The plant-based meat industry is in a bad place. U.S. sales fell last year as enthusiasm for vegan burgers and sausages continued to wane in the pandemic era. Beyond Meat, once a darling of the plant-based boom and the first company in the group to go public in 2019, has become a cautionary tale of the complex road ahead for similar companies.
Beyond Meat reports mixed results second quarter 2024Revenue fell 8.8 percent and sales volume decreased 14 percent compared to the second quarter of 2023, but the company’s margin on each of its products increased.
“We are pleased with many of the results we are seeing this quarter, results that clearly demonstrate progress toward our 2024 plan and our long-term goal of operating profitably,” said Ethan Brown, CEO of Beyond Meat. he told investors during Wednesday’s financial results conference call.
In 2023, Beyond’s revenues fell 18 percent to $343.4 million —which was above the low market expectations—but it also reported losses of $82.7 million. In the U.S., sales fell 32.3%. The company has yet to rebound, reporting a delicate first quarter with revenue falling again 18% to $75.6 million as it continued to suffer from delicate U.S. demand.
Europe has been one of the radiant spots for Beyond over the past few years. The company’s international sales grew in 2023, while sales in The US has fallen sharplyIn the UK, McDonald’s has been selling McPlant burgers with Beyond Meat patties since autumn 2021, while a similar partnership in the US has not progressed beyond the trial phase.
While Beyond has also seen a decline in international sales, CFO Lubi Kutua said in a recent earnings call that the company is focused on expanding its distribution in Europe. “We’re starting from a very small base in the EU,” Kutua said. “We just don’t have that much of a presence in Europe right now.”
Facing tough decisions on the path to profitability, one investor predicted on a February earnings call that Beyond’s “center of gravity” would likely shift to international markets. Brown didn’t directly address that point in the February call, but he did acknowledge that he believed the U.S. conversation around plant-based meats had been “politicized” and “clouded with this disinformation.” Plant-based meat was opposed to animal meat in the American culture war.
The entire plant-based industry has been hit by a fickle customer base. Rival Impossible Foods, which is targeting a “liquidity event” to raise capital In a move that could result in an IPO or consideration of a sale to another company, it has decided rebrand to increase its appeal to meat eatersMeanwhile, other vegan brands such as Currently, Meatless farmAND Vbites went bankrupt.
Plant-based meat shouldn’t be written off entirely, says Chris DuBois, executive vice president of analytics firm Circana. “It’s still a billion-dollar category, and it’s a big deal.”