Plant Based Sausage Market Report

The food service industry is trying to increase its use of plant-based sausage to attract vegan, vegetarian, health-conscious and flexitarian consumers. The food service industry is introducing a variety of new plant-based sausage dishes into their menu. Restaurants and hotels that serve plant-based sausage burgers, biscuits, burrito and other meal options. Hotel and restaurant sales of innovative and healthier plant-based sausage dishes is rising. To attract consumers, some plant-based sausage manufacturers are focused on innovative packaging. To protect the environment, manufacturers use 100% plastic-free and recyclable retail packaging. Foodservice is also expanding, with 27% of older people and one-third of Millennial and Gen Z restaurant consumers preferring vegetarian/vegan entrées.

Soy-based protein sausages are projected to remain highly popular due to their health benefits, including their rich branched-chain amino acids content, which aids muscle development, exercise performance, and recovery, making them a favourite among millennials. Plant-based pork sausages are expected to capture a significant market share, leveraging traditional pork's popularity. Beyond Meat's Beyond Sausage, free of hormones, nitrites, and GMOs, leads this segment. E-commerce distribution is poised to grow, with omnichannel strategies outpacing traditional retail, particularly in hypermarkets.

There are multiple obstacles to effective market penetration as plant-based meat's popularity grows. One of these barriers is the dispute over the labelling of plant-based meat products. To close this gap, intensive lobbying is being conducted. For instance, the FDA allows only foods derived from the animals that produce the food to be labelled as "meat," "sausage," "jerky," "hamburger," or "meat." Missouri passed a bill in 2018 prohibiting the portrayal of products as meat "unless it comes from harvested livestock or poultry." These rules are an impediment because plant-based sausage manufactures are worried that they may limit market penetration for their product lines.

Furthermore, higher production costs, driven by expensive ingredients like pea and soy proteins, can lead to raised consumer prices and limit demand in cost-sensitive demographics. Achieving a taste and texture comparable to traditional meat sausages remains difficult, with some consumers finding plant-based alternatives lacking. Additionally, varying regional regulations and labelling requirements complicate product formulation and marketing. Concerns about the nutritional profile, such as elevated sodium and preservatives, further impact market acceptance and consumer trust.

Major industry leaders utilize strategies that focus on launching new products, merging with competitors, and purchasing companies to grow their customer base and enhance their range of products. In October 2023, Madison Square Garden Sports Corp. and Madison Square Garden Entertainment Corp. partnered with Beyond Meat, Inc., making Beyond Meat the Official Plant-Based Meat Partner of Madison Square Garden. The collaboration introduces the GO BEYOND GRILL, a unique concession stands on the sixth-floor concourse, exclusively offering Beyond Meat products such as the new Beyond Smashable Burger, Beyond Sausag, and Beyond Stea. These items will be available during sports, music, and live entertainment events at the iconic venue.

Furthermore, in January 2023, Maple Leaf Foods, through its subsidiary Greenleaf Foods, teamed up with US food tech start-up The Better Meat Co. to drive alternative-protein innovation. Greenleaf, known for brands like Lightlife and Field Roast, is undergoing a strategic shift in its plant-based segment following a sales slump. After a review, Maple Leaf has realigned its investment policy, optimized manufacturing, and re-evaluated revenue strategies to bolster the performance of its plant-based protein division.

The European market for plant-based sausages is the largest and is projected to grow rapidly, owing to an increasing percentage of health-conscious consumers choosing for meat alternatives. Also, in major countries, the proportion of flexitarians is significant. Numerous initiatives have been launched around Europe to promote veganism, which is an important catalyst for expanding the consumption of plant-based sausages. For instance, the Vegan Society has introduced Teen Hub, a digital platform aimed at motivating and encouraging teenagers to adopt a vegan lifestyle. The second-largest plant-based sausage market is in North America. According to the PBFA, over 79 million United States households, or 62%, currently purchase plant-based foods. This is an increase from 61%. In 2022, the plant-based sausage market saw a notable opportunity for increasing repeat purchases, with 63% of buyers making a single purchase and 37% returning for two or more purchases within the year. Plant-based food is especially popular among Millennials and Gen Z, two generations who together account for 47% of the population and whose purchasing power will only increase over time. According to the most recent analysis by the Plant-based Foods Association and The Good Food Institute, U.S. retail sales of plant-based foods are still rising, increasing 6.2% in 2021 over a record year of growth in 2020, bringing the total market value of plant-based products to an all-time high of US$ 7.4 billion.