As the festive season approaches, food will play a central role in consumer spending and focus, with many households seeking inspiration and products from retailers and manufacturers in preparation for celebratory gatherings.
However, seasonal meat and fish staples such as turkey, pork, and salmon are especially vulnerable to the financial risks associated with industrial animal agriculture. For example, the 2022 avian flu crisis drove UK retail turkey prices up by 37%. Moreover, in the long term, FAIRR’s Climate Risk Tool predicts cost increases of US$1.3 trillion by 2030 for 40 of the largest global livestock companies under the current business-as-usual scenario.
By developing strategic marketing to promote alternative protein products during the festive season, retailers and manufacturers can capture mainstream consumer demand and safeguard long-term earnings by reducing reliance on riskier animal protein supply chains.
This approach not only safeguards future profits, it has additional benefits for investors such as aligning financial value with corporate net-zero goals and climate transition plans. Similarly, it can help cater to and further evolve consumer dietary preferences that are shifting towards lower-emission sources.
This Insight explores how European and North American retailers and manufacturers can leverage the marketing of alternative proteins during the festive season, identifying key opportunities, challenges, and lessons to expand product ranges and capitalise on seasonal demand.
Stocking up for the holidays
The weeks leading up to festivities in the northern hemisphere are generally the busiest in the annual retail calendar. This is particularly relevant for the grocery sector, which remains a top-performing category at this time of year, even amid recent economic uncertainty. With 67% of UK consumers planning to maintain or increase spending on groceries, festive promotions and marketing can attract established vegetarian, vegan, and flexitarian consumers, as well as new customers interested in plant-based options.
Brands that capitalise on festive sentiment and spending, while also meeting consumer expectations for price, taste, and nutrition, can strengthen their position in the alternative protein market, driving sustained growth for new products beyond the holiday season.
This approach can also help retailers and brand manufacturers, including those in FAIRR’s Protein Diversification engagement, make progress towards the plant-based sales and broader climate targets they have set.
It’s the most wonderful time of the year ... to promote alternative proteins
Many food retailers and brand manufacturers have already launched their plant-based festive ranges for 2024. However, their success over the festive period (and beyond) depends on factors such as price and marketing.
Efforts to increase the affordability of these products relative to their animal protein counterparts and to reduce the perception that they are expensive can help to grow consumer uptake. Examples of leaders in this space include European retailer Aldi, which launched 11 affordable, plant-based festive products in the UK from £1.99-£4.99, and Lidl, which committed to matching the prices of its broader own-brand plant-based ranges with animal protein equivalents.
Reaching price parity and increasing demand for alternative protein products can be complex for businesses due to production and consumer-facing challenges.
For production, this is driven by the cost of research and development, optimising production efficiency, and difficulty reaching economies of scale. At the consumer end, retailers operate on high-margin, low-volume models – creating a dilemma where increased demand for alternative proteins is needed to reduce costs, but high prices deter that demand.
Despite these challenges, alternative protein production costs are coming down. For example, the price of precision fermentation for food ingredients has fallen by almost 100% over the last two decades, with the cost per kilo of protein reducing from approximately US$1 million in 2000 to around US$140 in 2023.
Additionally, taking a consumer-centric approach to marketing alternative proteins is key to them gaining mainstream acceptance, as Boston Consulting Group highlights. Food retailers and manufacturers can offer a variety of products that cater to different needs and educate consumers on how to integrate plant-based foods into their everyday diets.
For example, UK supermarket chain Sainsbury’s has launched a variety of products catering to those looking for meat alternatives or plant-based whole foods this festive season – including a soya protein-based ‘No Turkey Stuffed Crown’, and a ‘Mushroom Wellington’. Moreover, last year, Ahold Delhaize’s Dutch subsidiary Albert Heijn launched a campaign encouraging consumers to eat plant-based dishes over the holidays by showcasing recipe inspirations. In the US, Kroger also provides seasonal recipe inspirations that cater to flexitarians, vegetarians, and vegans.
Seasonal treats, tasty, and healthy ingredients
Beyond affordability and accessibility, taste, texture, and health remain decisive factors in consumer decision-making. Corporates like Kerry Group have responded by launching product brands that combine dairy and plant-based ingredients, such as Smug Dairy.
Technological advancements may also enhance alternative protein product taste and texture appeal; for instance, US company Impossible Foods incorporates a soy-derived heme ingredient,1 produced via precision fermentation, to more closely mirror the flavour and aroma of meat in its products.
When it comes to health, the varied understanding of food processing – and of ultra-processed foods (UPFs) in particular – remains a challenge for the alternative protein sector.
However, evolving media narratives around UPFs highlight that high levels of processing do not always equate to poor-quality foods. These developments may alleviate some of the concerns around plant-based foods, as consumers become increasingly informed about the ingredients they contain.
Companies can also help decouple the negative connotations of processing from product nutrition by aligning their alternative protein portfolios with government-endorsed nutrient profiling systems; simplifying ingredient lists; and minimising unhealthy product characteristics.
Nestle’s Vuna, a plant-based tuna alternative with just seven ingredients, tries to exemplify this strategy, aiding a shift away from consumer perceptions that alternative proteins are heavily processed.
Looking ahead: The investor opportunity
While initial hype around alternative proteins has tempered, the sector’s long-term potential remains robust. Even conservative estimates project it to reach $290 billion by 2035. For investors, the festive season offers a recurring opportunity to tap into a highly active consumer base and drive momentum into the new year with campaigns like Veganuary.
The bottom line is clear: aligning with the growth trajectory of alternative proteins during the holidays isn’t just about seasonal gains—it’s about securing sustainable, long-term value for investors and businesses alike. Now is the time to seize the moment and invest in a future of profitable, planet-friendly food systems.
Footnotes
[1] Soy legume hemoglobin is a protein that carries heme, an iron-containing molecule. It is found in plants and animal proteins and provides meaty flavour.
FAIRR insights are written by FAIRR team members and occasionally co-authored with guest contributors. The authors write in their individual capacity and do not necessarily represent the FAIRR view.
