The plant-based industry is navigating a challenging landscape.
- Marlow Foods, the parent company of Quorn, reports a significant £63 million loss.
- Quorn’s sales experienced a notable decline of 6.9% in the last financial year.
- The broader trend showcases a waning interest in veganism across the UK.
- Inflation and rising costs are key hindrances in the plant-based sector.
The plant-based food sector faces significant headwinds as Marlow Foods, the owner of Quorn, grapples with a reported £63 million loss. This development underscores a broader market shift, with consumer interest in vegan alternatives softening in the UK.
Sales of Quorn products decreased by 6.9% to £205 million over the past financial year, leading to a strategic restructuring that resulted in the loss of nearly 100 jobs. This decline is part of a larger trend, where the popularity of veganism is noticeably waning across the country.
The strain on the industry is compounded by inflation and escalating costs for essential inputs like energy and ingredients. These financial pressures have necessitated cost-control measures, including a reduced workforce at Marlow Foods, which saw its overall staff count fall from 934 to 874 employees.
Marco Bertacca, CEO of Marlow Foods, emphasized the challenging economic conditions, stating, “Twenty twenty-three was a challenging year where high inflation and interest rates continued to put pressure on consumers and on the cost of producing our great food.” He noted that despite efforts to keep prices in check, maintaining affordability has been difficult.
The decline is not isolated to Quorn. Other brands in the plant-based sector, such as Meatless Farm and VBites, have also faced similar financial distress, with some companies collapsing into administration. Data indicates that sales of chilled meat alternatives fell by 9.7% in the year leading up to May.
Despite the industry challenges, Bertacca remains optimistic about the potential of Quorn’s mycoprotein technology. “We truly believe that there’s nothing quite like mycoprotein. Fungi and fermentation can be the protein solution the planet needs,” he asserts, highlighting a belief in the innovation driving Quorn’s offerings.
The plant-based sector must navigate financial challenges amidst evolving consumer preferences and economic constraints.
