Market research company Circana has detailed how the plant-based food industry still has “significant headroom for growth” despite being “firmly established” in Europe.
Across Circana’s largest European markets, such as UK, Germany, Italy, Spain, France and the Netherlands, the plant-based food and drink category is now worth €16.3 billion. Circana said this was a 5.1% increase on the year from 2024 to 2025, presenting 2.4% of total food and drinks sales and underlining a “clear gap” between consumer interest and true market scale.
According to the company, growth is increasingly being driven by everyday consumption rather than niche alternatives. Nuts and seeds account for 45% of plant-based value sales, followed by dairy alternatives with 21% and ready-to-eat meals at 15%, while meat and seafood alternatives represent just 4% of the category. Circana highlighted that this showed that plant-based foods and beverages had moved away from substitution and towards integration into daily diets.
The research found that around 11% of Europeans identified as vegan or vegetarian, but those identifying as flexitarian had grown to 31% in 2024, up from 21% in 2023.
However, Circana also said that plant-based products were outperforming animal-based equivalents on volume growth in categories such as dairy and ready meals, despite ongoing price gaps. Growth across Europe was mixed, with some markets performing strongly while others fell behind.
According to Circana’s data, Germany is leading growth, with value sales up 7.2% and volume rising 4.2% year-on-year, while Spain is also accelerating with 7.5% value growth. In contrast, the UK, one of the largest markets at €4.5 billion, is “showing stagnation”, with volume declining by 0.7%. This divergence reportedly highlights the growing importance of execution, pricing and relevance in driving category performance.
Price differences remain a “key barrier”
The company stated that consumers want meat-alternative products that deliver health benefits, such as protein, energy and gut health. At the same time, trends like GLP-1 medicines are encouraging smaller, more nutrient-dense meals.
Despite these consumer preference changes, Circana claimed that price differences between plant-based proteins on one hand and animal-based products on the other remain a “key barrier”, reinforcing the need for greater affordability to “unlock broader adoption”.
“We are seeing a clear shift away from niche, imitation-led innovation towards more natural, functional and accessible products.”
Ananda Roy, SVP global thought leadership and consumer goods advisor, Europe at Circana, commented: “Plant-based food and drinks have reached a pivotal moment. The foundations for growth are firmly in place, but the next phase will not be driven by hype or novelty. It will be driven by how effectively the industry delivers products that fit into everyday consumer behaviour.
“We are seeing a clear shift away from niche, imitation-led innovation towards more natural, functional and accessible products. The winners will be those who can close the gap between taste, nutrition and price, and integrate plant-based seamlessly into everyday consumption occasions.”
