Who's fuelling the plant-based shift?
In part three of our Plant-based Shift series, we profile millennials and Generation Z, the two main consumer groups driving demand for plant-based foods and beverages
Previously in our series, we’ve tracked the rise in plant-based foods and beverages as well as the factors behind this growth. But which consumers have the most influence, and what is it they’re looking for? How are food and beverage producers adapting to meet their demands? Which plant-based dairy alternatives are most popular, and what products can we expect to see in the future?
From M to Z
Step forward millennials and Generation Z, whose eating and lifestyle habits have had a great impact on the plant-based shift. In addition to being more aware of their health and wellbeing, they have developed more awareness of animal welfare, the environment and where food comes from. And, with millennials in the U.S. alone estimated to have annual spending power of $1.4 trillion, they also have the finances to back them up.
Born somewhere between 1981 and 1996, millennials have become known for their environmental awareness as well as a desire to make purchases based on sustainability factors – among other traits. With a deep reliance on the internet, millennials also have a greater ability to stay informed about global issues. In addition, this generation is socially conscious and loyal to companies and brands which share their beliefs.
However, one of the biggest factors influencing their demand for plant-based products is diet. This can partly be attributed to the perceived health benefits. Indeed, in one recent study, 45% of respondents said a selection of plant-based products were healthier than the meat-based alternatives – despite both having a relatively similar nutritional profile.
But, as influential as millennials are, Generation Z is catching up. Born roughly between 1997 and 2010, this young group of consumers is expected to have a huge effect on supply and demand within the food and beverage market – especially plant-based goods.
So, who are these young influencers? Generation Z is more racially and ethnically diverse than every generation before it, meaning they demand more variety when it comes to what they eat and drink. This aligns with their ability to access information quickly and easily – having grown up as digital natives – and that they are on course to become the most educated generation to date.
They know which brands are sustainable and ethical and which are not, and they are happy to pay more for something they believe will be of real benefit to them and the environment. On course to pass millennials as the most populous generation on earth, accounting for more than one-third of the population, their demands will be impossible to ignore. Especially so when you consider that in 2018, just in the U.S., they were believed to have amassed $143 billion in buying power.
Hitting the target
In order to meet all these demands in a single product, how are food and beverage producers reaching out to consumers? To ensure they meet market predictions for plant-based products they need to offer unique, high-quality foods and beverages that have a low impact on the environment.
Producers must be aware of every single thing associated with their plant-based offerings. This could be anything from how they label a product – with “plant-based” generally resulting in a more positive reaction than “vegan” – to placing more focus on promoting sustainability efforts. Elsewhere, some companies have introduced brighter, bolder packaging, moving away from the “typical”, somewhat uninspiring packaging traditionally associated with plant-based products.
It also means continually pushing the boundaries of what can be marketed within the plant-based dairy alternatives market: while soy still reigns supreme, almonds, coconuts and oats are slowly catching up. And, as competition grows, the industry will keep finding new products to create, with avocado, pistachio and chia seed-based dairy alternatives being added to the mix.
That’s where our aseptic packaging solutions come in. Designed to keep products fresher for longer, our carton packs mix stand-out design with convenience and efficiency. Take our combismile line: with built-in drinksplus technology, producers can add real-food pieces such as fruit, vegetables, nuts or grains. And, keeping in line with the global sustainability movement, SIG is 100% FSC™-certified, meaning all our paperboard comes from responsibly managed forests.
In part four of our Plant-based Shift series, we’ll lay out our predictions for the future of the plant-based dairy alternatives market. Which products will be most popular, and why? What do we expect to see enter the market? We’ll also highlight how our aseptic packaging solutions are ready to help everyone from start-ups to established manufacturers tap into the potential of plant-based products.
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- August 07, 2020