The rise of Plant Based “meats” during COVID-19

The plant-based meat space is growing at a rapid clip, creating more competition for Beyond Meat which is the current leader in this food category.

Growth for plant-based meat sales outpaced the 2% growth of animal meat sales last year, and large companies like Hormel, Tyson, Nestle, and Kroger are launching their own meat alternatives in the form of burgers and sausages.  The Incogmeato brand was also recently launched by Kellogg on National Burger Day. Although plant-based meat alternatives are becoming a popular choice for consumers, there are risks to be considered before investing.

Beyond Burger, made from a combination of pea protein, mung bean, and rice just debuted Beyond Meatballs, which will be rolling into stores nationwide this week. Follow Spotlife Asia for the latest news and updates.

Competitors have large marketing budgets and well-established distribution channels to get their products out to consumers. The new entrants could take market share from Beyond Meat or pressure it to lower prices.

Competitor Impossible Foods announced an expanded product line of meatless patties along with price cuts on its products. In March, the maker of plant-based meat and dairy products said it would cut its wholesale prices by 15%. As more food producers enter the increasingly crowded market, other companies may lower prices in a bid to gain share.

Chinese companies are also betting on a future for plant-based meat products. Though still a niche business compared to China’s giant meat supply chain, vegetarian alternatives to meat are gaining ground following health scares like the novel coronavirius and African swine fever.

China Market Research Group Director Ben Cavender said the key to the future of the plant-based meat market was the taste. “When we interview consumers the vast majority say they’re open to trying these products once,” said Cavender.