Plant-Based Foods Still Carry a Significant Price Premium

One of the factors holding back plant-based alternatives to meat and dairy products is undoubtedly their high price. While many consumers are no longer opposed to trying plant-based products per se, having to pay a significant premium over conventional products is a tough ask, especially after years of high inflation which left many households under severe financial pressure.

According to 2024 pricing data compiled and analyzed by the Good Food Institute, plant-based foods are typically twice as expensive as their conventional counterparts, with average premiums ranging from 82 percent for plant-based meat to 112 percent to plant-based eggs. While consumers with intolerances or those trying to limit their carbon footprint may be willing to pay such a premium, those just curious to try the new products often aren’t.

The possible reasons for the higher prices of plant-based foods are manifold. First of all, refining these products that often strive to mimic animal-based products as well as possible requires a lot of research and development. These costs, as well as the high processing costs, are then passed on to consumers. And then there’s the lack of economies of scale. As opposed to meat and dairy producers, which operate at massive scale, plant-based industries are still in their infancy and prices may come down with time and broader adoption.