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Vegetarian Sales Get Meaty - 21 September 2004

CHICAGO - Americans are--slowly--turning vegetarian.

Vegetarian food sales doubled since 1998, hitting $1.6 billion in 2003. The market is forecast to grow another 61% by 2008, according to Mintel, a global market research firm. That growth is giving an extra kick to the expanding business of organic produce and natural foods companies, and forcing mainstream food producers to scramble for a way to love veggies.

What's in the way of faster change? Meat. A recent poll found 81% of the consumers surveyed said "a healthy diet should include meat."

Chalk it up to U.S. consumers being a nutritional nightmare when it comes to diet and lifestyle. Studies show more than one-third of the U.S. population is trying to reduce the amount of meat in their diet. They are occaisionally consuming vegetarian foods or drinks, citing health concerns like increased risk of stroke, high blood pressure and cancer as the reason for the shift. Nearly 65% of adults and 15% of children ages six to 19 are deemed overweight (see: "Teenage Weight Land").

A 2001 study by the soy industry-supported United Soybean Board found that 72% of consumers reported having changed their eating habits because of health concerns. But many find making diet changes challenging, and they remain lukewarm about vegetarianism, with only a small percentage regularly eating vegetarian foods.

Part of the problem: myths about the dangers of a vegetarian diet. Some 66% said they agreed with the inaccurate statement, "vegetarian diets require added supplements," Mintel reported.

Still, market research shows that the number of consumers who lean toward some sort of vegetarianism is increasing across all age groups. The Vegetarian Resource Group estimates that 2.8% of adult Americans consider themselves vegetarian, up from 2.3% in a 2000 survey. Another 6% to 10% of the population said it was "almost vegetarian" and another 20% to 25% are "vegetarian inclined," or intentionally reducing meat in their diet, according to VRG. Predictably, women have a higher interest than men in consuming vegetarian foods and drinks, according to the Mintel survey.

The exhaustive Mintel report defined vegetarian foods as those items that directly replace animal or meat-related products, such as soy milk and textured vegetable protein.

Major companies like Kraft Foods (nyse: KFT - news - people ), Kellogg (nyse: K - news - people ), General Mills (nyse: GIS - news - people ), ConAgra Foods (nyse: CAG - news - people ) and Dean Foods (nyse: DF - news - people ), which once resisted the trend toward meat substitutes, are now taking the shift in American diets seriously. Most have either bought natural and vegetarian food companies, or have begun offering their own lines of meat substitutes.

Kellogg purchased Worthington Foods in 1999, adding the fast-growing Morningstar Farms brand. Kraft owns Boca Foods of Madison, Wis., and Dean Foods acquired popular soy milk producer White Wave in 2002 (see: "Dean Foods To Street: Green Is Good").