A top exec getting arrested for biting someone’s nose is somehow not Beyond Meat’s biggest concern these days. As of late, the plant-based meat market has crumbled more than pea-protein ground beef.
Driving the news: Sales of plant-based meats have declined over the past year while negative perceptions of the product have increased, per a new Deloitte report.
- Market leader Beyond Meat’s share price has dropped ~77% this year, while shares of Ingredion, a company that provides ingredients for plant-based meats, have fallen ~19%.
In Canada: Maple Leaf Foods reduced the size of its plant-based business by 25% after an extremely disappointing last quarter that saw sales slump by 15%, impacting the company’s overall bottom line.
Why it’s happening: The main reason for the decline is financial: Inflation has forced consumers to cut back on groceries, and more expensive nice-to-haves like plant-based meats are the first to go.
- There’s also a perception problem—shoppers are (perhaps rightfully) dubious of its health benefits and some regard its existence as part of a broader culture war.
Why it matters: The widespread introduction of plant-based meats was supposed to herald an era of reduced meat eating, but Canada’s carnivorous consumption preferences are holding steady.
- Research points to reduced meat consumption, not composting or using metal straws, as the single most effective action individuals can take to combat climate change.
- But until plant-based meat alternatives can match the real deal in terms of price and taste, it doesn’t look like most people are going to make the switch.
Bottom line: The industry is optimistic that growth will resume when inflation subsides, but until then consumers are prioritizing their pockets and tastebuds above all else.