dairy drinks dominate Classic milk alternatives Product groups: Plant drinks, is the most Cheese, ice cream (PL-E6) / Plant-based milk: soy with the highest sales, organic. Oat drink. Plant important with oat milk alternatives. milk is the main product but followed by yoghurt and and spreadable. Plant growing and right behind. new items are entering the cheese alternatives (DE- cream to a slightly lesser market (almond, oat and rice E6); Alternatives to cow's extent. Missing milks) (PL-E7). milk, yoghurt and cream Plant-based cheese is cheese are most strongly Missing definitely lacking, especially Missing represented (DE-E8). Sour cream and plant in supermarkets. There is a lack of cheese cheeses that taste better – and drinks other than yogurt Missing and different flavors. / (PL-E6); of products derived Cheese in its diversity Important product groups from 100% local ingredients analogous to animal that are generally lacking. (lupins, peas) and from Polish products (feta, hard cheese, Alternatives to fish and eggs. concerns (the majority of fondue cheese etc.), the available marks are foregin). different uses (DE-E6); Other diary products cheese alternatives of are: recent availability of convincing quality and variety plant-based mayonnaise (DE-E8). and ice cream had strongly improved but there is still a lack of good quality cheese, yoghurts, cream, etc. (PL-E7); lack of a broad variety of plant-based yoghurt, creams, cheese (PL-E8). 6 CONVINCING CONSUMERS Expert voices on plant-based marketing

Poland Germany Denmark Italy Spain

Do’s Do’s Do’s Do’s Do’s Depict delicious meals Position products as Focus on sustainability or High quality products are Focus on environmental and show variety culinary enrichment rather organic ingredients and needed as a base benefits or animal- Be aware of gluten’s mixed than a substitute address scepticism openly Communicate ingredients, related advantages image, label products Focus on positive, Communicate clearly and quality and level of Invest in credible clearly fact-based messages tangibly so consumers processing clearly certifications (e.g. V-Label) Attractive packaging Stress environmental can recognize the product Focus on clear information Support legal definition designs and information benefits quickly provided on the packaging processes to overcome provided on the packaging Regionality can be a new Give more attention so consumers know what the spread of misleading is important differentiator to media and initiate to expect information and mistrust Convince with scientific cooperations with trusted Enable practical evidence Don‘ts associations or authorities experiences and support Don‘ts Avoid moral or ideological personal recommendations Don’t market a product Don‘ts messages. Instead focus Don‘ts as healthy if it isn’t Don’t overuse terms like on consumers’ curiosity Don’t use ‘original’ names Don‘ts Don’t make up own vegan ‘natural’ or ‘healthy’ Don’t focus on health but opt for new names for Don’t add animal-derived labels, use existing Don’t lose the right balance or ethical motivators plant-based products flavours or additives in ones instead between informational and at the POS Don't stress the term products labelled 'vegan' attractive 'vegan', focus on or 'natural' plant-based instead

7 Nutrients List of Raw materials DECISION FRAMEWORK: ingredients Provenance & Food additives HOW CONSUMERS DECIDE company details

FOR OR AGAINST A PLANT- Technical Ingredients Labelling BASED PRODUCT additives

The decision for or against a plant-based product Further Awareness is a multi-layered process. Consumers consider components numerous factors, from ingredients and degree Production Communication of processing to the quality and sustainability Product of a product’s packaging. As the target group Processing Knowledge for plant-based products is characterised by a steps large degree of diversity, so are the factors that individual consumers take into consideration when shopping. Animal ethics Confidence Packaging

Sustainability Usage

Health Availability Sensory

8 CONTEXT AND KEY FACTS & FIGURES

The dietary profile of Europeans has changed considerably over the last generation, becoming more heterogeneous and harder to pinpoint. There is an overall trend towards meat and dairy reduction for a variety of motives.

Changing consumer profiles Growing Market Regulations & the lack thereof

Since 2016, the number of those who identify as vegans has European retail sales of meat and dairy alternatives have An official definition and label for both vegan and plant-based doubled from 1.3 million to 2.6 million in Europe3. Looking grown by almost 10% per year between 2010 and 2020. The foods can be a key driver for a more transparent market for at all those who actively reduce or fully exclude at least plant-based alternatives market in the EU and the UK is set to producers and consumers. Of the countries in the study, only some animal products, including vegetarians, pescatarians be worth €7.5 billion by 2025, compared to €4.4 billion in 20194, Germany (2016) and Poland (2014) have a vegan definition. No and flexitarians, the group in total represents 30.8% of the a 70% increase. country in the study yet has a definition for plant-based foods. population: 10 to 30 % of Europeans no longer consider themselves full meat-eaters anymore. The product groups with the highest revenue are meat and The need for clarity on labelling has recently been brought dairy alternatives. In 2019, the global meat alternatives market to the fore at EU level in the controversy around using meat was valued at US$ 4,532.6 million and is anticipated to reach labels for meat alternatives5. In the meantime, multiple terms US$ 7,106.7 million by 2025. The global dairy alternatives market are used to describe plant-based foods, from ‘floral’ (Poland) (including milk substitutes) was valued at US$ 16,130.9 million to ‘planetary diets’ (Denmark) to ‘plant powered’ (Germany). in 2019 and is anticipated to reach US$ 41,061 million in 2025.6

