A Meat and Dairy Article from All-Creatures.org

Plant-Based Proteins Currently Pose Little Threat To Beef Demand

From Aeneas Koosis, Faunalytics, org
August 2024

By understanding the distinct priorities and purchase drivers of regular meat consumers versus alternative diet followers, alternative protein developers and advocates can develop targeted approaches to protect and grow their position in the years ahead. Ongoing research to track how these consumer segments and broader protein consumption patterns are shifting over time will help ensure plant based proteins can adapt proactively to emerging threats and opportunities.

Photo by Tom Sodoge, Unsplash

A comprehensive new study suggests that despite their rising profile, plant-based protein alternatives are not significantly displacing beef consumption in the United States.

A comprehensive new study suggests that despite their rising profile, plant-based protein alternatives are not significantly displacing beef consumption in the United States.

Plant-based protein products, designed to mimic the taste and texture of traditional meat items, have emerged as an increasingly visible meat alternative in the U.S. food market. Made from ingredients like soy, pea protein, and wheat gluten, these products are often marketed as more sustainable and ethical choices that deliver similar nutritional benefits as animal proteins.

In this study, researchers recently completed an in-depth analysis of how emerging plant-based protein options are impacting consumer demand for traditional beef products. Funded by the Cattlemen’s Beef Promotion and Research Board, the study surveyed a representative sample of over 3,000 U.S. residents in 2020 regarding their protein choices, perceptions, and preferences. This type of research is obviously slanted from a beef industry perspective, but it offers a range of insights for plant-based advocates as well.

The findings underscore how conventional beef products still dominate, while also highlighting the need for proactive efforts to maintain beef’s competitive edge. Among the key takeaways:

• Beef remains the preferred choice, with cow-based proteins selected about three times more often than plant-based alternatives. In rating 15 product attributes, consumers consistently favored beef over plant-based options on key dimensions like taste, appearance, price, and naturalness. The only attribute for which a notable segment (over one-third) perceived plant-based as superior was “good for the environment.”
• Regular meat eaters, who comprised 68% of respondents, are not the core clientele for plant-based alternatives. Rather, the primary buyers of plant-based proteins are consumers following alternative diets, especially flexitarians (those who limit but do not entirely avoid animal products). Among regular meat consumers, willingness to pay for beef substantially dwarfed that for plant-based options in both restaurant and grocery store settings.
• Beef demand is more responsive to changes in beef prices than to shifts in the cost of plant-based products. For example, a 1% increase in the price of a beef burger at a restaurant would reduce the probability of consumers selecting beef by 2.5%, whereas a 1% decrease in the price of a Beyond Meat burger would only lower that probability by 0.21%. Similarly, in a simulated grocery shopping experiment, a 1% increase in ground beef price would reduce purchase volume by 2.8%, while a 1% drop in Beyond Beef price would only cut beef volume by 0.65%.

While plant-based proteins are not currently capturing a sizable share of the beef market, demographic patterns point to the importance of continued industry vigilance. The consumers most inclined to choose plant-based options are younger, more affluent and educated, concentrated in Western states, and more attuned to health and environmental concerns when making food choices — a profile that is likely to expand in the coming years.

For the time being, the researchers advise beef industry stakeholders to focus on leveraging the core attributes that drive beef demand among habitual meat eaters, such as taste, freshness, and food safety. Highlighting beef’s nutritional strengths or including the availability of lean cuts could also help preserve beef’s appeal. At the same time, the authors suggest against over-investing in efforts to compete head-on with plant-based products. This risks compromising the key selling points that support beef’s popularity while chasing a still modest slice of the overall protein market.

The study recommends keeping a close eye on the main attributes currently propelling plant-based demand among a subset of consumers: perceived health benefits (like lower cholesterol and fat), ethical advantages (animal welfare), and reduced environmental impact. Future policies addressing greenhouse gas emissions from cows may ultimately favor plant-based alternatives by increasing the cost of farming cows. If plant-based products make further strides in these areas while also achieving taste and price parity, they could pose a more serious challenge to beef’s dominance.

By understanding the distinct priorities and purchase drivers of regular meat consumers versus alternative diet followers, alternative protein developers and advocates can develop targeted approaches to protect and grow their position in the years ahead. Ongoing research to track how these consumer segments and broader protein consumption patterns are shifting over time will help ensure plant based proteins can adapt proactively to emerging threats and opportunities.

Meet the Author: Aeneas Koosis
Aeneas Koosis is a food scientist and community nutrition advocate, holding degrees in Dairy Chemistry and Plant Protein Chemistry. He is currently working towards a PhD in Nutrition, concentrating on enhancing public health through meaningful improvements in grocery store design and practices.

Citations:

Tonsor, G. T., Lusk, J. L., & Schroeder, T. C. (2021). Impacts of New Plant-Based Protein Alternatives on U.S. Beef Demand. Report prepared for the Cattlemen’s Beef Promotion and Research Board. Kansas State University.

Summary By: | Original Study By: Tonsor, G. T., Lusk, J. L., & Schroeder, T. C. (2021) | Published: August 15, 2024 - Estimated Reading Time: 3 minutes

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Posted on All-Creatures.org: August 17, 2024
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