Fake meat sales slide on price and being ‘too woke’
Just a few years ago, with a blockbuster initial public offering from Beyond Meat Inc and the unveiling of an Impossible Whopper at Burger King locations in the US, plant-based meats were ascendant.
Now, after once enjoying double-digit growth, sales in the plant-based meat category are not just flat, but declining, data from Information Resources Inc (IRI) showed.
That is due to possible saturation of the US market as new brands hit the shelves, Deloitte Consulting LLP said.
Sales of refrigerated meat alternatives at retailers are down 10.5 percent by volume for the 52 weeks ended on Sept. 4, IRI data show.
While higher prices are the top reason for the slide, it is not the only one, said Jonna Parker, a fresh food specialist at the market research company.
“Proteins that were cheaper on a price-per-pound basis did fare better,” Parker said, noting that semi-vegetarian shoppers that may have opted for an alt-product will now just go for the less expensive real thing. With inflation, consumers have become less willing to pay a premium for faux meat. Taste and health concerns are also playing a role, she said.
Deloitte believes the industry is suffering from a perception problem. In July, it surveyed 2,000 consumers and found a decline in the belief that plant-based meat is healthier and more environmentally sustainable than meat from animals.
Deloitte also suspects that the addressable market might be more limited than previously thought with a growing cultural resistance to its “woke” status — even among those seeking to reduce red meat consumption.
Bloomberg
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