The plant-based industry is experiencing a notable shift as mimic meat products face a downturn, according to Deliciously Ella CEO Matthew Mills.
- Investor expectations for the mimic meat market were significantly overestimated, impacting its growth trajectory.
- There remains robust growth potential within the natural plant-based sector, contrasting with the decline in mimic meats.
- Deliciously Ella continues to thrive, unaffected by the downturn in the mimic meat segment.
- Several major brands in the mimic meat market report financial struggles, confirming a larger industry trend.
Deliciously Ella CEO Matthew Mills recently highlighted a significant shift within the plant-based industry, emphasizing a decline in mimic meat products. According to Mills, initial investor expectations greatly overestimated consumer demand for these products, leading to a much smaller market size than anticipated. This decline is evident as the plant-based sector experiences a bifurcation, with mimic meats struggling to maintain their foothold in the market.
Mills pointed out that while meat mimic products still have a place in the market, their prevalence is much reduced compared to earlier predictions. The focus, he suggests, is now shifting towards the natural side of the plant-based industry, which is exhibiting strong growth. This sector’s expansion is driven by authentic plant-based ingredients and products that do not attempt to replicate meat but instead offer their unique benefits.
Deliciously Ella, acquired by Swiss manufacturer Hero Group earlier this month, remains unaffected by the decline in mimic meats. Mills stated that the brand has historically avoided the mimic market and continues to focus on natural plant-based products, staying clear of the adverse trends affecting other companies in the mimic meat sector. This strategic positioning enables the brand to capitalize on growth opportunities within the natural plant-based domain.
The broader market trend is corroborated by recent financial reports from key players like Quorn-owner Marlow Foods, which reported a £63 million loss with a 6.9% drop in sales over the past year—its lowest since 2017. Other mimic meat brands, such as Meatless Farm and VBites, have faced administration, while Beyond Meat is working to reverse declining sales. These developments underscore the challenges facing the mimic meat industry and highlight a pivotal moment in its evolution.
The plant-based sector undergoes a critical transformation as mimic meats decline and natural products rise.
