Italy’s plant-based market : a growing opportunity

Italy’s plant-based market is booming, with consumer demand for sustainable, plant-based foods driving record growth. In 2023, retail sales reached €641 million, reflecting a significant 16.1% increase since 2021. Felippe Fontanelli has been aggregating these observations into a report that showcases the trends highlighting Italy’s growth potential.

This insightful report is available for free download here.

Meet the Author

Felippe Fontanelli is the founder of the Virtuous Food Revolution Alliance and has worked with innovative startups like Wicked Foods and Future Farm. With nearly two decades in the FMCG industry, he has established a strong network across Italy, Spain, and Portugal, positioning him to provide valuable insights into the evolving plant-based market. 

Key Insights from the Report

Market Growth

Italy’s plant-based market is thriving, with sales reaching €641 million in 2023. Plant-based meat and milk dominate, accounting for 49% and 31% of total sales, respectively. The cheese segment has also seen substantial growth, with a 77% increase in sales volume from 2021 to 2023.

Demographic Shifts

Young Italians are leading the plant-based movement, with 82% adopting more sustainable diets for health and environmental reasons. This generational shift, coupled with a strong preference for sustainability—66% of Italians prioritize it when purchasing food—positions Italy to compete with established markets like Germany and the UK.

Out-of-Home Expansion

The out-of-home food sector in Italy, valued at €80.8 billion in 2023, is gradually embracing plant-based options. Major players like Autogrill and Eataly are expanding their plant-based offerings, driven by a growing consumer demand for healthier dining choices. Companies such as Compass Group are focusing on sustainable sourcing, particularly in university dining, which opens up further opportunities for plant-based brands.

Regulatory Challenges

Despite its growth potential, the Italian plant-based market faces challenges, including regulatory hurdles influenced by meat lobbies. Recent regulations restrict cultivated meat production and limit plant-based products from using meat-related terms. However, public sentiment shows strong support for reducing meat consumption as a means to combat climate change.

Partnerships and Collaboration

Collaborations between traditional food producers and plant-based brands are vital for expanding options in Italy. By integrating plant-based alternatives into classic dishes, companies can build consumer trust while promoting sustainability. Successful partnerships, such as Planted with Artico for ready meals and Stupiscimi for snacks, demonstrates the effectiveness of this approach.

Retail Opportunities

While large chains like Aldi and Carrefour are expanding their plant-based offerings, smaller retailers lag behind. There’s a significant opportunity for Italian retailers to collaborate with startups, dedicate special sections for plant-based products, and focus on sustainability to capture this growing market.

Local Innovation

Italy’s culinary heritage provides a strong foundation for innovation. Local giants like Nestlé and Granarolo are adapting to meet rising consumer demand, while startups like Heaven and DreamFarm are creating products that honor Italy’s food culture while embracing sustainability.

This report paints a compelling picture of Italy’s potential as a leader in the plant-based sector. For those looking to explore the findings in greater detail, the full report is accessible for free and can be downloaded here.