Interest in artificial meat waning as Beyond Meat market value plummets

The Corona virus outbreak caused the meat supply chain to be disrupted, while artificial meats were preferred. The market value of artificial meat producer Beyond Meat, one of the emerging brands of the epidemic period, reached $14 billion after its initial public offering in 2019.

Its market capitalization fell below $700 million this week after the company announced it would need to raise up to $200 million in additional capital to make up for all the money it lost.

Ethan Brown, CEO of Beyond Meat, expressed optimism that the business is going through a difficult phase and will eventually “close the gap between early adopters and mainstream consumers” on his earnings call on Wednesday.

INTEREST IN ARTIFICIAL MEAT FALLED 8 PERCENT

However, according to the Good Food Institute, which was founded to promote alternatives to animal products, American retail consumers bought 8% fewer artificial plant-based meats in 2022 than in 2021, and only 63% of those customers were regulars.

The Corona virus outbreak has particularly affected the supply chain in meat production in the US. Large facilities had to close their doors due to the epidemic. This situation made the star of the ‘artificial meat of vegetable origin’ sector shine. But today, innovation has lost its effect. Consumers are no longer excited to try highly processed products that cost more and don’t taste as good as the meats they are trying to imitate.

ONLY 20 PERCENT IS DELICIOUS

One of the reasons artificial meat is less preferred is that the taste and smell of fake meat is unappetizing. According to a survey by market research firm Mintel, consumers think that only 20 percent of artificial meats are tasty, while 61 percent of animal meats are delicious.

Many fast food chains have tried artificial meats but have chosen not to place them permanently on their American menus.

COST 67 PERCENT MORE

On the other hand, the Good Food Institute says that artificial meats, on average, cost 67 percent more than animal meats. Fewer people were willing to pay more for artificial meats since everything else became more expensive due to inflation. While low sales make it difficult to keep prices down, plant-based meats remain inaccessible luxury items for cost-conscious shoppers.

Opinions on whether or not plant-based meats are healthy is another topic of discussion. Industry groups say plant-based products are higher in fiber than their animal-based counterparts, while being lower in saturated fat and free of cholesterol. But many Americans no longer see artificial meat as healthy.

ONLY 38 PERCENT THINK IT IS HEALTHY

According to The Food Marketing Institute, a trade association, in 2020, half of consumers thought plant-based meats were healthy, up from 38% in the latest survey.

Research shows that most people do not change their preferences for plant-based substitutes, even when informed about the environmental impact of meat production. On the other hand, the emphasis on climate change in marketing materials has plunged the industry into culture wars. On the other hand, the demand for vegetable meat in Europe is exceeding that of the United States.