- Significant increases in sales of snacks, milk, chocolate, energy drinks and fresh meat
- But there are significant declines among cigarettes, loose tobacco, spirits and plant products
Annual sales of meat-free products have fallen by £35 million this year amid the cost of living crisis, a study today revealed, while also revealing spending on vaping products has risen.
Research by NielsenIQ and The Grocer indicated dramatic increases in sales of snacks, milk, chocolate, sports drinks, energy drinks, fresh meat and pet care.
While some of the fastest growing categories were the result of inflation, huge declines were reported in the prices of cigarettes, loose tobacco, spirits and plant products.
It follows reports of the “death of veganism” – with sales of other grocery items including champagne, sparkling wine, liquid soap, apple juice and dried fruit falling.
The Top Products survey found that e-cigarettes were the fastest-growing category for the second year in a row, and Lost Mary products were the fastest-growing products overall.
The researchers also revealed that private label sales increased by 12.8 percent, as shoppers sought value amid rising inflation by trading in branded products.
They said the rise in prices had caused a “massive correction in shopping habits”, with leading brands losing sales to private-label alternatives, as shoppers also cut back on discretionary purchases.
The latest Kantar data on grocery price inflation released earlier this month showed the figure at 9.1 per cent, although this was down sharply from the 17.5 per cent level reached earlier in the year.
One of the worst-performing categories was meat-free, down £34.8m, as shoppers “traded sustainability to survive amid the cost of living crisis”.
Meanwhile, spirits (down £181m), champagne (down £30m), sparkling wines (down £17m) and cider (down £4.4m) all fell. Beer, wine and spirits brands accounted for half of the top 10 fastest-declining products overall.
The report also noted that volume declines were recorded across a number of categories, but inflation masked the declines in various cases.
Staples such as fresh poultry (up £273m), beef (up £142m), milk (up £498m) and cheese (up £423m) saw some of the highest growth in sales but declined Sales volumes in each case.
Similar plight has befallen categories such as packaged snacks (up £524m), chocolate (up £410m) and sweet biscuits (up £307m).
These all saw value growth as rising energy prices and inflation in cooking oil, sugar and chocolate passed on to shoppers – but volumes fell.
However, some products have achieved growth in value and volume, with vaping being the leader.
Last year’s top product, Elf Bars vapes (up £273m), fell to third place, with Lost Mary vapes (up £310.6m) now the fastest growing product overall.
Another exception was sports and energy drinks (up £390m), where the viral success of Prime Hydration (up £130.5m) helped boost the category further.
Fronted by KSI and Logan Paul and distributed by Congo Brands, the US imports were initially listed at Asda and the limited supply caused a stampede in stores as they rolled out at the likes of Aldi, Sainsbury’s and Tesco.
Adam Leyland, editor-in-chief of The Grocer, said: “As the Best Produce survey shows, supermarkets are in a tug of war with brands.
“With private label product volumes rising across many categories, and strong discount growth, this back-to-basics approach is having a profound impact on sales volumes for many leading brands.
“But there is growing evidence that brands are pushing the argument in the other direction by increasing promotions as inflation starts to ease, meaning lower prices for consumers and improved innovation over the coming year.”
‘As for vaping, it’s a runaway train. On the one hand, value sales have doubled; On the other hand, market players are struggling to keep up with the success they are enjoying, with the law in hot pursuit.’
“The cost of living crisis continues to impact UK consumers and our data shows this has had an impact on how they shop for groceries and what they choose to put in their groceries,” said Rachel White, managing director, UK and Ireland, NielsenIQ. Baskets.
“There has been a real focus, despite inflation, on bringing it back to traditional items, such as fresh meat and dairy and moving away from trying more expensive meal solutions, which has turned the dial in terms of the meatless category.
“Whether this will have an impact in January when many will want to try a plant-based diet, remains to be seen.”
“Shoppers were looking to cut costs where they could, meaning many beer, wine and spirits categories suffered,” she continued.
It comes in the week that MailOnline revealed the multi-billion pound bubble surrounding vegan food and fake meat will burst in 2023 with some vegans returning to their weekly roast chicken and steak for financial and health reasons.
Heather Mills’ company VBites went into administration this week – one of at least ten major plant-based food and drink companies to suffer financial problems, falling sales or scopes of abandonment this year.
Experts said the public’s perception of meat-free products was “generally quite negative” – especially anything with the word ‘vegan’ on the label – compared to the rise of ‘cool’ craft beers and juices that had led to ‘over-proliferation’ from brands”.
Prices of meat-free products such as sausages, fish fingers, fake bacon and other products are the same price or more expensive than the real thing.
Nutritionists say clients have returned to eating meat because they feel “tired” because “it is very difficult to maintain their protein intake.”
Nestlé has axed its vegan brand Garden Gourmet in the UK, and Innocent has discontinued several dairy-free juices, joking about poor sales by declaring: “We wanted to say a big thank you for buying them.” We truly appreciate each and every one of you five.
Heck it has axed 10 out of 12 of its meat-free ranges, with its boss admitting shoppers are “not quite there yet” when it comes to buying a lot of different plant-based products, despite a boom that started just before the pandemic.