The 2024 State of the Marketplace Report from the Plant Based Foods Association (PBFA) reveals that the US plant-based food sector maintained approximately $8.1 billion in retail sales over the past three years, despite inflation and supply chain challenges. The market now spans more than 20 product categories, up from six in 2018, reflecting ongoing diversification beyond traditional segments like burgers and cheese.
Health and taste drive loyalty
Household penetration remains stable at 59%, with a 79% repeat purchase rate, underscoring sustained consumer engagement primarily motivated by health considerations. Nearly half of shoppers surveyed cite health as their main reason for increasing plant-based purchases. Taste perception also improved year-over-year, rising from 23% to 36%, while consumer demand for clean labels, bold flavors, and convenience continues to shape product innovation.
PBFA Vice President Julie Emmett commented, “Plant-based foods offer marketplace leaders a unique value proposition to build sales, provide foods that contribute positively to human and planetary health, and achieve their ESG goals.”
Milk market shake-up
Plant-based milk leads the sector, accounting for 14% of all milk sales in the US, although sales slightly declined by 5% to $2.8 billion. Notably, coconut and soy milk varieties experienced growth, contrasting with a 7.5% decline in almond milk sales. Other categories showing dollar growth in 2024 include protein powders and liquids (+11% to $450 million), baked goods (+13% to $111 million), and tofu and tempeh (+7% to $221 million).
Foodservice purchases declined overall but increased in sectors such as business, education, healthcare, and government. Sodexo and Guckenheimer have set plant-based meal targets tied to sustainability goals, reflecting the industry’s integration into institutional dining.
Persistent challenges
The report also highlights persistent challenges, including uneven subsidies favoring animal-based foods, restrictive labeling, higher production costs, and inconsistent merchandising that can limit consumer access.
Walmart’s senior merchant Andrea Yarbrough noted the use of strategic in-store tests to expand plant-based offerings: “Educating consumers about plant-based foods is a major opportunity, especially given that shoppers are primarily driven by health when choosing these products.”
New protein players
Ingredient innovation continues, with pea protein as the dominant source, while fava bean, lentil, and sunflower proteins gain traction. Consumer preferences show 55% favor plant-forward products emphasizing whole plants, while 41% still seek animal-product analogs.
E-commerce sales of plant-based foods reached $434 million in 2024, representing 6.1% of online grocery sales versus 3.7% in brick-and-mortar stores, suggesting digital platforms provide broader consumer access.
PBFA CEO Rachel Dreskin stated, “Innovation, diversity, and consumer interest are on the rise… The industry is well-positioned to drive broader availability and access to delicious, nutritious, and exciting plant-based foods.”
Download the full report here.
