Veganism as a diet practice, as well as a lifestyle, is not a new concept. It entered the mainstream culture in the 2010s, and 2019 was declared the “year of the vegan” by The Economist.
The expansion of the vegan lifestyle among the masses opened a door in the food market, and soon new brands would hop on this trend, offering everything from plant-based milk, snacks, and desserts to meat alternatives.
It was exactly in 2019 when one of the most popular brands, Beyond Meat, went public and marked a surge in its stocks by 163%, making the faux meat manufacturer the best one-day performer in the past two decades, per Wired.
Wired reports that plant-based meat sales soared by 74% in the period from 2019 to 2021.
Plant-based meats quickly became popular not only due to smart marketing tactics but also due to raising concerns regarding climate change caused by the meat industry. Knowing that traditional animal agriculture produces approximately “20% of the total greenhouse gas emissions,” buying plant-based meat sparked a certain appeal and sense of accomplishment among customers.
On top of saving the planet, plant-based meat manufacturers marketed their products as a better alternative for consumers, contrary to diets consisting of large amounts of dairy and other animal-derived foods.
Still, if alt-meat is really a better choice when it comes to our diets, then why are some companies marking a decline in sales and pulling out products?
Pricing and the post-pandemic inflation
According to Beyond Meat, it’s “high inflation, rising interest rates, and ongoing concerns about the likelihood of a recession.” The company recently posted a 30% lower revenue due to a decline in sales, CNN reports.
“With inflation, consumers are less willing to spend extra on a premium-priced item,” such as meat substitutes, said Brian Ronholm, director of food policy for Consumer Reports, per The Washington Post.
Affordability is one of the main reasons the trend seems to be waning. When they first came out, meat alternatives were mimicking beef – and they grew in popularity because beef is pricey. Food experts were expecting faux meat to stay cheap as beef prices went up, however, the opposite became true.
The Washington Post reports that “plant-based beef is still twice as expensive as conventional beef and plant-based chicken is four times as expensive as conventional chicken,” citing Emma Ignaszewski, associate director of the Good Food Institute.
Unconvincing health benefits?
Besides leaning on the expensive side, another possible reason sales of alt-meat products may be going down is they’ve been slammed as heavily processed. When we think of processed food most likely we think of candy, junk food, soda, and other unhealthy food.
And though plant-based meats might not be healthier than your usual bowl of lentil or beans, they still contain far less saturated fats and calories than their predecessor – the animal-derived processed meats, according to data analyst Hannah Ritchie’s article for Wired.
Competition is high. Diversity… not so much.
When it comes to plant-based meat products, it seems that most companies draw inspiration from the same place. The majority of the alt-meats revolve around faux burgers, nuggets, sausages, bacon, and other “guilty pleasure” meals.
The reason why plant-based milks have remained relevant and still sell well is because, just like dairy, they’re versatile and can be used in coffee, cereal, in cooking, or to make ice cream and desserts.
“Plant-based brands are gearing up to broaden their product ranges, with Beyond Meat recently debuting Beyond Steak sliced strips at Kroger and Walmart, and Impossible aiming to debut its own filet mignon product soon,” the Washington Post said.
Plant-based enthusiasts and companies, however, remain optimistic.
“The plant-based market is still in its infancy and periods of ebb and flow are to be expected as the industry continues to innovate and the market stabilizes,” said the Vegan Society, per The Guardian. “The whole market has a huge number of products, having seen an incredible boom in recent years.”