THE3 Veganz FUTURE study, IS PLANT-BASEDOctober 2020 https://veganz.com/blog/veganz-nutrition-study-2020. 4 ING study, October 2020 https://think.ing.com/articles/plant-based-meat-and-dairy-to-become-7.5-billion-market-in-europe-by-2025. 9 5 Financial Times article, October 2020 https://www.ft.com/content/f583d3f2-38a2-4f7a-9538-9899971413ec. 6 The of the United Kingdom. WHAT DRIVES CONSUMERS Trends & fashion

TO OPT FOR PLANT-BASED Increasing popularity and visibility in mainstream and social media drives Habitualization interest in consumers to try novel ALTERNATIVES? Well-being & adaption plant-based foods. Active reduction of animal products Taste preference and familarity Why are more consumers, regardless of their The study identified many diverse motives, to make a positive impact, e.g. on with organic products, consumers dietary preferences, buying more plant-based drivers and needs for the further development climate change, . seeking more natural options on a more habitual basis. foods than ever before? The list of arguments en- of plant-based food markets in Europe: tertained by companies, NGOs and communities is Product variety long, ranging from benefits on personal and global A wide variety of products are health to positively impacting climate change with Lack of available, in particular alternative Unintentional milk drinks and meat alternatives. individual food choices. The interviews with industry Curiosity consumption confidence experts and consumers reveal: Interest in variety and to try new Consumers grow increasingly wary the reasons are very diverse. textures, tastes and concepts Consumers who do not deliberately of animal food quality, particularly beyond what is known inspires aim to consume plant-based in the context of animal welfare and Sustainability consumers. products but chose them or even and hygiene scandals in the meat & animal welfare by chance. industry. Broadly available data and insights Religious reasons Health reasons on animal welfare, as well as more information on the impact of animal Consumers avoiding (certain) Concerns including allergies, products on the environment and animal products may opt for plant- aesthetic motives (e. g. weight climate change, inspire consumers based alternatives to add variety reduction), and nutrition-related Taste Culture & to make more ethical choices. Availability to their diets. health issues inspire individuals preferences socialization to seek dietary alternatives to Products become more available conventional animal products. Increasing availability and variety in regular supermarkets and Plant-based foods are more and of plant-based products inspire the consumers' accustomed more accepted these days, consumers to try alternatives to environment. Known brands now they have become part of the their favourite foods. offer plant-based products. culture and identity of consumers. Most important drivers

Other drivers 10 BARRIERS Taste, lack of choice and high price of Price point Habits Ignorance Higher price of plant-based Habitualised shopping behaviour foods compared to conventional (consistent choice of foods, Lack of knowledge on how to plant-based options are crucial barriers counterparts brands and supermarkets) prepare plant-based foods for consumers, experts & consumers say

Even though many consumers wish to reduce The study highlighted paradoxes in Taste Traditions Variety Negative expectations their consumption of meat and dairy for different the perception of in some Continuance with habits and experiences with the Lack of product variety of and traditions reasons, this does not automatically result in other countries: while Warsaw is for example taste of plant-based existing plant-based meat and alternatives dairy options products being placed in their shopping trolleys. one of the top three cities for vegan Apart from personal preferences and a certain gastronomy, vegans are perceived by tentativeness when it comes to product novelties, some in Poland as ‘mentally disturbed’. Processing there are other arguments that drive consumers Shifting towards the term ‘plant-based’ Availability Avoidance of foods that are Trendiness Lack of availabillity and variety, perceived as (perception / ex- away from the more sustainable plant-based could help move away from this. Marketing messages making esp. in customers' usual pectation - compared to other foods look too trendy options. What really drives consumers? supermarkets products) with an excess of additives

In the various countries of the survey, the words in the native language may have more nuanced Image connotations. Veganism is perceived as Packaging drastic and ideological. Excess packaging and The term plant-based is usage of plastic more attractive

Most important drivers

Other drivers 11 KEY TAKE-AWAYS Opinions of consumers and experts show the high diversity of drivers, barriers and wants in the industry right now. Common denominators include:

2 Trust & 4 Invest in research: 6 Innovate & transparency: having companies should now broaden portfolios: 1 Flexitarians: the a national definition and 3 Avoid ideology: be working on improved 5 Focus on Consumers wish for growth segment with credible labels for vegan and veganism and vegan taste, culinary selection and sustainability: perils of practical middle ways the highest potential: plant-foods by institutions foods still have negative simpler ingredients. Not global wellbeing and climate and appreciate company they want to cut their that consumers trust can connotations in the only realistic alternatives change are major disruptors communications which meat and dairy intake: help build trust for both countries studied. Plant- are sought-after, but also in the food sector. show that incorporating estimated at 10 to 30 % market actors and reduce based food is more neutral product novelties. Wide Consumers pay increasing plant-based products into of Europeans today, the confusion for consumers. but the term needs to be selection of products is attention to products' one's diet is both easy and flexitarian is a profile that Additionally, communication properly defined and the now more important for ecological footprint, convenient. is hard to pinpoint exactly, and marketing should be benefits linked to health, consumers than ever. More therefore companies will also differing within given honest and realistic, without climate, water usage, CO2 simple recipes with plant- benefit from taking up this EU countries. Overall, it can exaggerating or sugar- emissions and sourcing need based ingredients are in high issue. be better reached with coating facts. to be better communicated. demand. plant-based products close in taste and texture to the animal original. THE FUTURE IS PLANT-BASED A qualitative study funded by EIT Food and conducted by

Contact Contact Dr Beate Gebhardt, Klaus Hadwiger, University of Hohenheim, Department of Agricultural Markets University of Hohenheim, Hohenheim Research Center for Bioeconomy (Activity Leader) [email protected] [email protected]

With contribution of

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