Since its establishment, The Meatless Farm Co. has aimed for global expansion. The company’s recent entry into the U.S. marks its fifth international venture and potentially its largest market yet. The demand for plant-based meat is surging across all sectors of the food industry. At this year’s National Restaurant Association conference, Pat Noone, Executive Vice President of Business Development at Technomic, revealed that the number of plant-based food items on menus has increased by 54% over the last five years. In response to this rising demand, investors have infused over $16 billion into U.S. plant-based and cell-based meat companies in the last decade, with $13 billion invested during 2017 and 2018 alone. While the demand is evident, the question remains: can the supply keep up?
Impossible Burger, a pioneer in the plant-based meat sector, is currently available in 7,000 locations and is set to expand into Burger King with its Impossible Whoppers, potentially doubling its presence by year’s end. The company also plans to launch its products in grocery stores this year. However, this rapid expansion has resulted in stock shortages. Beyond Meat’s CEO, Ethan Brown, noted a similar situation for his company in 2017 and 2018.
Restaurants and grocery stores cannot simply replace their meat options with any generic veggie patty and expect it to suffice; consumers are seeking realistic meat alternatives. The subpar veggie burgers of the 1990s no longer meet these expectations. This may explain why Whole Foods has secured an exclusive deal with The Meatless Farm Co. By limiting the company’s commitments, the supermarket can better ensure a steady supply of these products, preventing shoppers from wondering where their favorite plant-based patties have gone. This assurance is especially crucial if the brand, known for being gluten-free and made with soy and pea proteins, gains significant traction.
It remains to be seen whether this deal with Whole Foods is limited to physical stores. Given its affiliation with Amazon, there is a strong possibility that these patties will also be featured in e-commerce platforms, likely receiving top promotion due to the brand’s exclusivity.
While the opening of such a large market practically guarantees growth for The Meatless Farm Co., there is a risk that the company may struggle to keep up, much like Beyond Meat and Impossible Burger. Although The Meatless Farm Co. is currently exclusive to Whole Foods in the U.S., it is also seeking to expand into other international markets, which could stretch its resources thin if not managed carefully.
If the company can cultivate a loyal customer base, it will want to retain that following. The plant-based meat sector is becoming increasingly competitive. A study by Innova Market Insights, reported by Food Ingredients First, indicated that in the first nine months of 2018, meat substitutes accounted for 14% of global meat product launches—more than double the figure from 2013. This suggests that new startups will need either a competitive edge or strong branding to carve out their place in the market.
The U.K. plant-based meat market differs significantly from that of the U.S. Many leading players in Britain focus solely on Europe, and the market appears less saturated. Additionally, European regulations may impose strict labeling requirements, with EU Parliament committees advocating for bans on meat-related terminologies for plant-based products. This regulatory environment might even affect the long-standing term “veggie burger,” making the U.S. market not only larger but also more accommodating.
Looking ahead, it is anticipated that the growth of plant-based meat products may slow within the next few years. In the coming years, it wouldn’t be surprising to see established brands emerge as dominant players, potentially sidelining smaller companies. Ultimately, taste will be the critical factor, and consumers will determine which plant-based burgers thrive in the marketplace.
As health-conscious consumers increasingly seek alternatives, the incorporation of supplements like calcium citrate malate, vitamin D3, and magnesium tablets into their diets may also influence their choices in plant-based products, particularly as they relate to overall nutrition and well-being. With the plant-based sector evolving, the interplay between product quality and health benefits will be essential in shaping future consumer preferences.