Australia’s plant-based meat sales surged 47 percent, while per capita consumption increased 28 percent, between 2020 and 2024, according to Food Frontier in its State of the Industry report.
The report evaluated the current state of the plant-based meat manufacturing industry, reflecting its economic contributions, and potential future.
According to Deloitte Access Economics, total plant-based meat sales reached $272.5 million (US$178.94 million) last year. This is equivalent to a compound average growth rate (CAGR) of 14 percent since the 2020 financial year.
The plant-based meat industry contributed a total value-add of $45.8 million to the Australian economy, and provided 477 full-time equivalent jobs. Specifically, the industry contributed the most to the state economies of New South Wales ($21 million), Queensland ($12 million), and Victoria ($10.9 million).
Foodservice sales to the hospitality industry like catering businesses and restaurants showed significant growth as it exhibited a CAGR of 59 percent since 2020.
But in contrast, retail sales sustained a 1 percent contraction from 2020 due to increased costs of living and inflation, which affected all premium and discretionary food products.
“Some products were not meeting consumer expectations around taste, and the higher price point compared to conventional counterparts has reduced repeat purchases, leading to a revised forecast value,” Food Frontier CEO Simon Eassom said.
Despite inflationary pressures, average plant-based meat product price premiums have reduced from 49 percent in 2020 to 33 percent in 2023, shrinking its price disparity against conventional meat products.
Deloitte Access Economics estimates a market size of $1.65 billion by 2033, which is lower than the 2019 estimate of $2.9 billion by 2030. This translates to an expected total-value added of $582 million, and over 6,000 jobs generated.
Plant-based meat consumption per capita is forecast to increase five times to $54.8 million annually, equivalent to 1.6 kilograms of plant-based meat, with annual production reaching 25,449 tonnes.
Mr. Eassom noted that the expansion of plant-based meat manufacturers into new and untapped foodservice outlets will be instrumental to industry growth.
“As advancements in plant-based meat production continue, efficiency will improve, eventually rivalling the lean production processes of conventional animal meat,” The Aussie Plant Based Co., CEO and co-founder Alejandro Cancino said agreeing to Mr. Eassom’s sentiments. “This will see it eventually scale to compete in the mass market food industry where manufacturers operate on a volume driven tight margin business model.”
Plant-based Meat Contains High Sodium
However, health concerns still plague plant-based meat products.In March, Deakin University researchers said they found significantly higher sodium content in plant-based meat, varying from 1 milligram per 100 grams in products such as tofu, to 2,000 milligrams per 100 grams in other items such as plant-based mince products.
“Sodium, found in added salt and which contributes to high blood pressure, was our greatest concern,” said PhD student Laura Marchese and senior research fellow Katherine Livingstone.
“This means we could eat our entire daily recommended sodium intake in just one bowl of plant-based mince.”
The researchers noted that based on their audit, plant-based meats are consistently getting saltier.
For tofu, the researchers advised to pick an unflavoured one instead, as flavoured tofu is higher in salt and sugar content than minimally processed tofu.
“Tofu can be a great alternative to meat. Check the label and pick the option with the highest calcium content,” the researchers noted.
