The transition to alternative proteins presents unique challenges for retailers navigating this rapidly evolving market. One key consideration is balancing private labels and established brands. While brands often lead innovation and attract early adopters, private labels struggle to compete due to smaller R&D budgets and the risk of being perceived as “followers” in a niche market. Yet, private label offerings are crucial for retailers to maintain competitive pricing and capture value.

Another significant hurdle lies in the supply chain and cost structure of chilled alternative protein products. These products often rely on limited suppliers, making sourcing expensive and less flexible. Additionally, the chilled category comes with higher logistics and storage costs, putting pressure on profitability.

Low rotation rates and higher waste are also persistent issues. Many plant-based and alternative protein products cater to a smaller consumer base, leading to slower shelf turnover compared to traditional meat products. This, coupled with shorter shelf lives, increases the likelihood of waste, creating additional financial and operational burdens.

For retailers to succeed in the protein transition, they must find innovative ways to balance these challenges, such as fostering partnerships with suppliers, optimizing inventory management, and investing in consumer education to drive demand and minimize waste.