Is Plant-Based Meat Fizzling In the US?
Citing McDonald's shelved meat-free burger trial and a 70% dip in Beyond Meat's stock, The Guardian suggests plant-based meats may not interest Americans as much as investors thought. From the report: Getting meat eaters in the US to adopt plant-based alternatives has proven a challenge. Beyond Meat, which produces a variety of plant-based products, including imitations of ground beef, burgers, sausages, meatballs and jerky, has had a rough 12 months, with its stock dipping nearly 70%. Multiple chains that partnered with the company, including McDonald's, have quietly ended trial launches. In August, the company laid off 4% of its workforce after a slowdown in sales growth. Last week, its chief operating officer was reportedly arrested for biting another man on the nose during a road rage confrontation. It's a dramatic reversal of fortune. Just two years ago, Beyond Meat, its competitor Impossible Foods and the plant-based meat industry at large seemed poised to start a food revolution. For a time, Wall Street went vegetarian. In 2019 Beyond Meat was valued at over $10 billion, more than Macy's or Xerox. The most bullish investors believed that plant-based meat would make up 15% of all meat sales by 2030. But the reality of Americans' interest in plant-based meat has proven more complicated than investors thought, and the adoption of meat alternatives has been slower than what was once hoped. Today Beyond Meat is valued at just over $900 million. The sobering story is similar to those experienced by many new ventures that see exhilarating hype after a flood of Silicon Valley venture capital cash, fueled by excitement about innovation. Bill Gates backed Beyond Meat, and a number of venture capital firms that typically invest in tech startups funneled money to startups making plant-based meat. Even the meat industry's biggest players have, ironically, invested in companies coming up with plant-based meat. While eating plant-based meat (or no meat at all) has been shown to be the most effective thing individual consumers can do to fight climate change, "consumers seem hesitant to adapt their behavior when the environment -- not their health or wallets -- is the sole beneficiary," reports The Guardian. "Despite the increasing alarm over climate change, the number of Americans who are vegetarian or vegan has remained relatively stable over the last 20 years." "Even when participants in a study conducted at Purdue University in Indiana were given information about the carbon footprint of meat production, participants were more likely to go with regular meat over a plant-based alternative."
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