Beyond Meat sales plummet as demand for plant-based alternatives fades
- Reported revenue decreased 30.5% year-over-year to $102.1 million from April to June
- The California-based company adjusted its full-year revenue forecast to $360-380 million.
Beyond Meat’s revenue collapsed in the second quarter as demand for its plant-based burgers and sausages waned despite price cuts.
The group’s reported revenue was down 30.5 per cent year-on-year to $102.1m (£80.4m) from April to June, the US company told investors this week.
California-based Beyond Meat now expects full-year sales of between $360 million and $380 million, cutting earlier forecasts of between $375 million and $415 million.
The California-based company adjusted its full-year revenue forecast to $360-380 million.
Beyond Meat shares fell sharply in US trading.
Beyond Meat President and CEO Ethan Brown highlighted difficult comparisons to the second quarter of 2022, in which the company’s sales increased due to the reopening of stores and restaurants after the pandemic.
Brown also told investors that an ad campaign launched by the group last week will further explain its “clean and simple” manufacturing process and highlight the product’s credentials.
He previously revealed that Beyond Meat was finding it difficult to attract new customers due to the perception that its products are unhealthy and overly processed.
However, the group’s net loss for the period narrowed to $53.5 million from $97.1 million a year earlier.
He said: ‘We’re going to be much more aggressive in our marketing.
‘It’s a matter of education. The facts are there. The health benefits of our products are very strong.’
Demand for plant-based meat alternatives decreases
The rise of a number of meat-alternative businesses, including rivals like Impossible Foods, was initially greeted with fanfare, with the companies attracting substantial valuations.
Consumers were attracted by the prospect of potentially healthier and more environmentally friendly alternatives to meat.
However, the momentum has not been sustained, as PGIM analysts recently stated that demand had already “stabilised or peaked”.
The asset manager said: ‘Plant-based meats have dominated the headlines, but reality does not match the hype.
‘Just a few years ago, when fast food chains began offering Beyond Meat burgers, there were expectations of continued exponential growth and drastic changes in consumer preferences.
“But growth rates have slowed, and today the alternative meat market remains a tiny slice, less than 0.2 percent, of the $1.7 trillion global meat market.
“Indeed, demand for alternative meat is declining, while global demand for animal-based meat will grow 14 percent by 2030.”