There was unparalleled excitement in the food industry when Beyond Foods plant-based meat re-placements hit the market. And everyone hailed plants as the way to the future. But plant-based ‘fake meats’ have hit a series of crippling walls…
One of those was has been price. It was thought that plant-based meat substitutes would take precedence as real meats became less and less sustainable, plant-based technology continued to improve, and the plant-based products dropped in price thanks to the principle of ‘economies of scale’ kicked in…
Not as planned
But economic and consumer preference factors have combined to sustain barriers to the growth and wider adoption of ‘fake meats’. And other foodsphere developments have not taken their planned or expected directions.
In addition, the overall speed of climate change – and the need to adapt to the resulting changes – have increased beyond pretty much every expert’s predictions.
Rather than seeking a bridging product to take us from a meat-based diet to a classic plant-based scheme, many folks are jumping right over to classic vegetarianism or veganism – such as has been practiced in much of Asia and other parts of the world for millennia.
Bottom line: Folks in the food universe have stopped talking about plant-based products that mimic the appearance, texture and flavour of real meats.
Proof on the hoof
Conclusive proof of the waning interest in ‘fake’ meats has come in a string of stories last year chronicling the troubles experienced by Beyond Foods.
“Sales of meat alternatives fell 9 percent to $1.1 billion in 2023, marking the category’s third straight year of declines, according to a Circana report from last September,” a recent Food Dive story reports. “The data firm noted that meat alternatives have lost dollar share of the total meat department every year since 2020, with the space losing buyers faster than they are gaining new consumers. At the same time, existing shoppers are purchasing less.”
As a result, Beyond has been exploring restructuring options, seeking new partners and taking a long, hard look at its product offerings, trying to find a way out of the hole it’s found itself in.
Hard decisions
Beyond has recently announced a string of cutbacks that, together, spell ‘desperation’. “The company has had multiple rounds of job cuts, raised capital, increased prices due to higher ingredient costs, tweaked the formula of its hamburger-like product and focused on channels and geographies where it has the greatest opportunity for success,” Food Dive recounts.
“Beyond Meat has also overhauled its innovation efforts and pulled some products from the shelf — including its beef jerky developed in a joint venture with PepsiCo.”
In addition, the company took a chance on China as a market where it thought it had an excellent chance of going big, and doing so quickly. But that didn’t happen. And now, Beyond is closing it’s manufacturing plant there altogether, to save bucks in support of keeping the company as a whole on its feet.
Latest indications uninspiring
Beyond recently told shareholders that its net revenues for last year fell 4.9 percent compared to the year before. And sales are expected to remain flat through 2025. The company also announced it’s cutting 6 percent of its remaining staff to help reduce costs.
Industry analysts say the company’s cash burn rate ‘remains troubling’, and they don’t see a turn-around in Beyond’s fortunes ‘anytime soon’.
My take
Considering Beyond Foods’ position as its industry’s leader’, the company’s situation bodes ill – to say the least – for the entire ‘fake’ meat sector.
I wonder how much longer the ‘fake’ meat industry as a whole can keep on keeping on…
~ Maggie J.