Growth of plant-based meats across countries has come to a screeching halt due to increasing cost-of-living pressure on consumers, stated a report today (19).
Sale of plant-based meats has slowed down as the segment is seen particularly vulnerable to the squeeze on consumers, stated Financial Times, highlighting how plant-based meat alternatives are typically retailed at a premium to real meat.
New figures from Kantar show that after climbing over the past two years in the UK, the growth in sales of plant-based meats was just 2.5 per cent in the 36 weeks to early September, according to market research firm Kantar. Sales had climbed 40 per cent in 2020 and 14 per cent last year.
The report further states that in the US as well, the tougher economic backdrop has depressed a market that had already started to struggle last year.
Jeff Crumpton, senior manager at Spins, said “flexitarians” — people who eat only moderate amounts of meat — were thinking twice about plant-based meats as pressure on incomes grew as a result of increasing food prices.
“They’re having to make a difficult decision with what their budget is,” the report quoted Crumpton as saying.
Even before this year’s pick-up in inflation and recession fears, the report stated that the plant-based meats market had lost some of its momentum as the initial consumer euphoria over the products moderated.
Beyond Meat, whose shares have tumbled to less than a tenth of their 2019 high, is reported to have scaled back its revenue projections. Last month the group said it was cutting about 4 per cent of its 1,400-strong work force as well.
“We are now seeing plant-based meat manufacturers, including Beyond Meat, adjust their cost structure to preserve cash and withstand this weak macro period,” the report quoted Arun Sundaram, analyst at investment research firm CFRA, as saying.
“This includes reductions to the workforce and intentional delays in capital projects.”
