The plant-based food alternatives category has seen significant growth and adoption in the past few years, primarily due to increasing consumer awareness and demand for more sustainable and healthier dietary options. The category is expected to continue to see rapid growth and expansion, driven by increasing interest in health consciousness, environmental concerns, ethical and animal welfare considerations, and improved product innovations.

As with any growing market, it’s important to identify the diverse needs and experiences of the growing consumer base so brands can more efficiently identify, product, and market products that work for the entire customer base.

To better understand the different segments within this category, Lab42 conducted a study among 1,000 plant-based alternatives (PBA) purchasers, exploring their habits, preferences, and motivations.

We used variable-based segmentation analysis to explore different consumer groups and determine who they are, what makes them different, and what marketing strategies are needed to effectively reach and communicate with them.

For this variable-based segmentation exercise, we cut the total audience according to how frequently they consumed these plant-based alternative foods, and classified the groups as:

• Passionate PBA Consumers (those who consume PBA products daily or weekly – represented about 75% of the respondents).

• Casual PBA Consumers – those who consume PBA products monthly, made up about 25% of our audience)

SEGMENTATION HIGHLIGHTS

While perceived health and nutrition benefits are the biggest reasons why all PBA consumers purchase these products, we identified several differences within these groups that show custom marketing approaches could help with more efficient messaging.

Top Products:

• Both segments primarily purchase plant-based burgers, milk, snack bars and crackers. These products are often used in addition to, instead of replacements for, animal-based products.

Purchase Motivators:

• Regardless of what or how often they consume, the main driver behind the consumption of PBA products is the perceived health and nutrition benefits these products could provide. These benefits include protein content, improvement of gut health, added vitamins and minerals, reduced risk of heart disease, and increased fiber.

DIFFERENCES BETWEEN SEGMENTS

Demographics:

• Casual PBA consumers are significantly older, with more than half (52%) being older than 55 years old. They are also significantly less likely to have children in their households.

Product Preferences:

• Casual PBA consumers are significantly more likely to exclusively purchase plant-based meat alternatives (26%) compared to Passionate PBA consumers (12%)

Altruistic Reasons:

• Casual PBA consumers are less likely to be motivated by animal rights and welfare and are less likely to see their diet reflecting their values compared to Passionate PBA consumers.

Satisfaction

• Casual PBA consumers are less likely to be satisfied with the health benefits of the available options, especially regarding gut health, reducing the risk of heart disease, and additional vitamins and minerals.

Purchase Channels

• Chain grocery stores are both the primary purchase channels and the primary place Casual PBA consumers encounter and learn about PBA products. This group is less likely to discover PBAs through social media, influencers, brand websites, or blogs.

STRATEGIC IMPLICATIONS

Although there are important similarities between Passionate and Casual PBA consumers-- specifically demographics, reasons for purchasing the category, and top category products they purchase—the differences between these groups call for a more customized strategy for reaching and marketing to them.

• For Casual PBA consumers, in-store marketing activities can be effective in educating them about new products. Attracting their attention with plant-based meats and considering bundling, sampling, or couponing with other plant-based categories can be beneficial.

• Since most Casual PBA consumers don’t have children, targeting them with child-oriented products like tenders, ice cream, pizza, and snacks may not be as effective.

• Instead, focusing messaging on health and nutritional benefits and including claims related to gut health, vitamins, and minerals on packaging can resonate more with this segment.

Customer bases are very rarely homogenous, and it’s important to understand the similarities and differences among the sub-groups that make up your consumers. Segmenting your customers using variable-based or multivariate segmentation provides valuable insights into consumer behavior, journey, and preferences, enabling brands to tailor their strategies for better engagement and growth within their categories.