Plant-based meat surged in popularity a few years ago.
Between 2018 and 2021, alternative meat startups attracted billions of dollars in funding, Beyond Meat enjoyed a successful IPO and the Impossible Whopper debuted at Burger King.
But recent trends and sales data show popularity has cooled.
Let’s take a look.
What we’re watching
U.S. plant-based meat sales are shriveling as the industry experiences a “precipitous decline.”
In 2023, U.S. retail sales of plant-based meat and seafood dropped 12% to $1.2 billion when compared to the same period in 2022.
Over the last two years, sales for plant-based meat and seafood have dropped a total of 26%.
Why it matters
According to one report from the Boston Consulting Group, plant-based meat is one of the most impactful environmental investments humanity can make.
Per the report, investments in plant-based meat alternatives result in 3x more greenhouse gas reductions than green cement and 11x more than zero-emission cars.
Livestock production accounts for about 11-17% of human-caused greenhouse gas emissions. Nearly 30% of the Earth’s ice-free land is used to raise livestock.
Beef and dairy cattle are especially harmful to the environment as they drive deforestation and produce massive amounts of methane.
Survey says … ouch
Rough sales numbers aren’t the only issues for plant-based meats.
- A slim majority of U.S. adults say they’ve never tried alt meat.
- Only 15% of American households bought plant-based proteins in 2023, down 4% year-over-year.
Tough to swallow
That explains why some of the biggest companies in plant-based meat are struggling.
- Beyond Meat’s market cap hit $12 billion in 2021 — but it’s now below $500 million.
- Impossible Foods’ internal stock prices tanked 89% between October 2021 and June 2023.
- Venture capital funding for plant-based startups dropped 28% last year.
What’s the matter?
Consumers have some beef with plant-based meats, namely its taste, texture, and cost.
Most shoppers say that alt-meat doesn’t taste as good as conventional meat and that its texture is off. Another struggle is that plant-based meats cost about 2x per pound when compared to conventional meat.
Still holding hope
Forecasters still maintain that the plant-based meat industry is poised for huge growth.
The global market was valued at $5.3 billion in 2021 and is projected to reach $33.3 billion by 2031 — growing at a CAGR of 20.5% from 2022 to 2031.
The sales slowdown also hasn’t stopped big plant-based meat milestones. Headlines include:
- 100s of new plant-based meat products hit U.S. retail shelves in 2023, including plant-based steak, sushi, boiled eggs, Wagyu-style beef, ribs, and more.
- Big companies are getting into the game with their own options, like Tyson nuggets, Nestlé mince meat, Häagen-Dazs products, Kraft Heinz cheese slices, and Oscar-Mayer plant-based hot dogs.
