Plant-based food and drink has cemented its place in Europe’s retail landscape, yet significant untapped potential remains as the category enters a more mature and competitive phase.
That is according to research group Circana, which presented its insights at the Plant FWD conference in Amsterdam this week and revealed that while the sector continues to grow, its future hinges on how well it aligns with everyday consumer behaviour.
Across the EU6 markets – the UK, Germany, Italy, Spain, France and the Netherlands – plant-based food and drink is now valued at €16.3bn, marking a 5.1% year-on-year increase between 2024 and 2025. However, it still accounts for just 2.4% of total food and drink sales, underlining the gap between consumer interest and actual purchasing habits.
A notable shift is under way in how consumers engage with plant-based products. Rather than relying on meat and dairy substitutes, shoppers are increasingly incorporating plant-based options into daily diets. Nuts and seeds dominate with 45% of category value, followed by dairy alternatives at 21% and ready-to-eat meals at 15%.
Meat and seafood alternatives, once central to the category’s identity, now make up just 4%.
This evolution is being driven by flexitarian consumers, now representing 31% of Europeans, up sharply from 21% in 2023. In contrast, only 11% identify as vegan or vegetarian, reinforcing the importance for retailers of appealing to a broader, less restrictive audience.
Performance of plant-based food and drink across Europe remains uneven. Germany and Spain are leading growth, while the UK shows signs of stagnation, with declining volumes despite its status as one of the largest markets.
This divergence highlights the growing importance of pricing, execution, and relevance at shelf level.
Health, functionality, and value are emerging as critical purchase drivers. Consumers are seeking products that deliver tangible nutritional benefits, such as protein and gut health, while also responding to wider trends including smaller, nutrient-dense meals.
However, price disparities between plant-based and animal-based products continue to present a barrier to wider adoption.
Presenting the keynote address at this year’s Plant FWD conference, Ananda Roy, consumer goods adviser in Europe at Circana, said: “Plant-based food and drinks have reached a pivotal moment.
“The foundations for growth are firmly in place, but the next phase will not be driven by hype or novelty. It will be driven by how effectively the industry delivers products that fit into everyday consumer behaviour.”
He added: “We are seeing a clear shift away from niche, imitation-led innovation towards more natural, functional and accessible products. The winners will be those who can close the gap between taste, nutrition and price, and integrate plant-based seamlessly into everyday consumption occasions.”
For retailers and manufacturers, the message is clear: success and growth in plant-based food and drink will depend on moving beyond imitation, improving affordability, and embedding plant-based options into core category strategies. The challenge now is not awareness, but habit.
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[image credit: Green Retail World]
