What’s happening to plant-based meat?

When plant-based meat manufacturer Beyond Meat IPO’d in May 2019, the market said “nice to meat you.” Its shares jumped 163% on the first day of trading – and had you invested $1,000 into the company at the time, it would’ve been worth ~$4,500 nine months later (a return of ~345%).

But since then, things have changed. And regardless of whether it’s being driven by health concerns, higher prices, taste/texture, macroeconomic conditions, or investor over-optimism – or a combo of all the above — the overall plant-based meat market is on the downswing.

🌱🥩 A deeper dive… Sales of plant-based meat alternatives increased 45% in 2020, per FoodNavigator USA, pushing the category past the billion-dollar mark. But in 2021, sales were flat. And this year has been... challenging.

• Shares of Beyond Meat are down more than 75% (apparently something frustrating enough to make you bite a man’s nose).
• The number of consumers who sometimes buy plant-based meat for themselves or a household member didn’t grow in 2022, per a recent report from Deloitte.
• McDonald’s shelved its US test run of the McPlant burger last month.

👀 Looking ahead… According to Deloitte, “The addressable [plant-based meat] market may be more limited than many thought.” But at the same time – many would disagree.

The industry received a record $1.4 billion in funding last year, per The Good Food Institute, a non-profit that promotes plant-based alternatives.

• Some investors believe plant-based meat can perform similarly to plant-based dairy alternatives, like almond or oat milk, The Guardian reports. Dairy alternatives currently make up 15% of the market and are worth $2.5 billion.

+Flash poll: Have you tried plant-based meat?

Yes

No