Significant Rise in Australian Plant-Based Meat Sales Expected from 2020 to 2023

Australian Plant-Based Meat Sales Set to Soar in Coming Years

In recent years, there has been a significant rise in the popularity of plant-based meat products in Australia. According to a report by Food Frontier, plant-based meat sales in the country surged by 47 percent between 2020 and 2024. Per capita consumption also saw a notable increase of 28 percent during the same period. These figures point to a growing trend of Australians embracing plant-based alternatives to traditional meat products.

The report, titled “State of the Industry,” provides an in-depth analysis of the plant-based meat manufacturing industry in Australia. It highlights the economic contributions of the industry, as well as its potential for future growth. Deloitte Access Economics estimates that total plant-based meat sales reached $272.5 million last year, with a compound average growth rate (CAGR) of 14 percent since the 2020 financial year.

The plant-based meat industry also made a significant contribution to the Australian economy, adding a total value of $45.8 million and providing 477 full-time equivalent jobs. The states of New South Wales, Queensland, and Victoria were the biggest beneficiaries, with the industry contributing $21 million, $12 million, and $10.9 million, respectively, to their economies.

While retail sales of plant-based meat products experienced a slight contraction of 1 percent in 2020, foodservice sales to the hospitality industry, including catering businesses and restaurants, showed impressive growth. The foodservice sector exhibited a CAGR of 59 percent since 2020. This indicates that plant-based meat products are gaining popularity among foodservice establishments, further driving the demand for these alternatives.

However, retail sales were hindered by several factors, including consumer expectations around taste and the higher price point compared to conventional meat products. Some plant-based meat products did not meet consumer expectations in terms of taste, leading to reduced repeat purchases. Additionally, the higher price point deterred some consumers from opting for these products. Food Frontier CEO Simon Eassom acknowledges these challenges and believes that addressing them is crucial for the industry’s future success.

To tackle the issue of price disparity, the average premium of plant-based meat products compared to conventional meat has decreased from 49 percent in 2020 to 33 percent in 2023. This reduction in price difference is expected to make plant-based options more accessible and affordable for consumers, thereby driving further growth in the market.

Looking ahead, Deloitte Access Economics predicts a market size of $1.65 billion by 2033, with an expected total-value added of $582 million and over 6,000 jobs generated. Per capita consumption of plant-based meat is forecasted to increase fivefold to $54.8 million annually, equivalent to 1.6 kilograms of plant-based meat per person. Annual production is projected to reach 25,449 tonnes.

To achieve these targets, industry experts emphasize the importance of expanding plant-based meat manufacturers into new and untapped foodservice outlets. This expansion will play a crucial role in driving industry growth and bringing plant-based options into the mainstream market. Alejandro Cancino, CEO and co-founder of The Aussie Plant Based Co., believes that as advancements in plant-based meat production continue, efficiency will improve, allowing these products to compete with conventional animal meat in terms of production processes and scalability.

Despite the promising growth prospects for plant-based meat products, concerns about their health implications persist. Researchers from Deakin University recently found significantly higher sodium content in plant-based meat products compared to traditional meat. Some plant-based mince products contained as much as 2,000 milligrams of sodium per 100 grams, which can contribute to high blood pressure. The researchers recommend opting for unflavored tofu instead of flavored varieties, as the latter tends to be higher in salt and sugar content.

In conclusion, the Australian plant-based meat industry has experienced remarkable growth in recent years, with sales and consumption seeing significant increases. While retail sales faced challenges due to taste expectations and higher prices, the industry continues to expand in the foodservice sector. With efforts to address these challenges and improve efficiency, plant-based meat products are poised for further growth and have the potential to become a mainstream choice in Australia’s food industry. However, health concerns surrounding sodium content highlight the need for continued research and development to ensure that plant-based options offer a healthy and sustainable alternative to traditional meat products.