Recent economic challenges have placed the spotlight on the plant-based meat industry.
- Meatless Farm struggles with financial difficulties as sales drop.
- VFC expands and saves Meatless Farm amidst market challenges.
- Beyond Meat faces declining sales due to market and perception shifts.
- LoveSeitan ceases trading due to lack of consumer interest.
Recent economic challenges have placed the spotlight on the plant-based meat industry as brands navigate financial pressures and shifting consumer behaviors. With 73% of vegan shoppers attempting to cut costs, there is a notable impact on vegan meat-free alternatives. Various companies are experiencing difficulties maintaining growth amidst the cost-of-living crisis, resulting in reduced sales and, in some cases, a halt in operations.
Meatless Farm, a prominent player in the plant-based sector, recently sought new investment to address cash flow issues, hiring advisers at Kroll. Founder Morten Toft Bech described the situation as “a very sad situation for an otherwise good and healthy company with strong growth.” Unfortunately, by June, the company had made the majority of its workforce redundant and filed a notice to appoint administrators. Despite posting nearly £50m in operating losses over three years, rival brand VFC saw potential and acquired Meatless Farm. This acquisition was seen as a “golden opportunity” by VFC CEO Dave Sparrow, aiming to ignite innovation in plant-based foods by bringing Meatless Farm products like meat alternative mince and chicken breast back to major retailers like Asda.
VFC, known as Vegan Fried Chick*n, launched in 2020 and has made significant strides within a short period by expanding its product line and securing placements in major UK retailers. The brand raised £7.5m in a seed round with Veg Capital and has focused on scaling up rapidly. VFC has even expanded its product range to include items like plant-based chicken tenders and spicy fillets. Additionally, the company recently saved Meatless Farm, showcasing its commitment to supporting the plant-based movement.
Beyond Meat, another significant entity in the market, expanded its product availability last year yet is facing a challenging period with sales plunging by nearly a third in the second quarter. CEO Ethan Brown attributes this decline to softer demand for plant-based meats and heightened scrutiny regarding their health benefits. Brown emphasizes a need for educational outreach about the health advantages of their offerings. Sales forecasts for the brand have been lowered for the year, reflecting ongoing economic uncertainties and changing consumer perceptions.
LoveSeitan, founded in 2017, has succumbed to market pressures and recently ceased operations due to slower-than-anticipated sales. Specializing in products like Facon Bacon and Seitan Pepperoni, the brand could not persuade enough consumers of seitan’s benefits. Co-founder Steve Swindon acknowledged tough market conditions as a contributing factor to their closure.
Launched in 2019, This has rapidly scaled its operations, securing substantial funding to enhance growth. The brand managed to raise over £15m in a series B funding round, positioning itself strongly within the market and focusing on recruiting traditional meat-eaters into the plant-based category. Despite broader market challenges, This continues to innovate with new products and categories, including ready meals and ambient snacks.
The plant-based meat sector is adjusting to economic challenges by consolidating resources and innovating product offerings.
