Prices for plant-based meat remain more expensive than animal products, observers pointed out, and with less money in their pockets, consumers are finding meat substitutes less attractive.
In recent weeks, investors have been taking a bite out of plant-based protein brand Beyond Meat’s stock, on fears that the demand for meat substitutes is starting to slow.
It’s a trend seen across the sector, and also a concern for some dairy milk alternative brands.
COOLING PLANT-BASED FOOD SALES
Mr Arun Sundaram, vice president of equity research at CFRA Research, said the rate of new consumer adoption has slowed.
“It’s largely down to a lot of these macro things that we’ve been seeing, like high inflation, high interest rates, that’s been slowing the rate of consumer adoption right now,” he added.
In 2020, sales of plant-based food in the United States jumped 27 percent compared to the year before, pushing the market value of the wider sector to around US$7 billion.
However, sales have cooled in recent months.
Plant-based food maker Beyond Meat, for instance, has been hit hard and has planned for job cuts. Its shares have sunk by about 75 percent this year.
But Beyond Meat’s new partnership with fast food chain Taco Bell could increase the brand’s exposure and help boost its sales, said analysts.
REPOSITIONING AS PROTEIN ALTERNATIVE
Some believe these businesses should position themselves as a protein alternative, rather than a direct substitute for meat.
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