Meat-free goes mainstream

While many categories have been caught in the crossfire of the health debate, vegetarian food can count itself lucky as it is certainly not one of them. Not only do meat-free products appeal to the strict vegetarian, but increasingly they appeal to a much broader range of the population who perceive them as a healthier option.

This is not always the case in reality, however, as salt and fat levels can be very high in some cheese-laden meat-free foods, but let's not let the facts get in the way of a good story. To be fair, manufacturers in this sector are also reducing salt and fat just as in other categories. But it seems they do not have to take any health debate flak in the meantime.

As for the meat-free market, it's getting broader all of the time, with vegetarianism no longer seen as something cranky or hippy, but very much part of the mainstream.

With the number of true vegetarians in this country steady at the 4-5% mark, the key to further market growth in the meat-free sector will be the so-called meat reducers.

Indeed, Leatherhead Food International (LFI) estimates that the number of vegetarians has remained static for a number of years but despite this, the market for meat-free products is growing as a rising number of people reduce their meat consumption. LFI estimates that as much as 45% of the population fall into the meat reducers category.

The vegetarian or meat-free market was worth £657m at retail value in the year to November 6, 2005, according to TNS Worldpanel - up nearly 5% on the previous year. Chilled accounts for three quarters of value share and continues to grow strongly.

However, the frozen meat-free market stagnated over the same period and is now worth around £182m at retail value.

According to the TNS Food Family Panel, the main reason consumers give for not eating meat are:

l 44% for moral and animal welfare reasons

l 22% for health reasons

l 9% as a result of food scares

Other key market drivers in the meat-free sector are convenience and product quality. Although both frozen and chilled meat-free ready meals continue to decline, other products continue to perform well. For instance, Mintel's latest research indicates that products such as meat-free burgers, sausages and vegetarian nut cutlets account for around 53% of the meat-free market by value and continue to grow steadily.

Interestingly, meat-free snacks and deli type products now account for 16% of the meat-free market and are growing more rapidly in line with wider convenience and on-the-go consumption trends.

In terms of product quality, the food industry is now manufacturing meat-free products that offer consumers both the taste and texture of meat. And all the major food retailers now give meat-free foods a high profile in both own-label and branded options.

The biggest news in the sector last year were the two acquisitions by Premier Foods which saw it taking a fifth of the market. Premier acquired Quorn maker Marlow Foods and then Cauldron Foods to give it this dominant position.

According to Michael Cohen, Quorn UK marketing controller, the two product ranges coexist happily and there is plenty of room in the own-label dominated category for two major brands.

"The meat-free category is an interesting place where NPD is extremely important as it is where consumers browse to see what is on offer," he says.

"Vegetarian products have a perceived health halo," he says, which is why more people are becoming attracted to the sector. "We estimate that around 70% of consumers claim to be 'eating more healthily' nowadays, and the vegetarian category is one of the destination fixtures in store that consumers are now visiting to look for healthy, tasty options for the family," says Cohen.

"By offering products within this sector that more mainstream consumers are familiar with, such as burgers, sausages, escalopes and grills, vegetarian products can be easily included in weekly family menus once or twice a week," he says. In terms of Quorn, over half of its products are now eaten by non-vegetarians.

The key for the company is to make the cake bigger by attracting more people to the category. "NPD is the lifeblood of our category and definitely the way to attract new people," says Cohen.

Quorn has already entered the snacking market by launching meat-free microwaveable pizzas, satay sticks and chicken-style dippers last November. Quorn Satay Sticks are described as the perfect party food; The Bolognese Pizza is a frozen option and can be microwaved in four minutes, while the Chicken Style Dippers are described as the perfect treat for the whole family.

Cauldron Foods has developed a variety of chilled meat-free products that now includes vegetable pâtés, falafel, burgers, sausages, and vegetable roasts; as well as plain, flavoured and stir-fry tofu. Its latest new products are Mushroom Bake and Cheese, Leek and Potato Grills designed for winter consumption.

"These premium products offer convenience for consumers that want a quick-to-prepare meal centre that is tasty, sustaining and healthy," says Ken Reed, sales director of Cauldron Foods.

The Linda McCartney veggie brand is long established and although Heinz has put it up for sale, it is business as usual for the team with new ideas being worked on all the time. Frozen meat-free products have been suffering of late, especially ready meals, but head of marketing Mark Jaffe is keen to point out that Linda McCartney products performed ahead of the market last year.

He acknowledges that there are lots of different types of vegetarian, those that do not eat red meat but fish, for instance, or those that only eat chicken, and these needs have to be met to attract new people to the category. He believes the category will become more dynamic with new seasonal products being introduced.

Vegetarian and vegan producer Redwood Foods says the focus on children's diet and health will have an impact on the sector. "The market for vegetarian and vegan products is driven by health, lifestyle and environmental issues," says md Keith Stott.

Among products produced by the company are Cheezly, its dairy free alternative to cheese, its vegi-deli range and its Cheatin' range for people who love the taste of meat but don't want to eat it.

Meat-free is also becoming increasingly important to caterers who need to provide a vegetarian selection as part of their menus. The public perception that a vegetarian option is a 'healthier' choice means that over 27m vegetarian meals were eaten outside the home in 2004.

Brakes believes that meat-free is one of the most exciting areas in food. "Many pubs still have a 'vegetarian option' although we encourage publicans to think meat-free, as we believe a true high quality, meat-free dish will stand on its own in a menu and not just vegetarians will be enticed by it," says Simon Henrick of Brakes.

At Brakes, meat-free dishes are constantly being developed including vegetable kormas, pizzas, pasta dishes and meat-free Glamorgan sausages which include a mix of potato, cheese and leek and are very popular with both vegetarians and carnivores alike.

Further food safety scares and consumer demand could drive the vegetarian sector to dominate half the ingredients market in 10 years' time, according to industry analysts. Lukas Christian, global product manager for beta-carotene at DSM Nutritional Products predicts that in the next 10 years vegetarian ingredients will grow to occupy between 30 and 50% of the total ingredients market, emphasising the importance for manufacturers to keep up with demand.

It will be interesting to see if the entrance of a big player like Premier Foods will lead to less choice, not more, in the sector, but one thing's for sure: NPD certainly has a major part to play in its future success, especially in chilled food. FM