Stalled gross sales within the United States for the plant-based meat market ought to function a warning to the Australian trade, in accordance with an agribank analyst.
Rabobank’s US analyst Nick Fereday stated buyers had been spooked after the choice meat market “hit a wall” within the US up to now few years.
The govt director of meals and shopper meals tendencies for Rabobank within the US stated the American market had stalled regardless of double digit development beforehand.
“It’s basically left a lot of people scratching their heads as to what’s gone wrong and has the market peaked,” he stated.
“There were very high aspirations that this market would imitate or mirror the success of alternative dairy products which have 15 to 17 per cent of the overall milk market now.”
Mr Fereday stated the US plant-based market had acquired a lift firstly of the COVID-19 pandemic when shoppers have been compelled to hunt out meat options due to provide chain points.
“Everyone had got very excited about the double digit growth we’ve seen in that market over the last couple of years at the start of the pandemic,” Mr Fereday stated.
“I think it’s a super interesting lesson and if the industry here can honestly look at what’s happening in the US and reflect upon what they’re doing, it should be pause for thought within the domestic industry here,” he advised AAP throughout a current go to to Sydney.
The Rabobank analyst, who research the shopping for habits of shoppers, stated the price of dwelling disaster continued to play a big function.
“You’re asking people often to pay more for a product which it doesn’t taste like the thing you’re replicating,” he stated.
But the pinnacle of the choice proteins council Jennifer Thompson stated whereas anecdotal proof confirmed the Australian market had slowed, there was no current information to attract from.
“As the cost of living pressures continue to bite, and as plant-based meat remains more expensive than conventional meat, it’s no surprise if consumers are cutting down on these products,” she advised AAP.
The council head stated there are large alternatives for Australian agriculture with plant-based meat, partially due to the neighbouring Asian market.
“We know that the (global) population is projected to be close to ten billion by 2050,” she stated.
“This means that we’re going to need 25 per cent more plant and animal protein by 2050 to feed that growing population.”
Australia’s plant-based meat sector generated $185 million in gross sales in 2019 -20, up 32 per cent from the earlier yr, in accordance with a 2021 report from unbiased assume tank Food Frontier.
The number of plant-based meal merchandise had additionally elevated by a 3rd, with 313 meat options obtainable in 2022.
Data from the Australian Bureau of Statistics reveals consumption grew by a 3rd within the two years to 2020-21, whereas the Australian plant-based market is predicted to be price three billion {dollars} by 2030.
But Ms Thompson stated for Australia to totally realise the choice protein development alternative, the trade wants assist “to capitalise on growing the local market, for new protein foods and ingredients, and export markets”.
In December the Albanese authorities threw its assist behind the sector when Industry Ministry Ed Husic opened a high-tech facility in Western Sydney.
Harvest B produces plant-based proteins for meals manufacturers and producers throughout Australia.
A state of the trade report is because of be launched in 2024.
Source: www.perthnow.com.au
