Beyond Meat, the vegan burger maker known for its plant-based meat substitutes, is facing a decline in sales as consumers shift away from expensive meat alternatives. Quarterly sales have dropped by almost a third due to the cost of living crisis, leading the company to revise its annual revenue forecast. This decline in demand for fake meat is reflected in the UK, where sales unexpectedly fell 6% last year. Other vegan specialists have also struggled with lackluster sales and cost increases, resulting in some going into administration. This trend is not limited to the UK; companies like Oatly, Nestlé, and Innocent Drinks have pulled vegan products from sale in the UK this year. As a result, Beyond Meat’s market value has plummeted from over $10bn in 2019 to $981m currently. Market research firm Mintel predicts that fake meat sales in the UK will either fall or remain stagnant this year. Consumers, facing financial pressures, are turning to cheaper protein options like processed meat or traditional vegan and vegetarian alternatives such as chickpeas, lentils, and beans. The high prices of fake meat products are becoming a barrier for consumers, as they are often as expensive as or even more expensive than meat itself. Concerns about the highly processed nature of some fake meats and a desire to cook from scratch using basic ingredients during the pandemic have also dampened enthusiasm. Beyond Meat has also cited softer demand in the plant-based meat category, high inflation, rising interest rates, and concerns about a potential recession as factors contributing to its sales decline. The ambiguity surrounding the health benefits of fake meat has further hindered sales. Despite these challenges, Beyond Meat remains optimistic that plant-based meat will continue to play a role in addressing the climate crisis. They have attempted to attract more customers by offering their products at competitive prices. However, competition in the market has intensified as more brands with innovative ideas and simpler, more natural ingredients enter the scene. While long-term demand for meat alternatives is expected to be supported by awareness of climate change, products featuring natural vegetable and vegetarian proteins are likely to lead growth as consumers seek transparency and reassurance about the origin of ingredients. Mintel reports that nearly half of adults have reduced their meat consumption or stopped eating it entirely, with another 14% interested in reducing their meat intake. This group of flexitarians represents the target market for meat alternative products.
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