Plant-based categories are struggling to maintain growth as cost pressures rise, with 73% of vegan shoppers actively trying to make savings on their grocery bills.
According to new data from NIQ, alternatives still costs significantly more than standard food ranges, while consumers are becoming more price sensitive.
During the annual Veganuary challenge in January, most dairy and meat alternative catgeories saw a decline in unit sales compared with the same period last year.
Many brands have since reduced the number of vegan products they produce or stopped selling these entirely due to a lack of sales.
In March, Innocent Drinks discontinued its dairy-free coconut, almond and hazelnut smoothies whilst vegan sausage brand Heck is set to reduce its range of meat-free products from 10 to two, The Guardian reported.
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NIQ UK thought leadership activation manager Katrina Bishop said: “UK consumers are being faced with challenging economic pressures, and price is an important factor dissuading flexible eaters from buying into meat and dairy alternatives, in the current climate.
“This is reflected in the impact Veganuary had in driving new interest this year, with retailer focus being more on overall price messaging, which impacted sales during this period.”
However, the discounters are making rapid gains as Aldi’s total value share of dairy and meat alternatives this year rose to 7.7%, with Lidl capturing 5.4%.
NIQ also found that there is still a market for plant-based products, with 38% of the UK population replacing meals containing meat with vegan or vegetarian alternatives at least once a week.
Some indulgent categories have seen an increase in popularity with value sales for Magnum vegan ice cream up 7% compared with two years ago, while value sales of Little Moons skyrocketed by 2,168%.
Bishop added that in order to expand this plant-based market, “messaging is key”.
“Bringing the out-of-home occasion inside can save money, even with premium products, and consumers are still willing to spend on occasional indulgent treats,” she added.
