Why the Vegan Kitkat Failed To Convince Consumers

From vegconomist.com

Nestlé has officially confirmed that the KitKat V, its plant-based version of the popular chocolate bar, has been discontinued in all markets except the UK. 

The vegan KitKat initially launched in the UK in 2021 before expanding to the EU in 2022. It was later reintroduced as a limited edition in Australia in 2023. Despite Nestlé’s efforts to establish a viable plant-based alternative, the product struggled to gain traction in key markets such as Germany, ultimately leading to its withdrawal. 

Nestlé promoted KitKat V as a more sustainable alternative, highlighting that its carbon footprint was 18% lower than the dairy-based version due to the removal of milk ingredients. The recipe also featured a higher cocoa and cocoa butter content, aiming to deliver a premium taste experience.

© Nestlé

Sustainability and premium ingredients weren’t enough

However, good taste and sustainability alone were not enough. One major challenge was the product’s placement in retail stores. Instead of being stocked alongside conventional KitKat varieties, the vegan version was often relegated to separate “vegan sections,” making it less visible to mainstream shoppers.

Another critical issue was the significant price gap. In Germany, for example, while a standard KitKat bar could be found at discounted rates as low as €10.18/kg, the vegan version was priced at €27.23/kg in some cases—a staggering 167.5% premium. Even at standard prices in supermarkets such as Rewe, Edeka, and Kaufland, the vegan KitKat cost between €1.29 and €1.49 per bar, compared to just €0.99–1.19 for the conventional version.

Ongoing challenge or price sensitivity

The discontinuation of KitKat V highlights a persistent challenge in the plant-based industry: price sensitivity. Studies have shown that high price premiums deter many consumers from choosing vegan alternatives, even when they align with their values of sustainability and ethical consumption.

For plant-based products to achieve long-term success, brands must address pricing barriers and improve promotional strategies. More competitive pricing, better retail placement, and targeted marketing efforts will be essential for future plant-based innovations to gain mass-market appeal.

https://vegconomist.com/retail-e-commerce/why-the-vegan-kitkat-failed-to-convince-consumers/