Fake meat market plummets: Beyond Meat records 30% drop in profits
Among the reasons for the decline in sales is consumers' rejection of consuming synthetic meat. This is reflected in the "23.9% decrease in volume of products sold."
The vegan food manufacturer Beyond Meat, which was once funded by Bill Gates, reported a drop of a 30.5% in profits in the second quarter of this year. The fake meat producer also presented a 12% plunge in its shares in the stock market.
One of the reasons for the drop in its revenues is consumers' refusal to consume synthetic meat. According to a release from the company, this was evidenced by "a 23.9% decrease in volume of products sold" which in turn reflected "weak category demand."
Due to the slump, the company was forced to lower its economic outlook for the end of this year. In the update, it forecasts revenues of $360 million to $380 million (down from the $375 million to $415 million range it forecast in the first quarter). In addition, the new figures show a 14% to 9% drop in revenues compared to 2022:
To reduce its costs, the company will lay off about 200 workers. This will save it $39 million over a one-year period.
Citizens do not want a meatless future
The company claims on its website that its mission and goals include making "a great impact on our world."
Despite the poor financial results, the company's Chairman and CEO Ethan Brown noted that this is part of "strong progress toward our goal of sustainable long-term growth" and assured that the company remains "steadfast in our belief that plant-based meat, and Beyond Meat specifically, will play an important part of the global response to a climate crisis ... while also delivering health benefits to the individual consumer":
However, many consumers do not agree with Brown and choose to continue to consume conventional meat. The data from the United Nations' Food and Agriculture Organization (FAO) showed last year that world meat production has increased fivefold since the 1960s.