Interest in plant-based meats is plunging fast- here's why

If Beyond Meat’s stock prices are any indication, plant-based proteins might have past their prime in popularity. Beyond Meat and other plant-based proteins, once touted as a promising alternative to animal protein and with the potential to save the environment by eliminating cattle ranches and animal farms, has plummeted 80 per cent this year and dipped to just above half its 2019 IPO price of US$25.

Bringing Kim Kardashian, one of the world’s biggest influencers, on board as chief taste consultant in May 2022, when Beyond Meat’s stock prices had already dropped by 60 per cent in the year, couldn’t boost the sluggish sales.

Though myriad factors can affect a company's stock prices, there’s no denying the decline in demand for plant-based meats.

The company reported a 22.5 per cent decline in sales in the third quarter, year on year. In August, the company announced a move to cut 20 per cent of its staff, signally pessimism ahead. 

According to Financial Times’ deep dive, the popularity of plant-based meats peaked around 2020 and began to take a tumble in 2021. 

The rise of plant-based proteins became a threat to the meat industry, and major meat producers in North America, such as Maple Leaf and Smithfield, launched their range to get a slice of that plant-based pie. 

Plant-based meats gained only one to two per cent of the overall market share at its peak(which is still substantial at US$1.4 billion); sales surged 54 per cent in the three years leading up to 2020 and in 2022 had a slight 1.1 per cent year-on-year decline in September 2022. 

Plant protein’s struggle to gain further footing in the market comes down to its target consumer; according to Good Food Institute’s report, 98 per cent of plant protein consumers also buy animal meat. 

Non-vegetarian consumers who jumped on the plant-based bandwagon got off just as quickly, and major players are reacting to the weaning interest. Brazilian meatpacker JBS is accepting the flop, closing its plant-based operations in the US, and focusing on its animal proteins.

That just as well reflects consumer demand. While plant-based meats experienced a slight decline in 2022, sales of refrigerated animal meat and frozen animal meats rose by 4.2 per cent and 7.1 per cent, respectively. 

The overwhelming majority of individuals who buy plant-based did so out of novelty and were temporarily swayed by the marketed health claims and eco benefits. 

However, non-vegetarians ultimately reverted to old diet habits and animal protein. 

Roughly seven per cent of the US population, around 23 million people, identifies as vegetarians; the vegetarian population alone could not sustain the scale at which the plant-based meat industry has boomed. 

Plant-based meat producers may have overlooked that most vegetarians just prefer whole foods

and are not seeking meat alternatives; those who choose to go plant-based for reasons relating to animal well-being might find consuming faux meat off-putting.

Also see: Is Plant-based milk really as good as you think?