Plant-based meat: cooling off?

Synopsis

A dip in investor confidence and falling sales in the largest fastest growing market has shocked the plant-based meat industry. After a 45 percent increase in sales in 2020, growth stalls in 2021, with total revenues down 0.5 percent. In January 2022, Beyond Meat, a major player based in California, becomes one of the most shorted companies on the U.S. stock market as speculators bet on further declines. Analysts attribute the slowdown to various factors, including supply chain issues from pandemic lockdowns and changing consumer habits. A 2020 survey reveals that taste is the biggest barrier to plant-based meat adoption, with over a quarter of respondents disliking it. Price also concerns consumers, as plant-based alternatives can be up to 40 percent more expensive than traditional meat. Major fast-food brands like Burger King and McDonald's are introducing plant-based options, but significant sales growth relies on consumer uptake across restaurants and supermarkets.