Sales of plant-based meat in America surged by 45% in 2020, reaching $1.4bn. By 2026, however, sales were in decline. The share of American adults who say they regularly eat the stuff has stayed in the single digits, according to polling by YouGov. Meanwhile, sales of real meat are booming.
Several problems dog the industry. Plant-based meat remains more expensive than the real thing, despite soaring meat prices caused by shrinking herds and costlier animal feed. Companies such as Beyond Meat and Impossible Foods have struggled with falling demand. Taste is a persistent weakness; one bad experience can put a curious consumer off for good. The products have also been embroiled in America's culture war: Robert F. Kennedy junior, the health secretary, champions slogans such as "Eat Real Steak", and interest in "whole" food is on the rise.
The chewier problem for plant-based-meat companies is that their products are classified as ultra-processed foods, a result of long ingredient lists and production processes. Health-conscious consumers wrongly equate plant-based burgers with potato crisps and Oreos, argues David Welch of Synthesis Capital.
Some companies are experimenting with half-meat, half-plant burgers. Cultivated meat—grown in a lab from the cells of animals—is attracting investor interest. A few American states have passed or proposed bans on the production and sale of cultivated meat, but insiders point to progress at the federal level. In Britain cultivated meat has received clearance as pet food. Uma Valeti, boss of Upside Foods, a cultivated-meat firm, sees the next decade as the time to prove that the industry can scale up.
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