UK: Meat and dairy substitutes failed to gain market share in January

Organic MEAT and dairy products are still enjoyed by most Britons.

According to a special report from the UK Agriculture and Horticulture Development Board (AHDB), 87% of British households bought meat weekly in the first three weeks of January, while only 9% of households bought alternative meat substitutes.

Even though alternative protein retail retail volumes rose 15% in January compared to January 2021, the growth started from a low base and was not enough to materially impact these products’ market share, which remained at 2% over the past three years.

Organic meat and dairy products continue to appeal to the lion's share of the British population, with 95% of households buying dairy products on a weekly basis. Meanwhile, store-bought dairy substitutes fell 5%, leaving their market share flat at 6%.

However, over the next year, as inflation squeezes buyers' budgets, AHDB analysts predict a slowdown in demand for red meat and dairy alternatives, as these products tend to be more expensive.

“Customers are less likely to take risks trying new products when money is tight, preferring familiar and cheaper products,” said Grace Randall, manager of AHDB Retail Insight. “In 2021, the average retail price of cow’s MILK was 61p per litre, compared to alternative milks that cost twice as much on average at £1.21 per litre.”

Red meat retail sales reached £660m in January, with sales of meat, fish and poultry rising to pre-pandemic levels, up 2%, and dairy sales up 4.2%.